HR 2222 IH
106th CONGRESS
1st Session
H. R. 2222
To establish fair market value pricing of Federal natural assets, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 15, 1999
Mr. GEORGE MILLER of California (for himself, Mr. MCGOVERN, Ms. PELOSI, Mr.
HINCHEY, Mrs. TAUSCHER, Mr. MEEHAN, Mr. TIERNEY, Mr. KENNEDY of Rhode Island,
Mr. BROWN of Ohio, Ms. DELAURO, Mr. STARK, Ms. RIVERS, Mr. MOORE, Mr. BONIOR,
Mr. LUTHER, Mr. GUTIERREZ, Ms. SCHAKOWSKY, Mr. VENTO, Ms. SLAUGHTER, and Ms.
ESHOO) introduced the following bill; which was referred to the Committee on
Resources, and in addition to the Committees on Agriculture, and the Budget, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To establish fair market value pricing of Federal natural assets, and
for other purposes.
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 `Public Resources Debt
Reduction Act of 1999'.
Sec. 1. Short title; table of contents.
TITLE I--GENERAL PROVISIONS
Sec. 101. Fair market value for resource disposal.
Sec. 102. Fees from program beneficiaries.
Sec. 103. Revenues from sale, lease, and transfer of assets.
TITLE II--HARDROCK MINING ROYALTIES
Sec. 202. Abandoned Minerals Mine Reclamation Fund.
Sec. 203. Limitation on patent issuance.
Sec. 204. Mining claim maintenance requirements.
TITLE III--USE OR DISPOSAL OF FEDERAL NATURAL RESOURCES
Sec. 301. Annual domestic livestock grazing fee.
Sec. 302. Elimination of below-cost sales of timber from national forest
system lands.
Sec. 303. Timberland suitability.
Sec. 304. Cost of water used to produce crops on production flexibility
contract acreage.
Sec. 305. Reduction in maximum amount of payments under agricultural
assistance programs to reflect receipt of Federal irrigation water.
Sec. 306. Off budget expenditures.
Sec. 307. Deposit of Taylor Grazing Act receipts in Treasury.
Sec. 308. Repeal of livestock feed assistance program.
Sec. 309. Right-of-way permits.
Sec. 310. Oil and gas rentals.
Sec. 311. Improvement of minerals management service royalty
collection.
TITLE I--GENERAL PROVISIONS
SEC. 101. FAIR MARKET VALUE FOR RESOURCE DISPOSAL.
(a) IN GENERAL- Notwithstanding any other provision of law, no timber,
minerals, forage, or other natural resource owned by the United States, no
Federally owned water, and no hydroelectric energy generated at a Federal
facility may be sold, leased, or otherwise disposed of by any department,
agency, or instrumentality of the United States for an amount less than fair
market value, as determined by such department, agency, or instrumentality.
(b) EXISTING CONTRACTS, LEASES, ETC-
(1) EXISTING ARRANGEMENTS- The provisions of subsection (a) shall not
apply to any existing contract, lease, or other binding arrangement entered
into before the date of the enactment of this Act unless such contract,
lease or other arrangement is renewed or extended after such date of
enactment.
(2) ARRANGEMENTS ENTERED INTO IN 5-YEAR PERIOD- The provisions of
subsection (a) shall take effect on the date 5 years after the date of
enactment of this Act in the case of any contract, lease, or other binding
arrangement entered into or renewed or extended after such date but before
the date 5 years after such date.
(3) ARRANGEMENTS ENTERED INTO AFTER 5 YEARS- The provisions of
subsection (a) shall apply immediately to all contracts, leases, or other
binding arrangements entered into or renewed or extended after the date 5
years after the enactment of this Act.
(c) WAIVER- The President may waive the requirements of subsection (a)
whenever the President determines that such waiver is in the national
interest. The President shall submit a notice to Congress containing an
explanation of the reasons for any such determination within 60 days after the
date of the determination.
SEC. 102. FEES FROM PROGRAM BENEFICIARIES.
(a) GENERAL AUTHORITY- The Secretary of the Interior and the Secretary of
Agriculture are each authorized to establish and collect from persons subject
to programs administered by each such Secretary such user fees as may be
necessary to reimburse the United States for the expenses incurred in
administering such programs. The aggregate amount of fees that may be assessed
and collected under this section by each such Secretary in any fiscal year
from persons subject to any such program shall not exceed the aggregate amount
of expenses incurred in administering such program in such fiscal year.
