Congressional Record, Volume 151 Issue 64 (Monday, May 16, 2005)

[Congressional Record Volume 151, Number 64 (Monday, May 16, 2005)]
[House]
[Pages H3276-H3277]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

POTASH ROYALTY REDUCTION ACT OF 2005

Mr. RENZI. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 485) to provide that the royalty rate on the output from Federal
lands of potassium and potassium compounds from the mineral sylvite in
the 5-year period beginning on the date of the enactment of this Act
shall be reduced to 1.0 percent, and for other purposes, as amended.
The Clerk read as follows:

H.R. 485

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
TITLE I--POTASH ROYALTY REDUCTION

SEC. 101. SHORT TITLE.

This title may be cited as the ``Potash Royalty Reduction
Act of 2005''.

SEC. 102. POTASSIUM AND POTASSIUM COMPOUNDS FROM SYLVITE.

(a) Royalty Rate.--Notwithstanding section 102(a)(9) of the
Federal Land Policy and Management Act of 1976 (43 U.S.C.
1701(a)(9)), section 2 of the Act of February 7, 1927 (30
U.S.C. 282) and the term of any lease issued under such
section 2, the royalty rate on the quantity or gross value of
the output from Federal lands of potassium and potassium
compounds from the mineral sylvite at the point of shipment
to market in the 5-year period beginning on the date of the
enactment of this Act shall be 1.0 percent.
(b) Reclamation Fund.--Fifty percentum of any royalties
paid pursuant to this title during the 5-year period referred
to in subsection (a), together with any interest earned from
the date of payment, shall be paid by the Secretary of the
Treasury to the payor of the royalties to be used solely for
land reclamation purposes in accordance with a schedule to
implement a reclamation plan for the lands for which the
royalties are paid. No payment shall be made by the Secretary
of the Treasury pursuant to this subsection until the
Secretary of the Interior receives from the payor of the
royalties, and approves, the reclamation plan and schedule,
and submits the approved schedule to the Secretary of the
Treasury. The share of royalties held by the Secretary of the
Treasury pursuant to this subsection, and interest earned
thereon, shall be available until paid pursuant to this
subsection, without further appropriation; shall not be
considered as money received under section 35 of the Mineral
Leasing Act (30 U.S.C. 191) for the purpose of revenue
allocation; and shall not be reduced by any administrative or
other costs incurred by the United States.
(c) Study and Report.--After the end of the 4-year period
beginning on the date of the enactment of this Act, and
before the end of the 5-year period beginning on that date,
the Secretary of the Interior shall report to the Congress on
the effects of the royalty reduction under this title,
including a recommendation on whether the reduced royalty
rate for potassium from sylvite should apply after the end of
the 5-year period.
TITLE II--SODA ASH ROYALTY REDUCTION

SEC. 201. SHORT TITLE.

This title may be cited as the ``Soda Ash Royalty Reduction
Act of 2005''.

SEC. 202. FINDINGS.

The Congress finds the following:
(1) The combination of global competitive pressures, flat
domestic demand, and spiraling costs of production threaten
the future of the United States soda ash industry.
(2) Despite booming world demand, growth in United States
exports of soda ash since 1997 has been flat, with most of
the world's largest markets for such growth, including
Brazil, the People's Republic of China, India, the countries
of eastern Europe, and the Republic of South Africa, have
been closed by protectionist policies.
(3) The People's Republic of China is the prime competitor
of the United States in soda ash production, and recently
supplanted the United States as the largest producer of soda
ash in the world.
(4) Over 700 jobs have been lost in the United States soda
ash industry since the Department of the Interior increased
the royalty rate on soda ash produced on Federal land, in
1996.
(5) Reduction of the royalty rate on soda ash produced on
Federal land will provide needed relief to the United States
soda ash industry and allow it to increase export growth and
competitiveness in emerging world markets, and create new
jobs in the United States.

SEC. 203. REDUCTION IN ROYALTY RATE ON SODA ASH.

