HR 1470 IH

To reduce corporate welfare and promote corporate responsibility.

To reduce corporate welfare and promote corporate responsibility.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Corporate Responsibility Act of 1999'.

(b) TABLE OF CONTENTS-

Sec. 1. Short title; table of contents.

TITLE I--CORPORATE TAX AND OTHER PROVISIONS

Subtitle A--Tax Provisions

Sec. 101. Elimination of exclusion of certain income of foreign sales corporations.

Sec. 102. Repeal of incentives for alcohol fuels.

Sec. 103. Source of income from certain sales of inventory property.

Subtitle B--Agricultural-Related Provisions

Sec. 111. Cost of water used to produce crops on production flexibility contract acreage.

Sec. 112. Repeal of export enhancement program.

Sec. 113. Repeal of market access program.

Sec. 114. Elimination of Federal subsidies for tobacco.

Subtitle C--Other Subsidies

Sec. 121. Abolition of advanced technology program.

Sec. 122. Tennessee Valley Authority funding elimination.

Sec. 123. Codification of elimination of purchaser road credits and elimination of other federal funding of forest roads for logging.

Sec. 124. Prohibition against provision of Federal funds pursuant to the new arrangements to borrow of the International Monetary Fund.

TITLE II--MINERAL EXPLORATION AND DEVELOPMENT

Subtitle A--Mineral Exploration and Development

Sec. 201. Short title, findings and purposes.

Sec. 202. Definitions and references.

Sec. 203. Lands open to location.

Sec. 204. Rights under this title.

Sec. 205. Location of mining claims.

Sec. 206. Conversion of existing claims.

Sec. 207. Claim maintenance requirements.

Sec. 208. Failure to comply.

Sec. 209. Basis for contest.

Subtitle B--Environmental Considerations of Mineral Exploration and Development

Sec. 211. Surface management standard.

Sec. 212. Permits.

Sec. 213. Exploration permits.

Sec. 214. Operations permit.

Sec. 215. Persons ineligible for permits.

Sec. 216. Financial assurance.

Sec. 217. Reclamation.

Sec. 218. State law and regulation.

Sec. 219. Unsuitability review.

Sec. 220. Certain mineral activities covered by other law.

Subtitle C--Abandoned Locatable Minerals Mine Reclamation Fund

Sec. 231. Abandoned locatable minerals mine reclamation.

Sec. 232. Use and objectives of the fund.

Sec. 233. Eligible lands and waters.

Sec. 234. Fund expenditures.

Sec. 235. Authorization of appropriations.

Sec. 236. Royalty.

Subtitle D--Administrative and Miscellaneous Provisions

Part 1--Administrative Provisions

Sec. 241. Policy functions.

Sec. 242. User fees.

Sec. 243. Public participation requirements.

Sec. 244. Inspection and monitoring.

Sec. 245. Citizens suits.

Sec. 246. Administrative and judicial review.

Sec. 247. Enforcement.

Sec. 248. Regulations; effective dates.

Part 2--Miscellaneous Provisions

Sec. 249. Transitional rules; surface management requirements.

Sec. 250. Claims subject to special rules.

Sec. 251. Purchasing power adjustment.

Sec. 252. Savings clause.

Sec. 253. Availability of public records.

Sec. 254. Miscellaneous powers.

Sec. 255. Limitation on patent issuance.

Sec. 256. Multiple mineral development and surface resources.

Sec. 257. Mineral materials.

Sec. 258. Application of Act to beneficiation and processing of nonFederal minerals on Federal lands.

Sec. 259. Compliance with Buy American Act.

Sec. 260. Sense of Congress.

Sec. 261. Prohibition of contracts.

Sec. 262. Severability.

Sec. 263. Award of compensation for takings from fund.

Sec. 264. Report to Congress on mining claims in the United States held by foreign firms.

TITLE III--REVENUES DEDICATED TO DEFICIT REDUCTION

Sec. 301. Deficit reduction lock-box.

SEC. 101. ELIMINATION OF EXCLUSION OF CERTAIN INCOME OF FOREIGN SALES CORPORATIONS.

(a) IN GENERAL- Section 921 of the Internal Revenue Code of 1986 (relating to exempt foreign trade income excluded from gross income) is amended by adding at the end the following new subsection:

`(e) TERMINATION- This section shall not apply to any taxable year beginning after December 31, 1999.'

(b) EFFECTIVE DATE- The amendment made by this section shall apply to taxable years beginning after December 31, 1999.

SEC. 102. REPEAL OF INCENTIVES FOR ALCOHOL FUELS.

(a) REPEAL- Section 40 of the Internal Revenue Code of 1986 is repealed.

(b) CONFORMING REDUCTIONS OF OTHER INCENTIVES FOR ETHANOL FUEL-

(1) REPEAL OF REDUCED RATE ON ETHANOL FUEL PRODUCED OTHER THAN FROM PETROLEUM OR NATURAL GAS- Subsection (b) of section 4041 of such Code is amended to read as follows:

`(b) Exemption for Off-Highway Business Use-

`(1) IN GENERAL- No tax shall be imposed by subsection (a) or (d)(1) on liquids sold for use or used in an off-highway business use.

`(2) TAX WHERE OTHER USE- If a liquid on which no tax was imposed by reason of paragraph (1) is used otherwise than in an off-highway business use, a tax shall be imposed by paragraph (1)(B), (2)(B), or (3)(A)(ii) of subsection (a)

`(3) OFF-HIGHWAY BUSINESS USE DEFINED- For purposes of this subsection, the term `off-highway business use' has the meaning given to such term by section 6421(e)(2); except that such term shall not, for purposes of subsection (a)(1), include use in a diesel-powered train.'

(2) REPEAL OF REDUCED RATE ON ETHANOL FUEL PRODUCED FROM NATURAL GAS- Subsection (m) of section 4041 of such Code is amended--

(A) by striking `or ethanol' each place it appears (including the heading of paragraph (2)), and

(B) by striking `, ethanol, or other alcohol' in paragraph (2) and inserting `or other alcohol (other than ethanol)'.

(c) CONFORMING AMENDMENTS TO EXCISE TAXES; FUEL ALCOHOL TAXED IN SAME MANNER AS OTHER MOTOR FUELS-

(1) IN GENERAL- Paragraph (1) of section 4083(a) of such Code (defining taxable fuel) is amended by striking `and' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting `, and', and by adding at the end the following:

`(D) fuel alcohol.'

(2) FUEL ALCOHOL- Subsection (a) of section 4083 of such Code is amended by adding at the end the following new paragraph:

`(4) FUEL ALCOHOL- The term `fuel alcohol' means any alcohol (including ethanol and methanol)--

`(A) which is produced other than from petroleum, natural gas, or coal (including peat), and

`(B) which is withdrawn from the distillery where produced free of tax under chapter 51 by reason of section 5181 or so much of section 5214(a)(1) as relates to fuel use.'

(3) RATE OF TAX- Clause (i) of section 4081(a)(2)(A) of such Code is amended by striking `other than aviation gasoline' and inserting `(other than aviation gasoline) and fuel alcohol'.

(4) SPECIAL RULES FOR IMPOSITION OF TAX- Paragraph (1) of section 4081(a) of such Code is amended by adding at the end the following new subparagraph:

`(C) SPECIAL RULES FOR FUEL ALCOHOL- In the case of fuel alcohol--

`(i) the distillery where produced shall be treated as a refinery, and

`(ii) subparagraph (B) shall be applied by including transfers by truck or rail in excess of such minimum quantities as the Secretary shall prescribe.'

(5) REPEAL OF REDUCED RATES ON ALCOHOL FUELS-

(A) Section 4041 of such Code is amended by striking subsection (k).

(B) Section 4081 of such Code is amended by striking subsection (c).

(C) Section 4091 of such Code is amended by striking subsection (c).

(6) CONFORMING AMENDMENTS-

(A) Subparagraph (A) of section 4041(a)(2) of such Code is amended by adding at the end the following: `No tax shall be imposed by this paragraph on the sale or use of any liquid if tax was imposed on such liquid under section 4081 and the tax thereon was not credited or refunded.'

(B) Section 6427 of such Code is amended by striking subsection (f).

(C)(i) Subsection (i) of section 6427 of such Code is amended by striking paragraph (3) and by redesignating paragraph (4) as paragraph (3).

(ii) Paragraph (3) of section 6427(i) of such Code (as redesignated by clause (i)) is amended by striking the last sentence of subparagraph (A) and by adding at the end of such paragraph the following new subparagraph:

`(C) PAYMENT OF CLAIM- Notwithstanding subsection (f)(1), if the Secretary has not paid pursuant to a claim filed under this paragraph within 20 days of the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621.'

(D) Paragraph (2) of section 6427(k) of such Code is amended by striking `(3)'.

(E)(i) Paragraph (1) of section 6427(l) of such Code is amended by striking `or' at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph:

`(B) any fuel alcohol (as defined in section 4083) on which tax has been imposed by section 4081, or'.

(ii) Paragraph (2) of section 6427(l) of such Code is amended by striking `and' at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph:

`(B) in the case of fuel alcohol (as so defined), any use which is exempt from the tax imposed by section 4041(a)(2) other than by reason of a prior imposition of tax, and'.

(iii) The heading of subsection (l) of section 6427 of such Code is amended by inserting `, FUEL ALCOHOL,' after `DIESEL FUEL'.

(F) Sections 9503(b)(1)(D) and 9508(b)(2) of such Code are each amended by striking `and kerosene' and inserting `kerosene, and fuel alcohol'.

(G) Section 9502 of such Code is amended by striking subsection (e).

(H) Subsection (b) of section 9503 of such Code is amended by striking paragraph (5) and by redesignating paragraph (6) as paragraph (5).

(d) EFFECTIVE DATE-

(1) REPEAL OF THE CREDIT- The repeal made by subsection (a) shall apply to taxable years beginning after December 31, 1999.

(2) AMENDMENTS RELATING TO EXCISE TAXES- The amendments made by subsections (b) and (c) shall take effect on January 1, 2000.

(e) FLOOR STOCK TAXES-

(1) IMPOSITION OF TAX- In the case of fuel alcohol which is held on January 1, 2000, by any person, there is hereby imposed a floor stocks tax of 18.4 cents per gallon.

(2) LIABILITY FOR TAX AND METHOD OF PAYMENT-

(A) LIABILITY FOR TAX- A person holding fuel alcohol on January 1, 2000, to which the tax imposed by paragraph (1) applies shall be liable for such tax.

(B) METHOD OF PAYMENT- The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe.

(C) TIME FOR PAYMENT- The tax imposed by paragraph (1) shall be paid on or before June 30, 2000.

(3) DEFINITIONS- For purposes of this subsection--

(A) FUEL ALCOHOL- The term `fuel alcohol' has the meaning given such term by section 4083 of the Internal Revenue Code of 1986, as amended by this section.

(B) HELD BY A PERSON- Fuel alcohol shall be considered as `held by a person' if title thereto has passed to such person (whether or not delivery to the person has been made).