(b) EFFECTIVE DATE; OIL AND GAS LEASE TRANSFERS- The Secretary of the
Interior and the Secretary of Agriculture may, by rule, establish the
applicable effective date of any fee to be imposed under this section, except
that fees shall be established and collected under this section from each
person receiving a transfer of a Federal onshore oil and gas lease after the
date of the enactment of this section.
SEC. 103. REVENUES FROM SALE, LEASE, AND TRANSFER OF ASSETS.
(a) IN GENERAL- Section 1105(a) of chapter 11 of title 31, United States
Code, is amended by adding at the end the following new paragraph:
`(31) a separate statement of--
`(A) projected revenues during the fiscal year for which the budget is
submitted from the
anticipated sale, lease, or transfer of any physical asset; and
`(B) the estimated price at which this asset or a comparable asset
would be sold in an arms length transaction in the private
sector;
asset by asset and aggregated by major functional category.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall become
effective for fiscal year 2000 and shall be fully reflected in the fiscal year
2001 budget submitted by the President in February 2000 as required by section
1105(a) of title 31, United States Code.
TITLE II--HARDROCK MINING ROYALTIES.
SEC. 201. ROYALTY.
(a) RESERVATION OF ROYALTY- Each person producing locatable minerals
(including associated minerals) from any mining claim located under the
general mining laws, or mineral concentrates derived from locatable minerals
produced from any mining claim located under the general mining laws, as the
case may be, shall pay a royalty of 5 percent of the net smelter return from
the production of such locatable minerals or concentrates, as the case may
be.
(b) ROYALTY PAYMENTS- Each person responsible for making royalty payments
under this section shall make such payments to the Secretary not later than 30
days after the end of the calendar month in which the mineral or mineral
concentrates are produced and first placed in marketable condition, consistent
with prevailing practices in the industry.
(c) REPORTING REQUIREMENTS- All persons holding mining claims located
under the general mining laws shall provide to the Secretary such information
as determined necessary by the Secretary to ensure compliance with this
section, including, but not limited to, quarterly reports, records, documents,
and other data. Such reports may also include, but not be limited to,
pertinent technical and financial data relating to the quantity, quality, and
amount of all minerals extracted from the mining claim.
(d) AUDITS- The Secretary is authorized to conduct such audits of all
persons holding mining claims located under the general mining laws as he
deems necessary for the purposes of ensuring compliance with the requirements
of this section.
(e) DISPOSITION OF RECEIPTS- All receipts from royalties collected
pursuant to this section shall be deposited into the Fund established under
section 3.
(f) COMPLIANCE- Any person holding mining claims located under the general
mining laws who knowingly or willfully prepares, maintains, or submits false,
inaccurate, or misleading information required by this section, or fails or
refuses to submit such information, shall be subject to a civil penalty of not
more than $10,000 imposed by the Secretary.
(g) EFFECTIVE DATE- This section shall take effect with respect to
minerals produced from a mining claim in calendar months beginning after the
enactment of this Act.
SEC. 202. ABANDONED MINERALS MINE RECLAMATION FUND.
(a) ESTABLISHMENT- (1) There is established on the books of the Treasury
of the United States a trust fund to be known as the Abandoned Minerals Mine
Reclamation Fund (hereinafter referred to as the Fund). The Fund shall be
administered by the Secretary.
(2) The Secretary shall notify the Secretary of the Treasury as to what
portion of the Fund is not, in his judgment, required to meet current
withdrawals. The Secretary of the Treasury shall invest such portion of the
Fund in public debt securities with maturities suitable for the needs of such
Fund and bearing interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on outstanding
marketplace obligations of the United States of comparable maturities. The
income on such investments shall be credited to, and from a part of, the
Fund.
(b) AMOUNTS- The following amounts shall be credited to the Fund for the
purposes of this Act:
(1) All moneys received from royalties under section 1 of this Act and
the mining claim maintenance fee under section 4 of this Act.
(2) All donations by persons, corporations, associations, and
foundations for the purposes of this title.
(c) USE AND OBJECTIVES OF THE FUND- The Secretary is, subject to
appropriations, authorized to use moneys in the Fund for the reclamation and
restoration of land and water resources adversely affected by past mineral
(other than coal and fluid minerals) and mineral material mining, including
but not limited to, any of the following:
(1) Reclamation and restoration of abandoned surface mined areas.
