SIDE-BY-SIDE COMPARISON OF KEY, SELECTED PROVISIONS IN MINING LAW REFORM BILLS

• Jurisdiction: United States

Land and Permitting
(Jan 1994)
CHAPTER 13A
SIDE-BY-SIDE COMPARISON OF KEY, SELECTED PROVISIONS IN MINING LAW REFORM BILLS

TABLE OF CONTENTS

SYNOPSIS

Page

CLAIM SIZE

TYPES OF CLAIMS

CLAIM MAINTENANCE

Amount

Reduction

Credit Against Royalties

CONVERSION OF CLAIMS

TRANSITION RULES (SURFACE MANAGEMENT REQUIREMENTS)

CLAIM FORFEITURE

PATENTS

SURFACE OCCUPANCY

ROYALTY

Calculation

Affected Claims

Reduction

Study

USER FEES

PURCHASING POWER ADJUSTMENT

PERMITS

Forms and Terms

Failure to Commence Operations

Issuance or Denial

PERSONS INELIGIBLE FOR PERMITS (PERMIT BLOCK/AVS)

SURFACE MANAGEMENT STANDARD

RECLAMATION

Post-mining Land Use and Condition

Technology Standard

Hydrologic Balance and Water Quality

Contouring and Backfilling

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Soil Replacement and Contamination