(C) SECRETARY- The term `Secretary' means the Secretary of the Treasury or his delegate.

(4) EXCEPTION FOR EXEMPT USES- The tax imposed by paragraph (1) shall not apply to fuel alcohol held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 of the Internal Revenue Code of 1986 is allowable for such use.

(5) EXCEPTION FOR FUEL HELD IN VEHICLE TANK- No tax shall be imposed by paragraph (1) on fuel alcohol held in the tank of a motor vehicle or motorboat.

(6) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL-

(A) IN GENERAL- No tax shall be imposed by paragraph (1) on fuel alcohol held on January 1, 2000, by any person if the aggregate amount of fuel alcohol held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.

(B) EXEMPT FUEL- For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5).

(C) CONTROLLED GROUPS- For purposes of this paragraph--

(i) CORPORATIONS-

(I) IN GENERAL- All persons treated as a controlled group shall be treated as 1 person.

(II) CONTROLLED GROUP- The term `controlled group' has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase `more than 50 percent' shall be substituted for the phrase `at least 80 percent' each place it appears in such subsection.

(ii) NONINCORPORATED PERSONS UNDER COMMON CONTROL- Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation.

(7) OTHER LAWS APPLICABLE- All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081.

SEC. 103. SOURCE OF INCOME FROM CERTAIN SALES OF INVENTORY PROPERTY.

(a) GENERAL RULE- Subsection (b) of section 865 of the Internal Revenue Code of 1986 (relating to exception for inventory property) is amended to read as follows:

`(b) INVENTORY PROPERTY-

`(1) INCOME ATTRIBUTABLE TO PRODUCTION ACTIVITY- In the case of income from the sale of inventory property produced (in whole or in part) by the taxpayer--

`(A) a portion (determined under regulations) of such income shall be allocated to production activity (and sourced in the United States or outside the United States depending on where such activity occurs), and

`(B) the remaining portion of such income shall be sourced under the other provisions of this section.

The regulations prescribed under subparagraph (A) shall provide that at least 50 percent of such income shall be allocated to production activities.

`(2) SALES INCOME-

`(A) UNITED STATES RESIDENTS- Income from the sale of inventory property by a United States resident shall be sourced outside the United States if--

`(i) the property is sold for use, consumption, or disposition outside the United States and an office or another fixed place of business of the taxpayer outside the United States participated materially in the sale, and

`(ii) such sale is not (directly or indirectly) to an affiliate of the taxpayer.

`(B) NONRESIDENT- Income from the sale of inventory property by a nonresident shall be sourced in the United States if--

`(i) the taxpayer has an office or other fixed place of business in the United States, and

`(ii) such sale is through such office or other fixed place of business.

This subparagraph shall not apply if the requirements of clauses (i) and (ii) of subparagraph (A) are met with respect to such sale.

`(3) COORDINATION WITH TREATIES- For purposes of paragraph (2)(A)(i), a United States resident shall not be treated as having an office or fixed place of business in a foreign country if a treaty prevents such country from imposing an income tax on the income.'

(b) EFFECTIVE DATE- The amendments made by this section shall apply to income from sales occurring after December 31, 1999.

SEC. 111. COST OF WATER USED TO PRODUCE CROPS ON PRODUCTION FLEXIBILITY CONTRACT ACREAGE.

Section 9 of the Act of August 4, 1939 (commonly known as the Reclamation Project Act of 1939; 43 U.S.C. 485h) is amended by inserting at the end the following new subsection:

`(g)(1) Any contract entered into under authority of this section or any other provision of Federal reclamation law shall require that the organization agree by contract with the Secretary to pay full cost for the delivery of water used in the production of any contract commodity on acreage subject to a production flexibility contract entered into under section 111 of the Agricultural Market Transition Act (7 U.S.C. 7211).

`(2) The Secretary shall announce the amount of the full cost payment for the succeeding year on or before July 1 of each year.

`(3) As used in this subsection:

`(A) The term `full cost' has the meaning given such term in section 202(3) of the Reclamation Reform Act of 1982 (43 U.S.C. 390bb(3)).

`(B) The term `contract commodity' has the meaning given such term in section 102(5) of the Agricultural Market Transition Act (7 U.S.C. 7202(5)).

`(4) Paragraph (1) shall apply to any contract entered into or amended after the date of the enactment of this subsection.'

SEC. 112. REPEAL OF EXPORT ENHANCEMENT PROGRAM.

Title III of the Agricultural Trade Act of 1978 (7 U.S.C. 5651 et seq.) is repealed.

SEC. 113. REPEAL OF MARKET ACCESS PROGRAM.

Section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) is repealed.

SEC. 114. ELIMINATION OF FEDERAL SUBSIDIES FOR TOBACCO.

(a) ELIMINATION OF TOBACCO PRICE SUPPORT-

(1) ELIMINATION- The Agricultural Act of 1949 is amended by striking sections 106, 106A, and 106B (7 U.S.C. 1445, 1445-1, 1445-2).

(2) CONFORMING AMENDMENTS- The Agricultural Act of 1949 is further amended--

(A) in section 101 (7 U.S.C. 1441)--

(i) in subsection (a), by striking `tobacco (except as otherwise provided herein), corn,' and inserting `corn';

(ii) by striking subsection (c); and

(iii) in subsection (d)(3), by striking `, except tobacco,'; and

(B) in section 408 (7 U.S.C. 1428)--

(i) in subsection (c), by striking `tobacco,'; and

(ii) in subsection (d), by adding before the period at the end the following: `or tobacco'.

(b) ELIMINATION OF TOBACCO MARKETING QUOTAS-

(1) ELIMINATION- Part I (sections 311 through 320C) of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311-1314i) is repealed.

(2) CONFORMING AMENDMENTS- The Agricultural Adjustment Act of 1938 is further amended--

(A) in section 301(b) (7 U.S.C. 1301(b))--

(i) by striking paragraphs (3)(C), (10)(B), (14)(B), (14)(C), (14)(D), (15), (16)(B), and (17);

(ii) in paragraph (6)(A), by striking `tobacco,';

(iii) in the undesignated subparagraphs in paragraph (7), by striking

`Tobacco (flue-cured), July 1-June 30;

`Tobacco (other than flue-cured), October 1-September 30;';

(iv) in paragraph (11)(B), by striking `and tobacco'; and

(v) in paragraph (12), by striking `tobacco,';

(B) in section 303 (7 U.S.C. 1303), by striking `rice, or tobacco' and inserting `or rice'; and

(C) in section 372(b) (7 U.S.C. 1372(b)), by striking `Except as provided in section 320B, the amount' in the third sentence and inserting `The amount'.

(c) CONFORMING AMENDMENTS-

(1) BURLEY TOBACCO IMPORTS- Section 3 of Public Law 98-59 (7 U.S.C. 625) is repealed.

(2) TRANSFER OF TOBACCO ALLOTMENTS- Section 703 of Public Law 89-321 (7 U.S.C. 1316; 79 Stat. 1210) is amended by striking the second sentence.

(3) BURLEY TOBACCO ACREAGE ALLOTMENTS- The Act of July 12, 1952 (7 U.S.C. 1315), is repealed.

(d) APPLICATION OF AMENDMENTS- The amendments made by this section shall apply with respect to the 2000 and subsequent crops of tobacco. As soon as possible after operations are completed with regard to the 1999 crop of tobacco, the Secretary of Agriculture shall terminate all loan agreements entered into with tobacco producer associations under section 106A of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1445-1) and provide for the disposal of all funds in the No Net Cost Tobacco Fund of those associations and in the No Net Cost Tobacco Account of the Commodity Credit Corporation.

(e) CONTINUED LIABILITY OF PRODUCERS- An amendment made by this section shall not affect the liability of any person under any provision of law as in effect before the date of the enactment of this Act.

(f) PROHIBITION ON SUBSEQUENT PROVISION OF PRICE SUPPORT- With respect to the 2000 and subsequent crops of tobacco, the Secretary of Agriculture may not make price support available, whether in the form of loans, payments, purchases, or other operations, by using the funds of the Commodity Credit Corporation or under the authority of any law.

SEC. 121. ABOLITION OF ADVANCED TECHNOLOGY PROGRAM.

(a) ABOLISHMENT-

(1) REPEAL OF SECTION 28 OF THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT- Section 28 of the National Institute of Standards and Technology Act (15 U.S.C. 278n) is repealed.

(2) CLERICAL AMENDMENTS- The National Institute of Standards and Technology Act (15 U.S.C. 271 et seq.) is amended--

(A) in section 2(d), by striking `, 26, and 28' and inserting `and 26'; and

(B) in section 10(h)(1), by striking `, including the Program established under section 28,'.

(b) RESCISSION OF UNOBLIGATED FUNDS APPROPRIATED- Any funds appropriated for the Advanced Technology Program established under section 28 of the National Institute of Standards and Technology Act (15 U.S.C. 278n) that are unobligated on the date of the enactment of this Act are hereby rescinded.

SEC. 122. TENNESSEE VALLEY AUTHORITY FUNDING ELIMINATION.

Section 27 of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831z) is amended to read as follows:

`SEC. 27. No appropriations are authorized to carry out the provisions of this Act after September 30, 1999.'.

SEC. 123. CODIFICATION OF ELIMINATION OF PURCHASER ROAD CREDITS AND ELIMINATION OF OTHER FEDERAL FUNDING OF FOREST ROADS FOR LOGGING.

(a) CODIFICATION OF PURCHASER ROAD CREDITS ELIMINATION- Consistent with section 329 of the Department of the Interior and Related Agencies Appropriations Act, 1999 (as contained in section 101(e) of division A of Public Law 105-277; 112 Stat. 2681-292; 16 U.S.C. 535a), section 4 of Public Law 88-657 (16 U.S.C. 535; commonly known as the National Forest Roads and Trails Act) is amended--

(1) by striking `including provisions for amortization of road costs in contracts' and inserting `except that the Secretary may not provide effective purchaser credit for road construction'; and

(2) by striking the last sentence.

(b) CONFORMING AMENDMENTS REGARDING PURCHASER ROAD CREDITS-

(1) TRANSPORTATION SYSTEM- Section 10(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1608(a)) is amended by striking `benefits' and all that follows through the period at the end of the subsection and inserting `benefits.'.

(2) TIMBER SALES WITH PURCHASER CREDIT PROVISIONS- Section 14 of the National Forest Management Act of 1976 (16 U.S.C. 472a) is amended by striking subsection (i).

(c) USE OF FEDERAL FUNDS FOR CONSTRUCTION OR RECONSTRUCTION OF LOGGING ROADS-

(1) RESTRICTION- Except as provided in paragraph (2), Federal funds shall not be obligated after the date of the enactment of this Act for the construction or reconstruction of any forest road that will be used principally for logging, including under section 205 of title 23, United States Code (relating to forest development roads and trails).

(2) USE OF FUNDS FOR SPECIFICATIONS AND REQUIREMENTS- Paragraph (1) does not prohibit the obligation of Federal funds for the establishment of specifications and requirements for the construction or reconstruction of roads under timber contracts and the oversight and enforcement of compliance with those specifications and requirements.

