To direct the Secretary of the Interior to sell certain public lands subject to mining operations in Eureka, Lander, White Pine, Elko, and Humboldt Counties, Nevada, for the reclamation of abandoned mines in Nevada, to promote and enhance economic development, education, and local government revenues, and for other purposes.

July 24, 2003

Mr. GIBBONS introduced the following bill; which was referred to the Committee on Resources

To direct the Secretary of the Interior to sell certain public lands subject to mining operations in Eureka, Lander, White Pine, Elko, and Humboldt Counties, Nevada, for the reclamation of abandoned mines in Nevada, to promote and enhance economic development, education, and local government revenues, 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.

This Act may be cited as the `Northern Nevada Rural Economic Development and Land Consolidation Act of 2003'.

SEC. 2. FINDINGS AND PURPOSES.

(a) FINDINGS- Congress finds as follows:

(1) The economy of Nevada is dependent upon mining as a major source of high-paying jobs and other economic benefits.

(2) Fifteen percent of employment in Eureka, Lander, White Pine, Elko, and Humboldt Counties in Nevada is directly provided by mining corporations, while nearly 50 percent of employment in those counties is a direct result of the mining industry.

(3) Citizens of northern Nevada counties would benefit through enhanced county services and schools from the increased private property tax base that would result from private ownership of the public land subject to mining operations.

(4) The Federal Government owns approximately 81 percent of the total area of Eureka, Lander, White Pine, Elko, and Humboldt Counties in Nevada, and many mining operations in those counties are conducted on public lands subject to mining or mill site claims located and maintained under the general mining laws.

(5) The general mining laws have historically allowed mining claimants to receive patents to their claims from the United States, and the public land laws authorize land exchanges and direct sales as methods for mining companies to obtain security of tenure for their operations.

(6) However, since 1994, Congress has placed moratoria on further processing of patent applications under the general mining laws, except for certain patent applications that were pending at the time of the first moratorium.

(7) There is a severe backlog of land exchange and direct sale petitions in Nevada that has made it impossible for Nevada mine operators to obtain title in a timely manner to land subject to mining claims and mill site claims on which they conduct their operations.

(8) These circumstances have made it impossible for two mining companies to achieve security of tenure in a reasonable time frame, creating economic uncertainty and disadvantages not only for these companies but also for Nevada local governments and Nevada citizens who benefit from the taxes paid and jobs provided by these and other companies, and from their long term commitment to continue operating and to further mineral exploration in Nevada.

(9) The public lands addressed in this Act are difficult and uneconomic for the Bureau of Land Management to manage and disposal of such lands will serve important public objectives, including economic development and the maintenance of a long term tax base for northern Nevada counties.

(10) The Bureau of Land Management has determined that the public lands addressed in this Act are suitable for consolidation of ownership or disposal into private ownership and the environmental, cultural, social, and economic impacts of mining operations on the public lands subject to this Act have been evaluated in numerous studies conducted under the National Environmental Policy Act of 1969, the National Historic Preservation Act, and other laws.

(11) The sale of the public lands would generate significant income to provide funds to complete rehabilitation of lands in the State of Nevada that were subject to mining activities conducted many decades ago.

(12) Mining operations conducted on public lands sold under this Act would remain subject to applicable Federal and State environmental and safety laws.

(13) These lands would be sold for market value, including a royalty on future production of minerals.

(b) PURPOSES- The purposes of this Act are--

(1) to provide for the orderly and expeditious consolidation and disposal of certain public lands in Eureka, Lander, White Pine, Elko, and Humboldt Counties, Nevada;

(2) to provide funds for rehabilitation of lands in Nevada that were subject to historic mining activities; and

(3) to provide funds for education and other purposes in the State of Nevada.

SEC. 3. DEFINITIONS.

In this Act:

(1) CLAIMANT- The term `Claimant' means Placer Dome U.S. Inc., any affiliate designated by Placer Dome U.S. Inc., or any successor; and Graymont Western U.S. Inc, and any affiliate designated by Graymont Western U.S. Inc, or any successor.

(2) COUNTIES- The term `Counties' means the Nevada counties of Eureka, Lander, White Pine, Elko, and Humboldt, all located in the State of Nevada.

