[Congressional Record Volume 155, Number 56 (Thursday, April 2, 2009)]
[Senate]
[Pages S4331-S4333]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN:
  S. 796. A bill to modify the requirements applicable to locatable 
minerals on public domain land, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mr. BINGAMAN. Mr. President, I rise today to introduce the Hardrock 
Mining and Reclamation Act of 2009. This legislation would reform the 
antiquated Mining Law of 1872, a law that governs the mining of 
hardrock minerals, such as gold, silver, and copper, from our Federal 
lands.

[[Page S4332]]

  When the Mining Law was enacted in 1872, in the aftermath of the 
California gold rush, Congress sought to encourage settlement of the 
West. Congress did this by offering free minerals and land to those who 
were willing to go West and mine. Congress put in place a system 
whereby miners could enter the public lands and locate claims for 
valuable mineral deposits, and mine the minerals with no further 
payment to the government. In the 1872 law, Congress also provided that 
the Federal Government would patent, or transfer title in fee simple, 
to the mining claims on the public domain for $2.50 or $5.00 an acre.
  In 1920, Congress enacted the Mineral Leasing Act, and removed oil, 
gas, coal, and certain other minerals from the operation of the Mining 
Law. In so doing, Congress enacted a management regime that requires 
the leasing of these minerals. In addition, Congress required payment 
of per-acre rentals and ad valorem royalties based on the value of 
production of the oil, gas and coal, providing a return to the public 
for the production of publicly-owned resources.
  However, as we all know, the Mining Law of 1872 continues to govern 
the disposition of hardrock minerals from Federal lands. While Congress 
has stepped in and prevented the patenting of lands through annual 
appropriations riders, patenting provisions allowing the transfer of 
mineralized Federal lands for $2.50 or $5.00 per acre are still on the 
books. In addition, to this day under the Mining Law, billions of 
dollars of hardrock minerals can be mined from Federal lands without 
payment of a royalty. General land management and environmental laws 
apply, but there are no specific statutory provisions under the Mining 
Law setting surface management or environmental standards.
  Efforts to comprehensively reform the Mining Law have been ongoing 
literally for decades, but results have thus far been elusive. Congress 
came close to enacting comprehensive reform in 1994, and Congress has 
enacted moratoria on patent issuance and has imposed claim maintenance 
fees through the appropriations process. The House passed reform 
legislation last Congress and several of us in the Senate had 
discussions regarding how we could address this issue.
  There is a growing number of people saying that finally this Congress 
may be the time to achieve this long-awaited reform. Chairman Rahall, a 
champion of reform in the House of Representatives, has again 
introduced mining reform legislation. The bill that I introduce today 
differs in many significant ways from the House legislation, and builds 
on discussions in the Senate last Congress. My bill, like other reform 
proposals, reflects a view that the law needs to be amended to ensure 
that the public gets a fair return for its resources, that 
environmental and land use requirements are modernized, and that 
certainty is provided to the mining industry.

