Potash Royalty Reduction Act of 2005

        [Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 485 Referred in Senate (RFS)]

1st Session
H. R. 485

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 17, 2005

Received; read twice and referred to the Committee on Energy and
Natural Resources

_______________________________________________________________________

AN ACT

To provide that the royalty rate on the output from Federal lands of
potassium and potassium compounds from the mineral sylvite in the 5-
year period beginning on the date of the enactment of this Act shall be
reduced to 1.0 percent, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

TITLE I--POTASH ROYALTY REDUCTION

SEC. 101. SHORT TITLE.

This title may be cited as the ``Potash Royalty Reduction Act of
2005''.

SEC. 102. POTASSIUM AND POTASSIUM COMPOUNDS FROM SYLVITE.

(a) Royalty Rate.--Notwithstanding section 102(a)(9) of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1701(a)(9)), section
2 of the Act of February 7, 1927 (30 U.S.C. 282) and the term of any
lease issued under such section 2, the royalty rate on the quantity or
gross value of the output from Federal lands of potassium and potassium
compounds from the mineral sylvite at the point of shipment to market
in the 5-year period beginning on the date of the enactment of this Act
shall be 1.0 percent.
(b) Reclamation Fund.--Fifty percentum of any royalties paid
pursuant to this title during the 5-year period referred to in
subsection (a), together with any interest earned from the date of
payment, shall be paid by the Secretary of the Treasury to the payor of
the royalties to be used solely for land reclamation purposes in
accordance with a schedule to implement a reclamation plan for the
lands for which the royalties are paid. No payment shall be made by the
Secretary of the Treasury pursuant to this subsection until the
Secretary of the Interior receives from the payor of the royalties, and
approves, the reclamation plan and schedule, and submits the approved
schedule to the Secretary of the Treasury. The share of royalties held
by the Secretary of the Treasury pursuant to this subsection, and
interest earned thereon, shall be available until paid pursuant to this
subsection, without further appropriation; shall not be considered as
money received under section 35 of the Mineral Leasing Act (30 U.S.C.
191) for the purpose of revenue allocation; and shall not be reduced by
any administrative or other costs incurred by the United States.
(c) Study and Report.--After the end of the 4-year period beginning
on the date of the enactment of this Act, and before the end of the 5-
year period beginning on that date, the Secretary of the Interior shall
report to the Congress on the effects of the royalty reduction under
this title, including a recommendation on whether the reduced royalty
rate for potassium from sylvite should apply after the end of the 5-
year period.

TITLE II--SODA ASH ROYALTY REDUCTION

SEC. 201. SHORT TITLE.

This title may be cited as the ``Soda Ash Royalty Reduction Act of
2005''.

SEC. 202. FINDINGS.

The Congress finds the following:
(1) The combination of global competitive pressures, flat
domestic demand, and spiraling costs of production threaten the
future of the United States soda ash industry.
(2) Despite booming world demand, growth in United States
exports of soda ash since 1997 has been flat, with most of the
world's largest markets for such growth, including Brazil, the
People's Republic of China, India, the countries of eastern
Europe, and the Republic of South Africa, have been closed by
protectionist policies.
(3) The People's Republic of China is the prime competitor
of the United States in soda ash production, and recently
supplanted the United States as the largest producer of soda
ash in the world.
(4) Over 700 jobs have been lost in the United States soda
ash industry since the Department of the Interior increased the
royalty rate on soda ash produced on Federal land, in 1996.
(5) Reduction of the royalty rate on soda ash produced on
Federal land will provide needed relief to the United States
soda ash industry and allow it to increase export growth and
competitiveness in emerging world markets, and create new jobs
in the United States.

SEC. 203. REDUCTION IN ROYALTY RATE ON SODA ASH.

Notwithstanding section 102(a)(9) of the Federal Land Policy
Management Act of 1976 (43 U.S.C. 1701(a)(9)), section 24 of the
Mineral Leasing Act (30 U.S.C. 262), and the terms of any lease under
that Act, the royalty rate on the quantity or gross value of the output
of sodium compounds and related products at the point of shipment to
market from Federal land in the 5-year period beginning on the date of
the enactment of this Act shall be 2 percent.

SEC. 204. STUDY.

After the end of the 4-year period beginning on the date of the
enactment of this Act, and before the end of the 5-year period
beginning on that date, the Secretary of the Interior shall report to
the Congress on the effects of the royalty reduction under this title,
including--
(1) the amount of sodium compounds and related products at
the point of shipment to market from Federal land during that
4-year period;
(2) the number of jobs that have been created or maintained
during the royalty reduction period;
(3) the total amount of royalty paid to the United States
on the quantity or gross value of the output of sodium
compounds and related products at the point of shipment to
market produced during that 4-year period, and the portion of
such royalty paid to States; and
(4) a recommendation of whether the reduced royalty rate
should apply after the end of the 5-year period beginning on
the date of the enactment of this Act.

Passed the House of Representatives May 16, 2005.

Attest:

JEFF TRANDAHL,

Clerk.