[Congressional Record Volume 147, Number 176 (Tuesday, December 18, 2001)]
[House]
[Pages H10214-H10219]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1915

                 HOMESTAKE MINE CONVEYANCE ACT OF 2001

  Mr. CANNON. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 1389) 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, as amended.
  The Clerk read as follows:

                                S. 1389

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

                 TITLE I--CONVEYANCE OF HOMESTAKE MINE

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Homestake Mine Conveyance 
     Act of 2001''.

     SEC. 102. FINDINGS.

       Congress finds the following:
       (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 the National Underground Science 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 at 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 closing the entire 
     Mine, 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 National 
     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 for the Federal 
     Government.
       (11) If the Mine is selected as the site for the 
     laboratory, it is essential that closure of the Mine not 
     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.
       (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. 103. DEFINITIONS.

       In this title:
       (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 104(a).
       (4) Fund.--The term ``Fund'' means the Environment and 
     Project Trust Fund established under section 108.
       (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;
       (ii) an affiliate of Homestake; and
       (iii) any successor of Homestake or successor to the 
     interest of Homestake in the Mine.
       (6) Independent entity.--The term ``independent entity'' 
     means an independent entity selected jointly by Homestake, 
     the South

[[Page H10215]]

     Dakota Department of Environment and Natural Resources, and 
     the Administrator--
       (A) to conduct a due diligence inspection under section 
     104(b)(2)(A); and
       (B) to determine the fair value of the Mine under section 
     105(a).
       (7) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (8) 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.
       (9) 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, backfill, broken rock, fixtures, 
     facilities, and personal property to be conveyed for 
     establishment and operation of the laboratory, as agreed upon 
     by Homestake and the State; 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 
     backfill in the portion of the Mine described in subparagraph 
     (A)); or
       (iii) any waste rock or any site used for the dumping of 
     waste rock (other than broken rock in the portion of the Mine 
     described in subparagraph (A)).
       (10) 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;
       (E) an Indian tribe; and
       (F) any department, agency, or instrumentality of the 
     United States.
       (11) Project sponsor.--The term ``project sponsor'' means 
     an entity that manages or pays the costs of 1 or more 
     projects that are carried out or proposed to be carried out 
     at the laboratory.
       (12) Scientific advisory board.--The term ``Scientific 
     Advisory Board'' means the entity designated in the 
     management plan of the laboratory to provide scientific 
     oversight for the operation of the laboratory.
       (13) 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. 104. 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 
     quitclaim 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 condition 
     of the property.
       (b) Requirements for Conveyance.--
       (1) In general.--The Administrator's acceptance of the 
     final report or certification of the independent entity under 
     paragraph (4) is a condition precedent of the conveyance and 
     of the assumption of liability by the United States in 
     accordance with this title.
       (2) Due diligence inspection.--
       (A) In general.--As a condition precedent of conveyance and 
     of Federal participation described in this title, Homestake 
     shall permit an independent entity to conduct a due diligence 
     inspection of the Mine to determine whether any condition of 
     the Mine may present an imminent and substantial endangerment 
     to public health or the environment.
       (B) Consultation.--As a condition precedent of the conduct 
     of a due diligence inspection, the Administrator, in 
     consultation with Homestake, the South Dakota Department of 
     Environment and Natural Resources, and the independent 
     entity, shall define 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.
       (C) Participation by homestake.--Nothing in this paragraph 
     requires Homestake to participate in the conduct of the due 
     diligence inspection.
       (3) Report to the 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 may 
     present an imminent and substantial endangerment to public 
     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, Homestake, and the State 
     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 if the report discloses 1 or more conditions 
     that--
       (i) as determined by the Administrator, may present an 
     imminent and substantial endangerment to the public health or 
     the environment and require a response action; or
       (ii) otherwise make the conveyance in section 104, or the 
     assumption of liability, the release of liability, or the 
     indemnification in section 106 contrary to the public 
     interest.
       (C) Response actions and certification.--
       (i) Response actions.--

       (I) In general.--If the Administrator rejects the final 
     report, Homestake may carry out or bear the cost of, or 
     permit the State or another person to carry out or bear the 
     cost of, such response actions as are necessary to correct 
     any condition identified by the Administrator under 
     subparagraph (B)(i) that may present an imminent and 
     substantial endangerment to public health or the environment.
       (II) Long-term response actions.--

