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To provide for certain requirements relating to the conversion of oil shale mining

claims located under the General Mining Law of 1872 to leases, and for

other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 25 (legislative day, JANUARY 3), 1989 Mr. WIRTH (for himself, Mr. JOHNSTON, and Mr. BUMPERS) introduced the fol

lowing bill; which was read twice and referred to the Committee on Energy and Natural Resources

A BILL To provide for certain requirements relating to the conversion of

oil shale mining claims located under the General Mining Law of 1872 to leases, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act shall be known as the “Oil Shale Mining 4 Claims Conversion Act".

5 SEC. 2. Notwithstanding any other provision of law, 6 with respect to any oil shale mining claim located prior to 7 enactment of the Mineral Leasing Act of 1920 (30 U.S.C. 8 181, et seq.; 41 Stat. 437), no patent for such claim shall be

9 issued after January 25, 1989, except for those claims for

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1 which a patent application had been filed and all require2 ments for a patent had been fully complied with by such date. 3 SEC. 3. (a) The owner of any valid oil shale mining 4 claim located pursuant to the General Mining Law of 1872, 5 as amended (30 U.S.C. 22, et seq.; 17 Stat. 91) prior to 6 enactment of the Mineral Leasing Act of 1920 shall make an 7 election under subsection (b) or subsection (c) of this section.

8 The election shall be made within one hundred and eighty 9 days after the enactment of this Act. Failure to make an 10 election within such period shall be deemed conclusively to

11 constitute an abandonment of the oil shale claim. Not later

12 than thirty days after the enactment of this subsection, the 13 Secretary shall notify the owner of each such claim of the 14 election required under this subsection. 15 (b) The holder of a claim required to make an election 16 under this section may elect to convert such claim to a lease. 17 Such lease shall be issued within sixty days after any such 18 election and administered in accordance with those provisions 19 of the Mineral Leasing Act, as amended, applicable to leases 20 for deposits of oil shale, except as follows:

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(1) The term of the lease shall be for twenty

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years and for so long thereafter as shale oil is produced annually in commercial quantities from the lease;

(2) the acreage limitations contained in section

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(3) the first and second provisos of section 21(a)

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(4) the limitation on the number of leases to be

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granted to any one person, association, or corporation

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contained in section 21(a) shall not apply; and

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(5) the royalty shall be not less than 1242 per centum in amount or value of production removed or

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sold from the lease.

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(c) The holder of a claim required to make an election

10 under this section may elect to maintain the claim by comply

11 ing with the mining laws of the United States and with the 12 provisions of this Act, including the following: 13

(1) Notwithstanding any other provision of law, 14 commencing with the date of enactment of this provi

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sion, on each claim $1,000 worth of labor shall be per

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formed or improvements made during each and every year. The failure to fulfill this requirement each and every year shall be deemed conclusively to constitute an abandonment of the oil shale mining claim.

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(2) Notwithstanding any other provision of law, in

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addition to the requirements set forth in section 314 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744; 90 Stat. 2769), the owner of an unpatented oil shale mining claim shall file annually in the office of the Bureau of Land Management designat

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ed by the Secretary of the Interior an affidavit of assessment work performed thereon. The failure to file the affidavit shall be deemed conclusively to constitute an abandonment of the oil shale mining claim.

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5 SEC. 4. The Mineral Leasing Act, as amended (30 6 U.S.C. 181 et seq.; 41 Stat. 437) is amended by inserting 7 after section 44, the following new section:

8 "SEC. 45. PROHIBITION ON LEASE ISSUANCE.

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“The Secretary shall not issue, or approve the assign

10 ment of, a lease or leases under the terms of this Act to any

11 person, association, corporation, or any subsidiary, affiliate, 12 or person controlled by or under common control with such 13 person, association, or corporation, where any such entity 14 holds an oil shale mining claim located under the General 15 Mining Law of 1872 (30 U.S.C. 22, et seq.; 17 Stat. 91).". 16 Sec. 5. In addition to other applicable requirements, 17 any person who holds a lease pursuant to subsection 3(b) of 18 this Act or who maintains an oil shale mining claim pursuant 19 to subsection 3(c) of this Act shall be required to reclaim the 20 site subject to such lease or claim and to post a bond before 21 disturbance of the site to guarantee such reclamation. Any 22 person who holds a lease issued or readjusted pursuant to 23 section 21 of the Mineral Lands Leasing Act of 1920 after 24 the date of enactment of this Act shall also be subject to such 25 requirements. The Secretary of the Interior shall promulgate

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1 such regulations as may be necessary to implement this sec

2 tion.

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