Congressional Record, Volume 141 Issue 41 (Monday, March 6, 1995)

[Congressional Record Volume 141, Number 41 (Monday, March 6, 1995)]
[Senate]
[Pages S3521-S3539]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mrs. HUTCHISON:
S. 498. A bill to amend title XVI of the Social Security Act to deny
SSI benefits for individuals whose disability is based on alcoholism or
drug addiction, and for other purposes; to the Committee on Finance.

legislation to deny ssi benefits to individuals whose disability is
based on drug or alcohol addiction
Mrs. HUTCHISON. Mr. President, I would like to introduce a bill this
morning because there is something fundamentally wrong with a
Government program that pays drug addicts to remain addicted and pays
alcoholics to continue being addicted to alcohol. Yet, that is
precisely what the Supplemental Security Income Program currently does:
It grants substance abusers an entitlement based upon their addiction.
Most Americans are surprised to learn that drug abuse is now
classified as a disability and that addicts and alcoholics are given
SSI payments which they use to supply their addictions rather than to
obtain food, shelter, and treatment which, of course, was the purpose
of the program.
This simply defies the commonsense test. It wastes resources and does
actual harm to those it claims to help. SSI payments may, under these
circumstances, provide a perverse incentive to beneficiaries. We pay
them to stay on drugs, we pay them not to work, and we pay them to
avoid recovery.
In the words of one doctor who has spent her entire professional
career dealing with the problems of addiction, SSI payments ``* * *
undermine the very thing they are supposed to be doing for my
patients--promoting their rehabilitation.''
In 1994, 100,000 drug addicts and alcoholics were on the SSI rolls
and received an estimated $382 million in Federal benefits, benefits
that came out of the pockets of responsible, hardworking, taxpaying
Americans.
The SSI caseload of drug addicts and alcoholics has expanded more
than 700 percent since 1988 when there were only 13,000 such
individuals in the programs. At their current rate of increase, their
numbers are expected to rise to 200,000 within 5 years.
Sadly, only 10 percent ever recover and escape the SSI rolls. Such a
recovery rate is devastating. We have botched our attempt to provide a
safety net and have instead provided these individuals the means to
continue their free-fall into addiction. Congress cannot in good
conscience continue this policy.
So today, I am introducing a bill to stop payments to individual
addicts and instead rededicate those resources to put addiction
research and treatment programs on the books. These funds will be put
to much more constructive alternative uses. Society as a whole will
benefit because treatment programs reduce criminal justice costs and
lost productivity.
Drug addicts and alcoholics do not need an allowance from the
Government which they can then use to feed their addictions. What they
need is treatment. The drug addicts and alcoholics program within SSI
was intended to support these individuals while they were under
treatment. But that is not how things worked out. The program has been
difficult to monitor and they have, in fact, not found that people who
are taking the benefits are going into rehabilitation programs. In
fact, rehabilitation is actually discouraged because rehabilitation
results in loss of benefits of the program.
Substance abuse is taking a horrible toll on our society. The current
SSI Program is doing nothing to remedy that unfortunate fact. My bill
would alter our fundamental approach to substance abuse and abusers.
Instead of general monthly payments, the abusers would be given
treatment programs that require participation by them and commitment by
them to stop their habit and rehabilitate themselves to be responsible
citizens. It will save money, and it will put our taxpayer dollars to
better use.
______

By Mr. JOHNSTON:
S. 499. A bill to provide an exception to the coverage of State and
local employees under Social Security; to the Committee on Finance.
S. 500. A bill to amend the Internal Revenue Code of 1986 to provide
that certain deductions of schoolbus drivers shall be allowable in
computing adjusted gross income; to the Committee on Finance.

legislation to help schoolbus drivers

Mr. JOHNSTON. Mr. President, today I am introducing
legislation to help assist our Nation's schoolbus drivers who provide a
very important role in the education of our children. Recently, several
broad-based tax provisions have been enacted into law which adversely
affect schoolbus drivers. The bills I am introducing today will provide
some of our most dedicated school employees with relief which they need
and deserve.
The first measure would permit busdrivers to deduct actual operating
expenses, regardless of whether or not they itemize on their Federal
tax returns. This was the law prior to enactment of the Tax Reform Act
of 1986. Under current law, however, schoolbus drivers' actual expenses
are treated as miscellaneous expenses, thus limiting the deduction to
those who itemize and subjecting it to the 2-percent floor. The floor
has prevented many schoolbus drivers from qualifying for any deduction
for their actual operational expenses because they cannot meet the 2-
percent floor applicable to miscellaneous itemized deductions. The
result has been a substantial increase in schoolbus drivers' annual
income tax liability. Moreover, even those busdrivers who itemize and
qualify for deductions under the 2-percent floor have been penalized,
especially those who file joint returns.
The second measure would exempt schoolbus drivers--and other State
and local employees who work on a part-time, seasonal, or temporary
basis--
[[Page S3522]] from paying Social Security taxes. Many of these
individuals are already covered under State and local retirement
systems; however, the law currently requires that they pay into Social
Security as well. The result is increased costs to the employer and
smaller take-home paychecks for the employees. Perversely, some States
may even decide to remove these workers from their retirement systems,
which could result in a reduction in, or loss of, retirement benefits
for which the employees have worked for many years.
Our schoolbus drivers do a yeoman's job in transporting future
generations to and from school. We all agree that education of our
youth should be one of our highest priorities. Let's pass this
legislation and provide some relief to those individuals who make it
possible for our children to arrive at school in a safe and timely
manner.
______

By Mr. BREAUX (for himself and Mr. Johnston):
S. 501. A bill to amend the Internal Revenue Code of 1986 to permit
the tax-free rollover of certain payments made by employers to
separated employees.

tax free rollover of certain payments to separated employees

Mr. BREAUX. Mr. President, I rise today to reintroduce
legislation to help those employees who are living under a new reality
of the 1990's--corporate downsizing. This bill will allow taxpayers who
lose their jobs due to corporate downsizing to roll over, tax-free, any
lump sum payment received as part of the termination into an individual
retirement account [IRA] or similar qualified plan. Taxes would be paid
when the funds are withdrawn at retirement. This will allow the upfront
payment to serve the purpose of providing the necessary income for
retirement. This legislation will relieve an enormous tax burden on
thousands of Americans and further encourage retirement savings. Last
year the bill was estimated to cost $405 million over 5 years.
Without this legislation, many workers, generally 5 to 10 years from
retirement age, will see between 40 to 50 percent of these payments
immediately eaten up by Federal, State, and local income taxes. Of
course, if these payments are made out of excess funds in a qualified
retirement plan funded by the employer, this problem does not arise.
This however, is not always the case. Given the generally dismal rate
of underfunded private retirement plans, payments will often come out
of the general revenues of the company rather than from a qualified
plan, and thus will not qualify for the tax exempt rollover provisions
that currently exist under the code.
Mr. President, I hope that my colleagues will join me by cosponsoring
this important legislation.
______

By Mr. DODD (for himself and Mr. Lieberman):
S. 502. A bill to clarify the tax treatment of certain disability
benefits received by former police officers or firefighters; to the
Committee on Finance.

police and firefighters tax clarification act

Mr. DODD. Mr. President, today I am reintroducing an important
piece of legislation that will provide a measure of tax fairness for
more than 1,000 police officers, firefighters and their families in my
home State of Connecticut. I am pleased to be joined in this effort by
Senator Lieberman.
This bill clarifies the tax treatment of heart and hypertension
benefits awarded to Connecticut's police officers and firefighters
prior to 1992. The clarification is necessary because of an error made
in the original version of Connecticut's heart and hypertension law.
Under the law, Connecticut intended to treat heart and hypertension
benefits as workmen's compensation for tax purposes. Unfortunately,
because of the language used in the State statute, the heart and
hypertension benefits became taxable under a ruling by the Internal
Revenue Service [IRS] in 1991.
Since the IRS ruling, Connecticut has amended its law. But that
change does not help those police officers, firefighters, and their
families, who received benefits prior to the amendment. These law-
abiding citizens accepted the benefits with the understanding that they
were not taxable. Now, as a result of the problem with the State law,
and through no fault of their own, they are being charged with back
taxes, interest, and penalties by the IRS.
Mr. President, we must address this unfortunate situation. Our
firefighters and police officers are dedicated public servants. Every
day, they face enormous difficulties and dangers protecting our homes
and neighborhoods. The hazards they face make their jobs particularly
stressful. They need the security provided by heart and hypertension
benefits. They should not have to contend with back taxes and penalties
that are being assessed due to an error in State law.
Under this legislation, which would exempt heart and hypertension
benefits from taxable income for the years prior to the IRS ruling--
1989, 1990, and 1991--we can treat these public servants and their
families more fairly. This bill is narrowly drafted to accomplish that
limited purpose and would not affect the tax treatment of heart and
hypertension benefits awarded after January 1, 1992.
Mr. President, my efforts to pass this legislation date back to the
102d Congress. During that Congress, Senator Lieberman and I worked
with Representatives Barbara Kennelly and Rosa DeLauro and this bill
became a part of the Revenue Act of 1992. Although the Revenue Act was
passed by Congress, it was vetoed by President Bush 1 day after he lost
the election. We tried again during the 103d Congress, but we were
unable to move the bill through the relevant committees.
I am hopeful that we can pass this legislation quickly this year so
that we can remove the threat of back taxes and penalties that hangs
over Connecticut's police officers, firefighters, and their
families.
______

By Mr. BUMPERS (for himself, Mr. Lautenberg, Mr. Leahy, Mr.
Akaka, Mr. Levin, Mr. Pryor, Mr. Kohl, Mr. Feingold, and Mr.
Pell):
S. 504. A bill to modify the requirements applicable to locatable
minerals on public domain lands, consistent with the principles of
self-initiation of mining claims, and for other purposes; to the
Committee on Energy and Natural Resources.

mineral exploration and development act

Mr. BUMPERS.
Mr. President, I rise today to introduce the Mineral Exploration and
Development Act of 1995.

This is the fourth Congress that I have proposed comprehensive
legislation to reform the 1872 mining law. Obviously, if I had been
successful in the past, I would not be here again today. There are few
issues around here that I have such strong feelings about as I have on
this subject.
Mr. President, as it provided for in 1872, and what it still permits
today, the 1872 mining law allows for any citizen of this country to go
on any of the 550 million acres of Federal lands open to mining, drive
down four stakes encompassing 20 acres of land and notify the Bureau of
Land Management that the land is subject to a mining claim. If, at some
time in the future, the claimant decides that that 20-acre claim has
gold, silver, copper, platinum, or any other hardrock mineral under it,
the claimant can demand--literally demand--a deed from the U.S.
Government for that 20 acres. If the BLM decides that yes, it does
indeed have commercially mineable minerals under the claim, the
Government will give you a deed to the land. Mr. President, they will
give you a deed for either $2.50 an acre or $5 an acre, depending on
the type of mining claim you have.
Mr. President, it is very difficult to make this case because the
people across the country say that this simply cannot be true. No
government in its right mind, especially a government that is in debt
$4.6 trillion, would give away the public domain and billions of
dollars worth of minerals for $2.50 an acre, with billions of dollars
worth of gold under it. Well, unhappily, we are crazy enough to do just
that, and we have been doing it since 1872.
Mr. President, there are estimates that between $1 and $4 billion
worth of gold and other minerals are removed from our public lands
every year. The taxpayers, the very owners of the public lands, don't
even receive one red cent in return.
[[Page S3523]] Mr. President, the Goldstrike Mine in Nevada is owned
by a subsidiary of American Barrick Resources, which is a Canadian
corporation. Incidentally, many of the top gold-mining companies in
this country are foreign owned.
On September 10, 1992, Barrick filed an application for patents on
1,800 acres of its Golstrike Mine with the Bureau of Land Management.
The BLM checked it out and found that there were commercial quantities
of gold underneath that 1,800 acres.
(Mr. CRAIG assumed the chair.)
Mr. BUMPERS. As a result, the Bureau of Land Management had no choice
but to give Barrick a deed to the 1,800 acres of land for $9,000; $5 an
acre. According to Barrick--not Dale Bumpers--the land contains $10
billion dollars' worth of gold.
And so Barrick is going to mine 10 billion dollars' worth of gold--
and what do you think Uncle Sam's return will be? Absolutely nothing.
Let me ask my colleagues: If you had 1,800 acres of land and Barrick
Mining Co. was getting ready to mine 10 billion dollars' worth of gold
off your land, what would you expect in return? Five percent? Ten
percent? As a matter of fact, the Newmont Mining Co. in Nevada pays an
18-percent royalty to a private landowner in the Carlin Trend of
Nevada.
However, the U.S. taxpayers will not receive one red cent in
royalties. And it is our land. It is our gold. It belongs to the people
of this country.
People who watch speeches like this on the floor of the Senate say
this couldn't possibly be true.
It not only can happen, but it has been happening for years and years
and years. And I can tell you, with the makeup of the Senate in the
104th Congress, it will likely continue to happen. While I may not win
this battle this year, I am certainly not going to quit speaking out
about it.
While the hardrock mining companies argue that the imposition of a
reasonable royalty would put them out of business, they continue to
ignore the fact that gross royalties are paid for all other minerals
that are extracted from the taxpayer-owned land. We charge people who
mine coal 12.5 percent. If you extract natural gas from Federal lands,
you pay the U.S. Government a 12.5-percent royalty. If you mine
geothermal resources, as we do out West, it is 10 to 15 percent of
gross revenues. If you drill oil on Federal lands, you pay a 12.5-
percent royalty.
However, if you mine for gold, silver, or copper, you do not pay one
red cent to the U.S. Government.
Why? Because the mining companies have the political clout in this
body to prevent the enactment of comprehensive mining law reform. Last
year the House of Representatives passed a comprehensive and reasonable
mining law reform bill. However, when it came over to the Senate it
fell into the same old sump hole.
Occasionally, ``60 Minutes'' or ``20-20'' or ``Prime Time Live'' will
do a 10- to 20-minute segment on this issue. Sam Donaldson will say,
``Can you believe this?'' And the next morning, my phone rings off the
wall.
Several years ago, after ABC did a story on the mining law, a Senator
called and said, ``For God's sake, get me on your bill as a cosponsor.
My phone hasn't stopped ringing.'' We put him on as a cosponsor.
However, when it came time to vote on my amendment to impose a
moratorium on the issuance of patents, he voted against it. He just had
not yet heard from the mining industry when he cosponsored my bill.
The 1872 mining law does not reflect modern environmental protection
policies. Past mining activities have left a legacy of unreclaimed
lands, acid mine drainage, and hazardous waste. Approximately 60
abandoned hardrock mining sites are currently on the Superfund National
Priority List. Some estimate that it could cost taxpayers upward of $50
billion to clean up these sites.
The 1872 mining law does not contain any bonding or reclamation
requirements or any requirements for protecting the environment. While
BLM and Forest Service regulations address these issues, their
regulations, particularly BLM's, are full of loopholes and weak.
The Mineral Exploration and Development Act of 1995 would provide BLM
and the Forest Service with sufficient authority to regulate mining to
minimize adverse impacts to the environment. It would mandate
reclamation and bonding and would direct the agencies to promulgate
specific reclamation standards.
Some of the Senators who come on this floor and make these long
speeches about what a wonderful thing the 1872 mining law is and how
wonderful it has been to their States, should take a look at what the
State governments do. For example, Arizona charges a 2-percent royalty
on the gross value of the minerals extracted from State-owned land. If
you mine on private or Federal lands, Arizona charges a 2.5-percent
severance tax.
What do we charge? Nothing.
Montana gets a 5-percent royalty for raw metallic minerals mined on
State lands and they charge a severance tax of 1.6 percent of the gross
value in excess of $250,000 for gold, silver, and platinum mined on all
lands in the State.
The State of Utah charges a 4-percent gross value royalty on
nonfissionable metalliferous metals.
Utah also charges a 2.6-percent severance tax on all metalliferous
minerals, including those that are on Federal lands. Whether there is a
patent on it or not, whether it is private lands or Federal lands, you
pay a severance tax in the State of Utah.
What does the U.S. Government charge? absolutely nothing.
Wyoming charges a 5-percent royalty on the gross sales value of gold,
silver, and trona mined on State-owned land, and a 2-percent net of the
minemouth value severance tax on everything that is mined anywhere in
that State.
However, the mining industry will continue to insist that if my bill
or anything even close to it passes, it will be the end of the world as
we know it.
Now, Mr. President, I started out talking about the fact that this is
the sixth year I have fought this battle. When I first started back
about 1990, I could not even fathom that this was actually going on in
this country. Sadly, it continues unabated.
The argument of the mining industry then was, ``It will put us out of
business if you charge us a royalty.'' ``How about 3 percent?'' ``No,
we cannot afford 3 percent.'' ``Two percent?'' ``No, we cannot afford 2
percent. Cannot afford anything.'' Now they say: ``We will pay a small
royalty, but you must allow us to deduct every imaginable and
unimaginable cost of mining first''.
Mr. President, at the beginning of the 103d Congress gold was selling
in this country for $333 an ounce. The mining industry said, ``we
cannot afford to pay an 8-percent royalty or even a 5-percent royalty
when we are selling gold for $333 an ounce. It would bankrupt us.''
Gold is now selling for approximately $375 an ounce. However, the
mining industry is still claiming poverty.
Mr. President, when I first started fighting on this issue in 1990 we
had 1.2 million mining claims in this country. Today, because a person
now has to pay $100 a year in order to hold his claim, that number has
been reduced to 330,000 claims. Do you know why there has been such a
precipitous drop in the number of claims? All those claims out there
were filed to build summer homes on the land or they were filed hoping
some big mining company would come along and say, ``How about letting
us explore your claim?'' because they did not have to pay a red cent to
keep that claim viable.
Mr. President, almost every one of these mining companies do, in
fact, pay royalties. However, they don't pay royalties to the
landowner--the American taxpayer. Rather, they pay royalties to
somebody they bought the claim from. So who is really getting the
royalty? It is the guy who had the claim.
If I had claims amounting to 1,000 acres, never touched it, a mining
company could come by and say, ``We would like to have that claim to
mine on.'' If I said, ``OK,'' they will look it over. If they find out
it has gold on it, they will say, ``We will pay you a 5-percent royalty
on all the gold we take off of your land.'' That goes on time and time
again. Virtually every major mining company in the United States that
mines on Federal lands is paying a pretty good-sized royalty to the guy
who went out there and drove the stakes into the ground with no
intention of ever doing anything.
[[Page S3524]] Mr. President, I have tried every year to convince the
Senate to enact comprehensive mining law reform. In addition, I have
tried to impose a moratorium to prohibit the Interior Department from
granting patents. The House of Representatives passed such a moratorium
every year since I started this fight, and every year the Senate has
killed it. Last year the Senate finally agreed to the moratorium during
a House-Senate Appropriations conference.
In 1991 I came within a single vote of passing the patent moratorium.
Just 4 days later, the Stillwater Mining Co. filed applications for
patents on a little more than 2,000 acres of land in Montana. It took
them just 4 days to figure out that they might have to pay a royalty
one of these days if they did not get a patent. Assuming they get these
patents, Stillwater will pay just $10,000 for the 2,000 acres of land.
According to Stillwater's own figures, the land contains roughly 35 to
38 billion dollars' worth of platinum and palladium.
And, Mr. and Mrs. Taxpayer, what do you think you are going to get
for the 38 billion dollars' worth of platinum and palladium that you
own? You guessed it. Not one penny.
Mr. President, I will just make this little summation. The patent
moratorium that we passed last year grandfathered-in about 350 patent
applications. If we do not keep the moratorium pending until Congress
is ready to enact comprehensive reform, the U.S. Government will
continue to give away our public lands.
In addition, we will continue to permit mining companies to walk away
from unmitigated environmental disasters leaving the taxpayers to pick
up the tab. They did not get a red cent out of it, but the taxpayers
get the luxury of cleaning up the mess.
Mr. President, my bill constitutes what I believe to be the minimum
required for comprehensive mining law reform. It provides for the
Secretary to have considerable input into the siting of mining
operations to ensure that areas such as Yellowstone National Park are
not ruined.
My bill provides for an 8-percent gross royalty. It provides for
bonding to make sure that the land is put back in half decent shape
when mining operations are completed. It stops this business of giving
deeds to people for $2.50 an acre.
Opponents of comprehensive reform will soon introduce a bill that
would continue to permit patenting. Rather than $2.50 or $5 an acre,
the claimant would have to pay the fair market value for the surface of
the land. That is only marginally better than the $5 an acre they pay
now.
Senators trying to pass this as reform will say: ``Well, they are
paying fair market value.'' You give me the Gulf of Mexico; I will pay
for the fair market of the surface of the Gulf of Mexico if you give me
all the oil underneath it.
Mr. President, I intend to pursue this matter as long as I am in the
U.S. Senate. I want to say to my colleagues and to the American people,
there is no greater travesty--no greater travesty--than the
continuation of this mining law and allowing the mining interests of
this country to take the valuable resources that belong to every
taxpayer in the country.
We have a $4.6 trillion debt and Speaker Gingrich and the proponents
of the Contract With America want to put children in orphanages, take
away school lunches, and dramatically cut food stamps. But the mining
companies can't compensate the taxpayers because there are enough
western Senators here to stop it. Where are our priorities?
So I will probably not succeed this year. If I could not succeed last
year, given the makeup of the Senate this year, I will not prevail and
I am tired of fighting the battle, but I am not tired enough to quit.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record at the conclusion of my remarks.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 504

