[House Report 113-137]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    113-137

======================================================================



 
            THREE KIDS MINE REMEDIATION AND RECLAMATION ACT

                                _______
                                

  July 8, 2013.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 697]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 697) to provide for the conveyance of certain 
Federal land in Clark County, Nevada, for the environmental 
remediation and reclamation of the Three Kids Mine Project 
Site, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Three Kids Mine Remediation and 
Reclamation Act''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Federal land.--The term ``Federal land'' means the 
        approximately 948 acres of Bureau of Reclamation and Bureau of 
        Land Management land within the Three Kids Mine Project Site, 
        as depicted on the map.
          (2) Hazardous substance; pollutant or contaminant; remedy.--
        The terms ``hazardous substance'', ``pollutant or 
        contaminant'', and ``remedy'' have the meanings given those 
        terms in section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601).
          (3) Henderson redevelopment agency.--The term ``Henderson 
        Redevelopment Agency'' means the redevelopment agency of the 
        City of Henderson, Nevada, established and authorized to 
        transact business and exercise the powers of the agency in 
        accordance with the Nevada Community Redevelopment Law (Nev. 
        Rev. Stat. 279.382 to 279.685).
          (4) Map.--The term ``map'' means the map entitled ``Three 
        Kids Mine Project Area'' and dated February 6, 2012.
          (5) Responsible party.--The term ``Responsible Party'' means 
        the private sector entity designated by the Henderson 
        Redevelopment Agency, and approved by the State of Nevada, to 
        complete the assessment, remediation, reclamation and 
        redevelopment of the Three Kids Mine Project Site).
          (6) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (7) State.--The term ``State'' means the State of Nevada.
          (8) Three kids mine project site.--The term ``Three Kids Mine 
        Project Site'' means the approximately 1,262 acres of land that 
        is--
                  (A) comprised of--
                          (i) the Federal land; and
                          (ii) the approximately 314 acres of adjacent 
                        non-Federal land; and
                  (B) depicted as the ``Three Kids Mine Project Site'' 
                on the map.

SEC. 3. LAND CONVEYANCE.

