[Congressional Record Volume 154, Number 42 (Wednesday, March 12, 2008)]
[Senate]
[Pages S2000-S2006]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN:
  S. 2750. A bill to modify the requirements applicable to locatable 
minerals on public domain lands, consistent with the principles of 
self-initiation of mining claims, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation 
that will help address a troublesome byproduct of our Nation's mining 
history: abandoned mines.

[[Page S2002]]

  The 1872 Mining Law created national standards to regulate gold and 
silver mining operations on Federal lands. Since then, hundreds of 
thousands of gold and silver mines have been abandoned.
  There are roughly 500,000 abandoned mines across the U.S., and nearly 
47,000 abandoned mines in my home State of California.
  According to the California Department of Conservation, all but two 
of California's 58 counties have abandoned mines; and close to 70 
percent of California's abandoned mines are located in the ``Mother 
Lode'' area in the Northern Sierra or San Bernardino, Inyo and Kern 
Counties in the southeastern part of the State.
  Because the 1872 Mining Law is so outdated, we have been unable to 
adequately clean up and remediate these abandoned mines.
  The need for action is great.
  The bill that I am introducing today, is not intended to be a 
comprehensive hardrock mining reform bill, but it is an important piece 
of the reform that is needed in hardrock mining.
  The Abandoned Mine Reclamation Act of 2008, will reform the 1872 
Mining Law by: establishing fees to support abandoned mine cleanup; 
establishing a royalty payment system; and creating an Abandoned Mine 
Cleanup Fund.
  Unlike the coal industry, the metal mining industry does not pay to 
clean up its legacy of abandoned mines, making lack of funding the 
primary obstacle to abandoned hardrock mine cleanup.
  This legislation would help fund the cleanup of abandoned mines by 
placing an Abandoned Mine Reclamation fee on all hardrock minerals, 
using the underground coal industry fee program as a model.
  Here is why--the condition of abandoned coal mines has greatly 
improved since the Surface Mining Control and Reclamation Act of 1977 
established a fee to finance restoration of land abandoned or 
inadequately restored by coal mining companies.
  This fund has been able to raise billions of dollars for coal mine 
reclamation--and I believe that a similar program could be part of the 
solution to the hardrock abandoned mine cleanup.
  This legislation also establishes a royalty on Hardrock Mining 
Claims.
  Companies that mine for gold and silver on Federal lands are not 
currently required to pay any royalties to the Federal Government--even 
though we are experiencing near record high gold prices, around $900 an 
ounce.
  These companies should be required to pay their fair share.
  The Abandoned Mine Reclamation Act establishes an 8 percent royalty 
on new mining operations located on Federal lands, and a 4 percent 
royalty for existing operations.
  These royalties are at the same level as the Hardrock Mining and 
Reclamation Act, H.R. 2262, which was passed by the House late last 
year.
  The legislation I am introducing today also creates an Abandoned Mine 
Fund.
  In these times of budget deficits, it's clear that we will not be 
able to simply appropriate the funds necessary to clean up the hundreds 
of thousands of abandoned hard rock mines.