(2) Reclamation and restoration of abandoned milling and processing
areas.
(3) Sealing, filling, and grading abandoned deep mine entries.
(4) Planting of land adversely affected by past mining to prevent
erosion and sedimentation.
(5) Prevention, abatement, treatment and control of water pollution
created by abandoned mine drainage.
(6) Control of surface subsidence due to abandoned deep mines.
(7) Such expenses as may be necessary to accomplish the purposes of this
section.
(d) ELIGIBLE AREAS- (1) Land and waters eligible for reclamation
expenditures under this section shall be those within the boundaries of States
that have lands subject to the general mining laws--
(A) which were mined or processed for minerals and mineral materials or
which were affected by such mining or processing, and abandoned or left in
an inadequate reclamation status prior to the date of enactment of this
Act;
(B) for which the Secretary makes a determination that there is no
continuing reclamation responsibility under State or Federal laws; and
(C) for which it can be established that such lands do not contain
minerals which could economically be extracted through the reprocessing or
remining of such lands.
(2) Notwithstanding paragraph (1), sites and areas designated for remedial
action pursuant to the Uranium Mill Tailings Radiation Control Act of 1978 (42
U.S.C. 7901 and following) or which have been listed for remedial action
pursuant to the Comprehensive Environmental Response Compensation and
Liability Act of 1980 (42 U.S.C. 9601 and following) shall not be eligible for
expenditures from the Fund under this section.
(e) FUND EXPENDITURES- Moneys available from the Fund may be expended
directly by the Director, Bureau of Land Management. The Director may also
make such money available through grants made to the Chief of the United
States Forest Service, and the Director of the National Park Service.
(f) AUTHORIZATION OF APPROPRIATIONS- Amounts credited to the Fund are
authorized to be appropriated for the purpose of this title without fiscal
year limitation.
SEC. 203. LIMITATION ON PATENT ISSUANCE.
No patent shall be issued by the United States for any mining or mill site
claim located under the general mining laws unless the Secretary determines
that, for the claim concerned a patent application was filed with the
Secretary on or before September 30, 1994, and all requirements established
under sections 2325 and 2326 of the Revised Statutes (30 U.S.C. 29 and 30) for
vein or lode claims and sections 2329, 2330, 2331, and 2333 of the Revised
Statutes (30 U.S.C. 35, 36 and 37) for placer claims, and section 2337 of the
Revised Statutes (30 U.S.C. 42) for mill site claims, as the case may be, were
fully complied with by the applicant by that date.
SEC. 204. MINING CLAIM MAINTENANCE REQUIREMENTS.
(a) IN GENERAL- (1) Effective October 1, 1999, the holder of each mining
claim located under the general mining laws prior to the date of enactment
shall pay to the Secretary an annual claim maintenance fee of $100 per claim
per calendar year.
(2) The holder of each mining claim located under the general mining laws
subsequent to the date of enactment shall pay to the Secretary an annual claim
maintenance fee of $125 per claim per calendar year.
(b) PURCHASING POWER ADJUSTMENT- The Secretary shall adjust the amount of
the claim maintenance fee payable pursuant to subsection (a) for changes in
the purchasing power of the dollar after the calendar year 1993, employing the
Consumer Price Index for all urban consumers published by the Department of
Labor as the basis for adjustment, and rounding according to the adjustment
process of conditions of the Federal Civil Penalties Inflation Adjustment Act
of 1990.
(c) TIME OF PAYMENT- Each claim holder shall pay the claim maintenance fee
payable under subsection (a) for any year on or before August 31 of each year,
except that for the initial calendar year in which the location is made, the
initial claim maintenance fee shall be paid at the time the location notice is
recorded with the Bureau of Land Management.
(d) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTENANCE FEES UNDER ENERGY POLICY
ACT OF 1992- The 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 (30 U.S.C. 242(e)(2)).
(e) 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.
(f) 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 land open to location. Such certification
shall be made on or before the date on which payment is due.
(2) For purposes of this subsection, 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.
(g) 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 the claim for at least once a week for at
least 90 days). If at the expiration of 90 days after such notice in writing
or by publication, any delinquent co-owner fails or refused to contribute his
portion, his interest, in the claim shall become the property of the co-owners
who have paid the required fee.
SEC. 205. DEFINITIONS.
(1) The term `affiliate' means, with respect to any person, each of the
following:
(A) Any partner of such person.
