[Congressional Record Volume 147, Number 112 (Friday, August 3, 2001)]
[Senate]
[Pages S8963-S8966]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself and Mr. Johnson):
  S. 1389. A bill to provide for the conveyance of certain real 
property in south Dakota to the State of South Dakota with 
indemnification by the United States government, and for other 
purposes; to the Committee on Environment and Public Works.
  Mr. DASCHLE. Mr. President, today Senator Johnson and I are 
introducing the Homestake Mine Conveyance Act of 2001 to enable the 
construction of a new, world-renowned science laboratory in the Black 
Hills of South Dakota.
  Last Year, the Homestake Mining Company announced it is closing its 
gold mine in Lead, SD after 125 years of operation. This mine has been 
an important part of the economy in the Black Hills, and its closure 
presented South Dakota with a serious challenge.
  New opportunities for Lead became possible, however, when we learned 
that a group of prominent scientists had identified the mine as a 
potential site to establish a national underground science laboratory. 
Composed of some of the foremost researchers in the country, the 
National Underground Science Laboratory Committee found that 
Homestake's unique combination of depth, geologic stability and 
outstanding infrastructure made it an ideal location for an underground 
laboratory that could support groundbreaking new scientific research. 
In just the last few months, a $281 million proposal to construct the 
laboratory has been submitted to the National Science Foundation.
  As I learned, tiny particles known as neutrinos hold the answer to 
fundamental questions about the nature of the universe. These particles 
cannot be detected on the surface of the Earth due to the immense 
amount of interference coming in from outer space. However, research 
laboratories located deep underground, where detectors are shielded by 
thousand of feet of rock, have been able to detect these particles and 
provide important new information to scientists. Because the Homestake 
mine in Lead is over 8,000 feet deep, it offers outstanding 
opportunities for such research. In fact one neutrino experiment has 
been operating there since the 1960s.
  I have never seen such excitement in Lead as I have seen in relation 
to this proposal. Banners welcoming visiting scientists to Lead have 
been hung over the streets. The local chamber of commerce held a 
``Neutrino Day'' in February and reported the highest attendance for 
any even in recent memory. Students, teachers, miners, business

[[Page S8964]]

owners, people from every walk of life, have contacted me to express 
their excitement about the possibility of building a laboratory. The 
support for this proposal is overwhelming.
  In order to make the mine available for research, it is necessary for 
the facility to be transferred to the State of South Dakota and for the 
United States to assume a portion of the liability currently associated 
with the property. The purpose of the legislation Senator Johnson and I 
are introducing today is to ensure that this transfer takes places in a 
way that is fair to taxpayers, that protects the environment, and that 
ensures this facility can ultimately become available for research.
  This legislation establishes a number of steps that must be taken to 
meet these goals. First it requires that an independent inspection of 
the property take place to identify any condition that could pose a 
threat to human health or the environment. The Environmental Protection 
Agency must review the report accompanying this inspection and ensure 
that any problematic conditions are mitigated before transfer may be 
allowed to take place. Second, it requires that the State of South 
Dakota purchase environmental insurance to protect the taxpayers 
against any issue that may arise as a result of acquiring the mine. 
Third, it establishes a trust fund to provide a permanent source of 
revenue to finance any clean-up that may be necessary. Finally, this 
bill would take effect only if the National Science Foundation approves 
the construction of the laboratory.

  To be clear, only a portion of Homestake's existing facilities that 
are required for the laboratory are being considered for transfer. 
These include the underground portion of the mine and a small 
``footprint'' on the surface. The legislation specifically prohibits 
any tailings storage sites, waste rock dumps or other areas from being 
transferred, as these sites must be reclaimed by Homestake Mining 
Company.
  The final point I want to make is that this legislation is time-
sensitive. Homestake's current plan to reclaim the underground mine is 
to let it slowly flood with water once the mine closes in January of 
2001. If that happens, we will forever lose the opportunity to create 
this laboratory.
  This legislation has been developed over a period of months in close 
consultation with Homestake Mining Company, the environmental 
community, the scientific community, the State of South Dakota and the 
South Dakota School of Mines and Technology. I want to thank all the 
individuals involved with this effort for their help. In particular, 
I'd like to thank Governor Bill Janklow, whose help and support is this 
process have been invaluable.
  I believe the resulting legislation is fair to all involved, and that 
it will ensure the success of the laboratory while protecting the 
environment. Moreover, by enabling the construction of this laboratory, 
it ultimately will bring significant benefits to the United States and 
make an important contribution to human knowledge. I look forward to 
working with all interested parties to make additional improvements to 
this legislation when we return in September, and I am personally 
committed to passing this legislation in a timely manner this fall.
  I urge my colleagues to give this legislation their support. I ask 
unanimous consent that the text of the bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1389