  So, this legislation will create an abandoned mine cleanup fund to 
ensure that we have a lasting source of funding for this critical 
cleanup effort.
  Specifically, the fund will direct the royalties, as well as other 
payments collected from mining operations, and dedicate them to the 
cleanup of abandoned hardrock mines.
  Now I would like to take a moment to talk more about why abandoned 
mines are so problematic.
  First, members of the public are in danger of getting seriously hurt 
or killed by falling down old mine shafts.
  In the past 2 years, eight accidents at abandoned mine sites were 
reported in California. These accidents resulted in four fatalities and 
seven others were injured and/or required rescuing.
  But the even greater threat from abandoned mines comes from the 
danger of groundwater pollution.
  Environmental impact studies have shown that important watersheds are 
being polluted by high levels of mercury or increased sedimentation.
  This in turn exposes people who drink this water to harmful minerals 
like mercury, chromium and asbestos and the fish who swim in streams 
fed by these waters are likewise contaminated.
  The Bureau of Land Management reports that abandoned mines have 
contaminated 17 major watersheds in California, which supply water for 
millions of people and provide habitat for important species like 
salmon and other fish that are caught and consumed by the public.
  So, the threat to public health is critical.
  Mining has played in California's history. The discovery of gold at 
Sutter Mill near Placerville, California in 1848 was a defining moment 
for California and the U.S.
  It is fair to say that without mining and the Gold Rush, California 
and the entire country would be a far different place than it is today.
  The great history of mining in California, however, is tarnished by 
the legacy of tens of thousands of abandoned mines. In particular, 
abandoned mine sites on Federal lands.
  Let me illustrate a few examples of abandoned mine sites located on 
Federal land in California.
  These sites are causing serious public safety and environmental 
problems: Rand Historic Mining Complex located on BLM land in eastern 
Kern County and northwestern San Bernardino County.
  This area includes the Kelly Silver Mine and the Yellow Aster Gold 
Mine near the communities of Johannesburg, Randsburg, and Red Mountain.
  The problem is this: The sites contain extensive arsenic-bearing mine 
waste and numerous open mine shafts that could cause safety hazards.
  The Pond Gold Mine Site located in Placer County on BLM land.
  This mine site consists of an extensive network of sluice tunnels and 
a large waste rock pile.
  Here's the problem: The Pond Mine has been determined to be a source 
of mercury to Pond Creek and the Middle Fork of the American River.
  The Golinsky Mine located on Forest Service land located in Shasta 
County.
  The Golinsky mine is an abandoned copper mine that is releasing acid 
mine drainage into Shasta Lake.
  The responsible party has been identified, but has declared 
bankruptcy. This has forced the Forest Service to spend more than $2.2 
million dollars investigating and mitigating the environmental problems 
while they try to recoup the costs.
  There are numerous abandoned mine sites that may not yet have been 
discovered all across California.
  One place where we expect the problem to grow is in Joshua Tree 
National Park.
  Joshua Tree has numerous former mine sites that contain a series of 
shafts near trails and roads. These mine shafts vary in size and the 
depth ranges from 20 to 200 feet deep--and are extremely dangerous, 
potentially causing people to fall into them.
  So, these abandoned mines are a serious problem throughout the State. 
We need to take action soon to clean them up.
  The problems caused by abandoned mines are not going away--and with 
each passing day, the health danger will continue to rise.
  It is important to our children and grandchildren that we start the 
process of cleaning up the abandoned mines that were left to us. But we 
cannot do it without a substantial and reliable source of funding.
  Here is the key: this legislation doesn't reinvent the wheel. It 
implements solutions that have been working for a similar problem. It 
uses many of the ideas that have helped the coal industry to raise over 
seven billion dollars for abandoned mines.
  It is time to expect the same from the hardrock mining industry.
  Though this legislation is a significant step forward for the funding 
of abandoned mines, I know that there is much more mining reform to be 
done.
  I look forward to working with my colleagues to ensure that the 1872 
Mining Law is reformed--so that 21st Century mining regulations will be 
applied to 21st Century mining operations.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2750

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

[[Page S2003]]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Abandoned 
     Mine Reclamation Act of 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions and references.
Sec. 3. Application rules.

              TITLE I--MINERAL EXPLORATION AND DEVELOPMENT

Sec. 101. Royalty.
Sec. 102. Hardrock mining claim maintenance fee.
Sec. 103. Reclamation fee.
Sec. 104. Effect of payments for use and occupancy of claims.

                 TITLE II--ABANDONED MINE CLEANUP FUND

Sec. 201. Establishment of Fund.
Sec. 202. Contents of Fund.
Sec. 203. Use and objectives of the Fund.
Sec. 204. Eligible lands and waters.
Sec. 205. Expenditures.
Sec. 206. Availability of amounts.

                       TITLE III--EFFECTIVE DATE

Sec. 301. Effective date.

     SEC. 2. DEFINITIONS AND REFERENCES.