(3) RECOVERY OF ROAD COSTS- The Secretary of Agriculture shall seek to recover from persons who use forest roads for logging that portion of the cost to the Federal Government of construction or reconstruction of forest roads that is attributable to that use.

SEC. 124. PROHIBITION AGAINST PROVISION OF FEDERAL FUNDS PURSUANT TO THE NEW ARRANGEMENTS TO BORROW OF THE INTERNATIONAL MONETARY FUND.

No officer, employee, or agent of the United States may, directly or indirectly, provide Federal funds to, or for the benefit of, the International Monetary Fund or any instrumentality thereof, pursuant to the New Arrangements to Borrow of the International Monetary Fund.

SEC. 201. SHORT TITLE, FINDINGS AND PURPOSES.

(a) SHORT TITLE- This title may be cited as the `Mineral Exploration and Development Act of 1999'.

(b) FINDINGS- Congress finds and declares the following:

(1) The general mining laws, commonly referred to as the Mining Law of 1872, at one time promoted the development of the West and provided a framework for the exploitation of Federal mineral resources.

(2) Congress recognized that the public interest was no longer being advanced under the Mining Law of 1872 when, in 1920, it removed energy minerals and minerals chiefly valuable for agricultural use, and in 1955, removed common varieties of mineral materials, from the scope of the general mining laws and made such minerals available under regimes which provide for a financial return to the public for the disposition of such minerals and which better safeguard the environment.

(3) The Mining Law of 1872 no longer fosters the efficient and diligent development of those mineral resources still under its scope, giving rise to speculation and nonmining uses of lands chiefly valuable for minerals.

(4) The Mining Law of 1872 does not provide for a financial return to the American people for use by claim holders of public domain lands or for the disposition of valuable mineral resources from such lands.

(5) The Mining Law of 1872 continues to transfer lands valuable for mineral resources from the public domain to private ownership for less than the fair market value of such lands and mineral resources.

(6) There are a substantial number of acres of land throughout the Nation disturbed by mining activities conducted under the Mining Law of 1872 on which little or no reclamation was conducted, and the impacts from these unreclaimed lands pose a threat to the public health, safety, and general welfare and to environmental quality.

(7) Activities under the Mining Law of 1872 continue to result in disturbances of surface areas and water resources which burden and adversely affect the public welfare by destroying or diminishing the utility of public domain lands for other appropriate uses and by creating hazards dangerous to the public health and safety and to the environment.

(8) Existing Federal law and regulations, as well as applicable State laws, have proven to be inadequate to ensure that active mining operations under the Mining Law of 1872 will not leave to future generations a new legacy of hazards associated with unreclaimed mined lands.

(9) The public interest is no longer being served by archaic features of the Mining Law of 1872 that thwart the efficient exploration and development of those minerals which remain under its scope and which conflict with modern public land use management philosophies.

(10) The public is justified in expecting the diligent development of its mineral resources, a financial return for the use of public domain lands for mineral activities as well as for the disposition of valuable mineral resources from such lands.

(11) It is not in the public interest for public domain lands to be sold far below fair market value nor does this aspect of the Mining Law of 1872 comport with modern Federal land policy which is grounded on the retention of public domain lands under the principles of multiple use.

(12) Mining and reclamation technology is now developed so that effective and reasonable regulation of operations by the Federal Government in accordance with this title is an appropriate and necessary means to minimize so far as practicable the adverse social, economic and environmental effects of such mining operations.

(13) Mining activities on public domain lands affect interstate commerce, contribute to the economic well-being, security and general welfare of the Nation and should be conducted in an environmentally sound manner.

(14) It is necessary that any revision of the general mining laws insure that a domestic supply of hardrock minerals be made available to the domestic economy of the United States.

(15) America's economy still depends heavily on hardrock minerals and a strong environmentally sound mining industry is critical to the domestic minerals supply.

(16) Many of the deposits of hardrock minerals remain to be discovered on the Federal public domain.

(17) Private enterprise must be given adequate incentive to engage in a capital-intensive industry such as hardrock mining.

(18) The United States, as owner of the public domain, has a dual interest in insuring a fair return for mining on the public domain and insuring that any royalty and fees charged do not discourage essential mining activity on the public domain.

(19) The domestic mining industry provides thousands of jobs directly and indirectly to the domestic economy and those jobs must be preserved and encouraged by a sound Federal policy regarding mining on Federal lands.

(c) PURPOSE- It is the purpose of this title--

(1) to devise a more socially, fiscally and environmentally responsible regime to govern the use of public domain lands for the exploration and development of those minerals not subject to mineral leasing acts or mineral materials statutes;

(2) to provide for a fair return to the public for the use of public domain lands for mineral activities and for the disposition of minerals from such lands;

(3) to foster the diligent development of mineral resources on public domain lands in a manner that is compatible with other resource values and environmental quality;

(4) to promote the restoration of mined areas left without adequate reclamation prior to the enactment of this Act and which continue, in their unreclaimed condition, to substantially degrade the quality of the environment, prevent the beneficial

(5) to assure that appropriate procedures are provided for public participation in the development, revision and enforcement of regulations, standards and programs established under this title; and

(6) to, whenever necessary, exercise the full reach of Federal constitutional powers to ensure the protection of the public interest through the effective control of mineral exploration and development activities.

SEC. 202. DEFINITIONS AND REFERENCES.

(a) DEFINITIONS- As used in this title:

(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 title or a modification to or a renewal of a permit under this title.

(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 located or converted under this title. 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. The Secretary and the Secretary of Agriculture shall jointly promulgate such rules as may be necessary under this paragraph.

(6) The term `exploration' means those techniques employed to locate the presence of a locatable mineral deposit and to establish its nature, position, size, shape, grade and value not associated with mining, beneficiation, processing or marketing of minerals.

(7) 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.

(8) 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.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

(9) The term `land use plans' means those plans required under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712) or the land management plans for National Forest System units required under section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604), whichever is applicable.

(10) The term `legal subdivisions' means an aliquot quarter quarter section of land as established by the official records of the public land survey system, or a single lot as established by the official records of the public land survey system if the pertinent section is irregular and contains fractional lots, as the case may be.

(11)(A) The term `locatable mineral' means any mineral, the legal and beneficial title to which remains in the United States and which is not subject to disposition under any of the following:

(i) The Mineral Leasing Act (30 U.S.C. 181 and following).

(ii) The Geothermal Steam Act of 1970 (30 U.S.C. 1001 and following).

(iii) The Act of July 31, 1947, commonly known as the Materials Act of 1947 (30 U.S.C. 601 and following).

(iv) The Mineral Leasing for Acquired Lands Act (30 U.S.C. 351 and following).

(B) The term `locatable mineral' does not include any mineral 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 any mineral owned by any Indian or Indian tribe, as defined in that section, that is subject to a restriction against alienation imposed by the United States.

(12) The term `mineral activities' means any activity on Federal lands for, related to, or incidental to, mineral exploration, mining, beneficiation, processing, or reclamation activities for any locatable mineral.

(13) The term `mining' means the processes employed for the extraction of a locatable mineral from the earth.

(14) The term `mining claim' means a claim for the purposes of mineral activities.

(15) The term `National Conservation System unit' means any unit of the National Park System, National Wildlife Refuge System, National Wild and Scenic Rivers System, National Trails System, or a National Conservation Area, National Recreation Area, a National Forest Monument or any unit of the National Wilderness Preservation System.

(16) The term `operator' means any person, conducting mineral activities subject to this title or any agent of such a person.

(17) The term `person' means an individual, Indian tribe, partnership, association, society, joint

(18) 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.

(19) The term `Secretary' means the Secretary of the Interior, unless otherwise specified.

(20) The term `surface management requirements' means the requirements and standards of subtitle B, and such other standards as are established by the Secretary governing mineral activities pursuant to this title.

(b) REFERENCES- (1) Any reference in this title to the term `general mining laws' is a reference to those Acts which generally comprise chapters 2, 12A, and 16, and sections 161 and 162 of title 30 of the United States Code.

(2) Any reference in this title to the `Act of July 23, 1955', is a reference to the Act of July 23, 1955, 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 and following).

SEC. 203. LANDS OPEN TO LOCATION.

(a) LANDS OPEN TO LOCATION- Except as provided in subsection (b), mining claims may be located under this title on lands and interests in lands owned by the United States if--

(1) such lands and interests were open to the location of mining claims under the general mining laws on the date of enactment of this Act; or

(2) such lands and interests are opened to the location of mining claims after the date of enactment of this Act by reason of any administrative action or statute.

(b) LANDS NOT OPEN TO LOCATION-

(1) IN GENERAL- Notwithstanding any other provision of law and subject to valid existing rights, each of the following shall not be open to the location of mining claims under this title on or after the date of enactment of this Act:

(A) Lands recommended for wilderness designation by the agency managing the surface, pending a final determination by the Congress of the status of such recommended lands.

(B) Lands being managed by the Secretary, acting through Bureau of Land Management, as wilderness study areas on the date of enactment of this Act except where the location of mining claims is specifically allowed to continue by the statute designating the study area, pending a final determination by the Congress of the status of such lands.

(C)(i) Lands under study for inclusion in the National Wild and Scenic River System pursuant to section 5(a) of the Wild and Scenic Rivers Act (16 U.S.C. 1276(a)), pending a final determination by the Congress of the status of such lands, and (ii) lands determined by a Federal agency under section 5(d) of such Act to be eligible for inclusion in such system, pending a final determination by the Congress of the status of such lands.

(D) Lands withdrawn from mineral activities under authority of other law.

(2) DEFINITION- (A) As used in this subsection, the term `valid existing rights' refers to a mining claim located on lands described in paragraph (1) of subsection (a) that--

(i) was properly located and maintained under this title prior to and on the applicable date, or

(ii) was properly located and maintained under the general mining laws prior to the applicable date, and

(I) was supported by a discovery of a valuable mineral deposit within the meaning of the general mining laws on the applicable date, and

(II) continues to be valid under this title.

(B) As used in this paragraph, the term `applicable date' means one of the following:

(i) In the case of lands described in paragraph (1)(A), such term means the date of the recommendation referred to in paragraph (1)(A) if such recommendation is made on or after the enactment of this Act.

(ii) In the case of lands described in paragraph (1)(A), if the recommendation referred to in paragraph (1)(A) was made before the enactment of this Act, such term means the earlier of (I) the date of enactment of this Act or (II) the date of any withdrawal of such lands from mineral activities.

(iii) For lands described in paragraph (1)(B), such term means the date of the enactment of this Act.

(iv) For lands referred to in paragraph (1)(C)(i), such term means the date of the enactment of the amendment to the Wild and Scenic Rivers Act listing the river segment for study and for lands referred to in paragraph (1)(C)(ii), such term means the date of the eligibility determination.

(v) For lands referred to in paragraph (1)(D), such term means the date of the withdrawal.

