Overview
Title
To modify the requirements applicable to locatable minerals on public domain land, and for other purposes.
ELI5 AI
S. 859 is a law that wants to make sure companies mining on public lands in the U.S. pay their fair share and do not harm the environment. It says they must pay fees and follow stricter rules to clean up and fix any damage they cause.
Summary AI
S. 859, titled the “Mining Waste, Fraud, and Abuse Prevention Act of 2025,” aims to update the regulations for mining minerals on public domain land in the United States. It introduces new fees and royalty payments for mineral production and requires comprehensive environmental and reclamation plans for mining operations. The bill also creates a Hardrock Minerals Reclamation Fund to address abandoned mine lands and requires more stringent oversight and enforcement of mining activities to protect public health and the environment. Additionally, it mandates financial assurances from mining operators to ensure they will cover the costs of reclamation and damage remediation.
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AnalysisAI
To modify the requirements applicable to locatable minerals on public domain land, and for other purposes, the proposed S. 859 bill, also known as the “Mining Waste, Fraud, and Abuse Prevention Act of 2025,” outlines a comprehensive framework for regulating mining activities on federal lands. This legislation spans various aspects, including locatable mineral deposits, royalty impositions, reclamation activities, and interactions with state laws and Indian Tribes.
General Summary
This bill proposes comprehensive changes to how mining activities are conducted on federal lands. It stipulates that mining operations must pay royalties ranging from 5% to 8% on gross income from mineral production. The bill also introduces several new fees and requirements for maintaining mining claims, such as annual maintenance fees and location fees for new claims. Additionally, it establishes a fund to address issues related to abandoned mines, proposing a reclamation fee of up to 3% from hardrock mining operations to support this fund.
Furthermore, the bill sets up a detailed set of rules concerning permits needed for mining activities, the conditions under which these permits are issued, and the financial assurances required for activities that might disturb the environment. With a focus on protecting the environment and ensuring compliance, the legislation mandates inspections and monitoring of mining activities, and enforces penalties for non-compliance.
Significant Issues
One of the key issues in the bill is the subjective language used in certain sections. For example, the term "reasonable royalty rate" is open to interpretation, which could lead to disagreements between the government and mining operators about payment obligations. Similarly, the undefined criteria for "clear and convincing evidence" regarding royalty relief could lead to inconsistent applications and potential disputes.
There is also concern about the wide discretion allowed for determining the reclamation fee percentage, ranging from 1% to 3%, without clear criteria guiding these decisions. This could lead to perceived unfairness among stakeholders. Furthermore, the bill lacks detailed guidelines on the consultation process with Indian Tribes, which may lead to inadequate engagement and potential legal challenges.
Questions of transparency and accountability were raised in terms of the Secretary’s discretion to decide on waivers and relocations of mining claims, as well as in dealing with appropriations for the Hardrock Minerals Reclamation Fund, which is authorized “for such sums as are necessary” without specified limits.
Public Impact
The public is likely to see the bill as a step towards more responsible and sustainable mining practices. By imposing royalties and dedicating funds to reclamation, the government aims to address environmental concerns and the issue of abandoned mines, which can pose risks to public safety and health.
However, there may be concerns about the potential for increased mining costs to affect the availability and price of minerals. This could have downstream effects on industries dependent on these minerals, possibly leading to economic repercussions such as increased prices for electronics and other goods.
Impact on Stakeholders
Mining Companies: Mining operators will face new financial burdens and more stringent regulatory requirements. Compliance with detailed reporting and financial assurance obligations will likely require additional administrative resources, while disputes may arise from the subjective language concerning royalties and fees.
Environment and Local Communities: Communities living near mining operations could benefit from stricter environmental safeguards and remediation of abandoned sites. The establishment of a fund specifically for environmental restoration may provide needed resources for longstanding issues with mine reclamation.
State and Tribal Governments: State laws that meet or exceed federal standards are explicitly allowed, granting states the power to enforce even more stringent regulations if desirable. However, any changes to processes for mining on federal lands, particularly concerning consultation with Indian Tribes, might necessitate additional coordination and resources to ensure adequate compliance and engagement.