       (a) In General.--As used in this Act:
       (1) The term ``affiliate'' means with respect to any 
     person, any of the following:
       (A) Any person who controls, is controlled by, or is under 
     common control with such person.
       (B) Any partner of such person.
       (C) Any person owning at least 10 percent of the voting 
     shares of such person.
       (2) The term ``applicant'' means any person applying for a 
     permit under this Act or a modification to or a renewal of a 
     permit under this Act.
       (3) The term ``beneficiation'' means the crushing and 
     grinding of locatable mineral ore and such processes as are 
     employed to free the mineral from other constituents, 
     including but not necessarily limited to, physical and 
     chemical separation techniques.
       (4) The term ``claim holder'' means a person holding a 
     mining claim, millsite claim, or tunnel site claim located 
     under the general mining laws and maintained in compliance 
     with such laws and this Act. Such term may include an agent 
     of a claim holder.
       (5) The term ``control'' means having the ability, directly 
     or indirectly, to determine (without regard to whether 
     exercised through one or more corporate structures) the 
     manner in which an entity conducts mineral activities, 
     through any means, including without limitation, ownership 
     interest, authority to commit the entity's real or financial 
     assets, position as a director, officer, or partner of the 
     entity, or contractual arrangement.
       (6) The term ``exploration''--
       (A) subject to subparagraphs (B) and (C), means creating 
     surface disturbance other than casual use, to evaluate the 
     type, extent, quantity, or quality of minerals present;
       (B) includes mineral activities associated with sampling, 
     drilling, and analyzing locatable mineral values; and
       (C) does not include extraction of mineral material for 
     commercial use or sale.
       (7) The term ``Federal land'' means any land, and any 
     interest in land, that is owned by the United States and open 
     to location of mining claims under the general mining laws.
       (8) The term ``hardrock mineral'' has the meaning given the 
     term ``locatable mineral'' except that legal and beneficial 
     title to the mineral need not be held by the United States.
       (9) The term ``Indian lands'' means lands held in trust for 
     the benefit of an Indian tribe or individual or held by an 
     Indian tribe or individual subject to a restriction by the 
     United States against alienation.
       (10) The term ``Indian tribe'' means any Indian tribe, 
     band, nation, pueblo, or other organized group or community, 
     including any Alaska Native village or regional corporation 
     as defined in or established pursuant to the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1601 et seq.), that is 
     recognized as eligible for the special programs and services 
     provided by the United States to Indians because of their 
     status as Indians.
       (11) The term ``locatable mineral''--
       (A) subject to subparagraph (B), means any mineral, the 
     legal and beneficial title to which remains in the United 
     States and that is not subject to disposition under any of--
       (i) the Mineral Leasing Act (30 U.S.C. 181 et seq.);
       (ii) the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et 
     seq.);
       (iii) the Act of July 31, 1947, commonly known as the 
     Materials Act of 1947 (30 U.S.C. 601 et seq.); or
       (iv) the Mineral Leasing for Acquired Lands Act (30 U.S.C. 
     351 et seq.); and
       (B) does not include any mineral that is subject to a 
     restriction against alienation imposed by the United States 
     and is--
       (i) held in trust by the United States for any Indian or 
     Indian tribe, as defined in section 2 of the Indian Mineral 
     Development Act of 1982 (25 U.S.C. 2101); or
       (ii) owned by any Indian or Indian tribe, as defined in 
     that section.
       (12) The term ``mineral activities'' means any activity on 
     a mining claim, millsite claim, or tunnel site claim for, 
     related to, or incidental to, mineral exploration, mining, 
     beneficiation, processing, or reclamation activities for any 
     locatable mineral.
       (13) The term ``operator'' means any person proposing or 
     authorized by a permit issued under this Act to conduct 
     mineral activities and any agent of such person.
       (14) The term ``person'' means an individual, Indian tribe, 
     partnership, association, society, joint venture, joint stock 
     company, firm, company, corporation, cooperative, or other 
     organization and any instrumentality of State or local 
     government including any publicly owned utility or publicly 
     owned corporation of State or local government.
       (15) The term ``processing'' means processes downstream of 
     beneficiation employed to prepare locatable mineral ore into 
     the final marketable product, including but not limited to 
     smelting and electrolytic refining.
       (16) The term ``Secretary'' means the Secretary of the 
     Interior, unless otherwise specified.
       (17) The term ``temporary cessation'' means a halt in mine-
     related production activities for a continuous period of no 
     longer than 5 years.
       (b) References to Other Laws.--(1) Any reference in this 
     Act to the term general mining laws is a reference to those 
     Acts that generally comprise chapters 2, 12A, and 16, and 
     sections 161 and 162, of title 30, United States Code.
       (2) Any reference in this Act to the Act of July 23, 1955, 
     is a reference to the Act entitled ``An Act to amend the Act 
     of July 31, 1947 (61 Stat. 681) and the mining laws to 
     provide for multiple use of the surface of the same tracts of 
     the public lands, and for other purposes'' (30 U.S.C. 601 et 
     seq.).

     SEC. 3. APPLICATION RULES.

       (a) In General.--This Act applies to any mining claim, 
     millsite claim, or tunnel site claim located under the 
     general mining laws, before, on, or after the date of 
     enactment of this Act, except as provided in subsection (b).
       (b) Preexisting Claims.--(1) Any unpatented mining claim or 
     millsite claim located under the general mining laws before 
     the date of enactment of this Act for which a plan of 
     operation has not been approved or a notice filed prior to 
     the date of enactment shall, upon the effective date of this 
     Act, be subject to the requirements of this Act, except as 
     provided in paragraph (2).
       (2)(A) If a plan of operations is approved for mineral 
     activities on any claim or site referred to in paragraph (1) 
     prior to the date of enactment of this Act but such 
     operations have not commenced prior to the date of enactment 
     of this Act--
       (i) during the 10-year period beginning on the date of 
     enactment of this Act, mineral activities at such claim or 
     site shall be subject to such plan of operations;
       (ii) during such 10-year period, modifications of any such 
     plan may be made in accordance with the provisions of law 
     applicable prior to the enactment of this Act if such 
     modifications are deemed minor by the Secretary concerned; 
     and
       (iii) the operator shall bring such mineral activities into 
     compliance with this Act by the end of such 10-year period.
       (B) Where an application for modification of a plan of 
     operations referred to in subparagraph (A)(ii) has been 
     timely submitted and an approved plan expires prior to 
     Secretarial action on the application, mineral activities and 
     reclamation may continue in accordance with the terms of the 
     expired plan until the Secretary makes an administrative 
     decision on the application.
       (c) Federal Lands Subject to Existing Permit.--(1) Any 
     Federal land shall be subject to the requirements of section 
     101(a)(2) if the land is--
       (A) subject to an operations permit; and
       (B) producing valuable locatable minerals in commercial 
     quantities prior to the date of enactment of this Act.
       (2) Any Federal land added through a plan modification to 
     an operations permit on Federal land that is submitted after 
     the date of enactment of this Act shall be subject to the 
     terms of section 101(a)(3).
       (d) Application of Act to Beneficiation and Processing of 
     Non-Federal Minerals on Federal Lands.--The provisions of 
     this Act shall apply in the same manner and to the same 
     extent to mining claims, millsite claims, and tunnel site 
     claims used for beneficiation or processing activities for 
     any mineral without regard to whether or not the legal and 
     beneficial title to the mineral is held by the United States. 
     This subsection applies only to minerals that are locatable 
     minerals or minerals that would be locatable minerals if the 
     legal and beneficial title to such minerals were held by the 
     United States.