(B) Any person owning at least 10 percent of the voting shares of such
person.
(C) Any person who controls, is controlled by, or is under common
control with such person.
(2) The term `locatable minerals' means minerals not subject to
disposition under any of the following:
(A) The Mineral Leasing Act (30 U.S.C. 181 and following);
(B) The Geothermal Steam Act of 1970 (30 U.S.C. 100 and
following);
(C) The Act of July 31, 1947, commonly known as the Materials Act of
1947 (30 U.S.C. 601 and following); or
(D) the Mineral Leasing for Acquired Lands Act (30 U.S.C. 351 and
following).
(3) The term `net smelter return' has the same meaning provided in
section 613 of the Internal Revenue Code of 1986 (26 U.S.C. 613) for `gross
income from mining'.
(4) The term `Secretary' means the Secretary of the Interior.
(5) The term `general mining laws' means those Acts which generally
comprise chapters 2, 12A, and 16, and sections 161 and 162 of title 30,
United States Code.
TITLE III--USE OR DISPOSAL OF FEDERAL NATURAL RESOURCES
SEC. 301. ANNUAL DOMESTIC LIVESTOCK GRAZING FEE.
The Federal Land Policy and Management Act of 1976 is amended by inserting
after section 401 (43 U.S.C. 1751) the following new section:
`SEC. 401A. ESTABLISHMENT OF FAIR MARKET VALUE GRAZING FEES.
`(a) ESTABLISHMENT OF ANNUAL DOMESTIC LIVESTOCK GRAZING FEE- (1)
Notwithstanding any other provision of law, the Secretary of Agriculture, with
respect to National Forest System lands in the 16 contiguous Western States
(except National Grasslands) administered by the Forest Service where domestic
livestock grazing is permitted under applicable law, shall establish an annual
domestic livestock grazing fee equal to fair market value.
`(2) Notwithstanding any other provision of law, the Secretary of the
Interior, with respect to public domain lands administered by the Bureau of
Land Management where domestic livestock grazing is permitted under applicable
law, shall establish an annual domestic livestock grazing fee equal to fair
market value.
`(b) CALCULATION OF FAIR MARKET VALUE- (1) For purposes of determining the
annual domestic livestock grazing fee under this section, the Secretary
concerned shall calculate fair market value using the following formula:
[ Formula's typesetting may mislead! ] Fair Market Value=Appraised Base Value x Forage Value Index / (100)
`(2) For purposes of the formula in paragraph (1):
`(A) The term `Forage Value Index' means the Forage Value Index (FVI)
computed annually by the Economic Research Service, United States Department
of Agriculture, and set with the 1997 FVI equal to 100; and
`(B) The term `Appraised Base Value' means the 1983 Appraisal Value
conclusions for mature cattle and horses (expressed in dollars per head or
per month), as determined in the 1986 report prepared jointly by the
Secretary of Agriculture and the Secretary of the Interior entitled `Grazing
Fee Review and Evaluation', dated February 1986, on a west-wide basis using
the lowest appraised value of the pricing areas adjusted for advanced
payment and indexed to 1997.
`(c) LIMITATION ON FLUCTUATIONS OF FEES- Notwithstanding the amount
calculated under subsection (b) for a year, the domestic livestock grazing fee
charged for any given year shall not increase nor decrease by more than 33.3
percent from the domestic livestock grazing fee for the previous year.
`(d) EFFECT ON EXECUTIVE ORDER- Executive Order No. 12548, dated February
14, 1986 (51 Fed. Reg. 5985), shall not apply to grazing fees established
pursuant to this section.
`(e) EFFECT ON GRAZING ADVISORY BOARDS- The grazing advisory boards
established pursuant to Secretarial action, notice of which was published in
the Federal Register on May 14, 1986 (51 Fed. Reg. 17874), are abolished,
effective as of the date of the enactment of this section, and the advisory
functions exercised by such boards shall be exercised only by the appropriate
councils established under section 309 of this Act.
`(f) USE OF FEES AND RANGE IMPROVEMENT FUNDS- Funds appropriated pursuant
to section 5 of the Public Rangelands Improvement Act of 1978 (43 U.S.C. 1904)
or any other provision of law related to disposition of the Federal share of
receipts from fees for grazing on public domain lands or National Forest lands
in the 16 contiguous western States shall be used for restoration
and enhancement of fish and wildlife habitat, for restoration and improved
management of riparian areas, and for implementation and enforcement of
applicable land management plans, allotment plans, and regulations regarding the
use of such lands for domestic livestock grazing. Such funds shall be
distributed as the Secretary concerned considers advisable after consultation
and coordination with the advisory councils established pursuant to section 309
of this Act and other interested parties.