SEC. 204. RIGHTS UNDER THIS TITLE.

The holder of a mining claim located or converted under this title and maintained in compliance with this title shall have the exclusive right of possession and use of the claimed land for mineral activities, including the right of ingress and egress to such claimed lands for such activities, subject to the rights of the United States under this title and other applicable Federal law. Such rights of the claim holder shall terminate upon completion of mineral activities of lands to the satisfaction of the Secretary.

SEC. 205. LOCATION OF MINING CLAIMS.

(a) GENERAL RULE- A person may locate a mining claim covering lands open to the location of mining claims by posting a notice of location, containing the person's name and address, the time of location (which shall be the date and hour of location and posting), and a legal description of the claim. The notice of location shall be posted on a suitable, durable monument erected as near as practicable to the northeast corner of the mining claim. No person who is not a citizen of the United States, or a corporation organized under the laws of the United States or of any State or the District of Columbia may locate or hold a claim under this title. On or after the enactment of this Act, a mining claim for a locatable mineral on lands open to location--

(1) may be located only in accordance with this title,

(2) may be maintained only as provided in this title, and

(3) shall be subject to the requirements of this title.

(b) USE OF PUBLIC LAND SURVEY- Except as provided in subsection (c), each mining claim located under this title shall (1) be located in accordance with the public land survey system, and (2) conform to the legal subdivisions thereof. Except as provided in subsection (c)(1), the legal description of the mining claim shall be based on the public land survey system and its legal subdivisions.

(c) EXCEPTIONS- (1) If only a protracted survey exists for the public lands concerned, each of the following shall apply in lieu of subsection (b):

(A) The legal description of the mining claim shall be based on the protracted survey and the mining claim shall be located as near as practicable in conformance with a protracted legal subdivision.

(B) The mining claim shall be monumented on the ground by the erection of a suitable, durable monument at each corner of the claim.

(C) The legal description of the mining claim shall include a reference to any existing survey monument, or where no such monument can be found within a reasonable distance, to a permanent and conspicuous natural object.

(2) If no survey exists for the public lands concerned, each of the following shall apply in lieu of subsection (b):

(A) The mining claim shall be a regular square, with each side laid out in cardinal directions, 40 acres in size.

(B) The claim shall be monumented on the ground by the erection of a suitable durable monument at each corner of the claim.

(C) The legal description of the mining claim shall be expressed in metes and bounds and shall be defined by and referenced to the closest existing survey monument, or where no such monument can be found within a reasonable distance, to a permanent and conspicuous natural object. Such description shall be of sufficient accuracy and completeness to permit recording of the claim upon the public land records and to permit the claim to be readily found upon the ground.

(3) In the case of a conflict between the boundaries of a mining claim as monumented on the ground and the description of such claim in the notice of location referred to in subsection (a), the notice of location shall be determinative, except where determined otherwise by the Secretary.

(d) FILING WITH SECRETARY- (1) Within 30 days after the location of a mining claim pursuant to this section, a copy of the notice of location referred to in subsection (a) shall be filed with the Secretary in an office designated by the Secretary.

(2)(A) Whenever the Secretary receives a copy of a notice of location of a mining claim under this title, the Secretary shall assign a serial number to the mining claim, and immediately return a copy of the notice of location to the locator of the claim, together with a certificate setting forth the serial number, a description of the claim, and the claim maintenance requirements of section 207. The Secretary shall enter the claim on the public land records.

(B) Return of the copy of the notice of location and provision of the certificate under subparagraph (A) shall not constitute a determination by the Secretary that a claim is valid. Failure by the Secretary to provide such copy and certificate shall not constitute a defense against cancellation of a claim for failure to follow applicable requirements of this title.

(3) Notwithstanding any other provision of law, for every unpatented mining claim located after the date of enactment of this Act, the locator shall, at the time the location notice is recorded with the Bureau of Land Management, pay a location fee of $25.00 per claim. The location fee shall be in addition to the claim maintenance fee payable under section 207.

(4) Subsections (b) and (c) of section 314 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744(b)) are repealed.

(e) CONVERTED CLAIMS- For mining claims and mill sites deemed converted under this title, for the purposes of complying with the requirements of subsection (d), upon receipt of the initial claim maintenance fee required under section 207, the Secretary shall issue a certificate referenced in subsection (d)(2) to the holder of the mining claim or mill site.

(f) DATE OF LOCATION- A mining claim located under this title shall be effective based upon the time of location.

(g) LANDS COVERED BY CLAIM- A mining claim located or converted under this title shall include all lands and interests in lands open to location within the boundaries of the claim, subject to any prior mining claim located or converted under this title.

(h) CONFLICTING LOCATIONS- Any conflicts between the holders of mining claims located or converted under this title relating to relative superiority under the provisions of this title may be resolved in adjudication proceedings in a court with proper jurisdiction, including, as appropriate, State courts. It shall be incumbent upon the holder of a mining claim asserting superior rights in such proceedings to demonstrate that such person was the senior locator, or if such person is the junior locator, that prior to the location of the claim by such locator--

(1) the senior locator failed to file a copy of the notice of location within the time provided under subsection (d); or

(2) the amount of claim maintenance fee paid by the senior locator at the time of filing the location notice referred to in subsection (d) was less than the amount required to be paid by such locator.

(i) EXTENT OF MINERAL DEPOSIT- The boundaries of a mining claim located under this title shall extend vertically downward.

SEC. 206. CONVERSION OF EXISTING CLAIMS.

(a) EXISTING CLAIMS- Notwithstanding any other provision of law, on the effective date of this title any unpatented mining claim for a locatable mineral located under the general mining laws prior to the date of enactment of this Act shall become subject to this title's provisions and shall be deemed a converted mining claim under this title. Nothing in this title shall be construed to affect extralateral rights in any valid lode mining claim existing on the date of enactment of this Act. After the effective date of this title, there shall be no distinction made as to whether such claim was originally located as a lode or placer claim.

(b) MILL AND TUNNEL SITES- On the effective date of this title, any unpatented mill or tunnel site located under the general mining laws before the date of enactment of this Act shall become subject to this title's provisions and shall be deemed a converted mining claim under this title.

(c) POSTCONVERSION- Any unpatented mining claim or mill site located under the general mining laws shall be deemed to be a prior claim for the purposes of section 205(g) when converted pursuant to subsection (a) or (b).

(d) DISPOSITION OF LAND- In the event a mining claim is located under this title for lands encumbered by a prior mining claim or mill site located under the general mining laws, such lands shall become part of the claim located under this title if the claim or mill site located under the general mining laws is declared null and void under this section or is otherwise declared null and void thereafter.

(e) CONFLICTS- (1) Any conflicts in existence before the effective date of this title between holders of mining claims, mill sites and tunnel sites located under the general mining laws shall be subject to, and shall be resolved in accordance with, applicable laws governing such conflicts in effect before the effective date of enactment of this Act in a court of proper jurisdiction.

(2) Any conflicts not relating to matters provided for under section 205(h) between the holders of a mining claim located under this title and a mining claim, mill, or tunnel site located under the general mining laws arising either before or after the conversion of any such claim or site under this section shall be resolved in a court with proper jurisdiction.

SEC. 207. CLAIM MAINTENANCE REQUIREMENTS.

(a) IN GENERAL- (1) The holder of each mining claim converted pursuant to this title shall pay to the Secretary an annual claim maintenance fee of $100 per claim.

(2) The holder of each mining claim located pursuant to this title shall pay to the Secretary an annual claim maintenance fee of $200 per claim.

(b) TIME OF PAYMENT- The claim maintenance fee payable pursuant to subsection (a) for any year shall be paid on or before August 31 of each year, except that in the case of claims referred to in subsection (a)(2), for the initial calendar year in which the location is made, the locator shall pay the initial claim maintenance fee at the time the location notice is recorded with the Bureau of Land Management.

(c) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTENANCE FEES UNDER ENERGY POLICY ACT OF 1992- This section shall not apply to any oil shale claims for which a fee is required to be paid under section 2511(e)(2) of the Energy Policy Act of 1992 (Public Law 102-486; 106 Stat. 3111; 30 U.S.C. 242).

(d) CLAIM MAINTENANCE FEES PAYABLE UNDER 1993 ACT- The claim maintenance fees payable under this section for any period with respect to any claim shall be reduced by the amount of the claim maintenance fees paid under section 10101 of the Omnibus Budget Reconciliation Act of 1993 with respect to that claim and with respect to the same period.

(e) WAIVER- (1) The claim maintenance fee required under this section may be waived for a claim holder who certifies in writing to the Secretary that on the date the payment was due, the claim holder and all related parties held not more than 10 mining claims on lands open to location. Such certification shall be made on or before the date on which payment is due.

(2) For purposes of paragraph (1), with respect to any claim holder, the term `related party' means each of the following:

(A) The spouse and dependent children (as defined in section 152 of the Internal Revenue Code of 1986), of the claim holder.

(B) Any affiliate of the claim holder.

(f) CO-OWNERSHIP- Upon the failure of any one or more of several co-owners to contribute such co-owner or owners' portion of the fee under this section, any co-owner who has paid such fee may, after the payment due date, give the delinquent co-owner or owners notice of such failure in writing (or by publication in the newspaper nearest

(g) FUND- All monies received under this section shall be deposited in the Abandoned Locatable Minerals Mine Reclamation Fund established under subtitle C of this title.

(h) CREDIT AGAINST ROYALTY- The amount of the annual claim maintenance fee required to be paid under this section for any claim for any period shall be credited against the amount of royalty required to be paid under section 236 for the same period with respect to that claim.

SEC. 208. FAILURE TO COMPLY.

(a) FORFEITURE- The failure of the claim holder to file the notice of location, to pay the location fee, or to pay the claim maintenance fee for a mining claim as required by this subtitle shall be deemed conclusively to constitute forfeiture of the mining claim by operation of law. Forfeiture shall not relieve any person of any obligation created under this title, including reclamation.

(b) PROHIBITION- No claim holder may locate a new claim on the lands such claim holder included in a forfeited claim for 1 year from the date such claim is deemed forfeited.

(c) RELINQUISHMENT- A claim holder deciding not to pursue mineral activities on a claim may relinquish such claim by notifying the Secretary. A claim holder relinquishing a claim is responsible for reclamation as required by section 217 of this title and all other applicable requirements. A claim holder who relinquishes a claim shall not be subject to the prohibition of subsection (b) of this section unless the Secretary determines that the claim is being relinquished and relocated for the purpose of avoiding compliance with any provision of this title, including payment of the claim maintenance fee.

SEC. 209. BASIS FOR CONTEST.

(a) DISCOVERY- (1) After the effective date of this title, a mining claim may not be contested or challenged on the basis of discovery under the general mining laws, except as follows:

(A) Any claim located before the effective date of this title may be contested by the United States on the basis of discovery under the general mining laws as in effect prior to the effective date of this title if such claim is located within any National Conservation System unit, or within any area referred to in section 203(b).