       (aa) In general.--In a case in which the Administrator 
     determines that a condition identified by the Administrator 
     under subparagraph (B)(i) requires continuing response 
     action, or response action that can be completed only as part 
     of the final closure of the laboratory, it shall be a 
     condition of conveyance that Homestake, the State, or another 
     person deposit into the Fund such amount as is estimated by 
     the independent entity, on a net present value basis and 
     after taking into account estimated interest on that basis to 
     be sufficient to pay the costs of the long-term response 
     action or the response action that will be completed as part 
     of the final closure of the laboratory.
       (bb) Limitation on use of funds.--None of the funds 
     deposited into the Fund under item (aa) shall be expended for 
     any purpose other than to pay the costs of the long-term 
     response action, or the response action that will be 
     completed as part of the final closure of the Mine, 
     identified under that item.
       (ii) Contribution by homestake.--The total amount that 
     Homestake may expend, pay, or deposit into the Fund under 
     subclauses (I) and (II) of clause (i) shall not exceed--

       (I) $75,000,000; less
       (II) the fair value of the Mine as determined under section 
     105(a).

       (iii) Certification.--

       (I) In general.--After any response actions described in 
     clause (i)(I) are carried out and any required 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.
       (II) Acceptance or rejection of certification.--Not later 
     than 60 days after an independent entity makes a 
     certification under subclause (I), the Administrator shall 
     accept or reject the certification.

       (c) Review of Conveyance.--For the purposes of the 
     conveyance, the requirements of this section shall be 
     considered to be sufficient to meet any requirement of the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).

     SEC. 105. ASSESSMENT OF PROPERTY.

       (a) Valuation of Property.--The independent entity shall 
     assess the fair value of the Mine.
       (b) Fair Value.--For the purposes of this section, the fair 
     value of the Mine shall be the fair market value as 
     determined by an appraisal in conformance with the Uniform 
     Appraisal Standards for Federal Land Acquisition. To the 
     extent appraised items only have value to the Federal 
     Government for the purpose of constructing the laboratory, 
     the appraiser shall also add to the assessment of fair value 
     the estimated cost of replacing the shafts, winzes, hoists, 
     tunnels, ventilation system and other equipment and 
     improvements at the Mine that are expected to be used at, or 
     that will be useful to, the laboratory.
       (c) Report.--Not later than the date on which each report 
     developed in accordance with section 104(b)(3) is submitted 
     to the Administrator, the independent entity described in 
     subsection (a) shall submit to the

[[Page H10216]]

     State a report that identifies the fair value assessed under 
     subsection (a).

     SEC. 106. LIABILITY.

       (a) Assumption of Liability.--
       (1) Assumption.--Subject to paragraph (2), notwithstanding 
     any other provision of law, on completion of the conveyance 
     in accordance with this title, the United States shall assume 
     any and all liability relating to the Mine and laboratory, 
     including liability for--
       (A) damages;
       (B) reclamation;
       (C) 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
       (D) closure of the Mine and laboratory.
       (2) Claims against united states.--In the case of any claim 
     brought against the United States, the United States shall be 
     liable for--
       (A) damages under paragraph (1)(A), only to the extent that 
     an award of damages is made in a civil action brought under 
     chapter 171 of title 28, United States Code, notwithstanding 
     that the act or omission giving rise to the claim was not 
     committed by an employee of the United States; and
       (B) response costs under paragraph (1)(C), only to the 
     extent that an award of response costs is made in a civil 
     action brought under--
       (i) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.);
       (ii) the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.);
       (iii) the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.); or
       (iv) any other applicable Federal environmental law, as 
     determined by the Administrator.
       (b) Liability Protection.--On completion of the conveyance, 
     neither Homestake nor the State shall be 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.
       (c) Indemnification.--Notwithstanding any other provision 
     of law, on completion of the conveyance in accordance with 
     this title, the United States shall indemnify, defend, and 
     hold harmless Homestake and the State from and against--
       (1) any and all liabilities and claims described in 
     subsection (a), without regard to any limitation under 
     subsection (a)(2); and
       (2) any and all liabilities and claims described in 
     subsection (b).
       (d) Waiver of Sovereign Immunity.--For purposes of this 
     title, the United States waives any claim to sovereign 
     immunity with respect to any claim of Homestake or the State 
     under this title.
       (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 Certain 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 or cause of action of an employee of 
     Homestake that arose before the date of conveyance;
       (2) any claim or cause of action that arose before the date 
     of conveyance, other than claims relating to environmental 
     response costs or natural resource damages; or
       (3) any violation of any provision of criminal law.
       (g) Exception for Off-Site Environmental Claims.--Nothing 
     in this title constitutes an assumption of liability by the 
     United States, relief of liability for Homestake, or 
     obligation to indemnify Homestake, for any claim, injury, 
     damage, liability, or reclamation or cleanup obligation with 
     respect to any property or asset that is not conveyed under 
     this title, except to the extent that any such claim, injury, 
     damage, liability, or reclamation or cleanup obligation is 
     based on activities or events at the Mine subsequent to the 
     date of conveyance.