       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 ``Homestake Mine Conveyance 
     Act of 2001''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the United States is among the leading nations in the 
     world in conducting basic scientific research;
       (2) that leadership position strengthens the economy and 
     national defense of the United States and provides other 
     important benefits;
       (3) the Homestake Mine in Lead, South Dakota, owned by the 
     Homestake Mining Company of California, is approximately 
     8,000 feet deep and is situated in a unique physical setting 
     that is ideal for carrying out certain types of particle 
     physics and other research;
       (4) the Mine has been selected by the National Underground 
     Science Laboratory Committee, an independent panel of 
     distinguished scientists, as the preferred site for the 
     construction of a national underground laboratory;
       (5) such a laboratory would be used to conduct scientific 
     research that would be funded and recognized as significant 
     by the United States;
       (6) the establishment of the laboratory is in the national 
     interest, and would substantially improve the capability of 
     the United States to conduct important scientific research;
       (7) for economic reasons, Homestake intends to cease 
     operations and close the Mine in 2001;
       (8) on cessation of operations of the Mine, Homestake 
     intends to implement reclamation actions that would preclude 
     the establishment of a laboratory at the Mine;
       (9) Homestake has advised the State that, after cessation 
     of operations at the Mine, instead of carrying out those 
     reclamation actions, Homestake is willing to donate the 
     underground portion of the Mine and certain other real and 
     personal property of substantial value at the Mine for use as 
     the underground science laboratory;
       (10) use of the Mine as the site for the laboratory, 
     instead of other locations under consideration, would result 
     in a savings of millions of dollars;
       (11) if the National Science Foundation selects the Mine as 
     the site for the laboratory, it is essential that Homestake 
     not complete certain reclamation activities that would 
     preclude the location of the laboratory at the Mine;
       (12) Homestake is unwilling to donate, and the State is 
     unwilling to accept, the property at the Mine for the 
     laboratory if Homestake and the State would continue to have 
     potential liability with respect to the transferred property; 
     and
       (13) to secure the use of the Mine as the location for the 
     laboratory, and to realize the benefits of the proposed 
     laboratory, it is necessary for the United States to--
       (A) assume a portion of any potential future liability of 
     Homestake concerning the Mine; and
       (B) address potential liability associated with the 
     operation of the laboratory.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Affiliate.--
       (A) In general.--The term ``affiliate'' means any 
     corporation or other person that controls, is controlled by, 
     or is under common control with Homestake.
       (B) Inclusions.--The term ``affiliate'' includes a 
     director, officer, or employee of an affiliate.
       (3) Conveyance.--The term ``conveyance'' means the 
     conveyance of the Mine to the State under section 4(a).
       (4) Fund.--The term ``Fund'' means the Environment and 
     Project Trust Fund established under section 7.
       (5) Homestake.--
       (A) In general.--The term ``Homestake'' means the Homestake 
     Mining Company of California, a California corporation.
       (B) Inclusion.--The term ``Homestake'' includes--
       (i) a director, officer, or employee of Homestake; and
       (ii) an affiliate of Homestake.
       (6) Laboratory.--
       (A) In general.--The term ``laboratory'' means the national 
     underground science laboratory proposed to be established at 
     the Mine after the conveyance.
       (B) Inclusion.--The term ``laboratory'' includes operating 
     and support facilities of the laboratory.
       (7) Mine.--
       (A) In general.--The term ``Mine'' means the portion of the 
     Homestake Mine in Lawrence County, South Dakota, proposed to 
     be conveyed to the State for the establishment and operation 
     of the laboratory.
       (B) Inclusions.--The term ``Mine'' includes--
       (i) real property, mineral and oil and gas rights, shafts, 
     tunnels, structures, in-Mine backfill, in-Mine broken rock, 
     fixtures, and personal property to be conveyed for 
     establishment and operation of the laboratory, as agreed upon 
     by Homestake, the State, and the Director of the laboratory; 
     and
       (ii) any water that flows into the Mine from any source.
       (C) Exclusions.--The term ``Mine'' does not include--
       (i) the feature known as the ``Open Cut'';
       (ii) any tailings or tailings storage facility (other than 
     in-Mine backfill); or
       (iii) any waste rock or any site used for the dumping of 
     waste rock (other than in-Mine broken rock).
       (8) Person.--The term ``person'' means--
       (A) an individual;
       (B) a trust, firm, joint stock company, corporation 
     (including a government corporation), partnership, 
     association, limited liability company, or any other type of 
     business entity;
       (C) a State or political subdivision of a State;
       (D) a foreign governmental entity; and
       (E) any department, agency, or instrumentality of the 
     United States.
       (9) Project sponsor.--The term ``project sponsor'' means an 
     entity that manages or