(B) Any mining claim located before the effective date of this title may be contested by the United States on the basis of discovery under the general mining laws as in effect prior to the effective date of this title if such claim was located for a mineral material that purportedly has a property giving it distinct and special value within the meaning of section 3(a) of the Act of July 23, 1955 (as in effect prior to the date of enactment of this Act), or if such claim was located for a mineral that was not locatable under the general mining laws before the effective date of this title.

(2) The Secretary may initiate contest proceedings against those mining claims referred to in paragraph (1) at any time, except that nothing in this subsection may be construed as requiring the Secretary to inquire into, or contest, the validity of a mining claim for the purpose of the conversion referred to in section 206, except as provided in section 252.

(3) Nothing in this subsection may be construed as limiting any contest proceedings initiated by the United States on issues other than discovery, or any contest proceedings filed before the effective date of this title.

(4) Any contest proceeding initiated pursuant to paragraph (1) shall determine whether the mining claim or claims subject to such proceeding supported a discovery of a valuable mineral deposit within the meaning of the general mining laws on the effective date of this title.

(b) CONTINUED SUFFICIENCY OF MINING CLAIM- (1) At any time, upon request of the Secretary, the claim holder shall demonstrate that the continued retention of a mining claim located or converted under this title is exclusively related to mineral activities at the site.

(2) Where the Secretary requests demonstration of the continuing sufficiency of any mining claim under this section, the claim holder shall have the burden of showing each of the following:

(A) The lands or interests in lands included in the mining claim are not used predominantly for recreational, residential or other purposes rather than for mineral activities and are being held in good faith for the ultimate exploration for, development of, or production of locatable minerals, as demonstrated by the claim holder or his or her assigns through showings satisfactory to the Secretary.

(B) The claim holder or operator does not restrict access to the lands or interests in lands included in the mining claim in a manner that is not required for mineral activities.

(C) The mineral being or to be mined on the mining claim is a locatable mineral (unless such lands are used for beneficiation or processing).

(D) The claim holder or operator has not constructed, improved, maintained or used a structure located on a mining claim in a manner not specifically authorized by the Secretary in accordance with this title.

(3) Any mining claim for which the claim holder fails to demonstrate continued sufficiency, in the determination of the Secretary, pursuant to subsection (b) of this section, shall thereupon be deemed forfeited and be declared null and void.

(c) REMEDIES- (1) The Secretary may assess a civil penalty of not more than $5,000 per claim against the claim holder upon declaring a mining claim null and void pursuant to subsection (b) of this section.

(2) Upon declaring a mining claim null and void pursuant to subsection (b), the Secretary shall provide a reasonable opportunity for the mining claim holder or operator to remove any real or personal property which such person had previously placed upon the claim. If the property is not removed within the time provided, the Secretary may retain the property or provide for its disposition or destruction.

(d) OTHER LAW- The Secretary shall take such actions as may be necessary to ensure the compliance by claim holders with section 4 of the Act of July 23, 1955 (30 U.S.C. 612), consistent with this section.

SEC. 211. SURFACE MANAGEMENT STANDARD.

Notwithstanding the last sentence of section 302(b) of the Federal Land Policy and Management Act of 1976, and in accordance with this subtitle and other applicable law, the Secretary, and for National Forest System lands the Secretary of Agriculture, shall require that mineral activities on Federal lands conducted by any person minimize adverse impacts to the environment.

SEC. 212. PERMITS.

(a) PERMITS REQUIRED- No person may engage in mineral activities on Federal lands that may cause a disturbance of surface resources, including but not limited to, land, air, ground water and surface water, fish, wildlife, and biota unless--

(1) the claim was properly located or converted under this title and properly maintained; and

(2) a permit was issued to such person under this subtitle authorizing such activities.

(b) NEGLIGIBLE DISTURBANCE- Notwithstanding subsection (a)(2), a permit under this subtitle shall not be required for mineral activities related to exploration, or gathering of data, required to comply with section 213 or 214 that cause a negligible disturbance of surface resources and do not involve any of the following:

(1) The use of mechanized earth moving equipment, suction dredging, explosives.

(2) The use of motor vehicles in areas closed to off-road vehicles.

(3) The construction of roads, drill pads, or the use of toxic or hazardous materials.

Persons engaging in such activities shall provide prior written notice. The Secretary and the Secretary of Agriculture may provide, by joint regulations the manner in which such notice shall be provided.

(c) WAIVER OF THE SOVEREIGN IMMUNITY OF INDIAN TRIBES- The Secretary is authorized to require Indian tribes to waive sovereign immunity as a condition of obtaining a permit under this title.

SEC. 213. EXPLORATION PERMITS.

(a) AUTHORIZED EXPLORATION ACTIVITY- Any claim holder may apply for an exploration permit for any mining claim authorizing the claim holder to remove a reasonable amount of the locatable minerals from the claim

(b) PERMIT APPLICATION REQUIREMENTS- An application for an exploration permit under this section shall be submitted in a manner satisfactory to the Secretary or, for National Forest System lands, the Secretary of Agriculture, and shall contain an exploration plan, a reclamation plan for the proposed exploration, such documentation as necessary to ensure compliance with applicable Federal and State environmental laws and regulations, and each of the following:

(1) The name, mailing address, and social security number or tax identification number, as applicable, of each of the following:

(A) The applicant for the permit and any agent of the applicant.

(B) The operator (if different than the applicant) of the claim concerned.

(C) Each claim holder (if different than the applicant) of the claim concerned.

(2) A statement of whether any person referred to in subparagraphs (A) through (C) of paragraph (1) is currently in violation of, or was, during the 3-year period preceding the date of the application, found to be in violation of, any of the following and, if so, a brief explanation of the facts involved, including identification of the site and nature of the violation:

(A) Any provision of this title or any regulation under this title.

(B) Any applicable toxic substance, solid waste, air, water quality, or fish and wildlife conservation law or regulation at any site where mining, beneficiation, or processing activities are occurring or have occurred.

(C) The Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1201 and following) or any regulation under that Act at any site where surface coal mining operations have occurred or are occurring.

(3) A description of the type and method of exploration activities proposed, the engineering techniques proposed to be used and the equipment proposed to be used.

(4) The anticipated starting and termination dates of each phase of the exploration activities proposed, including any planned temporary cessation of exploration.

(5) A map, to an appropriate scale, clearly showing the land to be affected by the proposed exploration.

(6) Information determined necessary by the Secretary concerned to assess the cumulative impacts, as required to comply with the National Environmental Policy Act of 1969.

(7) Evidence of appropriate financial assurance as specified in section 216.

(c) RECLAMATION PLAN REQUIREMENTS- The reclamation plan required to be included in a permit application under subsection (b) shall include such provisions as may be jointly prescribed by the Secretary and the Secretary of Agriculture and each of the following:

(1) A description of the condition of the land, including the fish and wildlife resources and habitat contained thereon, subject to the permit prior to the commencement of any exploration activities.

(2) A description of reclamation measures proposed pursuant to the requirements of section 217.

(3) The engineering techniques to be used in reclamation and the equipment proposed to be used.

(4) The anticipated starting and termination dates of each phase of the reclamation proposed.

(5) A description of the proposed condition of the land, including the fish and wildlife resources and habitat contained thereon, following the completion of reclamation.

(d) PERMIT ISSUANCE OR DENIAL- The Secretary, or for National Forest System lands, the Secretary of Agriculture, shall issue an exploration permit pursuant to an application under this section if such Secretary makes each of the following determinations, and such Secretary shall deny a permit which he or she finds does not fully meet the requirements of this subsection:

(1) The permit application, the exploration plan and reclamation plan are complete and accurate.

(2) The applicant has demonstrated that proposed reclamation can be accomplished.

(3) The proposed exploration activities and condition of the land after the completion of exploration activities and final reclamation would conform with the land use plan applicable to the area subject to mineral activities.

(4) The area subject to the proposed permit is not included within an area designated unsuitable under section 219 or not open to location under section 203(b) for the types of exploration activities proposed.

(5) The applicant has demonstrated that the exploration plan and reclamation plan will be in compliance with the requirements of this title and all other applicable Federal requirements, and any State requirements agreed to by the Secretary of the Interior (or Secretary of Agriculture, as appropriate) pursuant to a cooperative agreement under section 218.

(6) The applicant has fully complied with the requirements of section 216 (relating to financial assurance).

(e) TERM OF PERMIT- An exploration permit shall be for a stated term. The term shall be no greater than that necessary to accomplish the proposed exploration, and in no case for more than 5 years.

(f) PERMIT MODIFICATION- During the term of an exploration permit the permit holder may submit an application to modify the permit. To approve a proposed modification to the permit, the Secretary concerned shall make the same determinations as are required in the case of an original permit, except that the Secretary and the Secretary of Agriculture may specify by joint rule the extent to which requirements for initial exploration permits under this section shall apply to applications to modify an exploration permit based on whether such modifications are deemed significant or minor.

(g) FEES- Each application for a permit pursuant to this section shall be accompanied by a fee payable to the Secretary of the Interior in such amount as may be established by the Secretary of the Interior. Such amount shall be equal to the actual or anticipated cost to the Secretary or the Secretary of Agriculture, as the case may be, of reviewing, administering, and enforcing such permit, as determined by such Secretary. All moneys received under this subsection shall be deposited in the Abandoned Locatable Minerals Mine Reclamation Fund established under subtitle C of this title.

(h) TRANSFER, ASSIGNMENT, OR SALE OF RIGHTS- (1) No transfer, assignment, or sale of rights granted by a permit issued under this section shall be made without the prior written approval of the Secretary or for National Forest System lands, the Secretary of Agriculture.

(2) Such Secretary may allow a person holding a permit to transfer, assign, or sell rights under the permit to a successor, if the Secretary finds, in writing, that the successor--

(A) is eligible to receive a permit in accordance with section 215;

(B) has submitted evidence of financial assurance satisfactory under section 216; and

(C) meets any other requirements specified by the Secretary.

(3) The successor in interest shall assume the liability and reclamation responsibilities established by the existing permit and shall conduct the mineral activities in full compliance with this title, and the terms and conditions of the permit as in effect at the time of transfer, assignment, or sale.

(4) Each application for approval of a permit transfer, assignment, or sale pursuant to this subsection shall be accompanied by a fee payable to the Secretary of the Interior in such amount as may be established by such Secretary. Such amount shall be equal to the actual or anticipated cost to the Secretary or the Secretary of Agriculture, as appropriate, of reviewing and approving or disapproving such transfer, assignment, or sale, as determined by the Secretary of the Interior. All moneys received under this subsection shall be deposited in the Abandoned Locatable Minerals Mine Reclamation Fund established under subtitle C of this title.

SEC. 214. OPERATIONS PERMIT.

(a) OPERATIONS PERMIT- Any claim holder may apply to the Secretary, or for National Forest System lands, the Secretary of Agriculture, for an operations permit authorizing the claim holder to carry out mineral activities on Federal lands. The permit shall include such terms and conditions as prescribed by such Secretary to carry out this subtitle.