     SEC. 107. INSURANCE COVERAGE.

       (a) Property and Liability Insurance.--
       (1) In general.--To the extent property and liability 
     insurance is available and 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 106.
       (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 
     Scientific Advisory Board; and
       (ii) consider certain factors, including--

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

       (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 108, 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 
     title 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 Scientific Advisory Board, 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 106.
       (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. 108. 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, 
     the 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 Administrator 
     and the Scientific Advisory Board; 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 Administrator and the Scientific Advisory Board, 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.

[[Page H10217]]

       (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 107;
       (5) payments for and other costs relating to liability 
     described in section 106; 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 106--
       (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 106.

     SEC. 109. WASTE ROCK MIXING.

       After completion of the conveyance, the State shall obtain 
     the approval of the Administrator before disposing of any 
     material quantity of laboratory waste rock if--
       (1) the disposal site is on land not conveyed under this 
     title; and
       (2) the State determines that the disposal could result in 
     commingling of laboratory waste rock with waste rock disposed 
     of by Homestake before the date of conveyance.

     SEC. 110. REQUIREMENTS FOR OPERATION OF LABORATORY.

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

     SEC. 111. CONTINGENCY.

       This title shall be effective contingent on the making of 
     an award by the National Science Foundation for the 
     establishment of the laboratory at the Mine.

     SEC. 112. OBLIGATION IN THE EVENT OF NONCONVEYANCE.

       If the conveyance under this title does not occur, any 
     obligation of Homestake relating to the Mine shall be limited 
     to such reclamation or remediation as is required under any 
     applicable law other than this title.

     SEC. 113. PAYMENT AND REIMBURSEMENT OF COSTS.

       The United States may seek payment--
       (1) from the Fund, under section 108(d), to pay or 
     reimburse the United States for amounts payable or 
     liabilities incurred under this title; and
       (2) from available insurance, to pay or reimburse the 
     United States and the Fund for amounts payable or liabilities 
     incurred under this title.

     SEC. 114. CONSENT DECREES.

       Nothing in this title affects any obligation of a party 
     under--
       (1) the 1990 Remedial Action Consent Decree (Civ. No. 90-
     5101 D. S.D.); or
       (2) the 1999 Natural Resource Damage Consent Decree (Civ. 
     Nos. 97-5078 and 97-5100, D. S.D.).

     SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

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

  The SPEAKER pro tempore (Mr. LaTourette). Pursuant to the rule, the 
gentleman from Utah (Mr. Cannon) and the gentleman from West Virginia 
(Mr. Rahall) each will control 20 minutes.
  The Chair recognizes the gentleman from Utah (Mr. Cannon).