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be referred to as the
``Mineral Exploration and Development Act of 1995''.
(b) Table of Contents.--
TITLE I--MINERAL EXPLORATION AND DEVELOPMENT

Sec. 101. Definitions, references, and coverage.
Sec. 102. Lands open to location; rights under this Act.
Sec. 103. Location of mining claims.
Sec. 104. Claim maintenance requirements.
Sec. 105. Penalties.
Sec. 106. Preemption.
Sec. 107. Limitation on patent issuance.
Sec. 108. Multiple mineral development and surface resources.
Sec. 109. Mineral materials.

TITLE II--ENVIRONMENTAL CONSIDERATIONS OF MINERAL EXPLORATION AND
DEVELOPMENT

Sec. 201. Surface management.
Sec. 202. Inspection and enforcement.
Sec. 203. State law and regulation.
Sec. 204. Unsuitability review.
Sec. 205. Lands not open to location.

TITLE III--ABANDONED MINERALS MINE RECLAMATION FUND

Sec. 301. Abandoned Minerals Mine Reclamation Fund.
Sec. 302. Use and objectives of the fund.
Sec. 303. Eligible areas.
Sec. 304. Fund allocation and expenditures.
Sec. 305. State reclamation programs.
Sec. 306. Authorization of appropriations.

TITLE IV--ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

Sec. 401. Policy functions.
Sec. 402. User fees.
Sec. 403. Regulations; effective dates.
Sec. 404. Transitional rules; mining claims and mill sites.
Sec. 405. Transitional rules; surface management requirements.
Sec. 406. Basis for contest.
Sec. 407. Savings clause claims.
Sec. 408. Severability.
Sec. 409. Purchasing power adjustment.
Sec. 410. Royalty.
Sec. 411. Savings clause.
Sec. 412. Public records.
TITLE I--MINERAL EXPLORATION AND DEVELOPMENT

SEC. 101. DEFINITIONS, REFERENCES, AND COVERAGE.

(a) Definitions.--As used in this Act:
(1) The term ``applicant'' means any person applying for a
plan of operations under this Act or a modification to or a
renewal of a plan of operations under this Act.
(2) The term ``claim holder'' means the holder of a mining
claim located or converted under this Act. Such term may
include an agent of a claim holder.
(3) The term ``land use plans'' means those plans required
under section 202 of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1712) or the land
management plans for National Forest System units required
under section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1604), whichever
is applicable.
(4) The term ``legal subdivisions'' means an aliquot
quarter section of land as established by the official
records of the public land survey system, or a single lot as
established by the official records of the public land survey
system if the pertinent section is irregular and contains
fractional lots, as the case may be.
(5) The term ``locatable mineral'' means any mineral not
subject to disposition under any of the following:
(A) the Mineral Leasing Act (30 U.S.C. 181 and following);
(B) the Geothermal Steam Act of 1970 (30 U.S.C. 100 and
following);
(C) the Act of July 31, 1947, commonly known as the
Materials Act of 1947 (30 U.S.C. 601 and following); or
(D) the Mineral Leasing for Acquired Lands Act (30 U.S.C.
351 and following).
(6) The term ``mineral activities'' means any activity for,
related to or incidental to mineral exploration, mining,
beneficiation and processing activities for any locatable
mineral, including access. When used with respect to this
term--
(A) the term ``exploration'' means those techniques
employed to locate the presence of a locatable mineral
deposit and to establish its nature, position, size, shape,
grade, and value;
(B) the term ``mining'' means the processes employed for
the extraction of a locatable mineral from the earth;
(C) the term ``beneficiation'' means the crushing and
grinding of locatable mineral ore and such processes which
are employed to free the mineral from other constituents,
including but not necessarily limited to, physical and
chemical separation techniques; and
(D) the term ``processing'' means processes downstream of
beneficiation employed to prepare locatable mineral ore into
the final marketable product, including but not limited to,
smelting and electrolytic refining.
(7) The term ``mining claim'' means a claim for the
purposes of mineral activities.
(8) The term ``National Conservation System unit'' means
any unit of the National Park System, National Wildlife
Refuge System, National Wild and Scenic Rivers System,
National Trails System, or a national conservation area,
national recreation area, or a national forest monument.
(9) The term ``operator'' means any person, partnership, or
corporation with a plan of operations approved under this
Act.
[[Page S3525]] (10) The term ``Secretary'' means, unless
otherwise provided in this Act--
(A) the Secretary of the Interior for the purposes of title
I and title III;
(B) the Secretary of the Interior with respect to land
under the jurisdiction of such Secretary and all other lands
subject to this Act (except for lands under the jurisdiction
of such Secretary and all other lands subject to this Act
(except for lands under the jurisdiction of the Secretary of
Agriculture) for the purposes of title II; and
(C) the Secretary of Agriculture with respect to lands
under the jurisdiction of the Secretary of Agriculture for
the purposes of title II.
(11) The term ``substantial legal and financial
commitments'' means significant investments that have been
made to develop mining claims under the general mining laws
such as: long-term contracts for minerals produced;
processing, beneficiation, or extraction facilities and
transportation infrastructure; or other capital-intensive
activities. Costs of acquiring the mining claim or claims, or
the right to mine alone without other significant investments
as detailed above, are not sufficient to constitute
substantial legal and financial commitments.
(12) The term ``surface management requirements'' means the
requirements and standards of section 201, section 203, and
section 204 of this Act, and such other standards as are
established by the Secretary governing mineral activities and
reclamation.
(b) References.--(1) Any reference in this Act to the term
``general mining laws'' is a reference to those Acts which
generally comprise chapters 2, 12A, and 16, and sections 161
and 162 of title 30, United States Code.
(2) Any reference in this Act to the ``Act of July 23,
1955'', is a reference to the Act of July 23, 1955, entitled
``An Act to amend the Act of July 31, 1947 (61 Stat. 681),
and the mining laws to provide for multiple use of the
surface of the same tracts of the public lands, and for other
purposes.'' (30 U.S.C. 601 and following).
(c) Coverage.--This Act shall apply only to mineral
activities and reclamation on lands and interests in land
which are open to location as provided in this Act.

SEC. 102. LANDS OPEN TO LOCATION; RIGHTS UNDER THIS ACT.

(a) Open Lands.--Mining claims may be located under this
Act
on lands and interests in lands owned by the United States
to the extent that--
(1) such lands and interests were open to the location of
mining claims under the general mining laws on the date of
enactment of this Act;
(2) such lands and interests are opened to the location of
mining claims by reason of section 204(f) or section 205 of
this Act; and
(3) such lands and interests are opened to the location of
mining claims state the date of enactment of this Act by
reason of any administrative action or statute.
(b) Rights.--The holder of a mining claim located or
converted under this Act and maintained in compliance with
this Act shall have the exclusive right of possession and use
of the claimed land for mineral activities, including the
right of ingress and egress to such claimed lands for such
activities, subject to the rights of the United States under
section 108 and title II.

SEC. 103. LOCATION OF MINING CLAIMS.

(a) General Rule.--A person may locate a mining claim
covering lands open to the location of mining claims by
posting a notice of location, containing the person's name
and address, the time of location (which shall be the date
and hour of location and posting), and a legal description of
the claim. The notice of location shall be posted on a
conspicuous, durable monument erected as near as practicable
to the northeast corner of the mining claim. No person who is
not a citizen, or a corporation organized under the laws of
the United States or of any State or the District of
Columbia, may locate or hold a claim under this Act.
(b) Use of Public Land Survey.--Except as provided in
subsection (c), each mining claim located under this Act
shall--
(1) be located in accordance with the public land survey
system, and
(2) conform to the legal subdivisions thereof. Except as
provided in subsection (c), the legal description of the
mining claim shall be based on the public land survey system
and its legal subdivision.
(c) Exceptions.--(1) If only a protracted survey exists for
the public lands concerned, each of the following shall apply
in lieu of subsection (b):
(A) The legal description of the mining claim shall be
based on the protracted survey and the mining claim shall be
located as near as practicable in conformance with a
protracted legal subdivision.
(B) The mining claim shall be monumented on the ground by
the erection of a conspicuous durable monument at each corner
of the claim.
(C) The legal description of the mining claim shall
include a reference to any existing survey monument, or
where no such monument can be found within a reasonable
distance, to a permanent natural object.
(2) If no survey exists for the public lands concerned,
each of the following shall apply in lieu of subsection (b):
(A) The mining claim shall be a regular square, with each
side laid out in cardinal directions, 40 acres in size.
(B) The claim shall be monumented on the ground by the
erection of a conspicuous durable monument at each corner of
the claim.
(C) The legal description of the mining claim shall be
expressed in metes and bounds and shall include a reference
to any existing survey monument, or where no such monument
can be found within a reasonable distance, to a permanent
natural object. Such description shall be of sufficient
accuracy and completeness to permit recording of the claim
upon the public land records and to permit the Secretary and
other parties to find the claim upon the ground.
(3) In the case of a conflict between the boundaries of a
mining claim as monumented on the ground and the description
of such claim in the notice of location referred to in
subsection (a), the notice of location shall be
determinative.
(d) Filing With Secretary.--(1) Within 30 days after the
location of a mining claim pursuant to this section, a copy
of the notice of location referred to in subsection (a) shall
be filed with the Secretary in an office designated by the
Secretary.
(2) Whenever the Secretary receives a copy of a notice of
location of a mining claim under this Act, the Secretary
shall assign a serial number to the mining claim, and
immediately return a copy of the notice of location to the
locator of the claim, together with a certificate setting
forth the serial number, a description of the claim, and the
claim maintenance requirements of section 104. The Secretary
shall enter the claim on the public land records.
(e) Lands Covered by Claim.--A mining claim located under
this Act shall include all lands and interests in lands open
to location within the boundaries of the claim, subject to
any prior mining claim referenced under subsections (c) and
(d) of section 404.
(f) Date of Location.--A mining claim located under this
Act shall be effective based upon the time of location.
(g) Conflicting Locations.--Any conflicts between the
holders of mining claims located or converted under this Act
relating to relative superiority under the provisions of this
Act may be resolved in adjudication proceedings before the
Secretary. Such adjudication shall be determined on the
record after opportunity for hearing. It shall be incumbent
upon the holder of
a mining claim asserting superior rights in such proceedings
to demonstrate to the Secretary that such person was the
senior locator, or if such person is the junior locator,
that prior to the location of the claim by such locator--
(1) the senior locator failed to file a copy of the notice
of location within the time provided under subsection (d); or
(2) the amount of rental paid by the senior locator was
less than the amount required to be paid by such locator
pursuant to section 104.
(h) Extent of Mineral Deposit.--The boundaries of a mining
claim located under this Act shall extend vertically
downward.

SEC. 104. CLAIM MAINTENANCE REQUIREMENTS.

(a) In General.--(1) In order to maintain a mining claim
under this Act a claim holder shall pay to the Secretary an
annual rental fee. The rental fee shall be paid on the basis
of all land within the boundaries of a mining claim at a rate
established by the Secretary of not less than--
(A) $5 per acre in each of the first through fifth years
following location of the claim;
(B) $10 per acre in each of the sixth through tenth years
following location of the claim;
(C) $15 per acre in each of the eleventh through fifteenth
years following location of the claim;
(D) $20 per acre in each of the sixteenth through twentieth
years following location of the claim; and
(E) $25 per acre in the twenty-first diligence year
following location of the claim, and each year thereafter.(2)
The rental fee shall be due and payable at a time and in a
manner as prescribed by the Secretary.
(b) Failure to Comply.--(1) If a claim holder fails to pay
the rental fee as required by this section, the Secretary
shall immediately provide notice thereof to the claim holder
and after 30 days from the date of such notice the claim
shall be deemed forfeited and such claim shall be null and
void by operation of the law, except as provided under
paragraphs (2) and (3). Such notice shall be sent to the
claim holder by registered or certified mail to the address
provided by such claim holder in the notice of location
referred to in section 103(a) or in the most recent
instrument filed by the claim holder pursuant to this
section. In the even such notice is returned as undelivered,
the Secretary shall be deemed to have fulfilled the notice
requirements of this paragraph.
(2) No claim may be deemed forfeited and null and void due
to a failure to comply with the requirements of this section
if the claim holder corrects such failure to the satisfaction
of the Secretary within 10 days after the date such claim
holder was required to pay the rental fee.
(3) No claim may be deemed forfeited and null and void due
to a failure to comply with the requirements of this section
if, within 10 days after date of the notice referred to in
paragraph (1), the claim holder corrects such failure to the
satisfaction of the Secretary, and if the Secretary
determines that such failure was justifiable.
(c) Prohibition.--The claim holder shall be prohibited from
locating a new claim on the lands included in a forfeited
claim for one year from the date such claim is deemed
forfeited and null and void, except as provided in subsection
(d).
[[Page S3526]] (d) Relinquishment.--A claim holder deciding
not to pursue mineral activity on a claim may relinquish such
claim by notifying the Secretary. A claim holder
relinquishing a claim is responsible for reclamation as
required by section 201 of this Act and all other applicable
requirements. A claim holder who relinquishes a claim shall
not be subject to the prohibition of subsection (c) of this
section; however, if the Secretary determines that a claim is
being relinquished and relocated for the purpose of avoiding
compliance with any provision of this Act, including payment
of the applicable annual rental fee, the claim holder shall
be subject to the prohibition in subsection (c) of this
section.
(e) Suspension.--Payment of the annual rental fee required
by this section shall be suspended upon the payment of the
royalty required by section 410 of this Act in an amount
equal to or greater than the applicable annual rental fee.
During any subsequent period of non-production, or period
when the royalty required by section 410 of this Act is an
amount less than the applicable annual rental fee, the
claimant shall pay to the Secretary a total amount equal to
the applicable annual rental fee.
(f) Fee Disposition.--The Secretary shall deposit all
moneys received from rental fees collected under this
subsection into the Fund referred to in title III.