`(g) COMMENCEMENT DATE FOR FEES- The first annual domestic livestock
grazing fee required by this section shall apply with respect to the grazing
season commencing on March 1, 2000.
SEC. 302. ELIMINATION OF BELOW-COST SALES OF TIMBER FROM NATIONAL FOREST
SYSTEM LANDS.
(a) IN GENERAL- The National Forest Management Act of 1976 is amended by
inserting after section 14 (16 U.S.C. 472a) the following new section:
`SEC. 14A. ELIMINATION OF BELOW-COST TIMBER SALES FROM NATIONAL FOREST
SYSTEM LANDS.
`(a) REQUIREMENT THAT SALE REVENUES EXCEED COSTS- On and after October 1,
2004, in appraising timber and setting a minimum bid for trees, portions of
trees, or forest products located on National Forest System lands proposed for
sale under section 14 or any other provision of law, the Secretary of
Agriculture shall ensure that the estimated cash returns to the United States
Treasury from each sale exceed the estimated costs to be incurred by the
Federal Government in the preparation of the sale or as a result of the
sale.
`(b) COSTS TO BE CONSIDERED- For purposes of estimating under this section
the costs to be incurred by the Federal Government from each timber sale, the
Secretary shall assign to the sale the following costs:
`(1) The actual appropriated expenses for sale preparation and harvest
administration incurred or to be incurred by the Federal Government from the
sale and the payments to counties to be made as a result of the sale.
`(2) A portion of the annual timber resource planning costs,
silvicultural examination costs, other resource support costs, road design
and construction costs, road maintenance costs, transportation planning
costs, appropriated reforestation costs, timber stand improvement costs,
forest genetics costs, general administrative costs (including
administrative costs of the national and regional offices of the Forest
Service), and facilities construction costs of the Federal Government
directly or indirectly related to the timber harvest program conducted on
National Forest System lands.
`(c) METHOD OF ALLOCATING COSTS- The Secretary shall allocate the costs
referred to in subsection (b)(2) to each unit of the National Forest System,
and each proposed timber sale in such unit, on the basis of harvest volume.
`(d) TRANSITIONAL REQUIREMENTS- To ensure the elimination of all
below-cost timber sales by the date specified in subsection (a), the Secretary
shall progressively reduce the number and size of below-cost timber sales on
National Forest System lands as follows:
`(1) In fiscal years 2000 and 2001, the quantity of timber sold in
below-cost timber sales on National Forest System lands shall not exceed 75
percent of the quantity of timber sold in such sales in the preceding fiscal
year.
`(2) In fiscal year 2002, the quantity of timber sold in below-cost
timber sales on National Forest System lands shall not exceed 65 percent of
the quantity of timber sold in such sales in fiscal year 2000.
`(3) In fiscal year 2003, the quantity of timber sold in below-cost
timber sales on National Forest System lands shall not exceed 50 percent of
the quantity of timber sold in such sales in the fiscal year 2002.
`(e) BELOW-COST TIMBER SALE- For purposes of this section, the term
`below-cost timber sale' means a sale of timber in which the costs to be
incurred by the Federal Government exceed the cash returns to the United
States Treasury.'.
(b) FINDINGS- Section 2 of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1600) is amended--
(1) by striking `and' at the end of paragraph (6);
(2) by striking the period at the end of paragraph (7) and inserting `;
and'; and
(3) by adding at the end the following new paragraph:
`(8) the practice of selling timber from National Forest System lands
for less than the cost to the Federal Government of growing the timber and
preparing the timber for sale is not in the best interests of the United
States, and such below-cost sales should be eliminated in an orderly manner
to achieve a more economically and environmentally sound timber program for
the National Forest System.'.
SEC. 303. TIMBERLAND SUITABILITY.
Subsection (k) of section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1604) is amended to read as
follows:
`(k) DETERMINATION OF SUITABILITY OF LANDS FOR TIMBER PRODUCTION-
`(1) DETERMINATION REQUIRED- In revising land management plans developed
pursuant to this section, the Secretary shall identify lands within the
management area that are not suited for timber production based on physical,
economic, or other relevant factors. The Secretary shall review the
identifications made under this paragraph during each revision of the forest
plan.