[[Page S8965]]

     pays the costs of 1 or more projects that are carried out or 
     proposed to be carried out at the laboratory.
       (10) State.--
       (A) In general.--The term ``State'' means the State of 
     South Dakota.
       (B) Inclusions.--The term ``State'' includes an 
     institution, agency, officer, or employee of the State.

     SEC. 4. CONVEYANCE OF REAL PROPERTY.

       (a) In General.--
       (1) Delivery of documents.--Subject to paragraph (2) and 
     subsection (b) and notwithstanding any other provision of 
     law, on the execution and delivery by Homestake of 1 or more 
     quit-claim deeds or bills of sale conveying to the State all 
     right, title, and interest of Homestake in and to the Mine, 
     title to the Mine shall pass from Homestake to the State.
       (2) Condition of mine on conveyance.--The Mine shall be 
     conveyed as is, with no representations as to the conditions 
     of the property.
       (b) Requirements for Conveyance.--
       (1) In general.--As a condition precedent of conveyance and 
     of the assumption of liability by the United States in 
     accordance with this Act, the Administrator shall accept the 
     final report or certification of the independent entity under 
     subparagraphs (A) through (E) of paragraph (3).
       (2) Due diligence inspection.--
       (A) In general.--As a condition precedent of conveyance and 
     of Federal participation described in this Act, Homestake 
     shall permit an independent entity that is selected jointly 
     by Homestake, the South Dakota Department of Environment and 
     Natural Resources, and the Administrator to conduct a due 
     diligence inspection of the Mine to determine whether any 
     condition of the Mine poses a substantial risk to human 
     health or the environment.
       (B) Consultation.--As a condition precedent of the conduct 
     of a due diligence inspection, Homestake, the South Dakota 
     Department of Environment and Natural Resources, the 
     Administrator, and the independent entity shall consult and 
     agree upon the methodology and standards to be used, and 
     other factors to be considered, by the independent entity 
     in--
       (i) the conduct of the due diligence inspection;
       (ii) the scope of the due diligence inspection; and
       (iii) the time and duration of the due diligence 
     inspection.
       (3) Report to administrator.--
       (A) In general.--The independent entity shall submit to the 
     Administrator a report that--
       (i) describes the results of the due diligence inspection 
     under paragraph (2); and
       (ii) identifies any condition of or in the Mine that poses 
     a substantial risk to human health or the environment.
       (B) Procedure.--
       (i) Draft report.--Before finalizing the report under this 
     paragraph, the independent entity shall--

       (I) issue a draft report;
       (II) submit to the Administrator a copy of the draft 
     report;
       (III) issue a public notice requesting comments on the 
     draft report that requires all such comments to be filed not 
     later than 45 days after issuance of the public notice; and
       (IV) during that 45-day public comment period, conduct at 
     least 1 public hearing in Lead, South Dakota, to receive 
     comments on the draft report.