SEC. 105. PENALTIES.

(a) Violation.--Any claim holder who knowingly or willfully
posts on a mining claim or files a notice of location with
the Secretary under section 103 that contains false,
inaccurate or misleading statements shall be liable for a
penalty of not more than $5,000 per violation. Each day of
continuing violation may be deemed a separate violation for
purposes of penalty assessments.
(b) Review.--No civil penalty under this section shall be
assessed until the claim holder charged with the violation
has been given the opportunity for a hearing on the record
under section 202(f).

SEC. 106. PREEMPTION.

The requirements of this title shall preempt any
conflicting
requirements of any State, or political subdivision thereof
relating to the location and maintenance of mining claims
as provided for by this Act. The filing requirements of
section 314 of the Federal Land Policy and Management Act
(43 U.S.C. 1744) shall not apply with respect to any
mining claim located or converted under this Act.

SEC. 107. LIMITATION ON PATENT ISSUANCE.

(a) Mining Claims.--After January 4, 1995, no patent shall
be issued by the United States for any mining claim located
under the general mining laws unless the Secretary of the
Interior determines that, for the claim concerned--
(1) a patent application was filed with the Secretary on or
before October 1, 1994; and
(2) 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. If the Secretary makes
the determinations referred to in paragraphs (1) and (2) 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 to 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.
(b) Mill Sites.--After October 1, 1994, no patent shall be
issued by the United States for any mill site claim located
under the general mining laws unless the Secretary of the
Interior determines that for the mill site concerned--
(1) a patent application for such land was filed with
Secretary on or before October 1, 1994; and
(2) all requirements applicable to such patent application
were fully complied with by that date. If the Secretary makes
the determinations referred to in paragraphs (1) and (2) for
any mill site 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 to
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. 108. MULTIPLE MINERAL DEVELOPMENT AND SURFACE RESOURCES.

(A) In General.--The provisions of sections 4 and 6 of the
Act of August 13, 1954 (30 U.S.C. 524 and 526), commonly
known as the Multiple Minerals Development Act, and the
provisions of section 4 of the Act of July 23, 1955 (30
U.S.C. 612), shall apply to all mining claims located or
converted under this Act.
(b) Enforcement.--The Secretary of the Interior, or the
Secretary of Agriculture, as the case may be, shall take such
actions as may be necessary to ensure the compliance by
claim holders with section 4 of the Act of July 23, 1955
(30 U.S.C. 612).

SEC. 109. MINERAL MATERIALS.

(a) Determinations.--Section 3 of the Act of July 23, 1955
(30 U.S.C. 611), is amended as follows:
(1) Insert ``(a)'' before the first sentence.
(2) Strike ``or cinders'' and insert in lieu thereof
``cinders, or clay''.
(3) Add the following new subsection at the end thereof:
``(b)(1) Subject to valid existing rights, after the date
of enactment of the Mineral Exploration and Development Act
of 1995, all deposits of mineral materials referred to in
subsection (a), including the block pumice referred to in
such subsection, shall only be subject to disposal under the
terms and conditions of the Materials Act of 1947.
``(2) For purposes of paragraph (1), the term `valid
existing rights' means that a mining claim located for any
such mineral material had some property giving it the
distinct and special value referred to in subsection (a), or
as the case may be, met the definition of block pumice
referred to in such subsection, was properly located and
maintained under the general mining laws prior to the date of
enactment of the Mineral Exploration and Development Act of
1995, and was supported by a discovery of a valuable mineral
deposit within the meaning of the general mining laws on the
date of enactment of the Mineral Exploration and Development
Act of 1995 and that such claim continues to be valid.''
(b) Mineral Materials Disposal Clarification.--Section 4 of
the Act of July 23, 1955 (30 U.S.C. 612), is amended as
follows:
(1) In subsection (b) insert ``and mineral material'' after
``vegetative''.
(2) In subsection (c) insert ``and mineral material'' after
``vegetative''.
(c) Conforming Amendment.--Section 1 of the Act of July 31,
1947, entitled ``An Act to provide for the disposal of
materials on the public lands of the United States'' (30
U.S.C. 601 and following) is amended by striking ``common
varieties of'' in the first sentence.
(d) Short Titles.--(1) Surface resources.--The Act of July
23, 1955, is amended by inserting after section 7 the
following new section.
``Sec. 8. This Act may be cited as the `Surface Resources
Act of 1955'.''.
(2) Mineral Materials.--The Act of July 31, 1947, entitled
``An Act to provide for the disposal of materials on the
public lands of the United States'' (30 U.S.C. 601 and
following) is amended by inserting after section 4 the
following new section:
``Sec. 5. This Act may be cited as the `Materials Act of
1947'.''.
(e) Repeal.--(1) The Act of August 4, 1892 (27 Stat. 348)
commonly known as the Building Stone Act is hereby repealed.
(2) The Act of January 31, 1901 (30 U.S.C. 162) commonly
known as the Saline Placer Act is hereby repealed.

TITLE II--ENVIRONMENTAL CONSIDERATIONS OF MINERAL EXPLORATION AND
DEVELOPMENT

SEC. 201. SURFACE MANAGEMENT.