  I note that my bill includes a range for both the royalty rate and 
the reclamation fee which will be set by the Secretary through a 
rulemaking process. This ensures that the Secretary will have the 
benefit of comments and information from interested parties and the 
public in setting the royalty and fee. We must look comprehensively at 
the subject of royalties and fees to ensure that we continue to 
maintain a healthy domestic hardrock mining industry with the benefits 
that the nation derives from that industry, including jobs and 
strategic minerals. At the same time, we want to ensure that the public 
gets the fair return on these resources that the American people 
deserve. I hope to receive additional input on this issue of royalties 
and fees during consideration of the bill.
  Another part of this legislation warrants special attention--that is 
the provisions relating to abandoned hardrock mine reclamation. While 
estimates vary, a recent survey of States indicated that there are as 
many as 500,000 abandoned hardrock mine sites nationwide with most of 
these in the West. These abandoned mines pose serious public health and 
safety risks. They also degrade our environment and pose special 
threats to our most precious resource: water.
  As we discuss the size and shape of legislation to reform the 1872 
law, there appears to be substantial support for enacting a robust 
hardrock abandoned mine land program. My legislation would enact a 
reclamation fee to fund this effort. In 1977, Congress enacted a coal 
AML program as part of the Surface Mining Control and Reclamation Act 
to address the serious problem of abandoned coal mines. This program 
was funded by a fee levied on coal production. We are overdue to enact 
a similar program to deal with abandoned hardrock mines.
  Mr. President, the bill I introduce today reforms the Mining Law of 
1872 in important ways. The key provisions of this bill are outlined.
  The bill eliminates patenting of Federal lands, but grandfathers 
patent applications filed and meeting all requirements by September 30, 
1994.
  The bill makes modest increases in the annual claim maintenance fee, 
from $125 to $150, and claim location fee, from $30 to $50. The 
legislation requires the mine operator to pay a fee in exchange for the 
use of Federal land that is included within the mine permit area. The 
bill provides that fees collected are to be used for the administration 
of hardrock mining on Federal lands. Any excess funds are deposited 
into the Hardrock Minerals Reclamation Fund.
  The bill provides that the production of all locatable minerals is 
subject to a royalty to be determined by the Secretary by regulation of 
not less than 2 percent and not more than 5 percent of the value of 
production, not including reasonable transportation, beneficiation, and 
processing costs. The royalty may vary based on the particular mineral 
concerned. No royalty will be collected from lands under permit that 
are producing in commercial quantities on the date of enactment. 
Royalty revenues will be deposited into the Hardrock Minerals 
Reclamation Fund.
  The bill includes a provision for royalty reductions for all or part 
of a mining operation where the person conducting the mineral 
activities shows by clear and convincing evidence that without the 
reduction, production would not occur.
  The bill states that permits are required for all mineral activities 
on Federal land except for ``casual use'' that ordinarily results in no 
or negligible disturbance. Mining permits are for a term of 30 years 
and so long thereafter as production occurs in commercial quantities. 
The operator must provide evidence of approved financial assurances 
sufficient to ensure completion of reclamation if performed by the 
Secretary concerned.
  Financial assurances attributable to the cost of water treatment will 
not be released until the discharge has ceased for at least 5 years or 
the operator has met all applicable water quality standards for at 
least 5 years. The operator may be required to establish a trust fund 
or other long-term funding mechanism to provide financial assurances 
for long-term treatment of water or other long-term post-mining 
maintenance or monitoring requirements.
  The Secretary of Agriculture must take any action necessary to 
prevent unnecessary or undue degradation in administering mineral 
activities on National Forest System land. The bill directs the 
Secretaries of the Interior and Agriculture to jointly issue 
regulations.
  The bill requires within 3 years a review of certain lands to 
determine whether they will be available for future mining claim 
location. The Governor of a state, Chairman of an Indian tribe, or 
appropriate local official may petition the Secretary to undertake a 
review of an area.
  The bill establishes a program for the reclamation of abandoned 
hardrock mines in 14 western states. Creates a Hardrock Minerals 
Reclamation Fund comprised of hardrock royalties, fees, and donations. 
Each operator of a hardrock mining operation on Federal, state, tribal 
or private land, must pay a reclamation fee established by the 
Secretary of not less than 0.3 percent, and not more than 1.0 percent, 
of the value of the production of the hardrock minerals for deposit 
into the Fund. The bill provides grant programs for all states for 
hardrock reclamation projects and for public entities and nonprofit 
organizations for collaborative restoration projects to improve fish 
and wildlife habitat affected by past hardrock mining.
  Reform of the Mining Law of 1872 is a matter that has come before the 
Congress repeatedly and that we simply must address. I ask that my 
colleagues

[[Page S4333]]

join me in cosponsoring this important legislation.
  Mr. President, I ask unanimous consent that a bill summary be printed 
in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