(3) DEPARTMENT- The term `Department' means the Department of the Interior.

(4) MINING LAW- The term `the general mining laws' includes, in general, chapters 2 and 12A, and 16, sections 161 and 162, of title 30, U.S.C.

(5) SECRETARY- The term `Secretary' means the Secretary of the Interior.

SEC. 4. DISPOSAL OF LAND.

(a) DISPOSAL-

(1) IN GENERAL- The Claimant shall have the right during the one year period commencing on the date of enactment of this Act to submit one or more applications to the Secretary to acquire all or any portion of the public lands depicted as `Selected Lands' on the maps identified in clauses (i) through (ii) of subsection (b)(1)(A). As soon as practicable after receipt of each such application, the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) or any other law or executive order, except as specifically provided in this Act, subject to the acceptance by the Claimant and the Secretary of the appraisal and determinations to be made in accordance with paragraphs (2) and (3), the Secretary shall dispose of each parcel of public land, including minerals, described in subsection (b)(1)(A) by direct sale to the Claimant. The procedures in section 206(d) of the Federal Land Policy and Management Act (43 U.S.C. 1716(d)) shall apply to the appraisal and determinations made pursuant to this paragraph.

(2) MARKET VALUE-

(A) VALUE OF LAND- The value of the public lands to be conveyed to Claimant and any private lands conveyed to the United States pursuant to this Act shall be the market value of the present interest of the grantor, as determined by the Secretary in accordance with an appraisal that complies with the Uniform Appraisal Standards for Federal Land Acquisitions and the relevant valuation provisions of the Federal Land Policy Management Act of 1976 (43 U.S.C. 1701 et seq.). Such appraisal shall be conducted by a qualified professional appraiser certified by the Appraiser Qualifications Board of the Appraisal Foundation.

(B) VALUE OF MINERALS-

(i) The value of locatable minerals in public lands to be conveyed to the Claimant that are subject to unpatented mining claims for which the Claimant demonstrates the discovery of a valuable mineral deposit shall not be considered in the appraisal or included in the market value of the grantor's interest in these lands, as ownership and the right to develop these minerals are already vested in the Claimant. In determining whether the Claimant has demonstrated the existence of a discovery of a valuable mineral deposit, the Secretary shall apply the principles of the general mining laws, but shall not be required to conduct a formal validity examination.

(ii) Because it would be difficult to determine accurately the value of locatable minerals in lands to be conveyed to the Claimant that are subject to unpatented mining or mill site claims for which the Claimant does not demonstrate the discovery of a valuable mineral deposit, the present value of such minerals will not be considered in the appraisal or included in the market value of these lands. The United States shall be compensated for the value of any such minerals as provided in paragraph (3).

(3) ROYALTIES- There shall be reserved in the conveyance of all public lands made pursuant to this Act, except lands subject to unpatented mining claims for which the Claimant demonstrates the discovery of a valuable mineral deposit, a royalty payable to the United States on locatable minerals. The rate of the reserved royalty shall be commensurate with the rate determined by the Secretary that is common and customary at the time of conveyance for royalties on locatable minerals reserved by private parties on public and private lands in the region in which the lands are situated.

(4) CREDIT FOR LANDS CONVEYED TO THE UNITED STATES- The Secretary shall accept from Claimant, subject to approval of title, a conveyance of any private lands identified in subsection (b)(1)(B) that Claimant offers to convey to the United States. Claimant shall receive a credit equal to the market value of any private lands conveyed to the United States pursuant to this section, which credit shall be applied against the cash consideration to be paid to the United States for the public lands conveyed to Claimant pursuant to this Act.

(5) TIMING- The Secretary shall--

(A) with respect to each application made pursuant to paragraph (1) complete all necessary appraisals, review and determine the validity of the assertions of the discovery of a valuable mineral deposit on lands on which the Claimant has made such an assertion, and determine the appropriate royalty for public lands on which the Secretary determines that the Claimant has not demonstrated the existence of such a discovery, not later than 180 days after the date of submission of such application; and

(B) convey the public lands to be conveyed to the Claimant not later than 60 days after the completion of the actions described in subparagraph (A).

(6) INDEPENDENT TRANSACTIONS- The public lands to be sold to Claimant under this Act may be included in one or more conveyances.