  (a) In General.--Notwithstanding sections 202 and 203 of the Federal 
Land Policy and Management Act of 1976 (43 U.S.C. 1712, 1713), not 
later than 90 days after the date on which the Secretary determines 
that the conditions described in subsection (b) have been met, and 
subject to valid existing rights and applicable law, the Secretary 
shall convey to the Henderson Redevelopment Agency all right, title, 
and interest of the United States in and to the Federal land.
  (b) Conditions.--
          (1) Appraisal; fair market value.--
                  (A) In general.--As consideration for the conveyance 
                under subsection (a), the Henderson Redevelopment 
                Agency shall pay the fair market value of the Federal 
                land, if any, as determined under subparagraph (B) and 
                as adjusted under subparagraph (F).
                  (B) Appraisal.--The Secretary shall determine the 
                fair market value of the Federal land based on an 
                appraisal--
                          (i) that is conducted in accordance with 
                        nationally recognized appraisal standards, 
                        including--
                                  (I) the Uniform Appraisal Standards 
                                for Federal Land Acquisitions; and
                                  (II) the Uniform Standards of 
                                Professional Appraisal Practice; and
                          (ii) that does not take into account any 
                        existing contamination associated with 
                        historical mining on the Federal land.
                  (C) Remediation and reclamation costs.--
                          (i) In general.--The Secretary shall prepare 
                        a reasonable estimate of the costs to assess, 
                        remediate, and reclaim the Three Kids Mine 
                        Project Site.
                          (ii) Considerations.--The estimate prepared 
                        under clause (i) shall be--
                                  (I) based on the results of a 
                                comprehensive Phase II environmental 
                                site assessment of the Three Kids Mine 
                                Project Site prepared by the Henderson 
                                Redevelopment Agency or a Responsible 
                                Party that has been approved by the 
                                State; and
                                  (II) prepared in accordance with the 
                                current version of the ASTM 
                                International Standard E-2137-06 (2011) 
                                entitled ``Standard Guide for 
                                Estimating Monetary Costs and 
                                Liabilities for Environmental 
                                Matters''.
                          (iii) Assessment requirements.--The Phase II 
                        environmental site assessment prepared under 
                        clause (ii)(I) shall, without limiting any 
                        additional requirements that may be required by 
                        the State, be conducted in accordance with the 
                        procedures of--
                                  (I) the most recent version of ASTM 
                                International Standard E-1527-05 
                                entitled ``Standard Practice for 
                                Environmental Site Assessments: Phase I 
                                Environmental Site Assessment 
                                Process''; and
                                  (II) the most recent version of ASTM 
                                International Standard E-1903-11 
                                entitled ``Standard Guide for 
                                Environmental Site Assessments: Phase 
                                II Environmental Site Assessment 
                                Process''.
                          (iv) Review of certain information.--
                                  (I) In general.--The Secretary shall 
                                review and consider cost information 
                                proffered by the Henderson 
                                Redevelopment Agency, the Responsible 
                                Party, and the State in the preparation 
                                of the estimate under this 
                                subparagraph.
                                  (II) Final determination.--If there 
                                is a disagreement among the Secretary, 
                                Henderson Redevelopment Agency, and the 
                                State over the reasonable estimate of 
                                costs under this subparagraph, the 
                                parties shall jointly select 1 or more 
                                experts to assist the Secretary in 
                                making the final estimate of the costs.
                  (D) Deadline.--Not later than 30 days after the date 
                of enactment of this Act, the Secretary shall begin the 
                appraisal and cost estimates under subparagraphs (B) 
                and (C), respectively.
                  (E) Appraisal costs.--The Henderson Redevelopment 
                Agency or the Responsible Party shall reimburse the 
                Secretary for the costs incurred in performing the 
                appraisal under subparagraph (B).
                  (F) Adjustment.--The Secretary shall administratively 
                adjust the fair market value of the Federal land, as 
                determined under subparagraph (B), based on the 
                estimate of remediation, and reclamation costs, as 
                determined under subparagraph (C).
          (2) Mine remediation and reclamation agreement executed.--
                  (A) In general.--The conveyance under subsection (a) 
                shall be contingent on--
                          (i) the Secretary receiving from the State 
                        written notification that a mine remediation 
                        and reclamation agreement has been executed in 
                        accordance with subparagraph (B); and
                          (ii) the Secretary concurring, not later than 
                        30 days after the date of receipt of the 
                        written notification under clause (i), that the 
                        requirements under subparagraph (B) have been 
                        met.
                  (B) Requirements.--The mine remediation and 
                reclamation agreement required under subparagraph (A) 
                shall be an enforceable consent order or agreement 
                between the State and the Responsible Party who will be 
                obligated to perform under the consent order or 
                agreement administered by the State that--
                          (i) obligates the Responsible Party to 
                        perform, after the conveyance of the Federal 
                        land under this Act, the remediation and 
                        reclamation work at the Three Kids Mine Project 
                        Site necessary to ensure all remedial actions 
                        necessary to protect human health and the 
                        environment with respect to any hazardous 
                        substances, pollutant, or contaminant will be 
                        taken, in accordance with all Federal, State, 
                        and local requirements; and
                          (ii) contains provisions determined to be 
                        necessary by the State and the Henderson 
                        Redevelopment Agency, including financial 
                        assurance provisions to ensure the completion 
                        of the remedy.
          (3) Notification from agency.--As a condition of the 
        conveyance under subsection (a), not later than 90 days after 
        the date of execution of the mine remediation and reclamation 
        agreement required under paragraph (2), the Secretary shall 
        accept written notification from the Henderson Redevelopment 
        Agency that the Henderson Redevelopment Agency is prepared to 
        accept conveyance of the Federal land under subsection (a).

SEC. 4. WITHDRAWAL.

  (a) In General.--Subject to valid existing rights, for the 10-year 
period beginning on the earlier of the date of enactment of this Act or 
the date of the conveyance required by this Act, the Federal land is 
withdrawn from all forms of--
          (1) entry, appropriation, operation, or disposal under the 
        public land laws;
          (2) location, entry, and patent under the mining laws; and
          (3) disposition under the mineral leasing, mineral materials, 
        and the geothermal leasing laws.
  (b) Existing Reclamation Withdrawals.--Subject to valid existing 
rights, any withdrawal under the public land laws that includes all or 
any portion of the Federal land for which the Bureau of Reclamation has 
determined that the Bureau of Reclamation has no further need under 
applicable law is relinquished and revoked solely to the extent 
necessary--
          (1) to exclude from the withdrawal the property that is no 
        longer needed; and
          (2) to allow for the immediate conveyance of the Federal land 
        as required under this Act.
  (c) Existing Reclamation Project and Permitted Facilities.--Except as 
provided in subsection (a), nothing in this Act diminishes, hinders, or 
interferes with the exclusive and perpetual use by the existing rights 
holders for the operation, maintenance, and improvement of water 
conveyance infrastructure and facilities, including all necessary 
ingress and egress, situated on the Federal land that were constructed 
or permitted by the Bureau of Reclamation before the effective date of 
this Act.