(b) PERMIT APPLICATION REQUIREMENTS- An application for an operations permit under this section shall be submitted in a manner satisfactory to the Secretary concerned and shall contain an operations plan, a reclamation plan, such documentation as necessary to ensure compliance with applicable Federal and State environmental laws and regulations, and each of the following:

(1) The name, mailing address, and social security number or tax identification number, as applicable, of each of the following:

(A) The applicant for the permit and any agent of the applicant.

(B) The operator (if different than the applicant) at the claim concerned.

(C) Each claim holder (if different than the applicant) of the claim concerned.

(D) Each affiliate and each officer or director of the applicant.

(2) A statement of whether a person referred to in subparagraphs (A) through (D) of paragraph (1) is currently in violation of, or was, during the 3-year period preceding the date of application, found to be in violation of, any of the following and if so, a brief explanation of the facts involved, including identification of the site and the nature of the violation:

(A) Any provision of this title or any regulation under this title.

(B) Any applicable toxic substance, solid waste, air, water quality, or fish and wildlife conservation law or regulation at any site where mining, beneficiation, or processing activities are occurring or have occurred.

(C) The Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1201 and following) or any regulation under that Act at any site where surface coal mining operations have occurred or are occurring.

(3) A statement of any current or previous permits or plans of operations issued under the Surface Mining Control and Reclamation Act or the Federal Land Policy and Management Act of 1976.

(4) A description of the type and method of mineral activities proposed, the engineering techniques proposed to be used and the equipment proposed to be used.

(5) The anticipated starting and termination dates of each phase of the mineral activities proposed, including any planned temporary cessation of operations.

(6) Maps, to an appropriate scale, clearly showing the lands, watersheds, and surface waters, to be affected by the proposed mineral activities; surface and mineral ownership; facilities, including roads and other man-made structures; proposed disturbances; soils and vegetation; topography; and water supply intakes and surface water bodies.

(7) A description of the biological resources in or associated with the area subject to mineral activities, including vegetation, fish and wildlife, riparian and wetland habitats.

(8) A description of measures planned to exclude fish and wildlife resources from the area subject to mineral activities by covering, containment, or fencing of open waters, beneficiation, and processing materials; or maintenance of all facilities in a condition that is not harmful to fish and wildlife.

(9) A description of the quantity and quality of surface and ground water resources in or associated with the area subject to mineral activities, based on pre-disturbance monitoring sufficient to establish seasonal variations.

(10) An analysis of the probable hydrologic consequences of the mineral activities, both on and off the area subject to mineral activities, with respect to the hydrologic regime, quantity and quality of water in surface and ground water systems including the dissolved and suspended solids under seasonal flow conditions and the collection of sufficient data for the mine site and surrounding areas so that an assessment can be made by the Secretary concerned of the probable cumulative impacts of the anticipated mineral activities in the area upon the hydrology of the area and particularly upon water availability.

(11) A description of the monitoring systems to be used to detect and determine whether compliance has and is occurring consistent with the surface management requirements and to monitor the effects of mineral activities on the site and surrounding environment, including but not limited to, ground water, surface water, air, soils, and fish and wildlife resources.

(12) Accident contingency plans that include, but are not limited to, immediate response strategies and corrective measures to mitigate environmental impacts and appropriate insurance to cover accident contingencies.

(13) Any measures to comply with any conditions on minerals activities that may be required in the applicable land use plan or any condition stipulated pursuant to section 219.

(14) Information determined necessary by the Secretary concerned to assess the cumulative impacts of mineral activities, as required to comply with the National Environmental Policy Act of 1969.

(15) Such other environmental baseline data as the Secretaries, by joint regulation, shall require sufficient to validate the determinations required for issuance of a permit under this title.

(16) Evidence of appropriate financial assurance as specified in section 216.

(17) A description of the site security provisions designed to protect from theft the locatable minerals, concentrates or products derived therefrom which will be produced or stored on a mining claim.

(18) A full characterization of soils and geology in the area to be affected by mineral activities.

(19) A copy of the applicant's advertisement to be published as required by section 243 (relating to public participation).

(c) RECLAMATION PLAN APPLICATION REQUIREMENTS- The reclamation plan referred to in subsection (b) shall include such reclamation measures as prescribed by the Secretary, or for National Forest System lands the Secretary of Agriculture, and each of the following:

(1) A description of the condition of the land, including the fish and wildlife resources and habitat contained thereon, subject to the permit prior to the commencement of any mineral activities.

(2) A description of reclamation measures proposed pursuant to the requirements of section 217.

(3) The engineering techniques to be used in reclamation and the equipment proposed to be used.

(4) The anticipated starting and termination dates of each phase of the reclamation proposed.

(5) A description of the proposed condition of the land, including the fish and wildlife resources and habitat contained thereon, following the completion of reclamation.

(6) A description of the maintenance measures that will be necessary to meet the surface management requirements of this title, such as, but not limited to, drainage water treatment facilities, or liner maintenance and control.

(7) The consideration which has been given to making the condition of the land after the completion of mineral activities and final reclamation consistent with the applicable land use plan.

(d) PERMIT ISSUANCE OR DENIAL- (1) After providing notice and opportunity for public comment and hearing, the Secretary, or for National Forest System lands the Secretary of Agriculture, shall issue an operations permit if such Secretary makes each of the following determinations in writing, and such Secretary shall deny a permit which he or she finds does not fully meet the requirements of this paragraph:

(A) The permit application, operations plan, and reclamation plan are complete and accurate.

(B) The applicant has demonstrated that the proposed reclamation in the reclamation plan can be accomplished.

(C) The proposed mineral activities and condition of the land including the fish and wildlife resources and habitat contained thereon, after the completion of mineral activities and final reclamation conform to the land use plan applicable to the area subject to mineral activities.

(D) The area subject to the proposed plan is not included within an area designated unsuitable or not open to location for the types of mineral activities proposed.

(E) The applicant has demonstrated that the mineral activities will be in compliance with this title and all other applicable Federal requirements, and any State requirements agreed to by the appropriate Secretary pursuant to cooperative agreements under section 218.

(F) The assessment of the probable cumulative impact of all anticipated mining in the area on the hydrologic balance specified in subsection (b)(10) has been made and the proposed operation has been designed to minimize disturbances to the prevailing hydrologic balance of the permit area.

(G) The applicant has fully complied with the requirements of section 216 (relating to financial assurance).

(2) Issuance of an operations permit under this section shall be based on information supplied by the applicant or other interested parties and the applicant shall have the burden of establishing that the application complies with paragraph (1).

(3) With respect to any activities specified in the reclamation plan referred to in subsection (b) which constitute a removal or remedial action under section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Secretary shall consult with the Administrator of the Environmental Protection Agency prior to the issuance of an operating permit. To the extent practicable, the Administrator shall ensure that the reclamation plan does not require activities which would increase the costs or likelihood of removal or remedial actions under Comprehensive Environmental Response, Compensation and Liability Act of 1980 or corrective actions under the Solid Waste Disposal Act.

(e) TERM OF PERMIT; RENEWAL- (1) An operations permit shall be for a stated term. The term shall be no greater than that necessary to accomplish the proposed mineral activities subject to the permit, and in no case for more than 10 years, unless the applicant demonstrates to the satisfaction of the Secretary, or for National Forest System lands the Secretary of Agriculture, that a specified longer term is reasonably needed for such mineral activities.

(2) Failure by the operator to commence mineral activities within one year of the date scheduled in an operations permit shall require a modification of the permit unless the Secretary concerned determines that the delay was beyond the control of the applicant.

(3) An operations permit shall carry with it the right of successive renewal upon expiration only with respect to operations on areas within the boundaries of the existing permit as issued. A renewal of such permit shall not be issued if such Secretary determines, in writing, any of the following:

(A) The terms and conditions of the existing permit are not being met.

(B) The operator has not demonstrated that the financial assurance would continue to apply in full force and effect for the renewal term.

(C) Any additional revised or updated information required by the Secretary concerned has not been provided.

(D) The applicant has not demonstrated that the mineral activities will be in compliance with the requirements of all other applicable Federal requirements, and any State requirements agreed to by the Secretary concerned pursuant to cooperative agreements under section 218.

(4) A renewal of an operations permit shall be for a term of 10 years or for such additional term as the Secretary concerned deems appropriate. Application for renewal shall be made at least one year prior to the expiration of the existing permit. Where a renewal application has been timely submitted and a permit expires prior to Secretarial action on the renewal application, reclamation shall and other mineral activities may continue in accordance with the terms of the expired permit until the Secretary concerned makes a decision on the renewal application.

(f) PERMIT MODIFICATION- (1) During the term of an operations permit the operator may submit an application to modify the permit (including the operations plan or reclamation plan, or both). To approve a proposed modification, the Secretary, or for National Forest System lands the Secretary of Agriculture, shall make the same determinations as are required in the case of an original operations permit, except that the Secretaries may establish joint rules regarding the extent to which requirements for original permits under this section shall apply to applications to modify a permit based on whether such modifications are deemed significant or minor. Such rules shall provide that all requirements applicable to a new permit shall apply to any extension of the area covered by the permit (except for incidental boundary revisions).

(2) The Secretary, or for National Forest System lands the Secretary of Agriculture, may, at any time, require reasonable modification to any operations plan or reclamation plan upon a determination that the requirements of this title cannot be met if the plan is followed as approved. Such determination shall be based on a written finding and subject to notice and hearing requirements established by the Secretary concerned.

(g) TEMPORARY CESSATION OF OPERATIONS- (1) No operator conducting mineral activities under an operations permit in effect under this subtitle may temporarily cease mineral activities for a period of 180 days or more under an operations permit unless the Secretary concerned has approved such temporary cessation or unless the temporary cessation is permitted under the original permit. Any operator temporarily ceasing mineral activities for a period of 180 days or more under an existing operations permit shall submit, before the expiration of such 180-day period, a complete application for temporary cessation of operations to the Secretary concerned for approval unless the temporary cessation is permitted under the original permit.

(2) An application for approval of temporary cessation of operations shall include such provisions as prescribed by the Secretary concerned, including but not limited to the steps that shall be taken during the cessation of operations period to minimize impacts on the environment. After receipt of a complete application for temporary cessation of operations such Secretary shall conduct an inspection of the area for which temporary cessation of operations has been requested.

(3) To approve an application for temporary cessation of operations, the Secretary concerned shall make each of the following determinations:

(A) A determination that the methods for securing surface facilities and restricting access to the permit area, or relevant portions thereof, will effectively ensure against hazards to the health and safety of the public and fish and wildlife.

(B) A determination that reclamation is in compliance with the approved reclamation plan, except in those areas specifically designated in the application for temporary cessation of operations for which a delay in meeting such standards is necessary to facilitate the resumption of operations.

(C) A determination that the amount of financial assurance filed with the permit application is sufficient to assure completion of the reclamation activities identified in the approved reclamation plan in the event of forfeiture.