(b) LAND DESCRIPTION-

(1) IN GENERAL-

(A) The public lands referred to in subsection (a)(1) are the lands depicted as `Selected Lands' on the following maps:

(i) Northern Nevada Land Package For Placer Dome U.S. Inc.- Bald Mtn Mine - Selected Lands (Scale 1=2000);

(ii) Northern Nevada Land Package For Placer Dome U.S. Inc.- Cortez Gold Mines - Offered and Selected Lands (Scale 1=8000);

(iii) Northern Nevada Land Package For Placer Dome U.S. Inc.- Getchell Mine - Selected Lands (Scale 1=4000); and

(iv) Northern Nevada Land Package For Graymont Western U.S. Inc. - Pilot Mine - (Scale 1= 1000).

(B) The private lands referred to in subsection (a)(3) are the lands depicted as `Offered Lands' on the following map: Northern Nevada Land Package For Placer Dome U.S. Inc.-Cortez Gold Mines- Offered and Selected Lands (Scale 1=8000)

(2) LOCATIONS OF MAPS- The maps described in paragraph (1) shall be available for public inspection in the State Office of the Bureau of Land Management, 1340 Financial Boulevard, Reno, Nevada.

(c) MISCELLANEOUS-

(1) INTERIM CONVEYANCES- Lands to be conveyed by the United States pursuant to this Act which have not been surveyed, or with respect to which any boundary needs to be surveyed or resurveyed, shall be conveyed by an interim conveyance, which shall convey to and vest in the Claimant to which such lands are conveyed the same right, title, and interest in and to such lands as the Claimant would have received in a patent issued pursuant to this Act. Upon completion of any necessary survey or resurvey, the Secretary shall patent any lands previously conveyed by an interim conveyance. Where necessary as a result of the survey or resurvey of such lands, the boundary may be corrected in the patent.

(2) SURVEYS- Notwithstanding any other provision of law, the Secretary shall conduct and approve all cadastral surveys that are necessary for completion of each sale authorized and directed by this Act. In conducting such surveys, the Secretary is authorized to conduct perimeter surveys of contiguous blocks of public lands and convey such lands based on these surveys. Due to the lack of accurate and complete public land surveys in some portions of the public lands, the Secretary is authorized to use existing Bureau of Land Management protraction diagrams and global positioning system survey techniques to complete such surveys. The cost of any surveys shall be borne by the Claimant.

(3) TECHNICAL CORRECTIONS- Nothing in this Act shall prevent the parties affected thereby from mutually agreeing to the correction of technical errors or omissions in the maps and legal descriptions referred to in subsection (b)(1).

(4) VALID EXISTING RIGHTS- All lands conveyed under this Act shall be subject to valid existing rights existing as of the date of transfer of title, and each party to which property is conveyed shall succeed to the rights and obligations of the conveying party with respect to any mining claim, mill site claim, lease, right-of-way, permit, or other valid existing right to which the property is subject.

(5) ADMINISTRATION- The Secretary is directed to implement and administer all rights and obligations of the United States under this Act.

SEC. 5. DISPOSITION OF PROCEEDS.

Of the gross proceeds of sales of land under this Act in a fiscal year--

(1) 25 percent of all proceeds, including proceeds from royalties retained by the United States pursuant to this Act, shall be paid directly to the State of Nevada for use in the general education program of the State;

(2) 10 percent of the initial proceeds, including proceeds from royalties retained by the United States pursuant to this Act, shall be set aside in a trust fund managed by the Bureau of Land Management for the operation of the California Trail Interpretative Center located in Elko County, Nevada;

(3) from the initial proceeds, excluding proceeds from royalties retained by the United States pursuant to this Act, 100 percent of the costs incurred by the Nevada State Office and relevant Field Offices of the Bureau of Land Management in conducting sales under this Act shall be reimbursed; and

(4) the remaining proceeds, including proceeds from royalties retained by the United States pursuant to this Act, shall be used by the Nevada Division of Minerals and the Nevada Division of Environmental Protection or its successor agencies in cooperation with the Bureau of Land Management and Army Corp of Engineers, for the rehabilitation of lands in Nevada that were subject to historic mining activities.

END