Notwithstanding section 102(a)(9) of the Federal Land
Policy Management Act of 1976 (43 U.S.C. 1701(a)(9)), section
24 of the Mineral Leasing Act (30 U.S.C. 262), and the terms
of any lease under that Act, the royalty rate on the quantity
or gross value of the output of sodium compounds and related
products at the point of shipment to market from Federal land
in the 5-year period beginning on the date of the enactment
of this Act shall be 2 percent.

SEC. 204. STUDY.

After the end of the 4-year period beginning on the date of
the enactment of this Act, and before the end of the 5-year
period beginning on that date, the Secretary of the Interior
shall report to the Congress on the effects of the royalty
reduction under this title, including--
(1) the amount of sodium compounds and related products at
the point of shipment to market from Federal land during that
4-year period;
(2) the number of jobs that have been created or maintained
during the royalty reduction period;
(3) the total amount of royalty paid to the United States
on the quantity or gross value of the output of sodium
compounds and related products at the point of shipment to
market produced during that 4-year period, and the portion of
such royalty paid to States; and
(4) a recommendation of whether the reduced royalty rate
should apply after the end of the 5-year period beginning on
the date of the enactment of this Act.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arizona (Mr. Renzi) and the gentleman from New Mexico (Mr. Udall) each
will control 20 minutes.
The Chair recognizes the gentleman from Arizona (Mr. Renzi).

General Leave

Mr. RENZI. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
and include extraneous material on H.R. 485.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arizona?
There was no objection.
Mr. RENZI. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 485 is a bill that actually contains the language
from bills introduced by two of my colleagues from the western United
States.
Title I of this bill contains language by my friend, the gentleman
from New Mexico (Mr. Pearce). This language provides for a 5-year
period the royalty rate on potash produced from Federal lands shall be
1 percent.
Potash is used primarily as an agriculture fertilizer because it is a
source of soluble potassium, one of the three primary plant nutrients;
the others are fixed nitrogen and soluble phosphorus. The 5-year
reduction in royalty rates provides the industry the ability to employ
new and more efficient production methods in potash mining, sustain and
create new jobs, extend the life of existing deposits and make
technological advances that will expand the availability of the
Nation's potash resources.
Title II of this bill contains language introduced by my colleague,
the gentlewoman from Wyoming (Mrs. Cubin), which will reduce for 5
years the royalties paid on trona to help balance the unfair playing
field in the world market that U.S. trona producers face from countries
like China.
The U.S. soda ash industry, which until recently was the largest in
the world, has operations in Wyoming, Colorado, and California, with
the bulk of total production through four plants in the State of
Wyoming. The total estimated value of the industry is around $800
million.
The current Federal royalty on soda ash produced in the United States
ranges from 4 percent to 6 percent. Mines in the Rocky Mountain region,
Colorado and Wyoming, pay 6 percent. Mines in California pay only 4
percent.
Until 2003, the United States was the world's largest exporter of
soda ash. In 2003, China passed the United States as the world's number
one exporter.
Producers in China manufacture a synthetic product while the United
States exports natural soda ash. This bill will reduce the Federal
royalty to the statutory minimum of 2 percent for a period of 5 years.
This will make the U.S. soda ash more attractive to foreign purchases
and provide a window of opportunity to tackle the global barriers that
limit market access for U.S. soda ash.
Mr. Speaker, H.R. 485 is supported by the majority and minority of
the committee. I urge adoption of the bill.
Mr. Speaker, I reserve the balance of my time.
Mr. UDALL of New Mexico. Mr. Speaker, I yield myself such time as I
may consume.
(Mr. UDALL of New Mexico asked and was given permission to revise and
extend his remarks.)
Mr. UDALL of New Mexico. Mr. Speaker, the House passed similar
royalty relief legislation in the 108th Congress. The bill before us
contains provisions sponsored by the gentleman from New Mexico (Mr.
Pearce) and the gentlewoman from Wyoming (Mrs. Cubin).

[[Page H3277]]

We have no objection to this legislation.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
Mr. RENZI. Mr. Speaker, I want to thank the gentleman from New Mexico
(Mr. Udall), who is the champion of American potash and the sodium
industry here in America and I appreciate his advocacy.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arizona (Mr. Renzi) that the House suspend the rules and
pass the bill, H.R. 485, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.

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