(a) In General.--Notwithstanding the last sentence of
section 302(b) of the Federal Land Policy and Management Act
of 1976, and in accordance with this title and other
applicable law, the Secretary shall require that mineral
activities and reclamation be conducted so as to minimize
adverse impacts to the environment.
(b) Plans of Operation.--Except as provided under paragraph
(2), no person may engage in mineral activities that may
cause a disturbance of surface resources unless such person
has filed a plan of operations with, and received approval of
such plan of operations, from the Secretary.
(2)(A) A plan of operations may not be required for mineral
activities related to exploration that cause a negligible
disturbance of surface resources not involving the use of
mechanized earth moving equipment, suction dredging,
explosives, the use of motor vehicles in areas closed to off-
road vehicles, the construction of roads, drill pads, or the
use of toxic or hazardous materials.
(B) A plan of operations may not be required for mineral
activities related to exploration that, after notice to the
Secretary, involve only a minimal and readily reclaimable
disturbance of surface resources related to and including
initial test drilling not involving the construction of
access roads, except activities under notice shall not
commence until an adequate financial guarantee is established
for such activities pursuant to subsection (1).
(c) Contents of Plans.--Each proposed plan of operations
shall include a mining permit application and a reclamation
plan together with such documentation as necessary to ensure
compliance with applicable Federal and State environmental
laws and regulations.
(d) Mining Permit Application requirements.--The mining
permit referred to in subsection (c) shall include such terms
and conditions as prescribed by the Secretary, and each of
the following:
(1) The name and mailing address of--
(A) the applicant for the mining permit;
(B) the operator if different than the applicant;
(C) each claim holder of the lands subject to the plan of
operations if different than the applicant;
(D) any subsidiary, affiliate or person controlled by or
under common control with the applicant, or the operator or
each claim holder, if different than the applicant; and
(E) the owner or owners of any land, or interests in any
such land, not subject to this Act, within or adjacent to the
proposed mineral activities.
(2) A statement of any plans of operation held by the
applicant, operator or each claim holder if different than
the applicant, or any subsidiary, affiliate, or person
controlled by or under common control with the applicant,
operator or each claim holder if different than the
applicant.
(3) A statement of whether the applicant, operator or each
claim holder if different
[[Page S3527]] than the applicant, and any subsidiary,
affiliate, or person controlled by or under common control
with the applicant, operator or each claim holder if
different than the applicant has an outstanding violation of
this Act, any surface management requirements, or applicable
air and water quality laws and regulations and if so, a brief
explanation of the facts involved, including identification
of the site and the nature of the violation.
(4) A description of the type and method of mineral
activities proposed, the engineering techniques proposed to
be used and the equipment proposed to be used.
(5) The anticipated starting and termination dates of each
phase of the mineral activities proposed.
(6) A map, to an appropriate scale, clearly showing the
land to be affected by the proposed mineral activities.
(7) A description of the quantity and quality of surface
and ground water resources within and along the boundaries
of, and adjacent to, the area subject to mineral activities
based on 12 months of pre-disturbance monitoring.
(8) A description of the biological resources found in or
adjacent to the area subject to mineral activities, including
vegetation, fish and wildlife, riparian and wetland habitats.
(9) A description of the monitoring systems to be used to
detect and determine whether compliance has and is occurring
consistent with the surface management requirements and to
regulate the effects of mineral activities and reclamation on
the site and surrounding environment, including but not
limited to, groundwater, surface water, air and soils.
(10) Accident contingency plans that include, but are not
limited to, immediate response strategies, corrective
measures to mitigate impacts to fish and wildlife, ground and
surface waters, notification procedures and waste handling
and toxic material neutralization.
(11) Any measures to comply with any conditions on minerals
activities and reclamation that may be required in the
applicable land use plan, including any condition stipulated
pursuant to section 204(d)(1)(B).
(12) A description of measures planned to exclude fish and
wildlife resources from the area subject to mineral
activities by covering, containment, or fencing of open
waters, beneficiation, and processing materials; or
maintenance of all facilities in a condition that is not
harmful to fish and wildlife.
(13) Such environmental baseline data as the Secretary, by
rule, shall require sufficient to validate the determinations
required for plan approval under this Act.
(e) Reclamation Plan Application Requirements.--The
reclamation plan referred to in subsection (c) shall include
such terms and conditions as prescribed by the Secretary, and
each of the following:
(1) A description of the condition of the land subject to
the mining plant permit prior to the commencement of any
mineral activities.
(2) A description of reclamation measures proposed pursuant
to the requirements of subsections (m) and (n).
(3) The engineering techniques to be used in reclamation
and the equipment proposed to be used.
(4) The anticipated starting and termination dates of each
phase of the reclamation proposed.
(5) A description of the proposed condition of the land
following the completion of reclamation.
(6) A description of the maintenance measures that will be
necessary to meet the surface management requirements of this
Act, such as, but not limited to, drainage water treatment
facilities, or liner maintenance and control.
(7) The consideration which has been given to making the
condition of the land after the completion of mineral
activities and final reclamation consistent with the
applicable land use plan.
(f) Public Participation.--(1) Concurrent with submittal of
a plan of operations, or a renewal application for a plan of
operations, the applicant shall publish a notice in a
newspaper of local circulation for 4 consecutive weeks that
shall include: the name of the applicant, the location of the
proposed mineral activities, the type and expected duration
of the proposed mineral activities, and the intended use of
the land after the completion of mineral activities and
reclamation. The Secretary shall also notify in writing other
Federal, State and local government agencies that regulate
mineral activities or land planning decisions in the area
subject to mineral activities.
(2) Copies of the complete proposed plan of operations
shall be made available for public review for 30 days at the
office of the responsible Federal surface management agency
located nearest to the location of the proposed mineral
activities, and at the country courthouse of the county in
which the mineral activities are proposed to be located,
prior to final decision by the Secretary. During this period,
any person and the authorized representative of a Federal,
State or local governmental agency shall have the right to
file written comments relating to the approval or disapproval
of the plan of operations. The Secretary shall immediately
make such comments available to the applicant.
(3) Any person that is or may be adversely affected by the
proposed mineral activities may request, after filing written
comments pursuant to paragraph (2), a public hearing to be
held in the county in which the mineral activities are
proposed. If a hearing is requested, the Secretary shall
conduct a hearing. When a hearing is to be held, notice of
such hearing shall be published in a newspaper of local
circulation for 2 weeks prior to the hearing date.
(g) Plan Approval.--(1) After providing notice and
opportunity for public comment and hearing, the Secretary may
approve, require modifications to, or deny a proposed plan of
operations, except as provided in section 405. To approve a
plan of operations, the Secretary shall make each of the
following determinations:
(A) The mining permit application and reclamation plan are
complete and accurate.
(B) The applicant has demonstrated that reclamation as
required by this Act can be accomplished under the
reclamation plan and would have a high probability of success
based on an analysis of such reclamation measures in areas of
similar geochemistry, topography and hydrology.
(C) The proposed mineral activities, reclamation and
condition of the land after the completion of mineral
activities and final reclamation would be consistent with the
land use plan applicable to the area subject to mineral
activities.
(D) The area subject to the proposed plan of operations is
not included within an area designated unsuitable under
section 204 for the types of mineral activities proposed.
(E) The applicant has demonstrated that the plan of
operations will be in compliance with the requirements of all
other applicable Federal requirements, and any State
requirements agreed to by the Secretary pursuant to
subsection 203(c).
(2) Final approval of a plan of operations under this
subsection shall be conditioned upon compliance with
subsection (1) and, based on information supplied by the
applicant, a determination of the probable hydrologic
consequences of the proposed mineral activities and
reclamation.
(3)(A) A plan of operations under this section shall not be
approved if the applicant, operator, or any claim holder if
different than the applicant, or any subsidiary, affiliate,
or person controlled by or under common control with the
applicant, operator or each claim holder if different than
the applicant, is currently in violation of this Act, any
surface management requirement or of any applicable air and
water quality laws and regulations at any site where mineral
activities have occurred or are occurring.
(B) The Secretary shall suspend an approved plan of
operations if the Secretary determines that any of the
entities described in section 201(d)(1) were in violation of
the surface management requirements at the time the plan of
operations was approved.
(C) A plan of operations referred to in this subsection
shall not be approved or reinstated, as the case may be,
until the applicant submits proofs that the violation has
been corrected or is in the process of being corrected to the
satisfaction of the Secretary; except that no proposed plan
of operations, after opportunity for a hearing, shall be
approved for any applicant, operator or each claim holder if
different than the applicant with a demonstrated pattern of
willful violations of the surface management requirements of
such nature and duration and with such resulting irreparable
damage to the environment as to clearly indicate an intent
not to comply with the surface management requirements.
(h) Term of Permit; Renewal.--(1) The approval of a plan of
operations shall be for a stated term. The term shall be no
greater than that necessary to accomplish the proposed
operations, and in no case for more than 10 years, unless the
applicant demonstrates that a specified longer term is
reasonably needed to obtain financing for equipment and the
opening of the operation.
(2) Failure by the operator to commence mineral activities
within one year of the date scheduled in an approved plan of
operations shall be deemed to require a modification of the
plan.
(3) A plan of operations shall carry with it the right of
successive renewal upon expiration only with respect to
operations on areas within the boundaries of the existing
plan of operations, as approved. An application for renewal
of such plan of operations shall be approved unless the
Secretary determines, in writing, any of the following:
(A) The terms and conditions of the existing plan of
operations are not being met.
(B) Mineral activities and reclamation activities as
approved under the plan of operations are not in compliance
with the surface management requirements of this Act.
(C) The operator has not demonstrated that the financial
guarantee would continue to apply in full force and effect
for the renewal term.
(D) Any additional revised or updated information required
by the Secretary has not been provided.
(E) The applicant has not demonstrated that the plan of
operations will be in compliance with the requirements of all
other applicable Federal requirements, and any State
requirements agreed to by the Secretary pursuant to
subsection 203(c).
(4) A renewal of a plan of operations shall be for a term
not to exceed the period of the original plan as provided in
paragraph (1). Application for plan renewal shall be made at
least 120 days prior to the expiration of an approved plan.
(5) Any person that is, or may be, adversely affected by
the proposed mineral activities may request a public hearing
to be held in the county in which the mineral activities
[[Page S3528]] are proposed. If a hearing is requested, the
Secretary shall conduct a hearing. When a hearing is held,
notice of such hearing shall be published in a newspaper of
local circulation for 2 weeks prior to the
hearing date.
(i) Plan Modification.--(1) Except as provided under
section 405, during the term of a plan of operations the
operator may submit an application to modify the plan. To
approve a proposed modification to a plan of operations the
Secretary shall make the determinations set forth under
subsection (g)(1). The Secretary shall establish guidelines
regarding the extent to which requirements for plans of
operations under this section shall apply to applications to
modify a plan of operations based on whether such
modifications are deemed significant or minor; except that:
(A) any significant modifications shall at a minimum be
subject to subsection (f), and
(B) any modification proposing to extend the area covered
by the plan of operations (except for incidental boundary
revisions) must be made by application for a new plan of
operations.
(2) The Secretary may, upon a review of a plan of
operations or a renewal application, require reasonable
modification to such plan upon a determination that the
requirements of this Act cannot be met if the plan is
followed as approved. Such determination shall be based on a
written finding and subject to notice and hearing
requirements established by the Secretary.
(j) Temporary Cessation of Operations.--(1) Before
temporarily ceasing mineral activities or reclamation for a
period of 180 days or more under an approved plan of
operations or portions thereof, an operator shall first
submit a complete application for temporary cessation of
operations to the Secretary for approval.
(2) The application for approval of temporary cessation of
operations shall include such terms and conditions as
prescribed by the Secretary, including but not limited to the
steps that shall be taken during the cessation of operations
period to minimize impacts on the environment. After receipt
of a complete application for temporary cessation of
operations the Secretary shall conduct an inspection of the
area for which temporary cessation of operations has been
requested.
(3) To approve an application for temporary cessation of
operations, the Secretary shall make each of the following
determinations:
(A) The methods for securing surface facilities and
restricting access to the permit area, or relevant portions
thereof, shall effectively ensure against hazards to the
health and safety of the public and fish and wildlife.
(B) Reclamation is contemporaneous with mineral activities
as required under the approved reclamation plan, except in
those areas specifically designated in the application for
temporary cessation of operations for which a delay in
meeting such standards is necessary to facilitate the
resumption of operations.
(C) The amount of financial assurance filed with the plan
of operations is sufficient to assure completion of the
reclamation plan in the event of forfeiture.
(D) Any outstanding notices of violation and cessation
orders incurred in connection with the plan of operations for
which temporary cessation is being requested are either
stayed pursuant to an administrative or judicial appeal
proceeding or are in the process of being abated to the
satisfaction of the Secretary.
(k) Review.--Any decision made by the Secretary under
subsections (g), (h), (i), (j) or (l) shall be subject to
review under section 202(f).
(l) Bonds.--(1) Before any plan of operations is approved
pursuant to this Act, or any mineral activities are conducted
pursuant to subsection (b)(2), the operator shall file with
the Secretary financial assurance payable to the United
States and conditional upon faithful performance of all
requirements of this Act. The financial assurance shall be
provided in the form of a surety bond, trust fund, cash or
equivalent. The amount of the financial assurance shall be
sufficient to assure the completion of reclamation satisfying
the requirements of this Act if the work had to be performed
by the Secretary in the event of
forfeiture, and the calculation shall take into account the
maximum level of financial exposure which shall arise
during the mineral activity including, but not limited to,
provision for accident contingencies.
(2) The financial assurance shall be held for the duration
of the mineral activities and for an additional period to
cover the operator's responsibility for revegetation under
subsection (n)(6)(B).
(3) The amount of the financial assurance and the terms of
the acceptance of the assurance shall be adjusted by the
Secretary from time to time as the area requiring coverage is
increased or decreased, or where the costs of reclamation or
treatment change, but the financial assurance must otherwise
be in compliance with this section. The Secretary shall
specify periodic times, or set a schedule, for reevaluating
or adjusting the amount of financial assurance.
(4) Upon request, and after notice and opportunity for
public comment, the Secretary may release in whole or in part
the financial assurance if the Secretary determines each of
the following:
(A) Reclamation covered by the financial assurance has been
accomplished as required by this Act.
(B) The operator has declared that the terms and conditions
of any other applicable Federal requirements, and State
requirements pursuant to subsection 203(b), have been
fulfilled.
(5) The release referred to in paragraph (4) shall be
according to the following schedule:
(A) After the operator has completed the backfilling,
regrading and drainage control of an area subject to mineral
activities and covered by the financial assurance, and has
commenced revegetation on the regraded areas subject to
mineral activities in accordance with the approved plan of
operations, 50 percent of the total financial assurance
secured for the area subject to mineral activities may be
released.
(B) After the operator has completed successfully all
mineral activities and reclamation activities and all
requirements of the plan of operations and the reclamation
plan and all the requirements of this Act have in fact been
fully met, the remaining portion of the financial assurance
may be released.
(6) During the period following release of the financial
assurance as specified in paragraph (5)(A), until the
remaining portion of the financial assurance is released as
provided in paragraph (5)(B), the operator shall be required
to meet all applicable standards of this Act and the plan of
operations and the reclamation plan.
(7) Where any discharge from the area subject to mineral
activities requires treatment in order to meet the applicable
effluent limitations, the treatment shall be monitored during
the conduct of mineral activities and reclamation and shall
be fully covered by financial assurance and no financial
assurance or portion thereof for the plan of operations shall
be released until the operator has met all applicable
effluent limitations and water quality standards for one full
year without treatment.
(8) Jurisdiction under this Act shall terminate upon
release of the final bond. If the Secretary determines, after
final bond release, that an environmental hazard resulting
from the mineral activities exists, or the terms and
conditions of the plan of operations or the surface
management requirements of this Act were not fulfilled in
fact at the time of release, the Secretary shall reassert
jurisdiction and all applicable surface management and
enforcement provisions shall apply for correction of the
condition.
(m) Reclamation.--(1) Except as provided under paragraphs
(5) and (7) of subsection (n), lands subject to mineral
activities shall be restored to a condition capable of
supporting the uses to which such lands were capable of
supporting prior to surface disturbance, or other beneficial
uses, provided such other uses are not inconsistent with
applicable land use plans.
(2) All required reclamation shall proceed as
contemporaneously as practicable with the conduct of
mineral activities and shall use the best technology
currently available.
(n) Reclamation Standards.--The Secretary shall establish
reclamation standards which shall include, but not
necessarily be limited to, provisions to require each of the
following:
(1) Soils.--(A) Topsoil removed from lands subject to
mineral activities shall be segregated from other spoil
material and protected for later use in reclamation. If such
topsoil is not replaced on a backfill area within a time-
frame short enough to avoid deterioration of the topsoil,
vegetative cover or other means shall be used so that the
topsoil is preserved from wind and water erosion, remains
free of any contamination by acid or other toxic material,
and is in a usable condition for sustaining vegetation when
restored during reclamation.
(B) In the event the topsoil from lands subject to mineral
activities is of insufficient quantity or of inferior quality
for sustaining vegetation, and other suitable growth media
removed from the lands subject to the mineral activities are
available that shall support vegetation, the best available
growth medium shall be removed, segregated and preserved in
alike manner as under subparagraph (A) for sustaining
vegetation when restored during reclamation.
(C) Mineral activities shall be conducted to prevent any
contamination or toxification of soils. If any contamination
or toxification occurs in violation of this subparagraph, the
operator shall neutralize the toxic material, decontaminate
the soil, and dispose of any toxic or acid materials in a
manner which complies with this section and any other
applicable Federal or State law.
(2) Stabilization.--All surface areas subject to mineral
activities, including spoil material piles, waste material
piles, ore piles, subgrade ore piles, and open or partially
backfilled mine pits which meet the requirements of paragraph
(5) shall be stabilized and protected during mineral
activities and reclamation so as to effectively control
erosion and minimize attendant air and water pollution.
(3) Erosion.--Facilities such as but not limited to basins,
ditches, streambank stabilization, diversions or other
measures, shall be designed, constructed and maintained where
necessary to control erosion and drainage of the area subject
to mineral activities, including spoil material piles and
waste material piles prior to the use of such material to
comply with the requirements of paragraph (5) and for the
purposes of paragraph (7), and including ore piles and
subgrade ore piles.
[[Page S3529]] (4) Hydrologic balance.--(A) Mineral
activities shall be conducted to minimize disturbances to the
prevailing hydrologic balance of the area subject to mineral
activities and adjacent areas and to the quality and quantity
of water in surface and ground water systems, including
stream flow, in the area subject to mineral activities and
adjacent areas, and in all cases the operator shall comply
with applicable Federal or State effluent limitations and
water quality standards.
(B) Mineral activities shall prevent the generation of acid
or toxic drainage during the mineral activities and
reclamation, to the extent possible using the best available
demonstrated control technology; and the operator shall
prevent any contamination of surface and ground water with
acid or other toxic mine drainage and shall prevent or remove
water from contact with acid or toxic producing deposits.
(C) Reclamation shall, to the extent possible, also include
restoration of the recharge capacity of the area subject to
mineral activities to approximate premining condition.
(D) Where surface or underground water sources used for
domestic or agricultural use have been diminished,
contaminated or interrupted as a proximate result of mineral
activities, such water resource shall be restored or
replaced.
(5) Grading.--(A) Except as provided under this paragraph
(7), the surface area disturbed by mineral activities shall
be backfilled, graded and contoured to its natural
topography.
(B) The requirement of subparagraph (A) shall not apply
with respect to an open mine pit if the Secretary finds that
such open pit or partially backfilled pit would not pose a
threat to the public health or safety or have an adverse
effect on the environment in terms of surface or groundwater
pollution.
(C) In instances where complete backfilling of an open pit
is not required, the pit shall be graded to blend with the
surrounding topography as much as practicable and revegetated
in accordance with paragraph (6).
(6) Revegetation.--(A) Except in such instances where the
complete backfill of an open mine pit is not required under
paragraph (5), the area subject to mineral activities,
including any excess spoil material pile and excess waste
pile, shall be revegetated in order to establish a diverse,
effective and permanent vegetative cover of the same seasonal
variety native to the area subject to mineral activities,
capable of self-regeneration and plant succession and at
least equal in extent of cover to the natural revegetation of
the surrounding area.
(B) In order to insure compliance with subparagraph (A),
the period for determining successful revegetation shall be
for a period of 5 full years after the last year of augmented
seeding, fertilizing, irrigation or other work, except that
such period shall be 10 full years where the annual average
precipitation is 26 inches or less.
(7) Excess spoil and waste.--(A) Spoil material and waste
material in excess of that required to comply with paragraph
(5) shall be transported and placed in approved areas, in a
controlled manner in such a way so as to assure long-term
mass stability and to prevent mass movement. In addition to
the measures described under paragraph (3), internal drainage
systems shall be employed, as may be required, to control
erosion and drainage. The design of such excess spoil
material piles and excess waste material piles shall be
certified by a qualified professional engineer.
(B) Excess spoil material piles and excess waste material
piles shall be graded and contoured to blend with the
surrounding topography as much as practicable and revegetated
in accordance with paragraph (6).
(8) Sealing.--All drill holes, and openings on the surface
associated with underground mineral activities, shall be
sealed when no longer needed for the conduct of mineral
activities to ensure protection of the public, fish and
wildlife, and the environment.
(9) Structures.--All buildings, structures or equipment
constructed, used or improved during mineral activities shall
be removed, unless the Secretary determines that the
buildings, structures or equipment shall be of beneficial use
in accomplishing the postmining uses or for environmental
monitoring.
(10) Fish and wildlife.--All fish and wildlife habitat in
areas subject to mineral activities shall be restored in a
manner commensurate with or superior to habitat conditions
which existed prior to the mineral activities, including such
conditions as may be prescribed by the Director, Fish and
Wildlife Service.
(o) Additional Standards.--The Secretary may, by
regulation, establish additional standards to address the
specific environmental impacts of selected methods of mineral
activities, such as, but not limited to, cyanide leach
mining.
(p) Definitions.--As used in subsections (m) and (n):
(1) The term ``best technology currently available'' means
equipment, devices, systems, methods, or techniques which are
currently available anywhere even if not in
routine use in mineral activities. The term includes, but is
not limited to, construction practices, siting
requirements, vegetative selection and planting
requirements, scheduling of activities and design of
sedimentation ponds. Within the constraints of the surface
management requirements of this Act, the Secretary shall
have the discretion to determine the best technology
currently available on a case-by-case basis.
(2) The term ``best available demonstrated control
technology'' means equipment, devices, systems, methods, or
techniques which have demonstrated engineering and economic
feasibility and practicality in preventing disturbances to
hydrologic balance during mineral activities and reclamation.
Such techniques will have shown to be effective and practical
methods of acid and other mine water pollution elimination or
control, and other pollution affecting water quality. The
``best available demonstrated control technology'' will not
generally be in routine use in mineral activities. Within the
constraints of the surface management requirements of this
Act, the Secretary shall have the discretion to determine the
best available demonstrated control technology on a case-by-
case basis.
(3) The term ``spoil material'' means the overburden, or
nonmineralized material of any nature, consolidated or
unconsolidated, that overlies a deposit of any locatable
mineral that is removed in gaining access to, and extracting,
any locatable mineral, or any such material disturbed during
the conduct of mineral activities.
(4) The term ``waste material'' means the material
resulting from mineral activities involving beneficiation,
including but not limited to tailings, and such material
resulting from mineral activities involving processing, to
the extent such material is not subject to subtitle C of the
Resource Conservation and Recovery Act of 1976 or the Uranium
Mill Tailings Radiation Control Act.
(5) The term ``ore piles'' means ore stockpiled for
beneficiation prior to the completion of mineral activities
and reclamation.
(6) The term ``subgrade ore'' means ore that is too low in
grade to be of economic value at the time of extraction but
which could reasonably be economical in the foreseeable
future.
(7) The term ``excess spoil'' means spoil material that may
be excess of the amount necessary to comply with the
requirements of subsection (m)(3).
(8) The term ``excess waste'' means waste material that may
be excess of the amount necessary to comply with the
requirements of subsection (m)(3).
SEC. 202. INSPECTION AND ENFORCEMENT.
(a) Inspections and Monitoring.--(1) The Secretary shall
make such inspections of mineral activities so as to ensure
compliance with the surface management requirements. The
Secretary shall establish a frequency of inspections for
mineral activities conducted under an approved plan of
operations, but in no event shall such inspection frequency
be less than one complete inspection per calendar quarter or
two complete inspections annually for a plan of operations
for which the Secretary approves an application under section
201(j).
(2)(A) Any person who has reason to believe they are or may
be adversely affected by mineral activities due to any
violation of the surface management requirements may request
an inspection. The Secretary shall determine within 10 days
of receipt of the request whether the request states a reason
to believe that a violation exists, except in the event the
person alleges and provides reason to believe that an
imminent danger as provided by subsection (b)(2) exists, the
10-day period shall be waived and the inspection conducted
immediately. When an inspection is conducted under this
paragraph, the Secretary shall notify the person filing the
complaint and such person shall be allowed to accompany the
inspector during the inspection. The identity of the person
supplying information to the Secretary relating to a possible
violation or imminent danger or harm shall remain
confidential with the Secretary if so requested by that
person, unless that person elects to accompany an inspector
on the inspection.
(B) The Secretary shall, by regulation, establish
procedures for the review of any decision by his authorized
representative not to inspect or by a refusal by such
representative to ensure remedial actions are taken the
respect to any alleged violation. The Secretary shall furnish
such persons requesting the review a written statement of the
reasons for the Secretary's final disposition of the case.
(3)(A) The Secretary shall require all operators to develop
and maintain a monitoring and evaluation system which shall
be capable of identifying compliance with all surface
management requirements.
(B) Monitoring shall be conducted as close as technically
feasible to the mineral activity or reclamation involved, and
in all cases the monitoring shall be conducted within the
area affected by mineral activities and reclamation.
(C) The point of compliance shall be as close to the
mineral activity involved as is technically feasible, but in
any event shall be located to comply with applicable State
and Federal standards. In no event shall the point of
compliance be outside the area affected by mineral activities
and reclamation.
(D) The operator shall file reports with the Secretary on a
quarterly basis on the results of the monitoring and
evaluation process except that if the monitoring and
evaluation show a violation of the surface management
requirements, it shall be reported immediately to the
Secretary.
(E) The Secretary shall determine what information must be
reported by the operator
[[Page S3530]] pursuant to subparagraph (B). A failure to
report as required by the Secretary shall constitute a
violation of this Act and subject the operator to enforcement
action pursuant to this section.
(F) The Secretary shall evaluate the reports submitted
pursuant to this paragraph, and based on those reports and
any necessary inspection shall take enforcement action
pursuant to this section.
(b) Enforcement.--(1) If the Secretary or authorized
representative determines, on the basis of an inspection that
an operator, or any person conducting mineral activities
under section 201(b)(2), is in violation of any surface
management requirement, the Secretary or authorized
representative shall issue a notice of violation to the
operator or person describing the violation and the
corrective measures to be taken. The Secretary or authorized
representative shall provide such operator or person with a
reasonable period of time to abate the violation. If, upon
the expiration of time provided for such abatement, the
Secretary or authorized representative finds that
the violation has not been abated he shall immediately order
a cessation of all mineral activities or the portion
thereof relevant to the violation.
(2) If the Secretary or authorized representative
determines, on the basis of an inspection, that any condition
or practice exists, or that an operator, or any person
conducting mineral activities under section 201(b)(2), is in
violation of the surface management requirements, and such
condition, practice or violation is causing, or can
reasonably be expected to cause--
(A) an imminent danger to the health or safety of the
public; or
(B) significant, imminent environmental harm to land, air
or water resources;