Overall, while the bill aims to reform and modernize mining operations on federal lands for environmental and social betterment, there are substantive issues that need refinement to avoid legal ambiguity and ensure equitable application across all stakeholders.
Financial Assessment
The "Mining Waste, Fraud, and Abuse Prevention Act of 2025" seeks to reform financial practices related to mining on public lands in the U.S. by proposing several financial allocations and fee collections aimed at enhancing regulatory oversight and environmental protection. Here is a detailed discussion of these financial aspects.
Financial Allocations and Fees
Claim Maintenance Fees:
The bill requires holders of unpatented mining claims, millsites, or tunnel sites to pay an annual maintenance fee of $200 for each claim, with payments being due by August 31 each year. This fee structure ensures that entities utilizing public resources contribute to their maintenance and oversight. However, the waiver of this maintenance fee for claim holders with fewer than 10 claims might result in claim splitting to avoid these fees, posing potential risks for abuse.
Location Fees:
A location fee of $50 is mandated at the time a location notice is recorded with the Bureau of Land Management for each claim. This fee is adjustable based on changes in the Consumer Price Index, ensuring its consideration for inflation over time. This requirement addresses part of the issue that existing fees might not effectively cover administrative costs related to mining claims.
Penalties for Violations:
The bill imposes various civil and criminal penalties for non-compliance, outlining fines up to $25,000 for severe violations. It also specifies that a person who prepares false reports or unlawfully removes minerals can be fined up to $50,000 or imprisoned for up to 2 years, highlighting the bill's intention to deter non-compliance through financial consequences.
Royalty Payments:
Production of all locatable minerals is subject to a royalty rate set by the Secretary, ranging between 5% and 8% of the gross income from mining. This range allows flexibility in setting appropriate rates but also presents concerns given its broadness and potential for perceived unfairness or inconsistency without clear criteria for establishing specific rates.
Reclamation Fee:
A reclamation fee between 1% and 3% of production value is imposed on operators, with revenues intended for the Hardrock Minerals Reclamation Fund to address abandoned mines. The issue here is the wide range for the fee and lack of detail on how the exact percentage is chosen, which may result in inconsistencies and perceived inequities.
Hardrock Minerals Reclamation Fund:
The bill establishes this fund to finance the reclamation of abandoned mine lands, with funding drawn from various sources including royalties, fees, and fines collected under the Act. The authorization of appropriations as "such sums as are necessary" lacks a clear spending cap, raising issues about potential unchecked financial outflows, creating potential budgetary concerns.
Relation to Identified Issues
The issues surrounding royalty rates, fees, and financial assurances relate directly to how these financial mechanisms are structured. For instance, the broad scope of discretion in setting reclamation and royalty fees without defined criteria could lead to perceived unfairness (Issues 1 and 5). Furthermore, the potential inadequacy of consultation with tribes (Issue 6) and lack of clear audit criteria might result in financial and legal disputes, especially when high stakes such as substantial fines and fees are involved. Additionally, the undefined cap on appropriations for the reclamation fund presents fiscal accountability issues that could lead to budgetary excesses (Issue 10).
In summary, the bill outlines ambitious reforms to ensure that financial mechanisms support the responsible mining of public domain lands. However, several potential loopholes and ambiguities in financial allocations and penalties could present challenges, necessitating clearer guidelines to prevent disputes and ensure fairness in the implementation of the Act.
Issues
The term 'reasonable royalty rate' in Sec. 201 is subjective and could lead to differing interpretations, potentially leading to disputes between the Secretary and mining claim holders.
The section on 'Royalty relief' in Sec. 202 lacks a clear and explicit guideline or criteria for how the Secretary should evaluate the evidence provided by the person conducting mineral activities, which could lead to potential bias or inconsistent application.
In Sec. 101, the lack of provision for transparency or reporting on decisions to withdraw or invalidate determinations could raise concerns about accountability of the Secretary.