`(2) EVIDENCE OF ECONOMIC UNSUITABILITY- The Secretary shall identify
lands as economically unsuitable for timber production under paragraph (1)
if--
`(A) the expected cash returns to the United States Treasury that
would result from the sale of standing timber on the lands do not exceed
the expected costs that would be incurred by the Federal Government in
preparation or as a result of such sales; or
`(B) the expected cash returns to the United States Treasury that
would result from the sale of subsequent timber stands on the lands do not
exceed the expected costs that would be incurred by the Federal Government
in preparation or as a result of such sales.
`(3) COSTS TO BE CONSIDERED- For purposes of estimating under paragraph
(2) the costs to be incurred by the Federal Government from timber sales
conducted on the lands being reviewed, the Secretary shall assign to sales
on such lands the following costs:
`(A) The appropriated expenses for sale preparation and harvest
administration that would be incurred by the Federal Government from such
sales and the payments to counties that would be made as a result of such
sales.
`(B) A portion of the annual timber resource planning costs,
silvicultural examination costs, other resource support costs, road design
and construction costs, road maintenance costs, transportation planning
costs, appropriated reforestation costs, timber stand improvement costs,
forest genetics costs, general administrative costs (including
administrative costs of the national and regional offices of the Forest
Service), and facilities construction costs of the Federal Government
directly or indirectly related to the timber harvest program conducted on
National Forest System lands.
`(4) METHOD OF ALLOCATING COSTS- The Secretary shall allocate the costs
referred to in paragraph (3)(B) to each unit of the National Forest System
on the basis of harvest volume.
`(5) PROHIBITION ON TIMBER HARVESTS ON UNSUITABLE LANDS- In the case of
lands identified under paragraph (1) as unsuitable for timber production, no
timber harvesting shall occur on such lands for a period of 10 years or the
life of the plan, whichever is greater.
`(6) DEFINITIONS- For purposes of this subsection:
`(A) The term `standing timber' means an existing stand of timber that
has not been harvested.
`(B) The term `subsequent timber stand' means a regenerated stand of
timber produced on land from which standing timber has been
harvested.'.
SEC. 304. 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
thereof 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. 305. REDUCTION IN MAXIMUM AMOUNT OF PAYMENTS UNDER AGRICULTURAL
ASSISTANCE PROGRAMS TO REFLECT RECEIPT OF FEDERAL IRRIGATION WATER.
(a) PRICE SUPPORT PROGRAMS- Title X of the Food Security Act of 1985 is
amended--
(1) by redesignating sections 1001D (7 U.S.C. 1308-4) and 1001E (7
U.S.C. 1308-5) as sections 1001E and 1001F, respectively; and
(2) by inserting after section 1001C (7 U.S.C. 1308-3) the following new
section:
`SEC. 1001D. REDUCTION OF PAYMENT LIMITATIONS TO REFLECT RECEIPT OF FEDERAL
IRRIGATION WATER.
`(a) REDUCTION OF PAYMENT LIMITATIONS REQUIRED- If a person subject to
section 1001 receives Federal irrigation water for agricultural purposes from
the operation of a Federal reclamation project, the payment limitations
specified in paragraphs (1) and (2) of such section and applicable to such
person shall be reduced for the year in which such person receives irrigation
water. The amount of the reduction shall be equal to the total
value during that year of the subsidy portion of the contract with such
person for the delivery of the irrigation water.
`(b) DETERMINATION OF SUBSIDY PORTION OF WATER CONTRACT- The subsidy
portion of an irrigation water delivery contract is equal to the amount by
which full cost for the delivery of the irrigation water exceeds the actual
contract price for the delivery of the water.
`(c) DEFINITIONS- For purposes of this section, the terms `contract',
`full cost', `irrigation water', and `project' have the meanings given such
terms in section 202 of the Reclamation Reform Act of 1982 (43 U.S.C.
390bb).'.
(b) NONINSURED CROP DISASTER ASSISTANCE- Section 196(i) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is
amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new paragraph:
`(5) EFFECT OF RECEIPT OF IRRIGATION WATER-
`(A) REDUCTION OF PAYMENT LIMITATION- If a person who receives
payments under this section also receives, during the same year, Federal
irrigation water for agricultural purposes from the operation of a Federal
reclamation project, the payment limitation specified in paragraph (2) for
such person shall be reduced for that year. The amount of the reduction
shall be equal to the total value during that year of the subsidy portion
of the contract with such person for the delivery of the irrigation
water.