(D) A determination that any outstanding notices of violation and cessation orders incurred in connection with the plan for which temporary cessation is being requested are either stayed pursuant

(h) PERMIT REVIEWS- The Secretary, or for National Forest System lands the Secretary of Agriculture, shall review each permit issued under this section every 3 years during the term of such permit and, based upon a written finding, such Secretary may require the operator to take such actions as the Secretary deems necessary to assure that mineral activities conform to the permit, including adjustment of financial assurance requirements.

(i) FEES- Each application for a permit pursuant to this section shall be accompanied by a fee payable to the Secretary of the Interior in such amount as may be established by such Secretary. Such amount shall be equal to the actual or anticipated cost to the Secretary, or for National Forest System lands the Secretary of Agriculture, of reviewing, administering, and enforcing such permit, as determined by the Secretary of the Interior. All moneys received under this subsection shall be deposited in the Abandoned Locatable Minerals Mine Reclamation Fund established under subtitle C of this title.

(j) TRANSFER, ASSIGNMENT, OR SALE OF RIGHTS- (1) No transfer, assignment, or sale of rights granted by a permit under this section shall be made without the prior written approval of the Secretary, or for National Forest System lands the Secretary of Agriculture.

(2) The Secretary, or for National Forest System lands the Secretary of Agriculture, may allow a person holding a permit to transfer, assign, or sell rights under the permit to a successor, if such Secretary finds, in writing, that the successor--

(A) is eligible to receive a permit in accordance with section 215;

(B) has submitted evidence of financial assurance satisfactory under section 216; and

(C) meets any other requirements specified by such Secretary.

(3) The successor in interest shall assume the liability and reclamation responsibilities established by the existing permit and shall conduct the mineral activities in full compliance with this title, and the terms and conditions of the permit as in effect at the time of transfer, assignment, or sale.

(4) Each application for approval of a permit transfer, assignment, or sale pursuant to this subsection shall be accompanied by a fee payable to the Secretary of the Interior in such amount as may be established by such Secretary. Such amount shall be equal to the actual or anticipated cost to the Secretary or the Secretary of Agriculture of reviewing and approving or disapproving such transfer, assignment, or sale, as determined by the Secretary of the Interior. All moneys received under this subsection shall be deposited in the Abandoned Locatable Minerals Mine Reclamation Fund established under subtitle C of this title.

SEC. 215. PERSONS INELIGIBLE FOR PERMITS.

(a) CURRENT VIOLATIONS- Unless corrective action has been taken in accordance with subsection (c), no permit under this subtitle shall be issued or transferred to an applicant if the applicant or any agent of the applicant, the operator (if different than the applicant) of the claim concerned, any claim holder (if different than the applicant) of the claim concerned, or any affiliate or officer or director of the applicant is currently in violation of any of the following:

(1) A provision of this title or any regulation under this title.

(2) An applicable toxic substance, solid waste, air, water quality, or fish and wildlife conservation law or regulation at any site where mining, beneficiation, or processing activities are occurring or have occurred.

(3) The Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1201 and following) or

(b) SUSPENSION- The Secretary, or for National Forest System lands the Secretary of Agriculture, shall suspend an exploration permit or an operations permit, in whole or in part, if such Secretary determines that any of the entities described in subsection (a) were in violation of any requirement listed in subsection (a) at the time the permit was issued.

(c) CORRECTION- (1) The Secretary, or for National Forest System lands the Secretary of Agriculture, may issue or reinstate a permit under this subtitle if the applicant submits proof that the violation referred to in subsection (a) or (b) has been corrected or is in the process of being corrected to the satisfaction of such Secretary or if the applicant submits proof that the violator has filed and is presently pursuing, a direct administrative or judicial appeal to contest the existence of the violation. For purposes of this section, an appeal of any applicant's relationship to an affiliate shall not constitute a direct administrative or judicial appeal to contest the existence of the violation.

(2) Any permit which is issued or reinstated based upon proof submitted under this subsection shall be conditionally approved or conditionally reinstated, as the case may be. If the violation is not successfully abated or the violation is upheld on appeal, the permit shall be suspended or revoked.

(d) PATTERN OF WILLFUL VIOLATIONS- No permit under this title may be issued to any applicant if there is a demonstrated pattern of willful violations of the surface management requirements of this title by the applicant, any affiliate of the applicant, or the operator or claim holder if different than the applicant, and such violations are of such nature and duration, and with such resulting irreparable damage to the environment, as to clearly indicate an intent not to comply with the surface management requirements.

SEC. 216. FINANCIAL ASSURANCE.

(a) FINANCIAL ASSURANCE REQUIRED- (1) Before any permit is issued under this subtitle, the operator shall file with the Secretary, or for National Forest System lands the Secretary of Agriculture, evidence of financial assurance payable to the United States on a form prescribed and furnished by such Secretary and conditional upon faithful performance of such permit and all other requirements of this title. The financial assurance shall be provided in the form of a surety bond, trust fund, letters of credits, government securities, cash or equivalent.

(2) The financial assurance shall cover all lands within the initial permit area and shall be extended to cover all lands added pursuant to any permit modification made under section 213(f), section 214(f), or section 214(h). The financial assurance shall cover all lands to be affected by mineral activities as described and depicted in the permit application.

(b) AMOUNT- The amount of the financial assurance required under this section shall be sufficient to assure the completion of reclamation satisfying the requirements of this title if the work were to be performed by the Secretary concerned in the event of forfeiture. The calculation of such amount shall take into account the maximum level of financial exposure which shall arise during the mineral activity.

(c) DURATION- The financial assurance required under this section shall be held for the duration of the mineral activities and for an additional period to cover the operator's responsibility for revegetation as specified under subsection 217(b)(6)(B), and effluent treatment as specified in subsection (g).

(d) ADJUSTMENTS- The amount of the financial assurance and the terms of the acceptance of the assurance may be adjusted by the Secretary concerned from time to time as the area requiring coverage is increased or decreased, or where the costs of reclamation or treatment change, or pursuant to section 214(h), but the financial assurance must otherwise be in compliance with this section. The Secretary concerned shall specify periodic times, or set a schedule, for reevaluating or adjusting the amount of financial assurance.

(e) RELEASE- Upon request, and after notice and opportunity for public comment, and after inspection by the Secretary, or for National Forest System lands the Secretary of Agriculture, such Secretary may, after consultation with the Administrator of the Environmental Protection Agency, release in whole or in part the financial

(1) A determination that reclamation covered by the financial assurance has been accomplished as required by this title.

(2) A determination that the operator has declared that the terms and conditions of any other applicable Federal requirements, and State requirements applicable pursuant to cooperative agreements under section 218, have been fulfilled.

(f) RELEASE SCHEDULE- The release referred to in subsection (e) shall be according to the following schedule:

(1) After the operator has completed any required backfilling, regrading, and drainage control of an area subject to mineral activities and covered by the financial assurance, and has commenced revegetation on the regraded areas subject to mineral activities in accordance with the approved plan, that portion of the total financial assurance secured for the area subject to mineral activities attributable to the completed activities may be released.

(2) After the operator has completed successfully all remaining mineral activities and reclamation activities and all requirements of the operations plan and the reclamation plan (including the provisions of section 217(b)(6)(B) relating to revegetation and effluent treatment required by subsection (g)), and all other requirements of this title have in fact been fully met, the remaining portion of the financial assurance may be released.

During the period following release of the financial assurance as specified in paragraph (1), until the remaining portion of the financial assurance is released as provided in paragraph (2), the operator shall be required to comply with the permit issued under this subtitle.

(g) EFFLUENT- Where any discharge resulting from the mineral activities requires treatment in order to meet the applicable effluent limitations, the financial assurance shall include the estimated cost of maintaining such treatment for the projected period that will be needed after the cessation of mineral activities. The portion of the financial assurance attributable to such estimated cost of treatment shall not be released until the discharge has ceased, or, if the discharge continues, until the operator has met all applicable effluent limitations and water quality standards for 5 full years without treatment.

(h) ENVIRONMENTAL HAZARDS- If the Secretary, or for National Forest System lands the Secretary of Agriculture, determines, after final release of financial assurance, that an environmental hazard resulting from the mineral activities exists, or the terms and conditions of the operations permit of this title were not fulfilled in fact at the time of release, such Secretary shall issue an order under section 247 requiring the claimholder or operator (or any person who controls the claimholder or operator) to correct the condition.

SEC. 217. RECLAMATION.

(a) GENERAL RULE- (1) Except as provided under paragraphs (5) and (7) of subsection (b), the operator shall restore lands subject to mineral activities carried out under a permit issued under this subtitle to a condition capable of supporting--

(A) the uses, including fish and wildlife habitat uses, which such lands were capable of supporting prior to surface disturbance by the operator, or

(B) other beneficial uses which conform to applicable land use plans as determined by the Secretary or for National Forest System lands, the Secretary of Agriculture.

(2) Reclamation shall proceed as contemporaneously as practicable with the conduct of mineral activities and shall use, with respect to this subsection and subsection (b), the best technology currently available. To the extent practicable, reclamation shall be conducted in a manner that does not increase the costs or likelihood of a removal or remedial action under section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or a corrective action under the Solid Waste Disposal Act.

(b) RECLAMATION STANDARDS- Mineral activities shall be conducted in accordance with the following standards; as well as any additional standards the Secretaries may jointly promulgate under section 211 and subsection (a) of this section to address specific environmental impacts of selected methods of mining:

(1) SOILS- (A) Soils, including topsoils and subsoils removed from lands subject to mineral activities shall be segregated from waste material and protected for later use in reclamation. If such soil is not replaced on a backfill area within a time-frame short enough to avoid deterioration of the topsoil, vegetative cover or other means shall be used so that the soil is preserved from wind and water erosion, remains free of contamination by acid or other toxic material, and is in a usable condition for sustaining vegetation when restored during reclamation.

(B) In the event the topsoil from lands subject to mineral activities is of insufficient quantity or of inferior quality for sustaining vegetation, and other suitable growth media removed from the lands subject to the mineral activities are available that shall support vegetation, the best available growth medium shall be removed, segregated and preserved in a like manner as under subparagraph (A) for sustaining vegetation when restored during reclamation.

(C) In the event the soil (other than topsoil) from lands subject to mineral activities is of insufficient quantity or of inferior quality for sustaining vegetation, and other suitable growth media removed from the lands subject to the mineral activities are available that support revegetation, these substitute materials shall be removed, segregated or preserved

(D) Mineral activities shall be conducted to prevent contamination of soils to the extent possible using the best technology currently available. If contamination occurs, the operator shall decontaminate or dispose of any contaminated soils which have resulted from the mineral activities.

(2) STABILIZATION- All surface areas subject to mineral activities, including segregated soils or other growth medium, waste material piles, ore piles, subgrade ore piles, and open or partially backfilled mine pits which meet the requirements of paragraph

(3) SEDIMENTS, EROSION, AND DRAINAGE- Facilities such as but not limited to basins, ditches, stream bank stabilization, diversions or other measures, shall be designed, constructed and maintained where necessary to control sediments, erosion, and drainage of the area subject to mineral activities.