                             General Leave

  Mr. CANNON. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and insert extraneous material on the bill currently under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Utah?
  There was no objection.
  Mr. CANNON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, S. 1389 was passed by the other body on November 16 of 
this year. This bill will facilitate the conveyance of the Homestake 
Mine in South Dakota for eventual use as a National Underground Science 
Laboratory. The gentleman from South Dakota (Mr. Thune) has introduced 
a companion bill, H.R. 3299, and the amendment proposed for S. 1389 
reflects his improvements to the original legislation.
  Mr. Speaker, I would like to thank the gentleman from Louisiana (Mr. 
Tauzin), the gentleman from Alaska (Mr. Young), and the gentleman from 
California (Mr. Thomas) for their cooperation in scheduling this bill 
so expeditiously.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RAHALL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, S. 1389 was passed by the Senate on November 15. I would 
also note that virtually identical language is contained in the Senate-
passed version of the fiscal year 2002 defense appropriations bill. In 
both cases, the measures were adopted by the other body without 
opposition.
  With that noted, I would like to take this opportunity to commend the 
bill sponsors, Senators Daschle and Johnson, for their persistence in 
seeking the enactment of this legislation. It is at their request that 
those of us on this side of the aisle have agreed to expedite the 
consideration of S. 1389 this evening. With that noted, we do not 
object to the passage of this bill by the House.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CANNON. Mr. Speaker, I yield such time as he may consume to the 
gentleman from South Dakota (Mr. Thune), the author of the House 
companion bill.
  Mr. THUNE. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Mr. Speaker, the legislation before us this evening would help 
address an issue of enormous importance to my State of South Dakota and 
to the entire country. We have the opportunity to take something that 
would be considered a liability and convert it into an asset. It all 
centers around something that up until a year ago I knew very little 
about, and that is neutrino research.
  For the past 125 years, the Black Hills of South Dakota have been 
home to one of America's finest gold mining operations, Homestake Gold 
Mine. It is no longer profitable to mine gold at Homestake, so as of 
December 31 of this year, the mine will close. Its remaining workforce, 
which once numbered 800 employees, will be out of work and the 
community of Lead and the surrounding area will experience a 
devastating economic impact. That is, of course, unless another 
solution can be found.
  Mr. Speaker, that solution has appeared in the form of the neutrino. 
It just so happens that Homestake Gold Mine offers the ideal setting 
for the physical study of subatomic particles known as neutrinos. A 
group of scientists from around the Nation is working with the State of 
South Dakota to create a National Underground Science Laboratory to 
conduct neutrino research.
  Mr. Speaker, the Nation does not currently have a domestic facility 
with the capabilities needed for significant developments in this 
important scientific field. A formal proposal was made to the National 
Science Foundation on June 5 on behalf of Homestake Mine to be the host 
site for this research laboratory. About a dozen scientists within the 
National Science Foundation will review it and make a decision as to 
whether to proceed with the National Underground Science Laboratory. A 
committee of scientists already has identified Homestake as the 
preferred location, and final approval from NSF is expected soon.
  In order for this project to move forward, Mr. Speaker, Homestake 
Mine must transfer ownership of its mine and related surface facilities 
to the State of South Dakota. Such a transfer can only occur if 
Homestake receives release from the Federal reclamation continuous 
ownership responsibilities through special indemnification legislation.
  This legislation before us this evening, and now with the amendments 
that will be adopted by the House, set out the conditions under which 
such a transfer may occur.
  Mr. Speaker, I want to thank the Committee on Resources, the 
Committee on Energy and Commerce, the Committee on Science, the 
Committee on the Judiciary, the and Committee on Transportation and 
Infrastructure for their assistance in bringing this legislation to the 
floor. Making this project a reality will help secure a better future 
for the people of Leads, South Dakota and for all of South Dakota and 
in creating national treasures of science and research for all of 
America.

[[Page H10218]]