SEC. 5. ACEC BOUNDARY ADJUSTMENT.

  Notwithstanding section 203 of the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1713), the boundary of the River Mountains Area 
of Critical Environmental Concern (NVN 76884) is adjusted to exclude 
any portion of the Three Kids Mine Project Site consistent with the 
map.

SEC. 6. RESPONSIBILITIES OF THE PARTIES.

  (a) Responsibility of Parties to Mine Remediation and Reclamation 
Agreement.--On completion of the conveyance under section 3, the 
responsibility for complying with the mine remediation and reclamation 
agreement executed under section 3(b)(2) shall apply to the Responsible 
Party and the State of Nevada.
  (b) Savings Provision.--If the conveyance under this Act has 
occurred, but the terms of the agreement executed under section 3(b)(2) 
have not been met, nothing in this Act--
          (1) affects the responsibility of the Secretary to take any 
        additional response action necessary to protect public health 
        and the environment from a release or the threat of a release 
        of a hazardous substance, pollutant, or contaminant; or
          (2) unless otherwise expressly provided, modifies, limits, or 
        otherwise affects--
                  (A) the application of, or obligation to comply with, 
                any law, including any environmental or public health 
                law; or
                  (B) the authority of the United States to enforce 
                compliance with the requirements of any law or the 
                agreement executed under section 3(b)(2).

SEC. 7. SOUTHERN NEVADA PUBLIC LANDS MANAGEMENT ACT.

  Southern Nevada Public Land Management Act of 1998 (31 U.S.C. 6901 
note; Public Law 105-263) shall not apply to land conveyed under this 
Act.

                          PURPOSE OF THE BILL

    The purpose of H.R. 697 is to provide for the conveyance of 
certain Federal land in Clark County, Nevada, for the 
environmental remediation and reclamation of the Three Kids 
Mine Project Site.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Three Kids Mine (TKM), located in Clark County, Nevada, 
operated from 1916 until 1961. The United States, through the 
Defense Plant Corporation (DPC), owned 446 acres of the TKM 
Project site from 1942 to 1955. DPC leased the site to U.S. 
Metals Reserve Company (MRC). MRC contracted with the Manganese 
Ore Company to construct and operate a mill from 1942 through 
1944 to produce manganese for national defense purposes. From 
1950 to 1959, the U.S. contracted with Manganese, Inc., to 
beneficiate federally owned ore. The U.S. also leased private 
lands to stockpile manganese nodules associated with the site 
as late as 2003.
    The TKM project site is approximately 1,262 acres and 
includes 948 acres of federal lands now managed by the Bureau 
of Land Management (BLM) and Bureau of Reclamation (BOR), and 
314 acres of private lands, where the mill site and processing 
plant is located. The TKM project site is east of the City of 
Henderson, Nevada. The City has annexed the area.
    The site is contaminated with arsenic, lead and other heavy 
metals and petroleum hydrocarbons. Cost estimates for cleanup 
and reclamation of the site range from $300 million to $1.2 
billion. The lower cost estimates apply to onsite remediation 
and disposal of tailings and other materials in the open pits 
if it can be accomplished without contaminating groundwater. 
The higher cost estimate is associated with offsite disposal of 
the contaminated material.
    The City of Henderson, the Henderson Redevelopment Agency, 
the Nevada Department of Environmental Protection (NDEP), 
Lakemoor Development, LLC, and BLM negotiated a plan to clean 
up and redevelop the TKM Project site that includes the 
purchase of 948 acres of federal lands and relieves the federal 
government of the environmental liability associated with 
mining, milling and ore-storage activities at the site at no 
cost to the U.S. taxpayer.
    The Three Kids Mine Remediation and Reclamation Act (H.R. 
697) would provide for the conveyance of approximately 948 
acres of federal land to the City of Henderson if certain 
conditions are met: namely that the NDEP is satisfied that the 
developer has the ability and financial security to clean up, 
remediate and reclaim the TKM project site. The purchase price 
would be adjusted to reflect the actual cleanup cost of the 
federal and non-federal lands where the federal government has 
environmental liability resulting from the mill, processing 
facilities and the storage of federal-owned manganese nodules.
    All in all, this is a win-win scenario. The environmental 
problems are addressed, the abandoned mine site is reclaimed 
and the land redeveloped for beneficial use, all at no cost to 
the American taxpayer. If successful, this could provide a 
framework for other abandoned mine sites that are near or 
adjacent to small towns and larger urban areas.
    During Full Committee consideration of the bill, 
Congressman Doug Lamborn (R-CO) offered an amendment in the 
nature of a substitute. The amendment is similar to the Senate 
version of the legislation and includes a savings clause that 
explicitly states that the Secretary of the Interior is liable 
for the environmental cleanup if the patent has been issued but 
the terms of the agreement under section 3(b)(2) have not been 
met. This would be the case even if the savings clause was not 
included in the legislation.
    The legislation requires a rigorous environmental 
assessment of the site to prepare an appropriate cleanup and 
remediation plan that will be conducted under a consent order. 
The parties responsible for the remediation and redevelopment 
will be required to have sufficient bonds and insurance in 
place prior to commencement of any remediation activities for a 
third party to complete the remediation outlined in the consent 
order if the developer is unable to complete the task.
    The consent order required in section 3 of the bill and 
administered by the State of Nevada ensures that cleanup must 
be ``Comprehensive Environmental Response, Compensation, and 
Liability Act-protective'' and meet ``residential'' cleanup 
standards.

