[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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