the Secretary or authorized representative shall immediately
order a cessation of mineral activities or the portion
thereof relevant to the condition, practice or violation.
(3)(A) a cession order by the Secretary or authorized
representative pursuant to paragraphs (1) or (2) shall remain
in effect until the Secretary or authorized representative
determines that the condition, practice or violation has been
abated, or until modified, vacated or terminated by the
Secretary or authorized representative. In any such order,
the Secretary or authorized representative shall determine
the steps necessary to abate the violation in the most
expeditious manner possible, and shall include the necessary
measures in the order. The Secretary shall require
appropriate financial assurances to insure that the abatement
obligations are met.
(B) Any notice or order issued pursuant to paragraphs (1)
or (2) may be modified, vacated or terminated by the
Secretary or authorized representative. An operator, or
person conducting mineral activities under section 201(b)(2),
issued any such notice or order shall be entitled to a
hearing on the record pursuant to subsection (f).
(4) If, after 30 days of the date of the order referred to
in paragraph (3)(A), the required abatement has not occurred
the Secretary shall take such alternative enforcement action
against the responsible parties as will most likely bring
about abatement in the most expeditious manner possible. Such
alternative enforcement action shall include, but is not
necessarily limited to, seeking appropriate injunctive relief
to bring about abatement.
(5) In the event an operator, or person conducting mineral
activities under section 201(b)(2), is unable to abate a
violation or defaults on the terms of the plan of operation
the Secretary shall forfeit the financial assurance for the
plan of operations if necessary to ensure abatement and
reclamation under this Act.
(6) The Secretary shall not forfeit the financial assurance
while a review is pending pursuant to subsections (f) and
(g).
(c) Compliance.--(1) The Secretary may request the Attorney
General to institute a civil action for relief, including a
permanent or temporary injunction or restraining order, in
the district court of the United States for the district in
which the mineral activities are located whenever an
operator, or person conducting mineral activities under
section 201(b)(2):
(A) violates, fails or refuses to comply with any order
issued by the Secretary under subsection (b); or
(B) interferes with, hinders or delays the Secretary in
carrying out an inspection under subsection (a). Such court
shall have jurisdiction to provide such relief as may be
appropriate. Any relief granted by the court to enforce an
order under clause (A) shall continue in effect until the
completion or final termination of all proceedings for review
of such order under subsections (f) and (g), unless the
district court granting such relief sets it aside or modifies
it.
(2) Notwithstanding any other provision of law, the
Secretary shall utilize enforcement personnel from the Office
of Surface Mining Reclamation and Enforcement to augment
personnel of the Bureau of Land Management and the Forest
Service to ensure compliance with the surface management
requirements, and inspection requirements of subsection (a).
The Bureau of Land
Management and the Forest Service shall each enter into a
memorandum of understanding with the Office of Surface
Mining Reclamation and Enforcement for this purpose.
(d) Penalties.--(1) Any operator, or person conducting
mineral activities under section 201(b)(2), who fails to
comply with the surface management requirements shall be
liable for a penalty of not more than $5,000 per violation.
Each day of continuing violation may be deemed a separate
violation for purposes of penalty assessments. No civil
penalty under this subsection shall be assessed until the
operator charged with the violation has been given the
opportunity for a hearing under subsection (f).
(2) An operator, or person conducting mineral activities
under section 201(b)(2), who fails to correct a violation for
which a cessation order has been issued under subsection (b)
within the period permitted for its correction shall be
assessed a civil penalty of not less than $1,000 per
violation for each day during which such failure continues,
but in no event shall such assessment exceed a 30-day period.
(3) Whenever a corporation is in violation of the surface
management requirements or fails or refuses to comply with an
order issued under subsection (b), any director, officer or
agent of such corporation who knowingly authorized, ordered,
or carried out such violation, failure or refusal shall be
subject to the same penalties that may be imposed upon an
operator under paragraph (1).
(e) Citizen Suits.--(1) Except as provided under paragraph
(2), any person having an interest which is or may be
adversely affected may commence a civil action on his or her
own behalf to compel compliance--
(A) against the Secretary where there is alleged a
violation of any of the provisions of this Act or any
regulation promulgated pursuant to this Act or terms and
conditions of any plan of operations approved pursuant to
this Act;
(B) against any other person alleged to be in violation of
any of the provisions of this Act or any regulation
promulgated pursuant to this Act or terms and conditions of
any plan of operations approved pursuant to this Act;
(C) against the Secretary where there is alleged a failure
of the Secretary to perform any act or duty under this Act or
any regulation promulgated pursuant to this Act which is not
within the discretion of the Secretary; or
(D) against the Secretary where it is alleged that the
Secretary acts arbitrarily or capriciously or in a manner
inconsistent with this Act or any regulation promulgated
pursuant to this Act. The United States district courts shall
have jurisdiction, without regard to the amount in
controversy or the citizenship of the parties. (2) No action
may be commenced except as follows:
(A) Under paragraph (1)(A) prior to 60 days after the
plaintiff has given notice in writing of such alleged
violation to the Secretary, or to the person alleged to be in
violation; except no action may be commenced against any
person alleged to be in violation if the Secretary has
commenced and is diligently prosecuting a civil action in a
court of the United States to require compliance with the
provisions of this title (but in any such action in a court
of the United States the person making the allegation may
intervene as a matter of right.)
(B) Under paragraph (1)(B) prior to 60 days after the
plaintiff has given notice in writing of such action to the
Secretary, in such manner as the Secretary shall by
regulation prescribe, except that such action may be brought
immediately after such notification in the case where the
violation or order complained of constitutes an imminent
threat to the environment or to the health or safety of the
public or would immediately affect a legal interest of the
plaintiff.
(3) Venue of all actions brought under this subsection
shall be determined in accordance with title 28 U.S.C.
1391(a).
(4) The court, in issuing any final order in any action
brought pursuant to paragraph (1) may award costs of
litigation (including attorney and expert witness fees) to
any party whenever the court determines such award is
appropriate. The court may, if a temporary restraining
order or preliminary injunction is sought, require the
filing of a bond or equivalent security in accordance with
the Federal Rules of Civil Procedure.
(5) Nothing in this subsection shall restrict any right
which any person (or class of persons) may have under any
statute or common law to seek enforcement of any of the
provisions of this Act and the regulations thereunder, or to
seek any other relief, including relief against the
Secretary.
(f) Review by Secretary.--(1)(A) Any, operator, or person
conducting mineral activities under section 201(b)(2), issued
a notice of violation or cessation order under subsection
(b), or any person having an interest which is or may be
adversely affected by such decisions, notice or order, may
apply to the Secretary for review of the notice or order
within 30 days of receipt thereof, or as the case may be,
within 30 days of such notice or order being modified,
vacated or terminated.
(B) Any operator, or person conducting mineral activities
under section 201(b)(2), who is subject to a penalty under
subsection (d) or section 105 may apply to the Secretary for
review of the assessment within 30 days of notification of
such penalty.
(C) Any person having an interest which is or may be
adversely affected by a decision made by the Secretary under
subsections (g), (h), (i), (j), and (l) of section 201, or
subsection 202(a)(2), or subsection 204(g), may apply to the
Secretary for review of the decision within 30 days after it
is made.
(2) The Secretary shall provide an opportunity for a public
hearing at the request of any party. Any hearing conducted
pursuant
[[Page S3531]] to this subsection shall be on record and
shall be subject to section 554 of title 5 of the United
States Code. The filing of an application for review under
this subsection shall not operate as a stay on any order or
notice issued under subsection (b).
(3) Following the hearing referred to in paragraph (2), if
requested, but in any event the Secretary shall make findings
of fact and shall issue a written decision incorporating
therein an order vacating, affirming, modifying or
terminating the notice, order or decision, or with respect to
an assessment, the amount of penalty that is warranted. Where
the application for review concerns a cessation order issued
under subsection (b), the Secretary shall issue the written
decision within 30 days of the receipt of the application for
review, unless temporary relief has been granted by the
Secretary under paragraph (4).
(4) Pending completion of any proceedings under this
subsection, the applicant may file with the Secretary a
written request that the Secretary grant temporary relief
from any order issued under subsection (b) together with a
detailed statement giving reasons for such relief. The
Secretary shall expeditiously issue an order or decision
granting or denying such relief. The Secretary may grant such
relief under such conditions as he may prescribe only if such
relief shall not adversely affected the health or safety of
the public or cause significant, imminent environmental harm
to lad, air or water resources.
(5) The availability of review under this subsection shall
not be construed to limit the operation of rights established
under subsection (e).
(g) Judicial Review.--(1) Any action by the Secretary in
promulgating regulations to implement this Act, or any other
actions constituting rulemaking by the Secretary to implement
this Act, shall be subject to judicial review in the United
States District of Columbia. Any action subject to judicial
review under this subsection shall be affirmed unless the
court concludes that such action is arbitrary, capricious, or
otherwise inconsistent with law. A petition for review of any
action subject to judicial review under this subsection shall
be filed in the United States District Court for the District
of Columbia within 60 days from the date of such action, or
after such date if the petition is
based solely on grounds arising after the sixtieth day. Any
such petition may be made by any person who commented or
otherwise participated in the rulemaking or who may be
adversely affected by the action of the Secretary.
(2) Final agency action under this Act, including such
final action on those matters described under subsection (f),
shall be subject to judicial review in accordance with
paragraph (4) and pursuant to 28 U.S.C. 1391(a) of the United
States Code on or before 60 days from the date of such final
action.
(3) The availability of judicial review established in this
subsection shall not be construed to limit the operations of
rights established under subsection (e).
(4) The court shall hear any petition or complaint filed
under this subsection solely on the record made before the
Secretary. The court may affirm, vacate, or modify any order
or decision or may remand the proceedings to the Secretary
for such further action as it may direct.
(5) The commencement of a proceeding under this section
shall not, unless specifically ordered by the court, operate
as a stay of the action, order or decision of the Secretary.
(h) Proceedings.--Whenever a proceeding occurs under
subsection (a), (f), or (g), or under section 201, or under
section 204(g), at the request of any person, a sum equal to
the aggregate amount of all costs and expenses (including
attorney fees) as determined by the Secretary or the court to
have been reasonably incurred by such person for or in
connection with participation in such proceedings, including
any judicial review of the proceeding, may be assessed
against either party as the court, resulting from judicial
review or the Secretary, resulting from administrative
proceedings, deems proper.

SEC. 203. STATE LAW AND REGULATION.

(a) State Law.--(1) Any reclamation standard or requirement
in State law or regulation that meets or exceeds the
requirements of subsections (m) and (n) of section 201 shall
not be construed to be inconsistent with any such standard.
(2) Any bonding standard or requirement in State law or
regulation that meets or exceeds the requirements of section
201(1) shall not be construed to be inconsistent with such
requirements.
(3) Any inspection standard or requirement in State law or
regulation that meets or exceeds the requirements of section
202 shall not be construed to be inconsistent with such
requirements.
(b) Applicability of Other State Requirements.--(1) Nothing
in this Act shall be construed as affecting any air or water
quality standard or requirement of any State law or
regulation which may be applicable to mineral activities on
lands subject to this Act.
(2) Nothing in this Act shall be construed as affecting in
any way the right of any person or enforce or protect, under
applicable law, such person's interest in water resources
affected by mineral activities on lands subject to this Act.
(c) Cooperative Agreements.--(1) Any State may enter into a
cooperative agreement with the Secretary for the purposes of
the Secretary applying such standards and requirements
referred to in subsection (a) and subsection (b) to mineral
activities or reclamation on lands subject to this Act.
(2) In such instances where the proposed mineral activities
would affect lands not subject to this Act in addition to
lands subject to this Act, in order to approve a plan of
operations the Secretary shall enter into a cooperative
agreement with the State that sets forth a common regulatory
framework consistent with the surface management requirements
of this Act for the purposes of such plan of operations.
(3) The Secretary shall not enter into a cooperative
agreement with any State under this section until after
notice in the Federal Register and opportunity for public
comment.
(d) Prior Agreements.--Any cooperative agreement or such
other understanding between the Secretary and any State, or
political subdivision thereof, relating to the surface
management of mineral activities on lands subject to this Act
that was in existence on the date of enactment of this Act
may only continue in force until the effective date of this
Act, after which time the terms and conditions of any such
agreement or understanding
shall only be applicable to plans of operations approved by
the Secretary prior to the effective date of this Act
except as provided under section 405.
(e) Delegation.--The Secretary shall not delegate to any
State, or political subdivision thereof, the Secretary's
authorities, duties and obligations under this Act, including
with respect to any cooperative agreements entered into under
this section.

SEC. 204. UNSUITABILITY REVIEW.

(a) In General.--The Secretary of the Interior in preparing
land use plans under the Federal Land Policy and Management
Act of 1976, and the Secretary of Agriculture in preparing
land use plans under the Forest and Rangeland Renewable
Resources Planning Act of 1974, as amended by the National
Forest Management Act of 1976, shall each conduct a review of
lands that are subject to this Act in order to determine
whether there are any areas which are unsuitable for all or
certain types of mineral activities pursuant to the standards
set forth under subsection (e). In the event such a
determination is made, the review shall be included in the
applicable land use plan.
(b) Specific Areas.--Not later than 90 days after the date
of enactment of this Act, the Secretary of the Interior and
the Secretary of Agriculture, on the basis of any information
available, shall each publish a notice in the Federal
Register identifying and listing the lands subject to this
Act which are or may be determined to be unsuitable for all
or certain types of mineral activities according to the
standards set forth in subsection (e). After opportunity for
public comment and proposals for modifications to such
listing, but not later than the effective date of this Act,
each Secretary shall begin to review the lands identified
pursuant to this subsection to determine whether such lands
are unsuitable for all or certain types of mineral activities
according to the standards set forth in subsection (e).
(c) Land Use Plans.--(1) At such time as the Secretary
revises or amends a land use plan pursuant to the provisions
of law other than this Act, the Secretary shall identify
lands determined to be unsuitable for all or certain types of
mineral activities according to the standards set forth in
subsection (e). The Secretary shall incorporate such
determinations in the applicable land use plans.
(c) If lands covered by a proposed plan of operations have
not been reviewed pursuant to this section at the time of
submission of a plan of operations, the Secretary shall,
prior to the consideration of the proposed plan of
operations, review the areas that would be affected by the
proposed mineral activities to determine whether the area is
unsuitable for all or certain types of mineral activities
according to the standards set forth in subsection (e). The
Secretary shall use such review in the next revision or
amendment to the applicable land use plan to the extent
necessary to reflect the unsuitability of such lands for all
or certain types of mineral activities according to the
standards set forth in subsection (e).
(3) This section does not require land use plans to be
amended until such plans are adopted, revised, or amended
pursuant to provisions of law other than this Act.
(d) Effect of Determination.--(1) If the Secretary
determines an area to be unsuitable under this section for
all or certain types of mineral activities, he shall do one
of the following:
(A) In any instance where a determination is made that an
area is unsuitable for all types of mineral activities, the
Secretary of the Interior, with the consent of the Secretary
of Agriculture for lands under the jurisdiction of the
Secretary of Agriculture, shall withdraw such area pursuant
to section 204 of the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1714).
(B) In any instance where a determination is made that an
area is unsuitable for certain types of mineral activities,
the Secretary shall take appropriate steps to limit or
prohibit such types of mineral activities. (2) Nothing in
this section may be construed as affecting
lands where mineral activities under approved plans of
operations or under notice (as provided for in the
regulations of the Secretary of the Interior in effect
prior to the effective date of this Act relating to
[[Page S3532]] operations that cause a cumulative disturbance
of five acres or less) were being conducted on the effective
date of this Act, except as provided under subsection (g).
(3) Nothing in this section may be construed as prohibiting
mineral activities not subject to paragraph (2) where
substantial legal and financial commitments in such mineral
activities were in existence on the effective date of this
Act, but nothing in this section may be construed as limiting
any existing authority of the Secretary to regulate such
activities.
(4) Any unsuitability determination under this section
shall not prevent the types of mineral activities referred to
in section 201(b)(2)(A), but nothing in this section shall be
construed as authorizing such activities in areas withdrawn
pursuant to section 204 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1714).
(e) Review Standards.--(1) An area containing lands that
are subject to this Act shall be determined to be unsuitable
for all or certain types of mineral activities if the
Secretary determines, after notice and opportunity for public
comment, that reclamation pursuant to the standards set forth
in subsections (m) and (n) of section 201 would not be
technologically and economically feasible for any such
mineral activities in such area and where--
(A) such mineral activities would substantially impair
water quality or supplies within the area subject to the
mining plan or adjacent lands, such as impacts on aquifers
and aquifer recharge areas;
(B) such mineral activities would occur on areas of
unstable geology that could if undertaken substantially
endanger life and property;
(C) such mineral activities would adversely affect
publicly-owned places which are listed on or are eligible for
listing on the National Register of Historic Places, unless
the Secretary and the State approve all or certain mineral
activities, in which case the area shall not be determined to
be unsuitable for such approved mineral activities;
(D) such mineral activities would cause loss of or damage
to riparian areas;
(E) such mineral activities would impair the productivity
of the land subject to such mineral activities;
(F) such mineral activities would adversely affect
candidate species for threatened and endangered species
status; or
(G) such mineral activities would adversely affect lands
designated as National Wildlife Refuges.
(2) An area may be determined to be unsuitable for all or
certain mineral activities if the Secretary, after notice and
opportunity for public comment, determines that reclamation
pursuant to the standards set forth in subsections (m) and
(n) of section 201 would not be technologically and
economically feasible for any such mineral activities in such
area and where--
(A) such mineral activities could result in significant
damage to important historic, cultural, scientific, and
aesthetic values or to natural systems;
(B) such mineral activities could adversely affect lands of
outstanding aesthetic qualities and scenic Federal lands
designated as Class I under section 162 of the Clean Air Act
(42 U.S.C. 7401 and following);
(C) such mineral activities could adversely affect lands
which are high priority habitat for migratory bird species or
other important fish and wildlife species as determined by
the Secretary in consultation with the Director of the Fish
and Wildlife Service and the appropriate agency head for the
State in which the lands are located;
(D) such mineral activities could adversely affect lands
which include wetlands if mineral activities would result in
loss of wetland values;
(E) such mineral activities could adversely affect National
Conservation System units; or
(F) such mineral activities could adversely affect lands
containing other resource values as the Secretary may
consider.
(f) Withdrawal Review.--In conjunction with conducting an
unsuitability review under this section, the Secretary shall
review all administrative withdrawals of land from the
location of mining claims to determine whether the revocation
or modification of such withdrawal for the purpose of
allowing such lands to be opened to the location of mining
claims under this Act would be appropriate as a result of any
of the following:
(1) The imposition of any conditions referred to in
subsection (d)(1)(B).
(2) The surface management requirements of section 201.(3)
the limitation of section 107.
(g) Citizen Petition.--(1) In any instance where a land use
plan has not been amended or completed to reflect the review
referred to in subsection (a), any person having an interest
that may be adversely affected by potential mineral
activities on lands subject to this Act covered by such plan
shall have the right to petition the Secretary to determine
such lands to be unsuitable for all or certain types of
mineral activities. Such
petition shall contain allegations of fact with respect to
potential mineral activities and with respect to the
unsuitability of such lands for all or certain mineral
activities according to the standards set forth in
subsection (e) with supporting evidence that would tend to
establish the allegations.
(2) Petitions received prior to the date of the submission
of a proposed plan of operation under this Act, shall stay
consideration of the proposed plan of operations pending
review of the petition.
(3) Within 4 months after receipt of a petition to
determine lands to be unsuitable for all or certain types of
mining in areas where a land use plan has not been amended or
completed to reflect the review referred to in subsection
(a), the Secretary shall hold a public hearing on the
petition in the locality of the area in question. After a
petition has been filed and prior to the public hearing, any
person may support or oppose the determination sought by the
petition by filing written allegations of facts and
supporting evidence.
(4) Within 60 days after a public hearing held pursuant to
paragraph (3), the Secretary shall issue a written decision
regarding the petition which shall state the reasons for
granting or denying the requested determination.
(5) Reviews conducted pursuant to this subsection shall be
consistent with paragraphs (3) and (4) of subsection (d) and
with subsection (a).