                            COMMITTEE ACTION

    H.R. 697 was introduced on February 14, 2013, by 
Congressman Joseph Heck (R-NV). The bill was referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittees on Public Lands and Environmental Regulation and 
Energy and Mineral Resources. On March 21, 2013, the 
Subcommittee on Energy and Mineral Resources held a hearing on 
the bill. On June 12, 2013, the Full Natural Resources 
Committee met to consider the bill. The Subcommittees on Public 
Lands and Environmental Regulation and Energy and Mineral 
Resources were discharged by unanimous consent. Congressman 
Doug Lamborn (R-CO) offered an amendment in the nature of a 
substitute designated .025 to the bill; the amendment was 
adopted by unanimous consent. No further amendments were 
offered and the bill, as amended, was then adopted and ordered 
favorably reported to the House of Representatives by unanimous 
consent.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(2)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
403 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for this bill from the 
Director of the Congressional Budget Office:

H.R. 697--Three Kids Mine Remediation and Reclamation Act

    H.R. 697 would require the Bureau of Land Management (BLM) 
to sell 950 acres of federal land, some of which are 
contaminated by hazardous waste, to the city of Henderson, 
Nevada. Under the bill, the agency would determine the sale 
price by estimating the fair market value of the land and 
reducing that amount by the estimated cost of any necessary 
environmental remediation and mining reclamation activities at 
the site. The city of Henderson would be responsible for those 
costs following the sale. Based on information from BLM, CBO 
estimates that implementing the legislation would have no 
significant impact on the federal budget. Enacting the bill 
would not affect direct spending or revenues; therefore, pay-
as-you-go procedures do not apply.
    Roughly 15 percent of the lands that would be sold under 
the bill are contaminated and will require mine reclamation and 
environmental remediation. Based on information provided by BLM 
and the city of Henderson, CBO estimates that the agency is 
unlikely to receive any financial compensation for any of the 
land because remediation and reclamation costs would exceed the 
land's fair market value. Because CBO expects that the affected 
lands would not generate any receipts under current law over 
the next 10 years, we estimate that conveying the lands under 
the bill would have no significant impact on the federal 
budget.
    H.R. 697 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new budget 
authority, spending authority, credit authority, or an increase 
or decrease in revenues or tax expenditures. Based on 
information from BLM, CBO estimates that implementing the 
legislation would have no significant impact on the federal 
budget.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to provide for the conveyance of 
certain Federal land in Clark County, Nevada, for the 
environmental remediation and reclamation of the Three Kids 
Mine Project Site.

                           EARMARK STATEMENT

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                       COMPLIANCE WITH H. RES. 5

    Directed Rule Making. The Chairman does not believe that 
this bill directs any executive branch official to conduct any 
specific rule-making proceedings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.
                            APPENDIX I: MAP


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