`(B) DETERMINATION OF SUBSIDY PORTION OF WATER CONTRACT- The subsidy
portion of an irrigation water delivery contract is equal to the amount by
which full cost for the delivery of the irrigation water exceeds the
actual contract price for the delivery of the water.
`(C) DEFINITIONS- For purposes of this paragraph, the terms
`contract', `full cost', `irrigation water', and `project' have the
meanings given such terms in section 202 of the Reclamation Reform Act of
1982 (43 U.S.C. 390bb).'.
(c) CONFORMING AMENDMENTS- Section 1001(5)(A) of the Food Security Act of
1985 (7 U.S.C. 1308(5)(A)) is amended by striking `through 1001C' and
inserting `through 1001D'.
SEC. 306. OFF BUDGET EXPENDITURES.
(a) KNUTSON-VANDENBERG FUND- Section 3 of the Act of June 9, 1930
(commonly known as the Knutson-Vandenberg Act; 16 U.S.C. 576b), is amended by
striking `and shall constitute a special fund, which is hereby appropriated
and made available until expended,' in the second sentence and inserting `and
are authorized to be appropriated'.
(b) DEPOSITS FROM BRUSH DISPOSAL- The paragraph relating to deposits from
brush disposal under the heading `FOREST SERVICE' in the Act of August 11,
1916 (39 Stat. 462; 16 U.S.C. 490), is amended by striking `and constitute a
special fund, which is hereby appropriated and shall remain available until
expended' and inserting `and are authorized to be appropriated for the purpose
of disposing of such brush and other debris'.
(c) NATIONAL FORESTS ROADS AND TRAILS- Section 7 of Public Law 88-657
(commonly known as the Forest Roads and Trails Act; 16 U.S.C. 538) is amended
by striking `may be placed in a fund to be available' and inserting `are
authorized to be appropriated'.
(d) TIMBER SALVAGE SALE FUND- Section 303(d) of Public Law 96-451 (16
U.S.C. 1606a) is amended by striking `The Secretary of Agriculture' and
inserting `In such amounts as are provided in advance in appropriations Acts,
the Secretary of Agriculture'.
SEC. 307. DEPOSIT OF TAYLOR GRAZING ACT RECEIPTS IN TREASURY.
Section 10 of the Act of June 28, 1934 (commonly known as the Taylor
Grazing Act; 43 U.S.C. 315i), is amended by striking all after `miscellaneous
receipts' and inserting a period.
SEC. 308. REPEAL OF LIVESTOCK FEED ASSISTANCE PROGRAM.
The Emergency Livestock Feed Assistance Act of 1988 (title VI of the
Agricultural Act of 1949; 7 U.S.C. 1471-1471j) is repealed.
SEC. 309. RIGHT-OF-WAY PERMITS.
(a) IN GENERAL- No permit, lease, or authorization for the use of any area
of the public lands or National Forests for rights-of-way (including
rights-of-way for power lines, oil and gas pipelines, water conveyances, and
other utility lines) shall remain in force and effect after October 1, 1999,
unless, by such date, and by October 1 of each year thereafter, the holder of
such permit, lease, or authorization pays to the Secretary of the Interior or
the Secretary of Agriculture, as appropriate, an amount equal to the fair
market value, as determined by such Secretary, of the right to use and occupy
such area for such purposes.
(b) DEFINITION- For the purposes of this section, the term `public lands'
shall have the same meaning as defined in section 103(e) of the Federal Land
Policy Management Act of 1976 (43 U.S.C. 1702(e)).
SEC. 310. OIL AND GAS RENTALS.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended as follows:
(1) In section 14 by striking out `a rental of $1 per acre' and
inserting `a rental established by the Secretary of the Interior' and by
adding the following at the end thereof: `The Secretary shall establish fair
market value rental fees under this section based upon the rental fees which
would be charged in arm's length transactions for comparable leases of oil
and gas resources on non-Federal land.'.
(2) In section 17(d) by striking out `rental of not less than $1.50 per
acre per year for the first through fifth years of the lease and not less
than $2 per acre per year for each year thereafter' and inserting `rental
established by the Secretary of the Interior' and by adding the following at
the end thereof: `The Secretary shall establish fair market value rental
fees under this section based upon the rental fees which would be charged in
arms length transactions for comparable leases of oil and gas resources on
non-Federal land.'.