Sec. 506 uses complex legal terminology and references other laws without providing detailed information, which may be challenging for the general public to comprehend, potentially leading to misunderstandings about the bill's impact.
The range for the reclamation fee in Sec. 402 is quite broad (1% to 3%), giving significant discretion to the Secretary with no clear criteria on how to determine the specific percentage, which may lead to inconsistency or perceived unfairness.
The section on 'Tribal consultation' does not define the process or extent of consultation, as noted in Sec. 310, which could lead to inadequate engagement with Tribes and possible legal challenges.
The criteria for 'clear and convincing evidence' in the 'Royalty relief' section (Sec. 202) are not clearly defined, allowing for varied interpretations which might lead to contentious negotiations or legal disputes.
Sec. 303 lacks clarity on the conditions and criteria for approving temporary cessation of operations, potentially leading to legal uncertainty.
The waiver of maintenance fees for claim holders with fewer than 10 claims in Sec. 102 could encourage claim splitting to avoid fees, leading to potential abuse.
The authorization of appropriations under Sec. 401 for 'such sums as are necessary' is vague and could potentially lead to unlimited spending without clear guidelines or caps.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title; table of contents Read Opens in new tab
Summary AI
The section provides the short title and table of contents for the "Mining Waste, Fraud, and Abuse Prevention Act of 2025". It outlines the structure of the Act, which includes several titles focused on topics such as locatable mineral deposits, royalties, mineral activities, reclamation funds, and various administrative provisions.
2. Definitions Read Opens in new tab
Summary AI
This section defines key terms used in the Act related to mineral activities on federal and Indian lands, including terms like "applicant," "beneficiation," "casual use," "claim holder," and "locatable mineral." It explains the roles of the Secretary and other officials, as well as what constitutes land, minerals, and activities under this legislation.
101. Limitation on patents Read Opens in new tab
Summary AI
The section defines limitations on the issuance of patents for mining claims, millsites, or tunnel sites, stating that no patent will be issued unless an application was filed by September 30, 1994, and all legal requirements were met. It also notes that the right to a patent is revoked if the determinations are withdrawn or invalidated, and it repeals a related section of the Revised Statutes.
102. Fees Read Opens in new tab
Summary AI
The section outlines the fee requirements for holders of unpatented mining claims, millsites, or tunnel sites, including a yearly maintenance fee of $200, with specific provisions for waivers and adjustments based on the Consumer Price Index. It also introduces a $50 location fee for new claims and describes the use of collected funds for program operations, while ensuring compliance with existing land management laws.
Money References
- Fees. (a) Claim maintenance fees.— (1) IN GENERAL.—Not later than August 31, 2027, and each August 31 thereafter, the holder of each unpatented mining claim, millsite, or tunnel site shall pay to the Secretary a maintenance fee of $200 for each claim, millsite, or tunnel site.
- — (1) IN GENERAL.—Subject to paragraph (2) and notwithstanding any other provision of law, for each unpatented mining claim, millsite, or tunnel site 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 to the Secretary a location fee of $50 for each claim for each location notice recorded with the Bureau of Land Management. (2) ADJUSTMENT.— (A) IN GENERAL.—Subject to subparagraph (B), beginning on the date that is 5 years after the date of enactment of this Act and every 5 years thereafter, the Secretary shall adjust the amount of location fees required under paragraph (1) to reflect changes in the Consumer Price Index for all urban consumers published by the Department of Labor.
103. Limitations Read Opens in new tab
Summary AI
In this section, if a claim holder does not meet certain requirements, like doing proper work on or paying fees for a mining claim or filing necessary documents, their claim will be automatically lost and considered invalid. Additionally, if someone decides to give up their claim, they must inform the Secretary and are still responsible for any obligations. Any mining claim can only be used for activities related to minerals, and failure to do so can lead to the Secretary declaring the claim invalid.
201. Royalty Read Opens in new tab
Summary AI
The section explains that mining operations on federal land must pay a royalty between 5% and 8% on the income from minerals, unless they have an existing permit that was in place when the law was enacted. Royalties collected will be added to the Fund.