              TITLE I--MINERAL EXPLORATION AND DEVELOPMENT

     SEC. 101. ROYALTY.

       (a) Reservation of Royalty.--
       (1) In general.--Except as provided in paragraph (2) and 
     subject to paragraph (3), production of all locatable 
     minerals from any mining claim located under the general 
     mining laws and maintained in compliance with this Act, or 
     mineral concentrates or products derived from locatable 
     minerals from any such mining claim, as the case may be, 
     shall be subject to a royalty of 8 percent of the gross 
     income from mining. The claim holder or any operator to whom 
     the claim holder has assigned the obligation to make royalty 
     payments under the claim and any person who controls such 
     claim holder or operator shall be liable for payment of such 
     royalties.
       (2) Royalty for federal lands subject to existing permit.--
     The royalty under

[[Page S2004]]

     paragraph (1) shall be 4 percent in the case of any Federal 
     land that--
       (A) is subject to an operations permit on the date of the 
     enactment of this Act; and
       (B) produces valuable locatable minerals in commercial 
     quantities on the date of enactment of this Act.
       (3) Federal land added to existing operations permit.--Any 
     Federal land added through a plan modification to an 
     operations permit that is submitted after the date of 
     enactment of this Act shall be subject to the royalty that 
     applies to Federal land under paragraph (1).
       (4) Deposit.--Amounts received by the United States as 
     royalties under this subsection shall be deposited into the 
     Abandoned Mine Cleanup Fund established by section 201(a).
       (b) Duties of Claim Holders, Operators, and Transporters.--
     (1) A person--
       (A) who is required to make any royalty payment under this 
     section shall make such payments to the United States at such 
     times and in such manner as the Secretary may by rule 
     prescribe; and
       (B) shall notify the Secretary, in the time and manner as 
     may be specified by the Secretary, of any assignment that 
     such person may have made of the obligation to make any 
     royalty or other payment under a mining claim.
       (2) Any person paying royalties under this section shall 
     file a written instrument, together with the first royalty 
     payment, affirming that such person is responsible for making 
     proper payments for all amounts due for all time periods for 
     which such person has a payment responsibility. Such 
     responsibility for the periods referred to in the preceding 
     sentence shall include any and all additional amounts billed 
     by the Secretary and determined to be due by final agency or 
     judicial action. Any person liable for royalty payments under 
     this section who assigns any payment obligation shall remain 
     jointly and severally liable for all royalty payments due for 
     the claim for the period.
       (3) A person conducting mineral activities shall--
       (A) develop and comply with the site security provisions in 
     the operations permit designed to protect from theft the 
     locatable minerals, concentrates or products derived 
     therefrom which are produced or stored on a mining claim, and 
     such provisions shall conform with such minimum standards as 
     the Secretary may prescribe by rule, taking into account the 
     variety of circumstances on mining claims; and
       (B) not later than the 5th business day after production 
     begins anywhere on a mining claim, or production resumes 
     after more than 90 days after production was suspended, 
     notify the Secretary, in the manner prescribed by the 
     Secretary, of the date on which such production has begun or 
     resumed.
       (4) The Secretary may by rule require any person engaged in 
     transporting a locatable mineral, concentrate, or product 
     derived therefrom to carry on his or her person, in his or 
     her vehicle, or in his or her immediate control, 
     documentation showing, at a minimum, the amount, origin, and 
     intended destination of the locatable mineral, concentrate, 
     or product derived therefrom in such circumstances as the 
     Secretary determines is appropriate.
       (c) Recordkeeping and Reporting Requirements.--A claim 
     holder, operator, or other person directly involved in 
     developing, producing, processing, transporting, purchasing, 
     or selling locatable minerals, concentrates, or products 
     derived therefrom, subject to this Act, through the point of 
     royalty computation shall establish and maintain any records, 
     make any reports, and provide any information that the 
     Secretary may reasonably require for the purposes of 
     implementing this section or determining compliance with 
     rules or orders under this section. Such records shall 
     include, but not be limited to, periodic reports, records, 
     documents, and other data. Such reports may also include, but 
     not be limited to, pertinent technical and financial data 
     relating to the quantity, quality, composition volume, 
     weight, and assay of all minerals extracted from the mining 
     claim. Upon the request of any officer or employee duly 
     designated by the Secretary conducting an audit or 
     investigation pursuant to this section, the appropriate 
     records, reports, or information that may be required by this 
     section shall be made available for inspection and 
     duplication by such officer or employee. Failure by a claim 
     holder, operator, or other person referred to in the first 
     sentence to cooperate with such an audit, provide data 
     required by the Secretary, or grant access to information 
     may, at the discretion of the Secretary, result in 
     involuntary forfeiture of the claim.
       (d) Audits.--The Secretary is authorized to conduct such 
     audits of all claim holders, operators, transporters, 
     purchasers, processors, or other persons directly or 
     indirectly involved in the production or sales of minerals 
     covered by this Act, as the Secretary deems necessary for the 
     purposes of ensuring compliance with the requirements of this 
     section. For purposes of performing such audits, the 