  Mr. Speaker, I thank the gentleman, and I urge my colleagues to adopt 
this legislation.
  Mr. RAHALL. Mr. Speaker, I reserve the balance of my time.
  Mr. CANNON. Mr. Speaker, I yield 1 minute to the gentleman from New 
York (Mr. Boehlert).
  (Mr. BOEHLERT asked and was given permission to revise and extend his 
remarks.)
  Mr. BOEHLERT. Mr. Speaker, I rise in opposition to the bill. I think 
it is seriously flawed and I have some real concerns about it.
  However, one thing I am not concerned about is the professional 
manner in which the gentleman from South Dakota (Mr. Thune) has engaged 
in a serious discussion of my concerns and I wish to compliment him for 
that. I have to confess that the most damage in this bill was done in 
the other body, but we are used to that here.
  Mr. Speaker, I'm afraid I must rise in opposition to this bill, 
despite the strenuous efforts made to improve it by both Mr. Thune and 
the House leadership. As a Member of Congress, I'm afraid that this 
bill could still unnecessarily saddle taxpayers with costly and 
unprecedented environmental responsibilities. And as Chairman of the 
House Science Committee, I'm concerned that this bill may distort the 
priorities of the National Science Foundation for years to come.
  This bill sets up a dangerous and unprecedented situation in which 
the federal government will be financially responsible for activities 
it did not undertake at a piece of property it does not control. That 
flies in the face of common sense and fiduciary responsibility.
  Under this bill, the federal government will be responsible for any 
environmental liability connected with the portions of the Homestake 
mine that are conveyed to South Dakota--even if they originated while 
the mine was privately operated. And while the mine will be owned by 
South Dakota, the state will have no financial responsibility for it; 
that will rest solely with the federal taxpayer. It's lucky that South 
Dakota doesn't have any bridges to sell us.
  In the bill as originally introduced, the federal government did not 
even have any real ability to have problems at the mine cleaned up 
before it was transferred. Thanks to the efforts of Mr. Thune, that 
situation has been improved.
  I would urge the Environmental Protection Agency (EPA), which will 
hire a contractor to review the mine, not to accept any contractor with 
which it is not completely satisfied. The unfortunate fact that the 
contractor must be selected ``jointly'' by Homestake, South Dakota and 
EPA should not be allowed to pressure EPA into hiring a contractor that 
will not fully protect the federal taxpayer. And the requirement that 
EPA consult with Homestake and the State over the nature of the 
contract with the ``independent entity'' must not be interpreted to 
give Homestake or the State any veto over the content of the contract.
  But EPA should consult with the National Science Foundation (NSF) 
throughout the environmental review process, as NSF is the federal 
agency that will have continuing responsibility if a laboratory is 
established at the mine.
  Importantly, the bill now allows the EPA Administrator to reject the 
final report of the contractor if it identifies conditions that would 
make the federal assumption of liability ``contrary to the public 
interest.'' I believe this allows the federal government to reject the 
transfer of the mine if it would cost too much to remedy existing 
environmental problems. This is vital since Homestake's contribution to 
pre-transfer remediation could well turn out to be nothing, given the 
language in this bill.
  The bill says nothing about which federal agency would be responsible 
for overseeing or financing any pre-transfer remediation. This is a 
major, conspicuous, and I assume, purposeful gap in the legislation.
  I certainly would hope that these costs--which should not have been 
federalized in the first place--are not borne by the National Science 
Foundation, a small agency wit important tasks that do not include 
environmental remediation.
  But this bill raises many other concerns related to the National 
Science Foundation. All the activities under this bill are contingent 
on NSF approval of an underground laboratory at the Homestake mine.
  While such a laboratory certainly has scientific merit, it may not be 
a high priority compared to other NSF programs and projects, especially 
given that construction of other neutrino detectors is either under 
consideration or underway.
  This bill must not be used to pressure NSF to change or circumvent 
its traditional, careful selection procedures. Normally, a project of 
this magnitude would require several years of review. NSF would have to 
determine its relative priority among other Major Research Equipment 
proposals. And NSF would have to ensure that proper management is in 
place. Those procedures must be followed in this case. Indeed, this is 
even more important in the case of Homestake because any mismanagement 
could result in both environmental harm and substantial liability for 
the Federal Government.
  I would also urge the National Science Foundation (NSF) not to make a 
decision on whether to award a grant to the underground laboratory 
until the report to EPA has been prepared. This is essential even 
though NSF will have to have an Environmental Impact Statement prepared 
about the conversion of the mine into a laboratory.
  NSF should not be committing federal resources to a project until it 
knows how much the project will cost the federal taxpayer and which 
agencies will be responsible for shouldering that burden.
  The federal assumption of liability will already pose unfortunate 
costs for NSF. The laboratory is to pay into an Environment and Project 
Trust Fund, and some if not all of that money will come from NSF.
  NSF must be an active participant in determining how much needs to be 
contributed to the trust fund, especially since it may end up being the 
only contributor to that fund. And NSF must have a role in determining 
the final disposition of the fund. The bill is silent on what is to 
become of the fund if a laboratory is started and then closed. All that 
is clear is that the Federal Government gets saddled with the costs of 
closing the mine. But which agency is responsible for that undertaking? 
And what will happen to any leftover funds? NSF should have an active 
role in deciding that.
  This bill poses enormous, unnecessary and unprecedented risks for the 
federal taxpayer. It is, in a phrase, a sweetheart deal for the 
Canadian company that owns Homestake and for the State of South Dakota. 
It could threaten the stability of the National Science Foundation, a 
premier science agency whose processes have been viewed as a model of 
objectivity and careful review.
  I should point out that the Federal Government is already paying 
Homestake $10 million in this fiscal year to keep the mine open because 
it might become a laboratory. If that continues through the period of 
NSF decision-making the Federal Government could easily sink as much as 
$50 million in to a mine that it may never use.
  I will work to ensure that NSF itself is not saddled with those 
unnecessary costs, which could be spent on worthy grants to 
researchers.
  The Science Committee will be following this matter extremely closely 
to ensure that the environmental review is rigorous and protects the 
public interest. We will watch closely to ensure that the laboratory is 
being reviewed in the same manner as every other NSF project and does 
not distort the agency's processes or priorities or weigh it down with 
unsustainable costs. The risks of proceeding with this bill are clear; 
we will work to see that they are never realized.
  Mr. Speaker, I am attaching an exchange of letters with the National 
Science Foundation that will further highlight the risks inherent in 
proceeding in this unorthodox manner.