SEC. 205. LANDS NOT OPEN TO LOCATION.

(a) Lands.--Subject to valid existing rights, each of the
following shall not be open to the location of mining claims
under this Act on the date of enactment of this Act:
(1) Lands recommended for wilderness designation by the
agency managing the surface, pending a final determination by
the Congress of the status of such lands.
(2) Lands being managed by the Bureau of Land Management as
wilderness study areas on the date of enactment of this Act
except where the location of mining claims is specifically
allowed to continue by the statute designating the study
area, pending a final determination by the Congress of the
status of such lands.
(3) Lands within Wild and Scenic River System and lands
under study for inclusion in such system, pending a final
determination by the Congress of the status of such lands.
(4) Lands identified by the Bureau of Land Management as
Areas of Critical Environmental Concern.
(5) Lands identified by the Secretary of Agriculture as
Research Natural Areas.
(6) Lands designated by the Fish and Wildlife Service as
critical habitat for threatened or endangered species.
(7) Lands administered by the Fish and Wildlife Service.
(8) Lands which the Secretary shall designate for
withdrawal under authority of other law, including lands
which the Secretary of Agriculture may propose for withdrawal
by the Secretary of the Interior under authority of other
law.
(b) Definition.--As used in this section, the term ``valid
existing rights'' means that a mining claim located on lands
referred to in subsection (a) was property located and
maintained under the general mining laws prior to the date of
enactment of this Act, and was supported by a discovery of a
valuable mineral deposit within the meaning of the general
mining laws on the date of enactment of this Act, and that
such claim continues to be valid.

TITLE III--ABANDONED MINERALS MINE RECLAMATION FUND

SEC. 301. ABANDONED MINERALS MINE RECLAMATION FUND.

(a) Establishment.--(1) There is established on the books
of the Treasury of the United States a trust fund to be known
as the Abandoned Minerals Mine Reclamation Fund (hereinafter
in this title referred to as the ``Fund''). The Fund shall be
administered by the Secretary of the Interior acting through
the Director, Bureau of Land Management.
(2) The Secretary of the Interior shall notify the
Secretary of the Treasury as to what portion of the Fund is
not, in his judgment, required to meet current withdrawals.
The Secretary of the Treasury shall invest such portion of
the Fund in public debt securities with maturities suitable
for the needs of such Fund and bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding
marketplace obligations of the United States of comparable
maturities. The income on such investments shall be credited
to, and form a part of, the Fund.
(b) Amounts.--The following amounts shall be credited to
the Fund for the purposes of this Act:
(1) All moneys received from the collection of rental fees
under section 104 of this Act.
(2) Amounts collected pursuant to sections 105 and 202(d)
of this Act.
(3) All moneys received from the disposal of mineral
materials pursuant to section 3 of the Materials Act of 1947
(30 U.S.C. 603) to the extent such moneys are not
specifically dedicated to other purposes under other
authority of law.
(4) Donations by persons, corporations, associations, and
foundations for the purposes of this title. (5) Amounts
referred to in section 410(e)(1) of this Act.

SEC. 302. USE AND OBJECTIVES OF THE FUND.

(a) In General.--The Secretary is authorized to use moneys
in the Fund for the reclamation and restoration of land
and water resources adversely affected by past mineral
(other than coal and fluid minerals) and mineral material
mining, including but not limited to, any of the
following:
(1) Reclamation and restoration of abandoned surface mined
areas.
(2) Reclamation and restoration of abandoned milling and
processing areas.
[[Page S3533]] (3) Sealing, filling, and grading abandoned
deep mine entries.
(4) Planting of land adversely affected by past mining to
prevent erosion and sedimentation.
(5) Prevention, abatement, treatment and control of water
pollution created by abandoned mine drainage.
(6) Control of surface subsidence due to abandoned deep
mines.
(7) Such expenses as may be necessary to accomplish the
purposes of this title.
(b) Priorities.--Expenditure of moneys from the Fund shall
reflect the following priorities in the order stated:
(1) The protection of public health, safety, general
welfare and property from extreme danger from the adverse
effects of past minerals and mineral materials mining
practices.
(2) The protection of public health, safety, and general
welfare from the adverse effects of past minerals and mineral
materials mining practices.
(3) The restoration of land and water resources previously
degraded by the adverse effects of past minerals and mineral
materials mining practices.

SEC. 303. ELIGIBLE AREAS.

(a) Eligibility.--Lands and waters eligible for reclamation
expenditures under this Act shall be those within the
boundaries of States that have lands subject to this Act and
the Materials Act of 1947--
(1) which were mined or processed for minerals and mineral
materials or which were affected by such mining or
processing, and abandoned or left in an inadequate
reclamation status prior to the date of enactment of this
title; and
(2) for which the Secretary makes a determination that
there is no continuing reclamation responsibility under State
or Federal laws; and
(3) for which it can be established that such lands do not
contain minerals which could economically be extracted
through the reprocessing or remining of such lands, unless
such consideration are in conflict with the priorities set
forth under paragraphs (1) and (2) of section 302(b).
In determining the eligibility under this subsection of
Federal lands and waters under the jurisdiction of the Forest
Service or Bureau of Land Management in lieu of the date
referred to in paragraph (1), the applicable date shall be
August 28, 1974, and November 26, 1980, respectively.
(b) Specific Sites and Areas Not Eligible.--Sites and areas
designated for remedial action pursuant to the Uranium Mill
Tailings Radiation Control Act of 1978 (42 U.S.C. 7901 and
following) or which have been listed for remedial action
pursuant to the Comprehensive Environmental Response
Compensation and Liability Act of 1980 (42 U.S.C. 9601 and
following) shall not be eligible for expenditures from the
Fund under this title.

SEC. 304. FUND ALLOCATION AND EXPENDITURES.

(a) Allocations.--(1) Moneys available for expenditure from
the Fund shall be allocated on an annual basis by the
Secretary in the form of grants to eligible States, or in the
form of expenditures under subsection (b), to accomplish the
purposes of this title.
(2) The Secretary shall distribute moneys from the Fund
based on the greatest need for such moneys pursuant to the
priorities stated in section 302(b).
(b) Direct Federal Expenditures.--Where a State is not
eligible, or in instances where the Secretary determines that
the purposes of this title may best be accomplished
otherwise, moneys available from the Fund may be expended
directly by the Director, Bureau of Land Management. The
Director may also make such money available through grants
made to the Chief of the United States Forest Service, the
Director of the National Park Service, and any public entity
that volunteers to develop and implement, and that has the
ability to carry out, all or a significant portion of a
reclamation program, or through cooperative agreements
between eligible States and the entities referred to in this
subsection.

SEC. 305. STATE RECLAMATION PROGRAMS.

(a) Eligible States.--For the purposes of section 304(a),
``eligible States'' are those States for which the Secretary
determines meets each of the following requirements:
(1) Within the State there are mined lands, waters, and
facilities eligible for reclamation pursuant to section 303.
(2) The State has developed an inventory of such areas
following the priorities established under section 302(b).
(3) The State has established, and the Secretary has
approved, a State abandoned minerals and mineral materials
mine reclamation program for the purpose of receiving and
administering grants under this subtitle.
(b) Monitoring.--The Secretary shall monitor the
expenditure of State grants to ensure they are being utilized
to accomplish the purposes of this title.
(c) State Programs.--(1) The Secretary shall approve any
State abandoned minerals mine reclamation program submitted
to the Secretary by a State under this title if the Secretary
finds that the State has the ability and necessary State
legislation to implement such program and that the program
complies with the provisions of this title and the
regulations of the Secretary under this title.
(2) No State, or a contractor for such State engaged in
approved reclamation work under this title, or a public
entity referred to in section 304(b), shall be liable under
any provision of Federal law for any costs or damages as a
result of action taken or omitted in the course of carrying
out an approved State abandoned minerals mine reclamation
program under this section. This paragraph shall not preclude
liability for cost or damages as a result of gross negligence
or intentional misconduct by the State. For purposes of the
preceding sentence, reckless, willful, or wanton misconduct
shall constitute gross negligence.

SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

Amounts credited to the Fund are authorized to be
appropriated for the purpose of this title without fiscal
year limitation.

TITLE IV--ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

SEC. 401. POLICY FUNCTIONS.

(a) Minerals Policy.--The Mining and Minerals Policy Act of
1970 (30 U.S.C. 21a) is amended by adding at the end thereof
the following: ``It shall also be the responsibility of the
Secretary of Agriculture to carry out the policy provisions
of paragraphs (1) and (2) of this Act.''.
(b) Mineral Data.--Section 5(e)(3) of the National
Materials and Minerals Policy, Research and Development Act
of 1980 (30 U.S.C. 1604) is amended by inserting before the
period the following: ``, except that for National Forest
System lands the Secretary of Agriculture shall promptly
initiate actions to improve the availability and analysis of
mineral data in Federal land use decisionmaking''.

SEC. 402. USER FEES.

The Secretaries of Interior and Agriculture are authorized
to establish and collect from persons subject to the
requirements of this Act such user fees as may be necessary
to reimburse the United States for a portion of the expenses
incurred in administering such requirements. Fees may be
assessed and collected under this section only in such manner
as may reasonably be expected to result in an aggregate
amount of the fees collected during any fiscal year which
does not exceed the aggregate amount of administrative
expenses referred to in this section.

SEC. 403. REGULATIONS; EFFECTIVE DATES.

(a) Effective Date.--This Act shall take effect 1 year
after
the date of enactment of this Act, except as otherwise
provided in this Act.
(b) Regulations.--(1) The Secretary of the Interior shall
issue final regulations to implement title I, such
requirements of section 402 and 409 as may be applicable to
such title, title III and sections 404, 406, and 407 not
later than the effective date of this Act specified in
subsection (a).
(2) The Secretary of the Interior and the Secretary of
Agriculture shall each issue final regulations to implement
their respective responsibilities under title II, such
requirements of section 402 as may be applicable to such
title, and sections 405 and 409 not later than the effective
date of this Act referred to in subsection (a). The Secretary
of the Interior and the Secretary of Agriculture shall
coordinate the promulgation of such regulations.
(3) Failure to promulgate the regulations specified in this
subsection by the effective date of this Act by reason of any
appeal or judicial review shall not delay the effective date
of this Act as specified in subsection (a).
(c) Notice.--Within 60 days after the publication of
regulations referred to in subsection (b)(1), the Secretary
of the Interior shall give notice to holders of mining claims
and mill sites maintained under the general mining laws as to
the requirements of section 404. Procedures for providing
such notice shall be established as part of the regulations.
(d) New Mining Claims.--Notwithstanding any other provision
of law, after the effective date of this Act, a mining claim
for a locatable mineral on lands subject to this Act--
(1) may be located only in accordance with this Act,
(2) may be maintained only as provided in this Act, and
(3) shall be subject to the requirements of this Act.

SEC. 404. TRANSITIONAL RULES; MINING CLAIMS AND MILL SITES.

(a) Claims Under the General Mining Laws.--(1) Converted
mining claims.--Notwithstanding any other provision of law,
within the 3-year period after the effective date of this
Act, the holder of any unpatented mining claim which was
located under the general mining laws before the effective
date of this Act may elect to convert the claim under this
paragraph by filing an election to do so with the Secretary
of the Interior that references the Bureau of Land Management
serial number of that claim in the office designated by such
Secretary. The provisions of title I (other than subsections
(a), (b), (c), (d)(1), (f), and (h) of section 103) shall
apply to any such claim, effective upon the making of such
election, and the filing of such election shall constitute
notice to the Secretary for purposes of section 103(d)(2).
Once a mining claim has been converted, there shall be no
distinction made as to whether such claim was originally
located as a lode or placer claim.
(2) Unconverted mining claims.--Notwithstanding any other
provision of law, any claim referred to in paragraph (1) that
has not converted within the 3-year period referred to in
such paragraph shall be deemed forfeited and declared null
and void.
[[Page S3534]] (3) Converted mill site claims.--
Notwithstanding any other provision of law, within the 3-year
period after the effective date of this Act, the holder of
any unpatented mill site which was located under the general
mining laws before the effective date of this Act may elect
to convert the site under this paragraph by filing an
election to do so with the Secretary of the Interior that
references the Bureau of Land Management serial number of
that mill site in the office designated by such Secretary.
The provisions of title I (other than subsections (a), (b),
(c), (d)(1), and (f) of the section 103) shall apply to any
such claim, effective upon the making of such election, and
the filing of such election shall constitute notice to the
Secretary for purposes of section 103(d)(2). A mill site
converted under this paragraph shall be deemed a mining claim
under this Act.
(4) Unconverted mill site claims.--Notwithstanding any
other provision of law, any mill site referred to in
paragraph (3) that has not converted within the 3-year period
referred to in such paragraph shall be deemed forfeited and
declared null and void.
(5) Tunnel sites.--Any tunnel site located under the
general mining laws on or before the effective date of this
Act shall not be recognized as valid unless converted
pursuant to paragraph (1). No tunnel sites may be located
under the general mining laws after the effective date of
this Act.
(b) Special Application of Requirements.--For mining claims
and mill sites converted under this section each of the
following shall apply:
(1) For the purposes of complying with the requirements of
section 103(d)(2), whenever the Secretary receives an
election under paragraphs (1) or (3) of subsection (a), as
the case maybe, he shall provide the certificate referenced
in section 103(d)(2) to the holder of the mining claim or
mill site.
(2) The first diligence year applicable to mining claims
and mill sites converted under this section shall commence on
the first day of the first month following the date the
holder of such claim or mill site files an election to
convert with the Secretary under paragraphs (1) or (3) of
subsection (a), as the case may be, and subsequent diligence
years shall commence on the first day of that month each year
thereafter.
(3) For the purposes of determining the boundaries of a
mining claim to which the rental requirements of section 104
apply for a mining claim or mill site converted under this
section, the rental fee shall be paid on the basis of land
within the boundaries of the converted mining claim or mill
site as described in the notice of location or certificate
of location filed under section 314 of the Federal Land
Policy and Management Act of 1976.
(c) Preconversion.--Any unpatented mining claim or mill
site located under the general mining laws shall be deemed to
be a prior claim for the purposes of section 103(e) during
the 3-year period referred to in subsections (a)(1) or
(a)(3).
(d) Postconversion.--Any unpatented mining claim or mill
site located under the general mining laws shall be deemed to
be a prior claim for the purposes of section 103(e) if
converted pursuant to subsections (a)(1) or (a)(3).
(e) Disposition of Land.--In the event a mining claim is
located under this Act for lands encumbered by a prior mining
claim or mill site located under the general mining laws,
such lands shall become part of the claim located under this
Act if the claim or mill site located under the general
mining laws is declared null and void under this section or
otherwise becomes null and void thereafter.
(f) Preact Conflicts.--(1) Any conflicts in existence on or
before the date of enactment of this Act between holders of
mining claims located under the general mining laws may be
resolved in accordance with applicable laws governing such
conflicts in effect on the date of enactment of this Act in a
court with proper jurisdiction.
(2) Any conflicts not relating to matters provided for
under section 103(g) between the holders of a mining claim
located under this Act and a mining claim or mill located
under the general mining laws arising either before or after
the conversion of any such claim or site under this section
shall be resolved in a court with proper jurisdiction.