     Secretary shall, at reasonable times and upon request, have 
     access to, and may copy, all books, papers and other 
     documents that relate to compliance with any provision of 
     this section by any person.
       (e) Cooperative Agreements.--(1) The Secretary is 
     authorized to enter into cooperative agreements with the 
     Secretary of Agriculture to share information concerning the 
     royalty management of locatable minerals, concentrates, or 
     products derived therefrom, to carry out inspection, 
     auditing, investigation, or enforcement (not including the 
     collection of royalties, civil or criminal penalties, or 
     other payments) activities under this section in cooperation 
     with the Secretary, and to carry out any other activity 
     described in this section.
       (2) Except as provided in paragraph (3) of this subsection 
     (relating to trade secrets), and pursuant to a cooperative 
     agreement, the Secretary of Agriculture shall, upon request, 
     have access to all royalty accounting information in the 
     possession of the Secretary respecting the production, 
     removal, or sale of locatable minerals, concentrates, or 
     products derived therefrom from claims on lands open to 
     location under this Act.
       (3) Trade secrets, proprietary, and other confidential 
     information protected from disclosure under section 552 of 
     title 5, United States Code, popularly known as the Freedom 
     of Information Act, shall be made available by the Secretary 
     to other Federal agencies as necessary to assure compliance 
     with this Act and other Federal laws. The Secretary, the 
     Secretary of Agriculture, the Administrator of the 
     Environmental Protection Agency, and other Federal officials 
     shall ensure that such information is provided protection in 
     accordance with the requirements of that section.
       (f) Interest and Substantial Underreporting Assessments.--
     (1) In the case of mining claims where royalty payments are 
     not received by the Secretary on the date that such payments 
     are due, the Secretary shall charge interest on such 
     underpayments at the same interest rate as the rate 
     applicable under section 6621(a)(2) of the Internal Revenue 
     Code of 1986. In the case of an underpayment, interest shall 
     be computed and charged only on the amount of the deficiency 
     and not on the total amount.
       (2) If there is any underreporting of royalty owed on 
     production from a claim for any production month by any 
     person liable for royalty payments under this section, the 
     Secretary shall assess a penalty of not greater than 25 
     percent of the amount of that underreporting.
       (3) For the purposes of this subsection, the term 
     ``underreporting'' means the difference between the royalty 
     on the value of the production that should have been reported 
     and the royalty on the value of the production which was 
     reported, if the value that should have been reported is 
     greater than the value that was reported.
       (4) The Secretary may waive or reduce the assessment 
     provided in paragraph (2) of this subsection if the person 
     liable for royalty payments under this section corrects the 
     underreporting before the date such person receives notice 
     from the Secretary that an underreporting may have occurred, 
     or before 90 days after the date of the enactment of this 
     section, whichever is later.
       (5) The Secretary shall waive any portion of an assessment 
     under paragraph (2) of this subsection attributable to that 
     portion of the underreporting for which the person 
     responsible for paying the royalty demonstrates that--
       (A) such person had written authorization from the 
     Secretary to report royalty on the value of the production on 
     basis on which it was reported;
       (B) such person had substantial authority for reporting 
     royalty on the value of the production on the basis on which 
     it was reported;
       (C) such person previously had notified the Secretary, in 
     such manner as the Secretary may by rule prescribe, of 
     relevant reasons or facts affecting the royalty treatment of 
     specific production which led to the underreporting; or
       (D) such person meets any other exception which the 
     Secretary may, by rule, establish.
       (6) All penalties collected under this subsection shall be 
     deposited in the Abandoned Mine Cleanup Fund established by 
     section 201(a).
       (g) Delegation.--For the purposes of this section, the term 
     ``Secretary'' means the Secretary of the Interior acting 
     through the Director of the Minerals Management Service.
       (h) Expanded Royalty Obligations.--Each person liable for 
     royalty payments under this section shall be jointly and 
     severally liable for royalty on all locatable minerals, 
     concentrates, or products derived therefrom lost or wasted 
     from a mining claim located under the general mining laws and 
     maintained in compliance with this Act when such loss or 
     waste is due to negligence on the part of any person or due 
     to the failure to comply with any rule, regulation, or order 
     issued under this section.
       (i) Gross Income From Mining Defined.--For the purposes of 
     this section, for any locatable mineral, the term ``gross 
     income from mining'' has the same meaning as the term ``gross 
     income'' in section 613(c) of the Internal Revenue Code of 
     1986.
       (j) Effective Date.--The royalty under this section shall 
     take effect with respect to the production of locatable 
     minerals after the enactment of this Act, but any royalty 
     payments attributable to production during the first 12 
     calendar months after the enactment of this Act shall be 
     payable at the expiration of such 12-month period.
       (k) Failure To Comply With Royalty Requirements.--Any 
     person who fails to comply with the requirements of this 
     section or any regulation or order issued to implement this 
     section shall be liable for a civil penalty under section 109 
     of the Federal Oil and Gas Royalty Management Act (30 U.S.C. 
     1719) to