       (ii) Final report.--In the final report submitted to the 
     Administrator under this paragraph, the independent entity 
     shall respond to, and incorporate necessary changes suggested 
     by, the comments received on the draft report.
       (4) Review and approval by administrator.--
       (A) In general.--Not later than 60 days after receiving the 
     final report under paragraph (3), the Administrator shall--
       (i) review the report; and
       (ii) notify the State in writing of acceptance or rejection 
     of the final report.
       (B) Conditions for rejection.--The Administrator may reject 
     the final report only if the Administrator identifies 1 or 
     more conditions of the Mine that--
       (i) pose a substantial risk to human health or the 
     environment, as determined by the Administrator; and
       (ii) require response action to correct each condition 
     causing the substantial risk to human health or the 
     environment identified in clause (i) before conveyance and 
     assumption by the Federal Government of liability concerning 
     the Mine under this Act.
       (C) Remedial measures and certification.--
       (i) Remediation.--

       (I) In general.--If the Administrator rejects the final 
     report, Homestake may carry out, or permit the State to carry 
     out, such measures as are necessary to remove or remediate 
     any condition identified by the Administrator under 
     subparagraph (B)(i) as posing a substantial risk to human 
     health or the environment.
       (II) Long-term remediation.--

       (aa) In general.--In a case in which the Administrator 
     determines that a condition identified by the Administrator 
     under subparagraph (B)(i) requires continuing remediation, or 
     remediation that can only be completed as part of the final 
     closure of the Mine, it shall be a condition of conveyance 
     that Homestake or the National Science Foundation shall 
     deposit into the Fund such funds as are necessary to pay the 
     costs of that remediation.
       (bb) Source of funds.--Any funds deposited by the National 
     Science Foundation under this paragraph shall be made 
     available from grant funding provided for the construction of 
     the Laboratory.
       (ii) Certification.--After the remedial measures described 
     in clause (i)(I) are carried out and funds are deposited 
     under clause (i)(II), the independent entity may certify to 
     the Administrator that the conditions for rejection 
     identified by the Administrator under subparagraph (B) have 
     been corrected.
       (iii) Acceptance or rejection of certification.--Not later 
     than 60 days after an independent entity makes a 
     certification under clause (ii), the Administrator shall 
     accept or reject the certification.

     SEC. 5. LIABILITY.

       (a) Assumption of Liability.--Notwithstanding any other 
     provision of law, on completion of the conveyance in 
     accordance with this Act, the United States shall assume any 
     and all liability relating to the Mine and laboratory, 
     including liability for--
       (1) damages;
       (2) reclamation;
       (3) the costs of response to any hazardous substance (as 
     defined in section 101 of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601)), contaminant, or other material on, under, or relating 
     to the Mine and laboratory; and
       (4) closure of the Mine and laboratory.
       (b) Liability Protection.--On completion of the conveyance, 
     neither Homestake nor the State shall be--
       (1) liable to any person or the United States for injuries, 
     costs, injunctive relief, reclamation, damages (including 
     damages to natural resources or the environment), or 
     expenses, or liable under any other claim (including claims 
     for indemnification or contribution, claims by third parties 
     for death, personal injury, illness, or loss of or damage to 
     property, or claims for economic loss), under any law 
     (including a regulation) for any claim arising out of or in 
     connection with contamination, pollution, or other condition, 
     use, or closure of the Mine and laboratory, regardless of 
     when a condition giving rise to the liability originated or 
     was discovered; or
       (2) subject to any claim brought by or on behalf of the 
     United States under section 3730 of title 31, United States 
     Code, relating to negligence on the part of Homestake in 
     carrying out activities for the conveyance of, and in 
     conveying, the Mine.
       (c) Indemnification.--Notwithstanding any other provision 
     of law, on completion of the conveyance in accordance with 
     this Act, the United States shall indemnify, defend, and hold 
     harmless Homestake and the State from and against any and all 
     liabilities and claims described in subsections (a) and (b).
       (d) Waiver of Sovereign Immunity.--For the purposes of this 
     Act, the United States waives any claim to sovereign 
     immunity.
       (e) Timing for Assumption of Liability.--If the conveyance 
     is effectuated by more than 1 legal transaction, the 
     assumption of liability, liability protection, 
     indemnification, and waiver of sovereign immunity provided 
     for under this section shall apply to each legal transaction, 
     as of the date on which the transaction is completed and with 
     respect to such portion of the Mine as is conveyed under that 
     transaction.
       (f) Exceptions for Homestake Claims.--Nothing in this 
     section constitutes an assumption of liability by the United 
     States, or relief of liability of Homestake, for--
       (1) any unemployment, worker's compensation, or other 
     employment-related claim of an employee of Homestake that 
     arose before the date of conveyance;
       (2) any claim or cause of action, other than an 
     environmental claim or a claim concerning natural resources, 
     that arose before the date of conveyance;
       (3) any violation of any provision of criminal law; or
       (4) any claim, injury, damage, liability, or reclamation or 
     cleanup obligation with respect to any property or asset that 
     is not conveyed under this Act, except to the extent that any 
     such claim, injury, damage, liability, or reclamation or 
     cleanup obligation arises out of the continued existence or 
     use of the Mine subsequent to the date of conveyance.