Fish and Wildlife Habitat

Stabilization

Sediments, Erosion, and Drainage

Revegetation

Excess Spoil and Waste

Sealing

Structures

Additional Standards

U.S. EPA ROLE IN MINE PERMITS

DETERMINATION OF LANDS UNSUITABLE FOR MINERAL ACTIVITIES

Initial Review

Type of Determination

Determination Standards

Application for Review

Substantial Legal and Financial Commitments

Petition

LANDS NOT OPEN TO LOCATION

Categories

Valid Existing Rights

FINANCIAL ASSURANCE

Methods

Lands Covered

Amount

Holding Period and Release

Final Release From Law's Coverage

INSPECTION

Frequency

Right to Accompany Inspector

MONITORING

Purpose and Reporting

Location

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ENFORCEMENT

Cessation Order Authority

Enforcement Agency

Penalties

Abatement Period

ADMINISTRATIVE APPEALS

Standing

Temporary Relief Pending Appeal

Public Hearing

Decision Deadline

JUDICIAL REVIEW OF RULES

Venue

Deadline

Standing

Summary Judgment

Stay

CITIZEN SUITS

FEDERAL/STATE AUTHORITY

Federal Lands

Mixed Federal/State Lands

Processing Facilities on Federal Land/Processing Non-Federal Minerals

ABANDONED MINE RECLAMATION FUND

Title

Coverage

Administration

Funding

Other Uses of Fund

Limitation on Funding

EFFECTIVE DATE

REGULATIONS

BUY AMERICAN

FOREIGN OWNERSHIP

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Subject	S. 775 (As introduced and passed by the Senate)	H.R. 322-I (As Introduced)	H.R. 322-II (As passed by the House)
CLAIM SIZE	No provision (same as 1872 Mining Law: 20 acres to 160 acres).	40 acres, located by legal subdivision. (§§ 103(b), (c); 101 (a)(5).)	Same provision as H.R. 322-I. (§§ 103(b), (c); 3(a)(10).)
TYPES OF CLAIMS	No provision (same as 1872 Mining Law: lode, placer, millsite, tunnel site).	1 type, no distinction. (§§ 103; 101(a)(8).)	Same provision as H.R. 322-I. (§§ 103; 3(a)(14).)
CLAIM MAINTENANCE; Amount	$100 annual claim maintenance fee. (§ 4(a).)	Escalating annual rent ranging from $5 to $25 per acre ($200 to $1000 per new claim) over 21 years and thereafter. (§ 104(a)(1).)	Non-escalating $100 annual claim maintenance fee for converted claims (20 acres), and $200 for new claims (40 acres). (§ 105(a).)
Reduction	No provision.	Rental reduced to $2.50 per acre if diligent development expenditures are made or if "legal impediments" preclude access. (§ 104(b), (c).)	No provision.
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Credit Against Royalties	No provision.	No credit of annual rent against royalties.	Annual claim maintenance fee credited against royalty "for the same period." (§ 105(h).)
CONVERSION OF CLAIMS	No provision (existing claims are maintained).	Existing unpatented claims converted within 3 years. (§ 404.)	Existing unpatented claims automatically converted on date of enactment. (§ 104.)
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TRANSITION RULES (SURFACE MANAGEMENT REQUIREMENTS)	No provision (no new federal surface management requirements imposed by the legislation).	New mining claims located after enactment are subject to pre-existing surface management requirements for one year after enactment and new surface management requirements thereafter. Pre-existing claims treated the same as new claims, unless plan of operations is approved before one year after enactment, in which case approved operations would follow pre-existing requirements for 6 years after enactment. (§ 405). Impliedly, any modifications to plans during such period would trigger applicability of new standards.	New mining claims are subject to new surface management requirements immediately. Pre-existing claims with approved plans of operations are subject to pre-existing requirements for 5 years after enactment and minor modifications do not trigger new requirements. Also, if a "substantially complete" application for approval of a plan of operations or a modification to a plan is submitted before November 3, 1993, and National Environmental Policy Act (NEPA) process is commenced before enactment, the proposed operations (including minor amendments or modifications) are subject to pre-existing regulations for 5 years. (§ 411.)*
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If notice of 5-acre or less disturbance under Bureau of Land Management (BLM) regulations is submitted prior to enactment, mineral activities may continue under such notice for 3 years after enactment. (§ 405(b)(3).)	Same provision as H.R. 322-I, except the grace period is 2 years after enactment. (§ 411(b)(4).)
CLAIM FORFEITURE	Claim forfeited by operation of law due to failure to pay $25 location fee or $100 annual maintenance fee (like existing § 314 of Federal Land Policy and Management Act (FLPMA)). No reinstatement provision. (§ 4(d).)	Claim forfeited by operation of law for failure to make annual filing showing compliance with claim maintenance requirements (like existing § 314 of FLPMA). Claim can be reinstated within 10 days after notice. (§ 104(d), (e).)	Claim forfeited by operation of law for failure to timely pay $100 or $200 annual maintenance fee and for defects in claim location procedures. Holder of forfeited claim banned from relocating same ground for one year. (§ 106(a)(b).)
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PATENTS	Full patents may be issued for all valid existing claims if applications for patent or mineral survey are filed within 6 months of enactment. Patents may be issued for all applications filed thereafter if claimant pays fair market value for surface and royalty is reserved by the United States. (§ 6.)	No patenting of existing claims unless patent applications were filed by January 5, 1993, and all requirements met by that date. (§ 107.)	Same provision as H.R. 322-I. (§ 417.)
SURFACE OCCUPANCY	Full or part-time residential occupancy of a claim is prohibited. Residential occupancy for purposes "reasonably incident to prospecting, mining, or processing that does not involve surface disturbance beyond the period of occupancy" may be permitted for no more than 14 days upon notice to Secretary. Secretary may approve residential occupancy beyond 14 days as part of plan of operations. (§ 9.)	No provision.	No provision.
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ROYALTY; Calculation	Production of locatable minerals (including associated minerals) is subject to a royalty of 2% of the value of the minerals at the mine mouth. (§ 5(a).)	Production of locatable minerals (including associated minerals) is subject to royalty of 8% of gross income. (§ 410(a).)	Production of locatable minerals is subject to royalty of 8% of the "net smelter return" from production. (§ 306(a).)
Affected Claims	Royalty is imposed on new claims (claims filed after enactment) and on patents applied for after 6 month period following enactment. (§§ 5(a) and 6.)	Royalty is imposed on all claims — both existing claims (when they are converted which must occur within 4 years of enactment) and new claims. (§ 410(a).)	Royalty is imposed on all claims — both existing claims (but, unlike H.R. 322-I, immediately upon enactment) and new claims. (§ 306(a).)
Reduction	The Secretary may reduce royalties whenever necessary to promote development or where claims cannot be successfully operated. (§ 5(d).)	No royalty reduction provision.	No royalty reduction provision."1
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ROYALTY; Study	Hardrock Mining Royalty Commission is appointed by Interior Secretary from individuals "who have experience in the economics of the hardrock mining industry" to study and report to Congress within 18 months "the effect of the royalty provisions ... on the hardrock mining industry." The study must consider the economic effect on the "industry, employment, local and regional economics [sic], the balance of trade, national security, and strategic supplies;" determine whether royalty rates should be tailored to specific minerals; "estimate the long-term effect of different royalty rates on competition within the industry sand between domestic and foreign production, and ... consider the multiplier effect of different royalty rates." (§ 5(e).)	No study provision.	No study provision.
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USER FEES	No user fee provision.	Secretaries are authorized to establish and collect user fees as needed "to reimburse the United States for a portion of the expenses incurred in administering" the requirements of the legislation. Fees should be assessed in a manner calculated to not exceed the aggregate amount of administrative expenses. (§ 402.)	Secretaries are authorized to establish and collect user fees as needed "to reimburse the United States for the expenses" (not, as in H.R. 322-I, a "portion" of such expenses) in administering the requirements of the legislation. Fees should not exceed aggregate amount of administrative expenses. (§ 402.) In addition, the bill adds other mandatory user fee provisions which are specific to particular activities (e.g., §§ 203(g) and 204(h), which provide that each application for an exploration or operating permit must be accompanied by a fee "in such amount .... equal to the actual or anticipated cost of reviewing, administering, and enforcing such permit").
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PURCHASING POWER

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