(4) HYDROLOGIC BALANCE- (A) Mineral activities shall be conducted to minimize disturbances to the prevailing hydrologic balance of the permit area and surrounding watershed existing prior to the mineral activities in the permit area and in the surrounding watershed, as established by the baseline information provided pursuant to section 214(b)(10). Hydrologic balance includes the quality and quantity of ground water and surface water and their interrelationships, including recharge and discharge rates. In all cases, the operator shall comply with Federal and State laws related to the quality and quantity of such waters.

(B) Mineral activities shall be conducted using the technology standard referred to in subsection (a)(2) to prevent where possible the formation of acidic, toxic or other contaminated water. Where the formation of acidic, toxic or other contaminated water occurs despite the use of such technology standard, mineral activities shall be conducted using such technology so as to minimize the formation of acidic, toxic or other contaminated water.

(C) Mineral activities shall prevent any contamination of surface and ground water with acid or other toxic mine pollutants and shall prevent or remove water from contact with acid or toxic producing deposits.

(D) Reclamation shall restore approximate hydrologic balance existing prior to the mineral activities.

(E) Where the quality of surface water or ground water used for domestic, municipal, agricultural, or industrial purposes is adversely impacted by mineral activities, such water shall be treated, or replaced with the same quantity and approximate quality of water, comparable to premining conditions as established in paragraph (10) of section 214(b).

(5) SURFACE RESTORATION- (A) The surface area disturbed by mineral activities shall be shaped, graded, and contoured to its natural topography. Backfilling of an open pit mine shall be required only if the Secretary, or for National Forest System lands the Secretary of Agriculture, finds that such open pit or partially backfilled, graded, or contoured pit would pose a significant threat to the public health safety or have a significant adverse effect on the environment in terms of surface water or groundwater pollution.

(B) In instances where complete backfilling of an open pit is not required, the pit shall be graded to blend with the surrounding topography as much as practicable and revegetated in accordance with paragraph (6).

(6) VEGETATION- (A) The area subject to mineral activities shall be vegetated in order to establish a diverse, effective and permanent vegetative cover of the same seasonal variety native to the area subject to mineral activities, capable of self-regeneration and plant succession and at least equal in extent of cover to the natural revegetation of the surrounding area, except that introduced species may be used at the discretion of the Secretary, or for National Forest System lands the Secretary of Agriculture, in consultation with the Director, Fish and Wildlife Service, if such introduction of such species is necessary as an interim step in, and is part of a program to restore a native plant community. In such instances where the complete backfill of an open mine pit is not required under paragraph (5), such Secretary shall prescribe such vegetation requirements as conform to the applicable land use plan.

(B) In order to insure compliance with subparagraph (A), the period for determining successful revegetation shall be for a period of 5 full years

(7) EXCESS WASTE- (A) Waste material in excess of that required to comply with paragraph (5) shall be transported and placed in approved areas, in a controlled manner in such a way so as to assure long-term mass stability, to prevent mass movement

(B) Excess waste material piles shall be graded and contoured to blend with the surrounding topography as much as practicable and revegetated in accordance with paragraph (6).

(8) SEALING- All drill holes, and openings on the surface associated with underground mineral activities, shall be backfilled, sealed or otherwise controlled when no longer needed for the conduct of mineral activities to ensure protection of the public and the environment, and management of fish and wildlife and livestock.

(9) STRUCTURES- All buildings, structures or equipment constructed, used or improved during mineral activities shall be removed, unless the Secretary concerned in consultation with the affected land managing agency, determines that use of the buildings, structures or equipment would be consistent with subsection (a) or for environmental monitoring and the Secretary concerned takes ownership of such structures.

(10) FISH AND WILDLIFE- Fish and wildlife habitat in areas subject to mineral activities shall be restored in a manner commensurate with or superior to habitat conditions which existed prior to the mineral activities, including such conditions as may be prescribed by the Director, Fish and Wildlife Service.

(c) APPLICATION OF RECLAMATION STANDARDS TO EXPLORATION- The provisions of this section shall apply to mineral exploration pursuant to a permit under this title, except that paragraphs (5) and (6) of subsection (b) shall not apply during any interim periods between completion of the approved exploration and the commencement of further mineral activities, not to exceed 2 years, if the operator maintains a sufficient financial assurance to reclaim the disturbed surface should further mineral activities not be authorized. The Secretary concerned shall prescribe standards for interim stabilization and revegetation.

(d) SPECIAL RULE- A modified reclamation plan shall not be required for mineral activities related to reclamation where a mining claim is forfeited, relinquished or lapsed, or a plan is revoked or suspended or has expired in any such case. Reclamation activities shall continue only as approved by the Secretary, or for National Forest System lands the Secretary of Agriculture, pursuant to the previously approved reclamation plan.

(e) DEFINITIONS- As used in this section:

(1) The term `best technology currently available' means equipment, devices, systems, methods, or techniques which have demonstrated engineering and economic feasibility, success and practicality. Within the constraints of the surface management requirements of this title, the Secretary, or for National Forest System lands the Secretary of Agriculture, shall have the discretion to determine the best technology currently available on a case-by-case basis.

(2) The term `waste material' means the material resulting from mineral activities involving extraction, beneficiation and processing, including but not limited to tailings, and such material resulting from mineral activities involving processing, to the extent such material is not subject to subtitle III of the Solid Waste Disposal Act or the Uranium Mill Tailings Radiation Control Act.

(3) The term `ore piles' means ore stockpiled for beneficiation prior to the completion of mineral activities.

(4) The term `subgrade ore' means ore that is too low in grade to be processed at the time of extraction but which could reasonably be processed in the foreseeable future.

(5) The term `soil' means the earthy or sandy layer, ranging in thickness from a few inches to several feet, composed of finely divided rock debris, of whatever origin, mixed with decomposing vegetal and animal matter, which forms the surface of the ground and in which plants grow or may grow.

SEC. 218. STATE LAW AND REGULATION.

(a) STATE LAW- (1) Any reclamation standard or requirement in State law or regulation that meets or exceeds the requirements of section 217 shall not be construed to be inconsistent with any such standard.

(2) Any bonding standard or requirement in State law or regulation that meets or exceeds the requirements of section 216 shall not be construed to be inconsistent with such requirements.

(3) Any inspection standard or requirement in State law or regulation that meets or exceeds the requirements of section 244 shall not be construed to be inconsistent with such requirements.

(b) APPLICABILITY OF OTHER STATE REQUIREMENTS- (1) Nothing in this title shall be construed as affecting any toxic substance, solid waste, or air or water quality, standard or requirement of any State law or regulation, or of tribal law or regulation, which may be applicable to mineral activities on lands subject to this title.

(2) Nothing in this title shall be construed as affecting in any way the right of any person to enforce or protect, under applicable law, such person's interest in water resources affected by mineral activities on lands subject to this title.

(c) COOPERATIVE AGREEMENTS- (1) Any State may enter into a cooperative agreement with the Secretary, or for National Forest System lands the Secretary of Agriculture, for the purposes of such Secretary applying such standards and requirements referred to in subsection (a) and subsection (b) to mineral activities or reclamation on lands subject to this title.

(2) In such instances where the proposed mineral activities would affect lands not subject to this title in addition to lands subject to this title, in order to approve a plan of operations the Secretary concerned shall enter into a cooperative agreement with the State that sets forth a

(3) The Secretary concerned shall not enter into a cooperative agreement with any State under this section until after notice in the Federal Register and opportunity for public comment.

(d) PRIOR AGREEMENTS- Any cooperative agreement or such other understanding between the Secretary concerned and any State, or political subdivision thereof, relating to the surface management of mineral activities on lands subject to this title that was in existence on the date of enactment of this Act may only continue in force until the effective date of this title, after which time the terms and conditions of any such agreement or understanding shall only be applicable to plans of operations approved by the Secretary concerned prior to the effective date of this title.

(e) DELEGATION- The Secretary, or for National Forest System lands the Secretary of Agriculture, shall not delegate to any State, or political subdivision thereof, the Secretary's authorities, duties and obligations under this title, including with respect to any cooperative agreements entered into under this section.

(f) PREEMPTION- Subject to section 252(b), the requirements of this title shall preempt any conflicting requirements of any State, or political subdivision thereof relating to mineral activities for locatable minerals.

SEC. 219. UNSUITABILITY REVIEW.

(a) AUTHORITY- (1) As provided for in this section, the Secretary of the Interior, in carrying out the Secretary's responsibilities under the Federal Land Policy and Management Act of 1976, and the Secretary of Agriculture, in carrying out the Secretary's responsibilities under the Forest and Rangeland Renewable Resources Planning Act of 1974, as amended by the National Forest Management Act of 1976, shall each review lands that are subject to this title in order to determine, in accordance with the provisions of subsection (b), whether there are any areas on such lands which are either unsuitable for

(2) Any determination made in accordance with subsection (b) shall be immediately effective. Such determination shall be incorporated into the applicable land use plan when such plan is adopted, revised, or significantly amended pursuant to provisions of law other than this title.

(3) In any instance where a determination is made in accordance with subsection (b) that an area is conditionally suitable for all or certain mineral activities, the Secretary concerned shall take appropriate steps to notify the public that any operations permit application relevant to that area shall be conditioned accordingly.

(b) SPECIAL CHARACTERISTICS- (1) The Secretary, or for National Forest System lands the Secretary of Agriculture, shall determine that an area open to location is unsuitable for all or certain mineral activities if such Secretary finds that such activities would result in significant, permanent and irreparable damage to special characteristics as described in paragraph (3) which cannot be prevented by the imposition of conditions in the operations permit required under section 214 (b).

(2) The Secretary, or for National Forest System lands, the Secretary of Agriculture, may determine, after notice and opportunity for public comment, that an area is conditionally suitable for all or certain types of mineral activities, if the Secretary concerned determines that any of the special characteristics of such area, as listed in paragraph (3), require protection from the effects of mineral activities.

(3) Any of the following shall be considered special characteristics of an area which contains lands or interests in lands open to location under this title:

(A) The existence of significant water quality or supplies in or associated with such area, such as aquifers and aquifer recharge areas.

(B) The presence in such area of publicly owned places which are listed on or are determined eligible for listing on the National Register of Historic Places.

(C) The designation of all or any portion of such area or any adjacent area as a National Conservation System unit.

(D) The designation of all or any portion of such area or any adjacent area as critical habitat for threatened or endangered species under the Endangered Species Act of 1973.

(E) The designation of all or any portion of such area as Class I under section 162 of the Clean Air Act (42 U.S.C. 7401).

(F) The presence of such other resource values as the Secretary, or for National Forest System lands, the Secretary of Agriculture, may, by joint rule, specify based upon field testing that verifies such criteria.

(c) PERMIT APPLICATION PRIOR TO REVIEW- (1) If an area covered by an application for a permit required under section 214, has not been reviewed pursuant to subsection (a) prior to submission of the application, the Secretary, or for National Forest System lands, the Secretary of Agriculture, shall review the area that would be aff