202. Royalty relief Read Opens in new tab
Summary AI
The section allows the Secretary to lower or reduce the royalties that a mining operation is required to pay, but only if clear and convincing evidence is provided to show that production wouldn't happen without the reduction. Any reduction in royalties will only take effect 60 days after the Secretary announces it publicly and informs the relevant Senate and House committees, explaining why the reduction is being granted.
203. Enforcement Read Opens in new tab
Summary AI
The text outlines the responsibilities and rules related to the enforcement of mineral extraction laws on federal lands. It describes duties for the Secretary and claim holders, requirements for payment and recordkeeping, penalties for non-compliance or false reporting, and details on cooperative agreements, interest on late payments, and both civil and criminal penalties. Additionally, it provides directives for audits, hearings, and investigations to ensure adherence to these regulations.
Money References
- (i) Civil penalties.— (1) FAILURE TO COMPLY WITH APPLICABLE LAW, RULES OR REGULATIONS, OR TO PERMIT INSPECTION.— (A) IN GENERAL.—Except as provided in subparagraph (B), a person shall be liable for a penalty of up to $500 per violation for each day the violation continues, dating from the date of the notice or report, if the person— (i) after due notice of violation or after the violation has been reported under subparagraph (B)(i), fails or refuses to comply with any requirement of this title or section 402 or any rule or regulation under this title or section 402; or (ii) fails or refuses to permit inspection authorized under this title.
- (2) FAILURE TO TAKE CORRECTIVE ACTION.—If corrective action is not taken within 40 days (or a longer period to which the Secretary may agree), after due notice or submission of a report referred to in paragraph (1)(A)(i), the person shall be liable for a civil penalty of not more than $5,000 per violation for each day the violation continues, dating from the date of the notice or report.
- (3) FAILURE TO MAKE PAYMENT OR TO PERMIT LAWFUL ENTRY, INSPECTION, OR AUDIT.—A person shall be liable for a penalty of up to $10,000 per violation for each day the violation continues if the person— (A) knowingly or willfully fails to make any payment of any royalty under this title or fee under section 402 by the date as specified by law (including regulation or order); (B) fails or refuses to permit lawful entry, inspection, or audit; or (C) knowingly or willfully fails to comply with subsection (b)(2)(C). (4) FALSE INFORMATION; UNAUTHORIZED REMOVAL OF LOCATABLE MINERAL.—A person shall be liable for a penalty of up to $25,000 per violation for each day the violation continues in any case in which the person, in violation of this title or section 402— (A) knowingly or willfully prepares, maintains, or submits false, inaccurate, or misleading reports, notices, affidavits, records, data, or other written information; (B) knowingly or willfully takes or removes, transports, uses or diverts any locatable mineral from any land covered by a mining claim without having valid legal authority to do so; or (C) purchases, accepts, sells, transports, or conveys to another, any locatable mineral knowing or having reason to know that the locatable mineral was stolen or unlawfully removed or diverted.
- (j) Criminal penalties.—Any person who commits an act for which a civil penalty is provided under subsection (i)(4) shall, on conviction, be punished by a fine of not more than $50,000 or by imprisonment for not more than 2 years, or both. (k) Effective date.— (1) IN GENERAL.—Except as provided in section 201(b) with respect to the payment of royalties, the royalty required under section 201 or fee required under section 402 shall take effect with respect to the production of minerals on or after the date of enactment of this Act.
204. Review Read Opens in new tab
Summary AI
The Review section requires the Secretary to conduct a review every 5 years and report to Congress on how the collections from royalties and fees related to mining are managed. The report will cover topics such as total annual revenues from different types of fees, how these funds are used, the program's effectiveness in dealing with abandoned mines, the impact on mining activities, and any suggestions for changes to laws about fee collection.