                                         House of Representatives,


                                         Committee on Science,

                                                    Washington DC.
     Dr. Rita Colwell,
     Director, National Science Foundation,
     Arlington, VA.
       Dear Dr. Colwell: As you know, the Senate recently passed 
     S. 1389, the ``Homestake Conveyance Act of 2001.'' This bill 
     has serious implications for the National Science Foundation 
     (NSF).
       With that in mind, we want to be sure that NSF is 
     considering the likely consequences should S. 1389 be 
     enacted. Therefore, I am writing to request that you submit 
     to the House Science Committee the following items by no 
     later than December 15:
       (1) A plan for how NSF would absorb the expected costs of 
     an underground laboratory at Homestake beginning in Fiscal 
     Year 2003, with special attention to the impact on other 
     projects in the Major Research Equipment account.
       (2) A plan for how NSF would ensure that the laboratory was 
     properly managed, even if a project were awarded in calendar 
     2002.
       (3) A plan for how NSF would interact with the 
     Environmental Protection Agency and the State of South Dakota 
     to ensure that the

[[Page H10219]]

     mine is in proper condition for the establishment of a 
     laboratory and to determine amounts NSF grantees would have 
     to pay into the Environment and Project Trust Fund 
     established under the bill.
       The enactment of S. 1389 could complicate NSF's situation 
     for years to come, both directly and through the precedents 
     the bill may set. We want to work together with you, starting 
     immediately, to limit any problems this measure may cause.
           Sincerely,
                                                Sherwood Boehlert,
     Chairman.
                                  ____



                                  National Science Foundation,

                           Arlington, Virginia, December 14, 2001.
     Hon. Sherwood Boehlert,
     Chairman, Committee on Science, House of Representatives, 
         Washington, DC.
       Dear Mr. Chairman: Thank you for your letter regarding S. 
     1389, the ``Homestake Conveyance Act of 2001'' and its 
     possible implications for the National Science Foundation 
     (NSF).
       The following responds to your requests:
       (1) A plan for how NSF would absorb the expected costs of 
     an underground laboratory at Homestake beginning in Fiscal 
     Year 2003, with special attention to the impact on other 
     projects in the Major Research Equipment account.
       NSF has not identified funds to support the conversion of 
     the Homestake mine into an underground research laboratory. 
     Unless the President requests and Congress appropriates 
     additional monies for the lab, its establishment would force 
     us to reconsider the priorities within the Research and 
     Related Activities appropriation or reevaluate the funding 
     profiles and timelines of existing MRE projects.
       (2) A plan for how NSF would ensure that the laboratory was 
     properly managed, even if a project were awarded in calendar 
     2002.
       An applicant for a grant of this magnitude must submit a 
     management plan for NSF's review prior to any funding 
     decision by the Foundation. That plan must cover all phases 
     of the project including the planning process, construction 
     or acquisition, integration and test, commissioning, and 
     maintenance and operations. The management plan sets forth 
     the management structure and designates the key personnel who 
     are to be responsible for implementing the award. This 
     proposed management plan then becomes the basis for NSF's 
     review of the adequacy of management for the project.
       The technical and managerial complexity of the proposed lab 
     suggests that NSF would utilize a Cooperative Agreement as 
     the funding instrument. The particular terms of a Cooperative 
     Agreement covering the lab would be established prior to 
     NSF's funding of the proposal. That Cooperative Agreement 
     would specify the extent to which NSF would advise, review, 
     approve or otherwise be involved with project activities. To 
     the extent NSF does not reserve or share responsibility for 
     certain aspects of the project, all such responsibilities 
     remain with the recipient.
       (3) A plan for how NSF would interact with the 
     Environmental Protection Agency (EPA) and the State of South 
     Dakota to ensure that the mine is in proper condition for the 
     establishment of a laboratory and to determine amounts NSF 
     grantees would have to pay into the Environment and Project 
     Trust Fund established under the bill.
       NSF would interact in good faith with the EPA and the State 
     of South Dakota to ensure that the mine is in satisfactory 
     condition for the establishment of a laboratory. 
     Additionally, assessment of the proposal before us will 
     presumably require an Environmental Impact Statement (EIS). 
     The findings of that EIS would very much inform our 
     evaluation of the proposal.
       We share your concern about the mandatory contribution to 
     the Fund required of each project conducted in the lab. Our 
     review of each proposal for science in the lab would include 
     a careful analysis of (1) the projected costs of removing 
     from the mine or laboratory equipment or other materials 
     related to a proposed project, and (2) the projected cost of 
     claims that could arise out of or in connection with a 
     proposed project. Meaningful analysis of both factors would 
     require close cooperation with the lab's Scientific Advisory 
     Board, the State of South Dakota, and the EPA. These costs 
     will factor into our evaluation of each proposal.
       I appreciate the opportunity to work with you in assessing 
     the possible impact of this legislation on the National 
     Science Foundation.
       The Office of Management and Budget advises that there is 
     no objection to the submission of this report from the 
     standpoint of the President's program.
           Sincerely,
                                                  Rita R. Colwell,
                                                         Director.

