Sec. 105. Small miner’s lease
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/bill/119/hr/1865/ih/section-105·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary may issue a small miner’s lease to a qualified small miner that applies, under such regulations as the Secretary may issue, including conditions to require diligent development of such lease and to ensure protection of surface resources and ground water. A small miner’s lease shall give the lessee the exclusive right to prospect for hardrock minerals for 3 years on not more than 200 acres of contiguous or noncontiguous Federal land. The Secretary shall charge a reasonable application fee for a small miner’s lease under this subsection (a).
Annual rentals for a small miner’s lease issued under this section shall be $5 per acre per year for the first 3 years. A small miner’s leases issued under this section may be renewed for any number of additional 3-year periods. The rental for such a renewed lease shall be $10 per acre per year rental charged. Any individual may file a challenge with the Secretary that a lessee is in violation of the diligence terms of a small miner’s lease or does not qualify as a small miner.
A small miner’s lease that is subject to a challenge under paragraph
(1)may not be renewed unless the Secretary has determined that the lessee is a small miner and is in compliance with all the terms of the small miner’s lease. The Secretary shall not charge royalties for commercial production under a small miner’s lease. A claim existing on the effective date of this Act that belongs to an individual that qualifies as a small miner may be converted to a small miner’s lease under the same terms and conditions that apply to a small miner’s lease under this section, except that such lease— shall not be subject to rental during the primary term of the lease; shall be subject to a rental of $5 per acre per year for the first 3-year renewal of the lease; and shall be subject to a rental of $10 per acre per year for any subsequent 3-year renewal of the lease. A small miner’s lease— may only be held by the primary lease holder, a spouse thereof, or a direct descendent thereof; may not be sold or transferred, other than to a spouse or direct descendent of the primary lease holder; and is subject to all permitting requirements under this Act. If, with regard to a small miner’s lease, the lessee does not qualify as a small miner at the time such lessee applies for a renewal of such lease, such lessee shall not be eligible to renew such lease, but shall be eligible for a noncompetitive hardrock mineral lease issued under section 103(c). Notwithstanding section 103(c)(1), royalties under a small miner’s lease converted to a hardrock mineral lease under this subsection shall only be due on the gross income that exceeds $50,000 annually or the amount of gross income specified by the Secretary as of the time such noncompetitive lease is issued.