[[Page S2005]]

     the same extent as if the claim located under the general 
     mining laws and maintained in compliance with this Act were a 
     lease under that Act.

     SEC. 102. HARDROCK MINING CLAIM MAINTENANCE FEE.

       (a) Fee.--
       (1) Except as provided in section 2511(e)(2) of the Energy 
     Policy Act of 1992 (relating to oil shale claims), for each 
     unpatented mining claim, mill or tunnel site on federally 
     owned lands, whether located before, on, or after enactment 
     of this Act, each claimant shall pay to the Secretary, on or 
     before August 31 of each year, a claim maintenance fee of 
     $300 per claim to hold such unpatented mining claim, mill or 
     tunnel site for the assessment year beginning at noon on the 
     next day, September 1. Such claim maintenance fee shall be in 
     lieu of the assessment work requirement contained in the 
     Mining Law of 1872 (30 U.S.C. 28 et seq.) and the related 
     filing requirements contained in section 314(a) and (c) of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1744(a) and (c)).
       (2)(A) The claim maintenance fee required under this 
     subsection shall be waived for a claimant who certifies in 
     writing to the Secretary that on the date the payment was 
     due, the claimant and all related parties--
       (i) held not more than 10 mining claims, mill sites, or 
     tunnel sites, or any combination thereof, on public lands; 
     and
       (ii) have performed assessment work required under the 
     Mining Law of 1872 (30 U.S.C. 28 et seq.) to maintain the 
     mining claims held by the claimant and such related parties 
     for the assessment year ending on noon of September 1 of the 
     calendar year in which payment of the claim maintenance fee 
     was due.
       (B) For purposes of subparagraph (A), with respect to any 
     claimant, the term ``all related parties'' means--
       (i) the spouse and dependent children (as defined in 
     section 152 of the Internal Revenue Code of 1986), of the 
     claimant; or
       (ii) a person affiliated with the claimant, including--
       (I) a person controlled by, controlling, or under common 
     control with the claimant; or
       (II) a subsidiary or parent company or corporation of the 
     claimant.
       (3)(A) The Secretary shall adjust the fees required by this 
     subsection to reflect changes in the Consumer Price Index 
     published by the Bureau of Labor Statistics of the Department 
     of Labor every 5 years after the date of enactment of this 
     Act, or more frequently if the Secretary determines an 
     adjustment to be reasonable.
       (B) The Secretary shall provide claimants notice of any 
     adjustment made under this paragraph not later than July 1 of 
     any year in which the adjustment is made.
       (C) A fee adjustment under this paragraph shall begin to 
     apply the calendar year following the calendar year in which 
     it is made.
       (4) Moneys received under this subsection that are not 
     otherwise allocated for the administration of the mining laws 
     by the Department of the Interior shall be deposited in the 
     Abandoned Mine Cleanup Fund established by section 201(a).
       (b) Location.--
       (1) Notwithstanding any provision of law, for every 
     unpatented mining claim, mill or tunnel site located after 
     the date of enactment of this Act and before September 30, 
     1998, the locator shall, at the time the location notice is 
     recorded with the Bureau of Land Management, pay to the 
     Secretary a location fee, in addition to the fee required by 
     subsection (a) of $50 per claim.
       (2) Moneys received under this subsection that are not 
     otherwise allocated for the administration of the mining laws 
     by the Department of the Interior shall be deposited in the 
     Abandoned Mine Cleanup Fund established by section 201(a).
       (c) Transfer.--
       (1) Notwithstanding any provision of law, for every 
     unpatented mining claim, mill, or tunnel site the ownership 
     interest of which is transferred after the date of enactment 
     of this Act, the transferee shall, at the time the transfer 
     document is recorded with the Bureau of Land Management, pay 
     to the Secretary a transfer fee, in addition to the fee 
     required by subsection (a) of $100 per claim.
       (2) Moneys received under this subsection that are not 
     otherwise allocated for the administration of the mining laws 
     by the Department of the Interior shall be deposited in the 
     Abandoned Mine Cleanup Fund established by section 201(a).
       (d) Co-Ownership.--The co-ownership provisions of the 
     Mining Law of 1872 (30 U.S.C. 28 et seq.) will remain in 
     effect except that the annual claim maintenance fee, where 
     applicable, shall replace applicable assessment requirements 
     and expenditures.
       (e) Failure To Pay.--Failure to pay the claim maintenance 
     fee as required by subsection (a) shall conclusively 
     constitute a forfeiture of the unpatented mining claim, mill 
     or tunnel site by the claimant and the claim shall be deemed 
     null and void by operation of law.
       (f) Other Requirements.--
       (1) Nothing in this section shall change or modify the 
     requirements of section 314(b) of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1744(b)), or the 
     requirements of section 314(c) of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1744(c)) related to filings 
     required by section 314(b) of that Act, which remain in 
     effect.
       (2) Section 2324 of the Revised Statutes of the United 
     States (30 U.S.C. 28) is amended by inserting ``or section 
     102 of the Abandoned Mine Reclamation Act of 2008'' after 
     ``Act of 1993,''.