  Mr. GILLMOR. Mr. Speaker, I rise to congratulate my colleague, John 
Thune, for his determination and tenacity in bringing this bill before 
the House today. It is because of him that the people of South Dakota 
have a high tech future that is environmentally friendly.
  Earlier this year, the Homestake Mine in Lead, South Dakota announced 
that it was closing its gold mining operations after 125 years of work. 
Homestake planned to abandon its mine and allow it to fill up with 
water. Ordinarily, this would have been devastating news to the 
community, but the gentleman from South Dakota insisted that something 
could be done with the mine to create jobs and help prevent future 
environmental damage.
  On November 15 of this year, the Senate passed legislation to 
transfer the Homestake Mine to the State of South Dakota for the 
purposes of constructing a National Underground Laboratory. While well 
intentioned, that bill, S. 1389, had potentially far-reaching 
implications for the environment.
  I am pleased to say that Mr. Thune and our committee staff worked 
diligently to change the course of the Senate bill and put the power to 
make polluters take legal and financial responsibility for their 
actions back in the hands of the appropriate Federal agencies.
  I want to point out a few places that are of great importance to me. 
The Senate bill set up a few requirements in order for the Mine to be 
transferred, and the Mine and State to be relieved of all liability, in 
addition to receiving indemnification against future actions. 
Originally, the Senate bill also prevented the EPA Administrator from 
rejecting conveyance of the mine unless and only if an independent 
entity found an egregious environmental problem. The bill on the floor 
today, however, not only makes the assessment of the mine 
responsibility of EPA, but also opens up the criteria for rejection of 
conveyance to include anything that would present an imminent and 
substantial endangerment to public health and the environment. Most 
importantly, though, the legislation states that the EPA Administrator 
has an absolute right to reject the conveyance if the transfer is in 
any way contrary to the public interest.
  Mr. Speaker, this is not a perfect bill, but it is worthy of 
consideration by this House. I believe the product before us is 
significantly better than the one sent to us one month ago. It still 
treats this mining company differently than we treat any other company. 
Instead of passing this legislation to benefit one company, we should 
be looking at liability reform for all companies under Superfund.
  But, I again want to congratulate Mr. Thune for this holiday present 
to his State and his concern for new economic development and sustained 
environmental and public health protections.
  Mr. CANNON. Mr. Speaker, I reserve the balance of my time.
  Mr. RAHALL. Mr. Speaker, I have no further speakers, and I yield back 
the balance of my time.
  Mr. CANNON. Mr. Speaker, I have no further speakers, and I yield back 
the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Utah (Mr. Cannon) that the House suspend the rules and 
pass the Senate bill, S. 1389, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill, as amended, was 
passed.
  A motion to reconsider was laid on the table.

                          ____________________