     SEC. 6. INSURANCE COVERAGE.

       (a) Property and Liability Insurance.--
       (1) In general.--To the maximum extent practicable, subject 
     to the requirements described in paragraph (2), the State 
     shall purchase property and liability insurance for the Mine 
     and the operation of the laboratory to provide coverage 
     against the liability described in subsections (a) and (b) of 
     section 5.
       (2) Requirements.--The requirements referred to in 
     paragraph (1) are the following:
       (A) Terms of insurance.--In determining the type, extent of 
     coverage, and policy limits of insurance purchased under this 
     subsection, the State shall--
       (i) periodically consult with the Administrator and the 
     Director of the National Science Foundation; and
       (ii) consider certain factors, including--

       (I) the nature of the projects and experiments being 
     conducted in the laboratory;
       (II) the availability of commercial insurance; and
       (III) the amount of funding available to purchase 
     commercial insurance.

[[Page S8966]]

       (B) Additional terms.--The insurance purchased by the State 
     under this subsection may provide coverage that is--
       (i) secondary to the insurance purchased by project 
     sponsors; and
       (ii) in excess of amounts available in the Fund to pay any 
     claim.
       (3) Financing of insurance purchase.--
       (A) In general.--Subject to section 7, the State may 
     finance the purchase of insurance required under this 
     subsection by using--
       (i) funds made available from the Fund; and
       (ii) such other funds as are received by the State for the 
     purchase of insurance for the Mine and laboratory.
       (B) No requirement to use state funds.--Nothing in this Act 
     requires the State to use State funds to purchase insurance 
     required under this subsection.
       (4) Additional insured.--Any insurance purchased by the 
     State under this subsection shall--
       (A) name the United States as an additional insured; or
       (B) otherwise provide that the United States is a 
     beneficiary of the insurance policy having the primary right 
     to enforce all rights of the United States under the policy.
       (5) Termination of obligation to purchase insurance.--The 
     obligation of the State to purchase insurance under this 
     subsection shall terminate on the date on which--
       (A) the Mine ceases to be used as a laboratory; or
       (B) sufficient funding ceases to be available for the 
     operation and maintenance of the Mine or laboratory.
       (b) Project Insurance.--
       (1) In general.--The State, in consultation with the 
     Administrator and the Director of the National Science 
     Foundation, may require, as a condition of approval of a 
     project for the laboratory, that a project sponsor provide 
     property and liability insurance or other applicable coverage 
     for potential liability associated with the project described 
     in subsections (a) and (b) of section 5.
       (2) Additional insured.--Any insurance obtained by the 
     project sponsor under this section shall--
       (A) name the State and the United States as additional 
     insureds; or
       (B) otherwise provide that the State and the United States 
     are beneficiaries of the insurance policy having the primary 
     right to enforce all rights under the policy.
       (c) State Insurance.--
       (1) In general.--To the extent required by State law, the 
     State shall purchase, with respect to the operation of the 
     Mine and the laboratory--
       (A) unemployment compensation insurance; and
       (B) worker's compensation insurance.
       (2) Prohibition on use of funds from fund.--A State shall 
     not use funds from the Fund to carry out paragraph (1).