SEC. 405. TRANSITIONAL RULES; SURFACE MANAGEMENT
REQUIREMENTS.

(a) New Claims.--Notwithstanding any other provision of
law, any mining claim for a locatable mineral on lands
subject to this Act located after the date of enactment of
this Act, but prior to the effective date of this Act, shall
be subject to such surface management requirements as may be
applicable to the mining claim in effect prior to the date of
enactment of this Act until the effective date of this Act,
at which time such claim shall be subject to the requirements
of title II.
(b) Preexisting Claims.--Notwithstanding any other
provision of law, any unpatented mining claim or mill site
located under the general mining laws shall be subject to the
requirements of title II as follows:
(1) In the event a plan of operations had not been approved
for mineral activities on any such claim or site prior to the
effective date of this Act, the claim or site shall be
subject to the requirements of title II upon the effective
date of this Act.
(2) In the event a plan of operations had been approved for
mineral activities on any such claim or site prior to the
effective date of this Act, such plan of operations shall
continue in force for a period of 5 years after the effective
date of this Act, after which time the requirements of title
II shall apply, except as provided under subsection (c),
subject to the limitations of section 204(d)(2). In order to
meet the requirements of section 201, the person conducting
mineral activities under such plan of operations shall apply
for a modification under section 201(i). During such 5-year
period the provisions of section 202 shall apply on the basis
of the surface management requirements applicable to such
plans of operations prior to the effective date of this Act.
(3) In the event a notice had been filed with the
authorized officer in the applicable district office of the
Bureau of Land Management (as provided for in the regulations
of the Secretary of the Interior in effect prior to the date
of enactment of this Act relating to operations that cause a
cumulative disturbance of five acres or less) prior to the
date of enactment of this Act, mineral activities may
continue under such notice for a period of 2 years after the
effective date of this Act, after which time the requirements
of title II shall apply, except as provided under subsection
(c), subject to the limitations of section 204(d)(2). In
order to meet the requirements of section 201, the person
conducting mineral activities under such notice must apply
for a modification under section 201(i) unless such mineral
activities are conducted pursuant to section 201(b)(2).
During such 2-year period the provisions of section 202 shall
apply on the basis of the surface management requirements
applicable to such notices prior to the effective date of
this Act.
(4) In the event a notice (as described in paragraph (3))
had not been filed with the authorized officer in the
applicable district office of the Bureau of Land Management
prior to the date of enactment of this Act, the claim or site
shall be subject to the surface management requirements in
effect prior to the effective date of this Act at which time
such claims shall be subject to the requirements of title II.

SEC. 406. BASIS FOR CONTEST.

(a) Discovery.--After the effective date of this Act, a
mining claim may not be contested or challenged on the basis
of discovery under the general mining laws, except as
follows:
(1) Any claim located on or before the effective date of
this Act may be contested by the United States on the
basis of discovery under the general mining laws as in
effect prior to the effective date of this Act if such
claim is located within units of the National Park System,
National Wildlife Refuge System, National Wilderness
Preservation System, Wild and Scenic Rivers System,
National Trails System, or National Recreation Areas
designated by an Act of Congress, or within an area
referred to in section 205 pending a final determination
referenced in such section.
(2) Any mining claim located on or before the effective
date of this Act may be contested by the United States on the
basis of discovery under the general mining laws as in effect
prior to the effective date of this Act if such claim was
located for a mineral material that purportedly has a
property giving it distinct and special value within the
meaning of section 3(a) of the Act of July 23, 1955, or if
such claim was located for a mineral that was not locatable
under the general mining laws on or before the effective date
of this Act.
(b) The Secretary of the Interior or the Secretary of
Agriculture, as the case may be, may initiate contest
proceedings against those mining claims referred to in
subsection (a) at any time, except that nothing in this
section may be construed as requiring the Secretary to
inquire into or contest the validity of a mining claim for
the purpose of the conversion referred to in section 404.
(c) Nothing in this section may be construed as limiting
any contest proceedings initiated by the United States under
this section on issues other than discovery.

SEC. 407. SAVINGS CLAUSE CLAIMS.

(a) Notwithstanding any other provision of law, except as
provided under subsection (b), an unpatented mining claim
referred to in section 37 of the Mineral Leasing Act (30
U.S.C. 193) may not be converted under section 404 until the
Secretary of the Interior determines the claim was valid on
the date of enactment of the Mineral Leasing Act and has been
maintained in compliance with the general mining laws.
(b) Immediately after the date of enactment of this Act,
the Secretary of the Interior shall initiate contest
proceedings challenging the validity of all unpatented claims
referred to in subsection (a), including those claims for
which a patent application has not been filed. If a claim is
determined to be invalid, the Secretary shall promptly
declare the claim to be null and void.
(c) No claim referred to in subsection (a) shall be
declared null and void under section 404 during the period
such claim is subject to a proceeding under subsection (b).
If, as a result of such proceeding, a claim is determined
valid, the holder of such
claim may comply with the requirements of section 404(a)(1),
except that the 3-year period referred to in such section
shall commence with the date of the completion of the
contest proceeding.

SEC. 408. SEVERABILITY.

If any provision of this Act or the applicability thereof
to any person or circumstances is held invalid, the remainder
of this Act
[[Page S3535]] and the application of such provisions to
other persons or circumstances shall not be affected thereby.

SEC. 409. PURCHASING POWER ADJUSTMENT.

The Secretary shall adjust all rental rates, penalty
amounts, and other dollar amounts established in this Act for
changes in the purchasing power of the dollar every 10 years
following the date of enactment of this Act, employing the
Consumer Price Index for all urban consumers published by the
Department of Labor as the basis for adjustment, and rounding
according to the adjustment process of conditions of the
Federal Civil Penalties Inflation Adjustment Act of 1990 (104
Stat. 890).

SEC. 410. ROYALTY.

(a) Reservation of Royalty.--Production of locatable
minerals (including associated minerals) from any mining
claim located or converted under this Act, or mineral
concentrates derived from locatable minerals produced from
any mining claim located or converted under this Act, as the
case may be, shall be subject to a royalty of not less than 8
percent of the gross income from the production of such
locatable minerals or concentrates, as the case may be.
(b) Royalty Payments.--Royalty payments shall be made to
the United States not later than 30 days after the end of the
month in which the product is produced and placed in its
first marketable condition, consistent with prevailing
practices in the industry.
(c) Reporting Requirements.--All persons holding claims
under this Act shall be required to provide such information
as determined necessary by the Secretary to ensure compliance
with this section, including, but not limited to, quarterly
reports, records, documents, and other data. Such reports may
also include, but not be limited to, pertinent technical and
financial data relating the quantity, quality, and amount of
all minerals extracted from the mining claim.
(d) Audits.--The Secretary is authorized to conduct such
audits of all persons holding claims under this Act as he
deems necessary for the purposes of ensuring compliance with
the requirements of this section.
(e) Disposition of Receipts.--All receipts from royalties
collected pursuant to this section shall be distributed as
follows--
(1) 50 percent shall be deposited into the Fund referred to
in title III;
(2) 25 percent collected in any State shall be paid to the
State in the same manner as are payments to States under
section 35 of the Mineral Leasing Act; and (3) 25 percent
shall be deposited into the Treasury of the United States.
(f) Compliance.--Any person holding claims under this Act
who knowingly or willfully prepares, maintains, or submits
false, inaccurate, or misleading information required by this
section, or fails or refuses to submit such information,
shall be subject to the enforcement provisions of section 202
of this Act and forfeiture of the claim.
(g) Regulations.--The Secretary shall promulgate
regulations to establish gross income for royalty purposes
under subsection (a) and to ensure compliance with this
section.
(h) Report.--The Secretary shall submit to the Congress an
annual report on the implementation of this section. The
information to be included in the report shall include, but
not be limited to, aggregate and State-by-State production
data, and projections of mid-term and long-term hard rock
mineral production and trends on public lands.

SEC. 411. SAVINGS CLAUSE

(a) Special Application of Mining Laws.--Nothing in this
Act shall be construed as repealing or modifying any Federal
law, regulation, order or land use plan, in effect prior to
the effective date of this Act that prohibits or restricts
the application of the general mining laws, including such
laws that provide for special management criteria for
operations under the general mining laws as in effect prior
to the effective date of this Act, to the extent such laws
provide environmental protection greater than required under
this title.
(b) Other Federal Laws.--Nothing in this Act shall be
construed as superseding, modifying, amending or repealing
any provision of Federal law not expressly superseded,
modified, amended or repealed by this Act, including but not
necessarily limited to, all of the following laws--
(1) the Clean Water Act (33 U.S.C. 1251 and following);
(2) the Clean Air Act (42 U.S.C. 7401 and following);
(3) title IX of the Public Health Service Act (the Safe
Drinking Water Act (42 U.S.C. 300f and following));
(4) the Endangered Species Act of 1973 (16 U.S.C. 1531 and
following);
(5) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 and following);
(6) the Atomic Energy Act of 1954 (42 U.S.C. 2011 and
following);
(7) The Uranium Mill Tailing Radiation Control Act (42
U.S.C. 7901 to 7942);
(8) the Federal Mine Safety and Health Act of 1977 (30
U.S.C. 801 and following);
(9) the Solid Waste Disposal Act (42 U.S.C. 6901 and
following);
(10) The Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 and
following);
(11) the Act commonly known as the False Claims Act (31
U.S.C. 3729 to 3731);
(12) the National Historic Preservation Act (16 U.S.C. 470
and following);
(13) the Migratory Bird Treaty Act (16 U.S.C. 706 and
following); and
(14) the Forest and Rangeland Renewable Resources Planning
Act of 1974, as amended by the National Forest Management Act
of 1976.
(c) Protection of Conservation Areas.--In order to protect
the resources and values of Denali National Park and
Preserve, and all other National Conservation System units,
the Secretary of the Interior or other appropriate Secretary
shall utilize authority under this Act and other applicable
law to the fullest extent necessary to prevent mineral
activities within the boundaries of such units that could
have an adverse impact on the resources of values of such
units.

SEC. 412. AVAILABILITY OF PUBLIC RECORDS.

Copies of records, reports, inspection materials or
information obtained by the Secretary under this Act shall be
made immediately available to the public, consistent with
section 552 of title 5 of the United States Code, in central
and sufficient locations in the county, multicounty, and
State area of mineral activity or reclamation so that such
items are conveniently available to residents in the area
proposed or approved for mineral activities or reclamation.

Mr. BUMPERS. I yield the floor, Mr. President.
Mr. BENNETT. Mr. President, I come to the floor to talk about another
matter, but I must respond to my friend from Arkansas--and he is,
indeed, my friend--and say to him that I would be happy to cosponsor
with him a bill that will call for royalty on mining claims. However,
we have one slight disagreement about the definition of royalty. My
friend from Arkansas wants a royalty on gross revenues, where I am
willing to give him a royalty on net revenues.
I know the arguments about that and the answers about that. People
say, ``Oh, the bookkeepers will juggle the books in such a way as to
guarantee there are no net revenues; therefore, royalty on net will not
produce anything of value.''
Royalty on gross, however, has the same impact as a decrease in
price. Coming from the State of Utah, where we have had direct
experience with what happens when there is a decrease in price in
hardrock mining minerals, I know how devastating that can be to the
economy.
One of the largest employers in my State is Kennecott, with the
largest open-pit copper mine in the world. When the price of copper
fell below a certain level--and I will be happy to supply that for the
Record later on if Senators are interested--Kennecott continued to
produce even though they were producing at a loss. They did this
because they wanted to maintain their position in the world and
maintain their market share.
After awhile, however, they could not continue to do that, and
ultimately they shut down. The impact on the economy of the State of
Utah, and particularly of the Salt Lake area, was devastating.
Kennecott was employing about 5,000 people. Kennecott was buying
equipment from suppliers all over the valley that were employing
thousands more. Kennecott no longer paid any State income taxes.
Certainly, they were not paying any Federal income taxes. And their
employees who were out of work were not paying State or Federal income
taxes, but many of them were drawing unemployment compensation.
Kennecott was idle for several years until the price of copper went
back up. And when the price of copper went back up, Kennecott said we
are going to reopen the Kennecott mine. It was a great day for the
State of Utah and for the city of Salt Lake when Kennecott reopened.
They started rehiring again. They did not hire all 5,000 back; they had
modern mining techniques, and they only hired 2,500. Even so, 2,500
good-paying jobs in Utah were most welcome. As long as the price of
copper stays up, those jobs will be there and Kennecott will continue
to supply that which we need in the economy there.
A gross royalty, as I said, Mr. President, is exactly the same thing
as a price cut. If you put a gross royalty of 6 percent on the price of
copper, that is exactly the same thing as cutting the price of copper 6
percent. If you say, no, we will do a 3-percent royalty, that is
exactly the same thing as cutting the price of copper 3 percent. Can
the company afford to pay it? If the price of copper is sufficiently
high on the world market, absolutely, no problem. But what happens if
the price of copper starts to fall and that margin is the difference,
that gross royalty is the difference between a price the company
[[Page S3536]] can survive at and a price the company has to close down
at? The end result you know, Mr. President; the company shuts down.
So I am willing to endorse the idea of changing the 1872 mining law.
I am willing to join with my friend from Arkansas in writing a change
to that law and putting in a royalty for the Federal Government on
these minerals. But I want it to be a net royalty rather than a gross
royalty so that it does not produce the result of lowering the world
price of the commodity for that particular producer.
Let us take two mines, both of them mythical, but they will
illustrate the point. In mine A, they are mining gold with a bulldozer.
That is how we mine copper, by the way, at the Kennecott copper mine.
We mine it with a bulldozer. It is an open pit copper mine, and they
just bulldoze the material into the crushers and ultimately into the
separators, and ultimately they get the copper.
In mine B, they have to build shafts. They are mining with all kinds
of challenges and difficulties finding the vein of gold. In mine A, the
cost of mining the gold --again, picking a number out of the air, but
these are theoretical mines--in mine A, the gold is selling for $380 an
ounce. Their cost of producing it is about $100 an ounce. They have a
gross margin of $280 an ounce on that gold. Mine B gold is selling for
$380 an ounce. Their cost of producing it is $350 an ounce. They have a
margin of $30.
If you come along and put a gross royalty on gold, mine A is not
going to pay any attention to that cost at all. Good Heavens, they are
earning $230 an ounce. An extra $30 off of that, they are still going
to earn $200 an ounce. No problem. They can pay the royalty, not be
concerned about it, go on their way, produce gold. But in mine B, $30
an ounce gross royalty means they have to shut down. And when you go
into a mining situation, you have to look at not only the price that is
being earned on the world market, but you have to look at your cost of
production. So if you had a net royalty, the kind that I am willing to
support, you would say, in mine A, if the royalty, to pick a number to
keep it easy for those of us who cannot calculate too fast, is 10
percent, mine A is going to pay you on that $230 gross margin $23 an
ounce. Mine B is going to pay you $3 an ounce. But both mine A and mine
B are going to be in business, and both of them are going to be hiring
people, and both of them are going to be maintaining payrolls, and both
of them are going to be generating income to the Federal Government.
This brings me to the second point where I have a disagreement with
my friend from Arkansas when he says these fabulous finds that he
describes produce not one penny to the Federal taxpayer. That is simply
not so. If the mine is as productive as the Senator indicates that it
will be, it produces income taxes from the profits of the company that
gets the gold. It produces income taxes from the employees who are
working there. It produces income taxes from the profits of the
suppliers who produce the machinery and the power, the utilities, the
rest of the things that go into making the mine work, and it produces
income taxes from the wages of the employees of the suppliers. Indeed,
the Federal Government gets an enormous amount of money out of a
profitable business operation like a profitable gold mine, a profitable
copper mine, a profitable palladium mine, whatever it is.
He wants to add to the amount of money the Federal Government is
getting from that operation some more money in the form of a royalty.
And as I say, I am willing to support that. The place where I part
company with him is on whether the royalty should be on the gross or on
the net.
As I have said, if it is on the gross, it represents a unilateral
price cut for American operators that foreign operators do not have to
absorb. If it is on the net, it represents an additional income tax, if
you will, but I am perfectly willing to grant that additional income
tax on the grounds that the land they are using is Federal land and
there perhaps should be that additional tax.
As I talk to the miners in my State, they are willing to do that,
too. There is no opposition now in the mining industry that I am aware
of to a Federal royalty on Federal lands as long as it is a net royalty
rather than a gross royalty.
As I said, Mr. President, I had not intended to speak about that when
I came to the floor, but I always enjoy my friend from Arkansas. It
comes as no surprise to him to know that I have heard this speech
before, so I have thought some of these things through from previous
recitations, and I am sure we will have the debate again as the
Congress goes on. I commend him for his diligence. I commend him for
his determination to see this thing through, and I hope that in the
course of things maybe we can come to an agreement and ultimately
resolve this because I am not one who insists we cannot ever, ever
change the 1872 mining act.
I see the Senator is on his feet.
Mr. President, I ask unanimous consent that he be allowed to comment
without my losing my right to the floor.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BUMPERS addressed the Chair.
The PRESIDING OFFICER. The Senator from Arkansas.
Mr. BUMPERS. First of all, I wish to say that it is not just me
saying it, and perhaps the Senator from Utah would not wish to have
commendations from this side of the aisle, but I do want to say that my
opinion of him is shared by my colleagues. It developed almost
immediately when he came here. He is really one of the fine additions
to the Senate. He came here in 1992, was elected in the same year I was
reelected. I found him to be an extremely thoughtful, compassionate,
truly dedicated public servant. We have worked together on two or three
issues, most notably concessions contracts in the national parks. We
have gotten along beautifully. He does not vote the way I tell him to
all the time, that is my only objection. But I can tell you, he is a
man of integrity and a man of intellect, and it pains me that we are on
opposite sides of this issue.
I do want to make two or three points in partial rebuttal to what my
good friend from Utah has just said.
First, upon the completion of exploration, mining companies generally
have a good idea about the amount and type of minerals located at a
particular site.
They make big investments to mine, nobody denies that. And they
provide a lot of jobs. But let me tell you, looking for oil can be a
lot riskier than looking for minerals. Oftentimes, oil companies will
spend, in deep sea water, almost $1 billion to drill a well and
sometimes hit a duster. Yet, we charge them, if they do happen to hit
oil, 12.5 percent of the gross value of the oil they produce. And we
charge nothing to the mining industry.
Second, the Senator said that he objected to gross royalties, which I
am strongly supportive of. But the Senator's own home State of Utah
charges a 4-percent gross royalty on any nonfissionable minerals taken
from lands that belong to the State of Utah. And virtually every mining
contractor in this country on private lands provides for either a gross
royalty or a net smelter return, which is close to a gross royalty. So
there is nothing new or unique about that. I would rather take a
percentage point or two less in royalties then to go through all those
convoluted methods that I have heard discussed in the Energy Committee.
Finally, while I am reluctant to use a personal analogy, my son and a
partner went into the baking business approximately 12 years ago. They
worked, I would say, 2 or 3 nights a week trying to perfect different
recipes, different cooking times, different temperatures, everything--
to make what they thought was a perfect product. Then they rented a
restaurant that closed at 9 o'clock, and they baked until 1 o'clock in
the morning and would go out the next day and sell the product on the
streets.
Then they leased a little spot, and then they leased a bigger spot,
and they leased a bigger spot, and 2 years ago they bought a big
building. It has been growing by leaps and bounds. I guess they would
normally have about 20 employees--during the Christmas season, maybe 30
to 35.
I guess that is just about the most graphic case I can think of,
because it happens to be in the family, of somebody who went out and
started a business, just as the Senator from Utah has
[[Page S3537]] done. Nobody gave him a nickel to do anything. He took a
big risk. And it looks as though it is going to be a very successful
business.
My point is, nobody gets up on the floor of the Senate to defend the
thousands and thousands of people like my son who never asked for
anything and built a business. Do you know something else? He pays
taxes. Do you know something else? His employees pay taxes. And nobody
gets up on the floor of the Senate and says, ``Ain't this wonderful?''
It is only the mining industry, only the mining industry that you hear
that argument made for.
Mr. President, I yield the floor.
Mr. BENNETT. I thank my friend. I remind him--remind is the wrong
term--I tell him that I did stand on the floor and defend exactly the
kind of businesses he just described during the debate last year over
the President's economic package, and told stories similar to the one
he has told, and demonstrated, I thought, how the devastation of the
``S'' corporation procedure that was contained in the President's plan
would damage businesses like that.
I did not prevail on that occasion but I assure my colleague those
kinds of presentations in defense of those businesses have been made. I
have great admiration for his son. I also happen to like his son's
cookies, which the Senator is kind enough to share with me from time to
time. They are, indeed, a good product.
We can have this debate, and we will. My point is that there is more
to this than simply the question of whether or not the taxpayers are
being ripped off by giving away land. It is not that there are bars of
gold sitting on the ground, waiting to be picked up and taken to Fort
Knox and turned into cash. There are all kinds of processes that must
be performed before the gold can be refined, before it can be sold. I
say to the Senator, as he talks about the oil industry that faces
exactly the same thing, I think his analogy is well taken. The oil
industry faces the risk of exploration, the costs of refining, and all
of the rest of that.
We have in the State of Utah enough oil, according to the geologists,
to dwarf and eclipse the oil in Saudi Arabia. We have trillions and
trillions and trillions of barrels of oil in the State of Utah. Why,
therefore, are we not producing oil? For the simple reason that in Utah
the oil is trapped in what is called oil shale. It is not down beneath
the sand, to be pumped out simply by, in the language of the oil
industry, sticking a straw in and sipping it up. And the oil shale does
not become commercially viable until the world price of oil goes
somewhere in the neighborhood of $50 to $60 a barrel.
If we were going to get $60 a barrel for oil, you would see Utah take
over for Saudi Arabia, and Utah be the oil center of the universe. But
the world price is not at $60 a barrel; the world price is nowhere near
$60 a barrel.
Let us say that the world price was close to making shale oil
commercially viable but the 12.5-percent increase in the world price
represented by the U.S. royalty was the knife edge between its being
profitable and not profitable. If that were to be the case and we were
facing a serious energy crisis, I would come to the floor and say let
us repeal the 12.5-percent royalty. Let us go to a net royalty on oil
companies. Indeed, I am willing to talk about that as a possibility
here.
You know the gold is there. Yes. When you buy the land, when you
patent the land, you know the gold is there. The thing you do not know
and cannot predict, cannot be sure of, is the world price of the gold.
That is where you are taking a gamble. If the world price of the metal
falls below a certain level, you have just lost your money, which is
what happened, as I said, in the State of Utah where we lost 5,000
jobs, not because people did not know the copper was there. The copper
was still there. The difference is that the world price fell, and when
the world price fell below that level, we shut down and we lost all the
jobs. And we lost all the employment. When the world price came back
up, the jobs came back up.
My concern is not to bail out the rich mining companies. My concern
is to hang onto those jobs if I can and say let us put the royalties in
such a fashion that we do not cut the price for U.S. producers by an
amount that their foreign competitors do not have.
______