301. Permits Read Opens in new tab
Summary AI
In Section 301 of the bill, it states that individuals must obtain a permit to perform mining activities on Federal land that might disturb the environment, such as land and wildlife, unless the activities are minor and don't need one. The section also explains that the requirement for a permit doesn't change other legal rules about mining claims and should align with the National Environmental Policy Act's processes as much as possible.
302. Exploration permits Read Opens in new tab
Summary AI
An exploration permit is required for exploration activities on Federal land that go beyond casual use, and these permits do not allow for mineral removal for sale, but only for exploration or reclamation activities. To obtain a permit, applicants must submit detailed plans demonstrating compliance with laws and regulations, financial assurances, and potential impact assessments. The Secretary will approve or deny permits based on compliance with applicable laws, and may modify permits if necessary, following a consultation process involving public notice and, possibly, hearings.
303. Mining permits Read Opens in new tab
Summary AI
A mining permit is required for conducting mineral activities on federal land, except for casual use or exploration, and to obtain one, a person must submit a detailed application, including plans for operations, reclamation, and compliance with environmental laws. The Secretary can approve or deny the permit based on compliance with laws and regulations, set conditions, and allow for modifications or temporary halts in operations; operators must also pay land use fees and follow interim management plans during any cessation of activities.
304. Financial assurances Read Opens in new tab
Summary AI
The section outlines the requirements for financial assurances that operators must provide before starting mineral activities to guarantee land and water reclamation. It details how these assurances should be maintained, reviewed, and adjusted, includes conditions under which they can be reduced or released, and requires a report on the effectiveness and sufficiency of such assurances.
305. Transfer, assignment, or sale of right Read Opens in new tab
Summary AI
The Secretary can approve the transfer, assignment, or sale of an exploration or mining permit only if the new owner agrees in writing to take over all responsibilities and liabilities, including financial assurance requirements. The original owner remains liable for other legal or permit obligations.
306. Operation and reclamation Read Opens in new tab
Summary AI
The section outlines rules for restoring land affected by mining activities, mandating that operators return areas to their previous or other beneficial conditions. It also requires reclamation to happen alongside mining operations whenever possible, restricts mineral activities to prevent land degradation, and ensures compliance with existing laws through coordinated regulations by relevant federal authorities.
307. Land open to location Read Opens in new tab
Summary AI
The section amends the Federal Land Policy and Management Act to expand the review process for certain public lands to determine if they should be closed to mining and other mineral activities. It allows officials to petition for these reviews and outlines the steps for possibly removing land from mining operations under the Mining Law of 1872 if deemed necessary.
308. State law Read Opens in new tab
Summary AI
State laws that set standards or requirements for things like reclamation, environmental protection, public health, bonding, or inspections, which meet or go beyond the requirements of this federal Act, are allowed and not seen as conflicting with the Act.
309. Inspection and monitoring Read Opens in new tab
Summary AI
The section outlines the requirements for inspections and monitoring of mineral activities to ensure they comply with the relevant laws. It specifies the frequency of inspections and mandates operators to maintain a system to monitor compliance and submit the necessary reports.
310. Tribal consultation Read Opens in new tab
Summary AI
The section outlines the requirement for the Secretary to actively and meaningfully consult with Indian Tribes before starting any mineral activities that might affect their lands, resources, cultural practices, or government services. This consultation is necessary to respect the rights and responsibilities the Federal Government has towards Indian Tribes, as established by a specific Presidential Memorandum on Tribal Consultation.
401. Establishment of Fund Read Opens in new tab
Summary AI
The section establishes the "Hardrock Minerals Reclamation Fund" in the U.S. Treasury, which will receive money from various sources, such as appropriations, collections, and donations, to be invested in government securities. The fund's money is managed by the Secretary through the Bureau of Land Management to be used for infrastructure and other related projects, with appropriations authorized for fiscal year 2026 and beyond.
402. Abandoned mine land reclamation fee Read Opens in new tab
Summary AI
The section imposes a reclamation fee on operators of hardrock mineral mines, ranging from 1% to 3% of the production value each year, with the fee to be paid within 60 days after the year ends. The collected fees are deposited into a specific fund, and the section does not affect any similar state fees.