            The Hardrock Mining and Reclamation Act of 2009

       Eliminates Patenting--Eliminates the practice of patenting 
     Federal land (i.e., transferring title) while grandfathering 
     patent applications filed and meeting all requirements by 
     September 30, 1994.
       Claim Maintenance and Location Fees--Increases the current 
     annual claim maintenance fee to $150 (up from $125 under 
     current law) which is paid in lieu of annual assessment work, 
     with an exception for claim holders with 10 or fewer claims. 
     Increases the current claim location fee to $50 per claim (up 
     from $30 under current law). Provides that fees collected are 
     to be used for the administration of hardrock mining on 
     Federal lands. Any excess is deposited into the Hardrock 
     Minerals Reclamation Fund. Provides for adjustment of the 
     fees to reflect changes in the Consumer Price Index.
       Royalties--Production of all locatable minerals is subject 
     to a royalty to be determined by the Secretary by regulation 
     of not less than 2 percent and not more than 5 percent of the 
     value of production, not including reasonable transportation, 
     beneficiation, and processing costs. The royalty may vary 
     based on the particular mineral concerned. No royalty will be 
     collected from existing mines that are producing in 
     commercial quantities on the date of enactment. Royalty 
     revenues will be deposited into the Hardrock Minerals 
     Reclamation Fund. Provides for royalty reductions for all or 
     part of a mining operation where the person conducting the 
     mineral activities shows by clear and convincing evidence 
     that without the reduction, production would not occur. 
     Provides for enforcement for royalty and certain fee 
     collections. Provides for a look-back report on the impacts 
     of royalties and fees.
       Permits--Permits are required for all mineral activities on 
     Federal land except for ``casual use'' that ordinarily 
     results in no or negligible disturbance. Mining permits are 
     for a term of 30 years and so long thereafter as production 
     occurs in commercial quantities.
       Land Use Fees--With respect to new mines, requires the 
     operator to pay a land use fee as determined by the Secretary 
     by regulation equal to 4 times the claim maintenance fee 
     imposed for each 20 acres of Federal land that is included 
     within the mine permit area. Upon approval of the mining 
     permit and payment of the fee, the operator may use and 
     occupy the Federal land within the permit area, consistent 
     with the mining permit and all applicable law.
       Financial Assurances--The operator must provide evidence of 
     approved financial assurances sufficient to ensure completion 
     of reclamation if performed by the Secretary concerned.
       Water Reclamation--Financial assurances attributable to the 
     cost of water treatment will not be released until the 
     discharge has ceased for at least 5 years or the operator has 
     met all applicable water quality standards for at least 5 
     years. The operator may be required to establish a trust fund 
     or other long-term funding mechanism to provide financial 
     assurances for long-term treatment of water or other long-
     term post-mining maintenance or monitoring requirements.
       Operation and Reclamation--Creates a uniform standard for 
     operation and reclamation on both BLM and Forest Service 
     lands by applying the ``unnecessary or undue degradation'' 
     standard currently applicable to BLM land to National Forest 
     System land. Directs the Secretaries of the Interior and 
     Agriculture to jointly issue regulations.
       Land Open to Location--Amends the Federal Land Policy and 
     Management Act to require within 3 years that local Federal 
     land managers review specified categories of lands for 
     withdrawal from operation of the Mining Law, subject to valid 
     existing rights. The categories to be reviewed are: 
     designated wilderness study areas and National Forest System 
     land identified as suitable for wilderness designation; areas 
     of critical environmental concern; Federal land in which 
     mineral activities pose a reasonable likelihood of 
     substantial adverse impacts on National Conservation System 
     units as defined in the bill; certain areas with potential 
     for inclusion in the Wild and Scenic Rivers System as 
     specified; and areas identified in the set of inventoried 
     roadless area maps contained in the Forest Service Roadless 
     Areas Conservation, Final Environmental Impact Statement, 
     Volume 2, dated November 2000). Based on the review and 
     recommendation of the local Federal land manager, areas can 
     be removed from operation of the Mining Law, subject to valid 
     existing rights. The Governor of a state, head of an Indian 
     tribe, or appropriate local official may petition the 
     Secretary to direct the local Federal land manager to 
     undertake a review of an area to determine whether land 
     should be withdrawn, subject to valid existing rights.
       Inspection and Monitoring--Requires the Secretary concerned 
     to conduct inspections at least once each quarter. All 
     operators must develop and maintain a monitoring and 
     evaluation system.
       Hardrock Minerals Reclamation Fund--Provides for the 
     payment of royalties, fees, and donations into a Hardrock 
     Minerals Reclamation Fund to be administered by the Secretary 
     of the Interior through the Office of Surface Mining 
     Reclamation and Enforcement.
       Use of the Fund--The Secretary may use amounts in the Fund 
     without further appropriation for the reclamation of land and 
     water (Federal, State, tribal and private) affected by past 
     hardrock mining and related activities in 14 western states 
     when there is no continuing reclamation responsibility of the 
     claim holder or operator, and for hardrock reclamation grant 
     programs nationwide as specified in the bill.
       Allocation of the Fund--Provides for allocation of the 
     Fund: to states and tribes based on current hardrock 
     production and on the quantity of hardrock minerals 
     historically produced; to agencies for expenditure on Federal 
     land; for grants to states other than the 14 designated 
     western states for reclamation of abandoned hardrock mine 
     sites; for grants to public entities and nonprofit 
     organizations for collaborative restoration projects to 
     improve fish and wildlife habitat affected by past hardrock 
     mining; and for program administration.
       Abandoned Mine Land Fee--Each operator of a hardrock 
     mineral mining operation on Federal, state, tribal or private 
     land, shall pay to the Secretary a reclamation fee 
     established by the Secretary by regulation of not less than 
     0.3 percent, and not more than 1.0 percent, of the value of 
     the production of the hardrock minerals mining operation for 
     each calendar year for deposit into the Fund.
       Transition--If a plan of operations is approved or a notice 
     of operations is filed for mineral activities before the date 
     of enactment, mineral activities will be subject to the 
     approved plan of operations or the notice for 10 years after 
     the date of enactment. All fees apply starting on the date of 
     enactment of this Act, except that the land use fee applies 
     only to mining permits or modifications after the date of 
     enactment. No royalty is required on production from Federal 
     land that is subject to an operations permit on the date of 
     enactment of this Act and that produces valuable locatable 
     minerals in commercial quantities on the date of enactment.
       Enforcement--Provides for enforcement, including civil 
     penalty authority for the Secretary.
       Uncommon Varieties--Subject to valid existing rights, makes 
     minerals classified as ``common varieties with distinct and 
     special value'' subject to disposal under the Materials Act 
     of 1947.
       Review of Uranium Development on Federal Land--Provides for 
     a National Academy of Sciences review of legal and related 
     requirements applicable to the development of uranium on 
     Federal lands.
                                 ______