     SEC. 7. ENVIRONMENT AND PROJECT TRUST FUND.

       (a) Establishment.--On completion of the conveyance, the 
     State shall establish, in an interest-bearing account at an 
     accredited financial institution located within the State, an 
     Environment and Project Trust Fund.
       (b) Amounts.--The Fund shall consist of--
       (1) an annual deposit from the operation and maintenance 
     funding provided for the laboratory in an amount to be 
     determined--
       (A) by the State, in consultation with the Director of the 
     National Science Foundation and the Administrator; and
       (B) after taking into consideration--
       (i) the nature of the projects and experiments being 
     conducted at the laboratory;
       (ii) available amounts in the Fund;
       (iii) any pending costs or claims that may be required to 
     be paid out of the Fund; and
       (iv) the amount of funding required for future actions 
     associated with the closure of the facility;
       (2) an amount determined by the State, in consultation with 
     the Director of the National Science Foundation and the 
     Administrator, and to be paid by the appropriate project 
     sponsor, for each project to be conducted, which amount--
       (A) shall be used to pay--
       (i) costs incurred in removing from the Mine or laboratory 
     equipment or other materials related to the project;
       (ii) claims arising out of or in connection with the 
     project; and
       (iii) if any portion of the amount remains after paying the 
     expenses described in clauses (i) and (ii), other costs 
     described in subsection (c); and
       (B) may, at the discretion of the State, be assessed--
       (i) annually; or
       (ii) in a lump sum as a prerequisite to the approval of the 
     project;
       (3) interest earned on amounts in the Fund, which amount of 
     interest shall be used only for a purpose described in 
     subsection (c); and
       (4) all other funds received and designated by the State 
     for deposit in the Fund.
       (c) Expenditures From Fund.--Amounts in the Fund shall be 
     used only for the purposes of funding--
       (1) waste and hazardous substance removal or remediation, 
     or other environmental cleanup at the Mine;
       (2) removal of equipment and material no longer used, or 
     necessary for use, in conjunction with a project conducted at 
     the laboratory;
       (3) a claim arising out of or in connection with the 
     conducting of such a project;
       (4) purchases of insurance by the State as required under 
     section 6;
       (5) payments for and other costs relating to liability 
     described in section 5; and
       (6) closure of the Mine and laboratory.
       (d) Federal Payments From Fund.--The United States--
       (1) to the extent the United States assumes liability under 
     section 5--
       (A) shall be a beneficiary of the Fund; and
       (B) may direct that amounts in the Fund be applied to pay 
     amounts and costs described in this section; and
       (2) may take action to enforce the right of the United 
     States to receive 1 or more payments from the Fund.
       (e) No Requirement of Deposit of Public Funds.--Nothing in 
     this section requires the State to deposit State funds as a 
     condition of the assumption by the United States of 
     liability, or the relief of the State or Homestake from 
     liability, under section 5.

     SEC. 8. REQUIREMENTS FOR OPERATION OF LABORATORY.

       After the conveyance, nothing in this Act exempts the 
     laboratory from compliance with any law (including a Federal 
     environmental law).

     SEC. 9. CONTINGENCY.

       This Act shall be effective contingent on the selection, by 
     the National Science Foundation, of the Mine as the site for 
     the laboratory.

     SEC. 10. PAYMENT AND REIMBURSEMENT OF COSTS.

       The United States may seek payment--
       (1) from the Fund, under section 7(d), to pay or reimburse 
     the United States for amounts payable or liabilities incurred 
     under this Act; and
       (2) from available insurance, to pay or reimburse the 
     United States and the Fund for amounts payable or liabilities 
     incurred under this Act.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
                                 ______