By Mr. HARKIN:
S. 505. A bill to direct the Administrator of the Environmental
Protection Agency not to act under section 6 of the Toxic Substances
Control Act to prohibit the manufacturing, processing, or distribution
of certain fishing sinkers or lures; to the Committee on Environment
and Public Works.

common sense in fishing regulations act

Mr. HARKIN. Mr. President, today I am introducing the Common
Sense In Fishing Regulations Act. This bill limits government
regulation run amok, its approval would put a little common sense into
an area of extreme overregulation.
In March of last year the Environmental Protection Agency [EPA]
proposed a rule that would ban the manufacture and sale of lead fishing
sinkers--the weights most anglers use to get their baits and lures down
to where the fish are. As an angler myself, I see this as a clear
example of overzealous regulators acting far outside the realm of the
reasonable and into the ridiculous.
In 1992 the Environmental Defense Fund, a fine organization with
highly laudable goals, and several other organizations petitioned EPA
under the Toxic Substances Control Act to issue a regulation that would
require labels on lead fishing sinkers stating that lead is toxic to
wildlife. In a few rare cases it has been shown that waterfowl will
ingest sinkers improperly discarded at the water's edge, using them in
their digestive tract to help grind their food. Because the sinkers can
stay in the birds for an extended time, lead poisoning can develop. The
petitioners felt that if anglers were made more aware of the possible
dangers of improperly discarding used sinkers they would be even more
conscientious with their use. However, EPA went far beyond the scope of
the petition and I believe in fact the law and proposed a total ban on
the sale and manufacture of lead sinkers.
In their research EPA could document fewer than 50 cases, nationwide,
over a period of 16 years in which waterfowl had died of lead poisoning
likely due to the ingestion of lead sinkers. Across this entire Nation
over a period of 16 years, they could only document a few possible
cases and yet they want to stop millions of American anglers from using
devices that have been in use on this continent for centuries! If this
is not a case of extreme overregulation and micromanagement by a
Federal bureaucracy, I don't know what is. EPA has based their actions
on speculation and anecdotal information, not on hard scientific
research. It is incomprehensible that EPA would base such a far
reaching regulation on such a statistically insignificant number of
incidents out of a bird population that numbers in the hundreds of
millions. No one would dispute that lead in the bloodstream is toxic
and that waterfowl could die from using lead in their digestive system.
But EPA has clearly not established that lead sinkers ``present or will
present an unreasonable risk of injury to human health or the
environment'' as is clearly required for such action under the Toxic
Substances Control Act. In fact, they clearly state that they cannot
establish any threat to human health through the home manufacture of
lead sinkers.
And that is where a great many lead sinkers are made. In the
basements and garages across this country, many anglers have a side
hobby, making sinkers, jigs, and other lead based fishing tackle. They
make different types, test their effectiveness, and make modifications
on their designs as needed. This adds greatly to the fishing experience
and angling challenge through more complete involvement in all aspects
of the sport. Yet EPA wants to prohibit this type of activity without
any scientific basis whatsoever. The proposed rule even states that the
possible risk to human health through home manufacture is impossible to
evaluate.
When lead shot for waterfowl hunting was banned several years ago,
hundreds of thousands of waterfowl gizzards were examined. There was
clear evidence that lead shotgun shell pellets did pose a very real
threat to ducks and geese. That is just not the case in this instance.
As I stated, there is not enough evidence to warrant such a sweeping
regulation.
[[Page S3538]] This ban would also force many small manufacturers out
of business. While it can be feasible for a large company to retool and
develop alternatives to lead, the costs to a small business in terms of
the research and equipment needed to convert their operation is
prohibitive and would force many small businesses to close their doors,
leaving many individuals without livelihoods. While the larger
companies reap the benefits of deeper pockets, the small business is
squeezed out.
One of the true ironies in EPA's proposed rule is that it does not
ban the use of lead sinkers, or ban the sale of current stocks. It
seems strange to me that if these sinkers are so bad for the
environment that they must be banned that EPA would allow their
continued use in any instance. Anglers can continue to use the sinkers
they have on hand after the ban becomes effective, and stores are given
time in the proposed rule to sell out whatever stock they have on hand.
This proposal thus would create an enforcement nightmare. It might take
years, sinkers are pretty durable and often a small number will last an
angler for quite some time, to use all the lead sinkers in existence
should the ban become effective. In the meantime, will EPA enforcement
officers be checking people's garages and basements to ensure that new
sinkers are not being made? Will a black market in lead sinkers
develop? And what would this regulation require of State fish and game
enforcement officers?
Mr. President, a regulation such as this could greatly add to the
burden on a State's game wardens. These individuals are some of the
hardest working and most efficient law enforcement officials in the
country and in an increasingly hostile environment we want to require
them to determine the age of every sinker used. This regulation could
force law abiding anglers--and most are extremely careful when it comes
to game laws--to prove where and when they got any sinkers they are
using or face criminal charges. Will anglers be required to keep the
receipts for all of their tackle in their tackle boxes to prove
purchase dates? All this because EPA has gone wild with regulations.
No group is more widely supportive of environmentally sound
regulation than America's anglers. They see the very direct correlation
between sound, sane environmental regulations and the benefits gained
from them. Without environmental protections, the hobby and industry
that is fishing in America would not be viable. Anglers understand all
too well that without appropriate protections and regulations one of
America's most widely enjoyed outdoor sports would cease to exist.
Without sound policies America's water would soon be devoid of fish and
most anglers are extremely cognizant of that and act accordingly when
in the pursuit of their hobby. But this regulation is far beyond any
reasonable and sound environmental policy. It is based on guesswork and
supposition, not sound science. It oversteps the bounds of common
sense.
Mr. President, before EPA proposes such a rule that will create
untold headaches for State enforcement officials, anglers and many
small business, it should be ready to provide much more complete proof
that it is necessary and would be effective.
Finally, this amendment does not preclude future EPA action on this
issue. EPA should take appropriate steps to protect waterfowl, no one
is arguing that point. The bill I am introducing today specifies that
should more substantial evidence or risk to either human health or
wildlife become available then the Administrator is directed to report
that information to Congress and make suggestions regarding possible
legislative action.
Mr. President, I want to be clear that there are many critically
important rules and regulations in place and being drafted on things
from protecting worker rights and worker safety to making sure our air
is clean. Some are proposing to freeze all regulations and gut many
others. That is clearly not the right approach. We need reforms, but we
need common sense reforms. We need to be very selective to assure that
critical protections are not discarded as we act to block the
ridiculous.
Having said that, it is important that this bill be passed as soon as
possible as EPA is actively pursuing its course of action on this
proposed rule. They have held hearings and the comment period has
closed. EPA will soon be coming out with the final rule on this subject
and millions of anglers will be seriously affected by the finalization
of this ridiculous rule.
I ask my colleagues to support this measure and to help bring a
little more common sense to our Government. I ask unanimous consent
that a copy of the bill be included in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 505

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 ``Common Sense in Fishing
Regulations Act''.

SEC. 2. FINDINGS.

Congress finds that--
(1) millions of Americans of all ages enjoy recreational
fishing; fishing is one of the most popular sports;
(2) lead and other types of metal sinkers and fishing lures
have been used by Americans fishing for hundreds of years;
(3) the Administrator of the Environmental Protection
Agency has proposed to issue a rule under section 6 of the
Toxic Substances Control Act, to prohibit the manufacturing,
processing, and distribution in commerce in the United
States, of certain smaller size fishing sinkers containing
lead and zinc, and mixed with other substances, including
those made of brass;
(4) the Environmental Protection Agency has based its
conclusions that lead fishing sinkers of a certain size
present an unreasonable risk of injury to human health or the
environment on less than definitive scientific data,
conjecture and anecdotal information;
(5) alternative forms of sinkers and fishing lures are
considerably more expensive than those made of lead;
consequently, a ban on lead sinkers would impose additional
costs on millions of Americans who fish;
(6) in the absence of more definitive evidence of harm to
the environment, the Federal Government should not take steps
to restrict the use of lead sinkers; and
(7) alternative measures to protect waterfowl from lead
exposure should be carefully reviewed.

SEC. 3. FISHING SINKERS AND LURES.

(a) Directive.--The Administrator of the Environmental
Protection Agency shall not, under purported authority of
section 6 of the Toxic Substances Control Act (15 U.S.C.
2605), take action to prohibit or otherwise restrict the
manufacturing, processing, distributing, or use of any
fishing sinkers or lures containing lead, zinc, or brass.
(b) Further Action.--If the Administrator obtains a
substantially greater amount of evidence of risk of injury to
health or the environment than that which was adduced in the
rulemaking proceedings described in the proposed rule dated
February 28, 1994 (59 Fed. Reg. 11122 (March 9, 1994)), the
Administrator shall report those findings to Congress, with
any recommendation that the Administrator may have for
legislative action.
ADDITIONAL COSPONSORS

S. 34

At the request of Mr. Breaux, the name of the Senator from
Mississippi [Mr. Cochran] was added as a cosponsor of S. 34, a bill to
amend the Internal Revenue Code of 1986 to treat geological,
geophysical, and surface casing costs like intangible drilling and
development costs, and for other purposes.

S. 200

At the request of Mr. Bradley, the name of the Senator from
Massachusetts [Mr. Kennedy] was added as a cosponsor of S. 200, a bill
to amend title 18, United States Code, to regulate the manufacture,
importation, and sale of any projectile that may be used in a handgun
and is capable of penetrating police body armor.

S. 240

At the request of Mr. Domenici, the name of the Senator from Indiana
[Mr. Coats] was added as a cosponsor of S. 240, a bill to amend the
Securities Exchange Act of 1934 to establish a filing deadline and to
provide certain safeguards to ensure that the interests of investors
are well protected under the implied private action provisions of the
act.

S. 244

At the request of Mr. Harkin, his name was added as a cosponsor of S.
244, a bill to further the goals of the Paperwork Reduction Act to have
Federal agencies become more responsible and publicly accountable for
reducing the burden of Federal paperwork on the public, and for other
purposes.
At the request of Mr. Nunn, the names of the Senator from Mississippi
[Mr. Lott], the Senator from Alaska [Mr. Stevens], the Senator from
Hawaii [Mr. Akaka], the Senator from
[[Page S3539]] Iowa [Mr. Grassley], the Senator from Wyoming [Mr.
Thomas], the Senator from Maine [Mr. Cohen], the Senator from Tennessee
[Mr. Thompson], the Senator from West Virginia [Mr. Rockefeller], and
the Senator from New York [Mr. D'Amato] were added as cosponsors of S.
244, supra.

S. 476

At the request of Mr. Nickles, the name of the Senator from
Mississippi [Mr. Lott] was added as a cosponsor of S. 476, a bill to
amend title 23, United States Code, to eliminate the national maximum
speed limit, and for other purposes.

Senate Concurrent Resolution 3

At the request of Mr. Simon, the names of the Senator from Montana
[Mr. Burns], the Senator from Georgia [Mr. Coverdell], the Senator from
Idaho [Mr. Craig], the Senator from North Carolina [Mr. Faircloth], the
Senator from New Hampshire [Mr. Gregg], the Senator from North Carolina
[Mr. Helms], the Senator from Oklahoma [Mr. Inhofe], the Senator from
Arizona [Mr. Kyl], the Senator from Arizona [Mr. McCain], the Senator
from Alaska [Mr. Murkowski], and the Senator from South Carolina [Mr.
Thurmond] were added as cosponsors of Senate Concurrent Resolution 3, a
concurrent resolution relative to Taiwan and the United Nations.

____________________