Prospecting licenses and hardrock leases

(a) In general No person may conduct mineral prospecting for commercial purposes for any hardrock mineral on Federal land without a prospecting license or a small miner’s lease. (b) Prospecting licenses (1) In general The Secretary may, under such regulations as the Secretary may issue and with the concurrence of the relevant surface management agency, grant an applicant a prospecting license that shall give the exclusive right to prospect for specified hardrock minerals on Federal land for a period not longer than 2 years. (2) Maximum area The area subject to a prospecting license granted under paragraph (1) shall not exceed 2,560 acres of land, in reasonably compact form. (3) Prospecting license application fee The Secretary shall charge a fee for each prospecting license application to cover the costs of reviewing such application. (4) Annual rental Each prospecting license granted under paragraph (1) shall be subject to annual rentals equal to $10 per acre per year. (5) Terms and conditions A prospecting license shall conform with the terms and conditions of a comprehensive land use plan approved under— (A) the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.); or (B) the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et seq.). (6) Areas without approved comprehensive land use plan For land covered by a prospecting license for which a comprehensive land use plan treating hardrock mining as a multiple-use activity has not been completed, the Secretary concerned shall ensure that such land is suitable for mineral activities. (7) Extension The Secretary may extend a prospecting license granted under this subsection for not more than additional 4 years upon a showing by the licensee that— (A) the licensee explored with reasonable diligence and was unable to determine the existence and workability of a valuable mineral deposit covered by the license; or (B) if the licensee failed to perform diligent prospecting activities, such failure was due to conditions beyond the control of the licensee. (c) Noncompetitive leases (1) In general Upon a showing to the satisfaction of the Secretary by a prospecting licensee under subsection (a) that a valuable mineral deposit has been discovered by the licensee within an area covered by the prospecting license and with the consent of the surface agency, the licensee shall be entitled to a lease for any or all of the land included in the prospecting license, as well as any nonmineral lands necessary for processing or milling operations, at a royalty of not less than 12.5 percent of the gross value of production of hardrock minerals or mineral concentrates or products derived from hardrock minerals under the lease. (2) Rentals (A) In general Rentals for a lease under this section shall be set by the Secretary at not less than $10 per acre per year, with rentals paid in any 1 year credited against royalties accruing for that year. (B) Operations permit A lessee under this section is not entitled to an operations permit. (3) Lease period (A) In general A lease under this subsection shall be for a period of 20 years, with the right to renew for successive periods of 10 years if hardrock minerals are being produced in commercial quantities under the lease. (B) Extension during nonproduction The Secretary may issue not more than 1 10-year extension of a lease under this subsection if hardrock minerals are not being produced in commercial quantities at the end of the primary, or any subsequent, term of such lease and— (i) it is in the interest of conservation or reclamation maintenance; (ii) the lessee shows that the lease cannot be successfully operated at a profit; or (iii) the Secretary determines that issuing such extension is appropriate. (C) Definition of commercial quantities In this paragraph, the term commercial quantities means any economic amount sold, bartered, or traded for profit. (d) Cumulative acreage limitation No person may take, hold, own, or control at 1 time, whether acquired directly from the Secretary under this Act or otherwise, hardrock mining leases or licenses for an aggregate of more than 20,480 acres in any 1 State. (e) Reduction of royalty rate (1) In general Subject to paragraph (2), the Secretary— (A) may reduce the royalty rate for a lease under this section upon a showing by clear and convincing evidence by the operator that production would not occur without the reduction in royalty rate; and (B) may reduce the royalty and rental rates for a lease under this section to encourage exploration for and development of critical minerals (as such term is defined in section 7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)). (2) Limitation The Secretary may not reduce the royalty rate for a lease pursuant to paragraph (1) to less than 6.25 percent. (f) Protection of land and other resources The Secretary, in consultation with any applicable surface management agency, may include in any lease or license issued under this Act such provisions as are necessary to adequately protect land and other resources in the vicinity of the area subject to the lease or license.