     SEC. 103. RECLAMATION FEE.

       (a) Imposition of Fee.--
       (1) In general.--Except as provided in paragraph (2), each 
     operator of a hardrock minerals mining operation shall pay to 
     the Secretary, for deposit in the Abandoned Mine Cleanup Fund 
     established by section 201(a), a reclamation fee of 0.3 
     percent of the gross income of the hardrock minerals mining 
     operation for each calendar year.
       (2) Exception.--With respect to any calendar year required 
     under subsection (b), an operator of a hardrock minerals 
     mining operation shall not be required to pay the reclamation 
     fee under paragraph (1) if--
       (A) the gross annual income of the hardrock minerals mining 
     operation for the calendar year is an amount less than 
     $500,000; and
       (B) the hardrock minerals mining operation is comprised 
     of--
       (i) 1 or more hardrock mineral mines located in a single 
     patented claim; or
       (ii) 2 or more contiguous patented claims.
       (b) Payment Deadline.--The reclamation fee shall be paid 
     not later than 60 days after the end of each calendar year 
     beginning with the first calendar year occurring after the 
     date of enactment of this Act.
       (c) Deposit of Revenues.--Amounts received by the Secretary 
     under subsection (a)(1) shall be deposited into the Abandoned 
     Mine Cleanup Fund established by section 201(a).
       (d) Effect.--Nothing in this section requires a reduction 
     in, or otherwise affects, any similar fee required under any 
     law (including regulations) of any State.

     SEC. 104. EFFECT OF PAYMENTS FOR USE AND OCCUPANCY OF CLAIMS.

       Timely payment of the claim maintenance fee required by 
     section 102(a) of this Act or any related law relating to the 
     use of Federal land, asserts the claimant's authority to use 
     and occupy the Federal land concerned for prospecting and 
     exploration, consistent with the requirements of this Act and 
     other applicable law.

                 TITLE II--ABANDONED MINE CLEANUP FUND

     SEC. 201. ESTABLISHMENT OF FUND.

       (a) Establishment.--There is established on the books of 
     the Treasury of the United States a separate account to be 
     known as the Abandoned Mine Cleanup Fund (hereinafter in this 
     title referred to as the ``Fund'').
       (b) Investment.--The Secretary shall notify the Secretary 
     of the Treasury as to what portion of the Fund is not, in the 
     Secretary's judgment, required to meet current withdrawals. 
     The Secretary of the Treasury shall invest such portion of 
     the Fund in public debt securities with maturities suitable 
     for the needs of such Fund and bearing interest at rates 
     determined by the Secretary of the Treasury, taking into 
     consideration current market yields on outstanding 
     marketplace obligations of the United States of comparable 
     maturities.

     SEC. 202. CONTENTS OF FUND.

       The following amounts shall be credited to the Fund:
       (1) All donations by persons, corporations, associations, 
     and foundations for the purposes of this title.
       (2) All amounts deposited in the Fund under section 101 
     (relating to royalties and penalties for underreporting).
       (3) All amounts received by the United States pursuant to 
     section 102 as claim maintenance, location, and transfer fees 
     minus the moneys allocated for administration of the mining 
     laws by the Department of the Interior.
       (4) All amounts received by the Secretary in accordance 
     with section 103(a).
       (5) All income on investments under section 201(b).

     SEC. 203. USE AND OBJECTIVES OF THE FUND.

       (a) In General.--The Secretary is authorized, without 
     further appropriation, to use moneys in the Fund for the 
     reclamation and restoration of land and water resources 
     adversely affected by past mineral activities on lands the 
     legal and beneficial title to which resides in the United 
     States, land within the exterior boundary of any national 
     forest system unit, or other lands described in subsection 
     (d), including any of the following:
       (1) Protecting public health and safety.
       (2) Preventing, abating, treating, and controlling water 
     pollution created by abandoned mine drainage, including in 
     river watershed areas.
       (3) Reclaiming and restoring abandoned surface and 
     underground mined areas.
       (4) Reclaiming and restoring abandoned milling and 
     processing areas.
       (5) Backfilling, sealing, or otherwise controlling, 
     abandoned underground mine entries.
       (6) Revegetating land adversely affected by past mineral 
     activities in order to prevent erosion and sedimentation, to 
     enhance wildlife habitat, and for any other reclamation 
     purpose.
       (7) Controlling of surface subsidence due to abandoned 
     underground mines.
       (b) Allocation.--Expenditures of moneys from the Fund shall 
     reflect the following priorities in the order stated:
       (1) The protection of public health and safety, from 
     extreme danger from the adverse effects of past mineral 
     activities, especially as relates to surface water and 
     groundwater contaminants.
       (2) The protection of public health and safety, from the 
     adverse effects of past mineral activities.