501. Transition rules Read Opens in new tab
Summary AI
The section outlines the rules for transitioning under a new mining-related law. It specifies that the law's requirements will apply to mining claims and sites before, on, or after its enactment, and details exceptions for preexisting claims. It mandates that operations comply with the new law within ten years, and that all fees be applicable immediately upon enactment. The section also clarifies that the law applies to both federally and non-federally owned minerals used in specific activities on federal land.
502. Enforcement Read Opens in new tab
Summary AI
The section outlines the enforcement measures for violations related to surface management or operation requirements, including issuing notices for violations and orders to stop mineral activities when there is a danger to public health or the environment. It also describes civil penalties and possible legal actions against violators, as well as criminal penalties for making false statements or engaging in mineral activities without a permit.
Money References
- (3) MAXIMUM AMOUNT.—The penalty shall not exceed $5,000 for each violation.
- (e) Criminal penalties.— (1) FALSE STATEMENTS; TAMPERING.— (A) IN GENERAL.—A person shall, on conviction, be punished by a fine of not more than $25,000, imprisonment for not more than 1 year, or fine and imprisonment if the person willfully and knowingly— (i) makes any false material statement, representation, or certification in, omits or conceals material information from, or unlawfully alters, any mining claim, notice of location, application, record, report, plan, or other document filed or required to be maintained under this Act; or (ii) falsifies, tampers with, renders inaccurate, or fails to install any monitoring device or method required to be maintained under this Act.
- (B) SECOND VIOLATION.—If a conviction of a person under subparagraph (A) is for a violation committed after a first conviction of the person under that subparagraph, punishment shall be by a fine of not more than $50,000, imprisonment of not more than 2 years, or fine and imprisonment.
- (2) KNOWING VIOLATIONS.— (A) IN GENERAL.—A person shall, on conviction, be punished by a fine of not more than $25,000, imprisonment for not more than 1 year, or both if the person willfully and knowingly— (i) engages in mineral activities without a permit if required under section 302 or 303; or (ii) violates any surface management or operation requirement under title III (including any regulation promulgated to carry out the requirement) or any requirement, condition, or limitation of a permit issued under this Act.
- (B) SECOND VIOLATION.—If a conviction of a person under subparagraph (A) is for a violation committed after the first conviction of the person under that subparagraph, punishment shall be a fine of not more than $50,000, imprisonment of not more than 2 years, or both. (f) Delegation.—Notwithstanding any other provision of law, the Secretary may use personnel of the Office of Surface Mining Reclamation and Enforcement or the Bureau of Land Management to ensure compliance with this Act.
503. Judicial review Read Opens in new tab
Summary AI
The section explains that any final actions by the Secretary connected to making rules under the Act can only be challenged in the United States Court of Appeals for the District of Columbia, with a deadline for filing such challenges within 60 days. Final agency actions not covered by this rule can be reviewed in U.S. district courts, following specific legal procedures.
504. Uncommon varieties Read Opens in new tab
Summary AI
The section changes how uncommon mineral varieties are defined and disposed of under U.S. law. It specifies the conditions under which deposits of these materials can be disposed of and updates certain legal terms to align with another existing law, the Materials Act of 1947.
3. Common varieties of mineral materials Read Opens in new tab
Summary AI
The section discusses that common types of mineral materials do not fall under a particular deposit category, implying they are treated differently from more rare or valuable minerals.
505. Review of uranium development on Federal land Read Opens in new tab
Summary AI
The section requires a review and study of uranium development on Federal land to ensure it's regulated effectively and safely. Findings and recommendations from this study will be provided to government leaders, who will then have to decide how to implement them while considering public health, safety, and environmental protection.
506. Effect Read Opens in new tab
Summary AI
The section preserves existing laws and protections related to mining and the environment. It emphasizes that the Act does not change pre-existing laws or environmental assessments, and it overrides general mining laws only where expressly stated, while allowing Federal or State agencies to continue their investigations independently.