(3) In section 21(a) by striking out `rental, payable at the beginning
of each year, at the rate of 50 cents per acre per annum, for the lands
included in the lease,' and inserting `rental established by the Secretary
of the Interior' and by adding the following at the end thereof: `The
Secretary shall establish fair market value rental fees under this section
based upon the rental fees which would be charged in arms length
transactions for comparable leases on non-Federal land.'.
(4) In section 31(e)(2) by striking `rate of not less than $10 per acre
per year, or the inclusion in a reinstated lease issued pursuant to the
provisions of section 17(c) of this Act of a requirement that future rentals
shall be at a rate not less than $5 per acre per year' and inserting `fair
market value rate (but not less than $10 per acre per year)'.
(5) In section 31(f)(3) by striking out `of not less than $5 per acre
per year' and inserting `established by the Secretary at fair market value
based upon the rental fees which would be charged in arms length
transactions for comparable leases on non-Federal land'.
SEC. 311. IMPROVEMENT OF MINERALS MANAGEMENT SERVICE ROYALTY
COLLECTION.
The Federal Oil and Gas Royalty Simplification and Fairness Act of 1996
(Public Law No. 104-185; 30 U.S.C. 1701 et seq.) is amended by adding the
following new subsection after subsection (l):
`(m) ASSESSMENT FOR UNDERREPORTING OF ROYALTY- (1) If there is any
underreporting of royalty owed on production from any lease for any production
month, the Secretary may make an assessment of 20 percent of the amount of
that underreporting if any of the following circumstances occurs:
`(A) For a Federal lease, the underreporting exceeds 10 percent of the
value of production which should have been reported and exceeds $1,500, or
the underreporting exceeds 5 percent of the value of production which should
have been reported and exceeds $15,000.
`(B) For an Indian lease, the underreporting exceeds 10 percent of the
value of production which should have been reported and exceeds $125.
`(C) For either a Federal or Indian lease, no royalty was paid on
production from that lease for the production month immediately preceding
the month for which the underreporting was submitted, regardless of the
amount of the underreporting or the amount of royalty owed.
`(2) For purposes of this subsection, the term `underreporting' means the
amount by which the royalty on the value of the production which should have
been reported exceeds the royalty on the value of the production which was
reported.
`(3) The Secretary shall not impose the assessment specified in paragraph
(1) if the underreporting is corrected before the date the person against whom
the assessment is made receives written notice from the Secretary that an
underreporting may have occurred.
`(4) The Secretary shall not impose the assessment specified in paragraph
(1) with respect to an underreporting which is corrected in the course of
performing an order to correct royalty accounting and recompute and pay
royalties due. This exception does not apply to the specific instances of
underreporting discovered during audit which formed the basis of the order to
recompute and pay.
`(5)(A) The Secretary shall waive the portion of an assessment specified
in paragraph (1) attributable to that portion of the underreporting for which
a person demonstrates that--
`(i) the person had substantial authority for reporting royalty on the
value of the production on the basis on which it was reported, or
`(ii) the person meets any other exception which the Secretary may, by
rule, establish.
`(B) For purposes of this paragraph, the term `substantial authority'
means any of the following:
`(i) A controlling judicial or administrative decision which has not
been reversed, vacated, or overruled, or a controlling regulation.
`(ii) A body of judicial or administrative decisions or regulations
which provide a reasoned basis to support the person's action. Such a
reasoned basis must be more than a merely arguable theory which is unlikely
to prevail in court upon a complete review of the relevant facts and
authorities.
`(iii) A legal question of first impression.
`(6) Interest shall not accrue on the amount of an assessment under this
subsection during the pendency of any administrative appeal of the assessment
which may be allowed by rule. No hearing on the record in such appeal shall be
necessary before an assessment is made. No surety instrument shall be required
to secure the amount of the assessment pending administrative appeal.
`(7) An assessment under this subsection shall apply only to an
underreporting occurring after the date of enactment of this subsection.
`(8) Notwithstanding any provision of section 206 of this Act, all
assessments collected under this subsection shall be deposited to the same
accounts in the Treasury or paid to the same recipients in the same manner as
the royalty with respect to which such assessment is made.
`(9) For purposes of this subsection, the definitions in section 2 of this
Act shall be deemed to also apply to coal, any other mineral, geothermal
steam, or associated geothermal resources.'.
END