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       (3) The restoration of land, water, and fish and wildlife 
     resources previously degraded by the adverse effects of past 
     mineral activities, which may include restoration activities 
     in river watershed areas.
       (c) Habitat.--Reclamation and restoration activities under 
     this title, particularly those identified under subsection 
     (a)(4), shall include appropriate mitigation measures to 
     provide for the continuation of any established habitat for 
     wildlife in existence prior to the commencement of such 
     activities.
       (d) Other Affected Lands.--Where mineral exploration, 
     mining, beneficiation, processing, or reclamation activities 
     have been carried out with respect to any mineral which would 
     be a locatable mineral if the legal and beneficial title to 
     the mineral were in the United States, if such activities 
     directly affect lands managed by the Bureau of Land 
     Management as well as other lands and if the legal and 
     beneficial title to more than 50 percent of the affected 
     lands resides in the United States, the Secretary is 
     authorized, subject to appropriations, to use moneys in the 
     Fund for reclamation and restoration under subsection (a) for 
     all directly affected lands.
       (e) Response or Removal Actions.--Reclamation and 
     restoration activities under this title which constitute a 
     removal or remedial action under section 101 of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601), shall be conducted 
     with the concurrence of the Administrator of the 
     Environmental Protection Agency. The Secretary and the 
     Administrator shall enter into a Memorandum of Understanding 
     to establish procedures for consultation, concurrence, 
     training, exchange of technical expertise and joint 
     activities under the appropriate circumstances, that provide 
     assurances that reclamation or restoration activities under 
     this title shall not be conducted in a manner that increases 
     the costs or likelihood of removal or remedial actions under 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.), and that 
     avoid oversight by multiple agencies to the maximum extent 
     practicable.

     SEC. 204. ELIGIBLE LANDS AND WATERS.

       (a) Eligibility.--Reclamation expenditures under this title 
     may be made with respect to Federal, State, local, tribal, 
     and private land or water resources that traverse or are 
     contiguous to Federal, State, local, tribal, or private land 
     where such lands or water resources have been affected by 
     past mineral activities, including any of the following:
       (1) Lands and water resources which were used for, or 
     affected by, mineral activities and abandoned or left in an 
     inadequate reclamation status before the effective date of 
     this Act.
       (2) Lands for which the Secretary makes a determination 
     that there is no continuing reclamation responsibility of a 
     claim holder, operator, or other person who abandoned the 
     site prior to completion of required reclamation under State 
     or other Federal laws.
       (b) Specific Sites and Areas Not Eligible.--The provisions 
     of section 411(d) of the Surface Mining Control and 
     Reclamation Act of 1977 (30 U.S.C. 1240a(d)) shall apply to 
     expenditures made from the Fund.
       (c) Inventory.--
       (1) In general.--The Secretary shall prepare and maintain a 
     publicly available inventory of abandoned locatable minerals 
     mines on public lands and any abandoned mine on Indian lands 
     that may be eligible for expenditures under this title, and 
     shall deliver a yearly report to the Congress on the progress 
     in cleanup of such sites.
       (2) Priority.--In preparing and maintaining the inventory 
     described in paragraph (1), the Secretary shall give priority 
     to abandoned locatable minerals mines in accordance with 
     section 203(b).
       (3) Periodic updates.--Not later than 5 years after the 
     date of enactment of this Act, and every 5 years thereafter, 
     the Secretary shall update the inventory described in 
     paragraph (1).

     SEC. 205. EXPENDITURES.

       Moneys available from the Fund may be expended for the 
     purposes specified in section 203 directly by the Director of 
     the Office of Surface Mining Reclamation and Enforcement. The 
     Director may also make such money available for such purposes 
     to the Director of the Bureau of Land Management, the Chief 
     of the United States Forest Service, the Director of the 
     National Park Service, or Director of the United States Fish 
     and Wildlife Service, to any other agency of the United 
     States, to an Indian tribe, or to any public entity that 
     volunteers to develop and implement, and that has the ability 
     to carry out, all or a significant portion of a reclamation 
     program under this title.

     SEC. 206. AVAILABILITY OF AMOUNTS.

       Amounts credited to the Fund shall--
       (1) be available, without further appropriation, for 
     obligation and expenditure; and
       (2) remain available until expended.

                       TITLE III--EFFECTIVE DATE

     SEC. 301. EFFECTIVE DATE.

       This Act shall take effect on the date of enactment of this 
     Act, except as otherwise provided in this Act.
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