We strongly recommend early enactment of S. 1713 with one clarifying amendment as subsequently described.

S. 1713 is identical to H.R. 5561, 5563, 5572, 5595, 5742, and almost identical to H.R. 5577.

This bill would apply to all lands of the United States subject to the general mining laws. Its major provisions are

(1) Common varieties of sand, stone, gravel, pumice, pumicite, and cinders would be removed from the purview of the United States mining laws and made subject to disposal only under the provisions of the Materials Act of July 31, 1947 (61 Stat. 681), by the Secretary of Agriculture for lands under his jurisdiction and by the Secretary of the Interior for other public lands of the United States.

(2) Mining claims located after enactment of the bill could not, prior to patent, be used for other than mining purposes without authorization from the United States, and such locations would be subject to the right of the United States to manage and dispose of the vegetative surface resources, to manage other surface resources thereof (except minerals subject to the mining laws) and to use so much of the surface as necessary for such purposes or for access to adjacent land; provided that any use of the surface by the United States, its permittees or licensees, could not endanger or materially interfere with mining uses. Mining claimants could not use surface resources subject to management and disposal by the United States except to the extent required for mining purposes, and any timber cut for such purposes, except for clearance, must be in accordance with sound principles of forest management.

(3) Under a procedure similar to that provided in Public Law 585 of the 83d Congress, the Secretary of the Interior shall, at the request of the Federal department having the responsibility for administering the surface of lands of the United States, initiate action for a determination of surface rights as to a given area. Under this procedure, a holder of a claim located prior to enactment of this bill could assert and establish his rights in the lands covered by his claim, and such claim would be unaffected by the proceedings. If such a claimant fails to establish his rights, or fails to assert his rights, or if he voluntarily waives his rights to the surface, he will be in the same position as a holder of a claim located after enactment of this bill. The procedure does not affect the right of a claimant to apply for patent, and if patent is granted he would acquire the same title as he would under the existing law.

We believe S. 1713, if enacted, would go far toward correcting some of the very difficult problems confronting this Department in its administration of those national forests and title III Bankhead-Jones lands subject to the general mining laws of the United States. We also believe that for the first time an area of agreement has been reached on this problem between the administrators of public lands under the jurisdiction of both the Departments of the Interior and Agriculture, representatives of the mining industry, and conservation groups.

The Department of Agriculture desires to encourage legitimate prospecting and effective utilization and development of mineral resources of the national forests and title III lands. We would not favor legislation which would interfere with such development of minerals nor work hardship on the bona fide prospector or miner. We also recognize that the mining industry does not condone the use of mining claims on the public lands for other than mining purposes.

However, on the national forests the mining laws are sometimes used to obtain claim or title to valuable timber, summer home sites, or lands blocking access to Government timber and to water needed in the grazing use of the national forests. As of January 1, 1952, there were 36,600 mining patents on the national forests, covering 918,500 acres. Only about 15 percent of these mining patents have been or are commercially successful mines. As of the same date, there were approximately 84,000 claims, covering 2.2 million acres. Only 2 percent of these claims were producing minerals in commercial quantities and probably not more than 40 percent could be considered valid under the requirements of the mining laws. Yet, on these national-forest claims, there were tied up over 8 billion feet of commercial sawtimber, valued at about $100 million which the Government could not sell without consent of the claimant. In other words, national-forest timber exceeding in quantity and value that cut from all national forests in any 1 year is tied up on mining claims and cannot be sold by the Government. The two tables attached to this report supply these basic statistics by States.

The effect of this situation is increased costs of administration, obstruction of orderly management and competitive sale of timber, and obtaining high-value, publicly owned surface resources by a few individuals at nominal cost.

In the last 3 years there has been a tremendous increase in the number of mining claims on the national forests, principally as the result of prospecting for uranium and other fissionable materials. For example, as of January 1, 1955, it is estimated that there were 166,000 claims on the national forests, covering nearly 4 million acres, or about a 100-percent increase in the past 3 years. At the rate claims are currently being filed, we estimate that by the end of this calendar year there will be about 225,000 mining claims on the national forests. It is also estimated conservatively that there are now over 10 billion board feet of timber tied up on national-forest mining claims, having a current stumpage value of $112 million.

Following is an estimate of the number of claims and included acreage by States in the national forests as of January 1, 1955:

The number of claims is "snowballing" so fast that the situation on the national forests is rapidly getting out of hand. The above summary, for example, shows that there are nearly 7 times as many mining claims in Arizona as 3 years ago, and nearly 4 times as many in New Mexico and Utah. The increase has been large in other States, too. Equitable corrective action as would be provided by S. 1713 is urgently needed. It is needed quickly because new claims are being filed at the rate of about 5,000 per month.

We suggest the following be added after the word "except" in line 22, page 3: "that revenues from the lands described in the act of August 28, 1937 (50 Stat. 874), and the act of June 24, 1954 (68 Stat. 270), shall be disposed of in accordance with the provisions of such acts, and except".

The purpose of this amendment is to make it clear that revenues from O. and C. lands under the administration of the Department of the Interior and lands administered by the Department of Agriculture under the 1954 act will be placed in the O. and Č. fund.

To effectively implement the provisions of S. 1713, particularly those of section 5, it is estimated that about $750,000 to $1 million would be needed annually by this Department for roughly a 10-year period, after which costs would drop to a relavitely small amount. After claims located prior to enactment of the bill had been processed in accord with section 5, costs relating to this bill would be limited primarily to costs of issuing permits for disposal of materials under the Materials Act. Such costs would be offset in whole or in part by revenues from such permits. In summary, this Department recommends enactment of S. 1713 since it will do much to solve the serious problems presented by mining claims in the management of public lands and resources. It will correct deficiencies in the mining laws and prevent many of the abuses by other than bona fide miners, but it will not obstruct or interfere with bona fide mineral prospecting, mining, and development. The Department is anxious to see these measures taken and strongly endorses the bill. However, S. 1713 does not include all of the changes in the mining laws which would be desirable from a good public land management standpoint and some problems would remain with respect to mining on the national forests and title III lands that this bill would not correct.

The Bureau of the Budget advises that, from the standpoint of the program of the President, there is no objection to the submission of this report.

Sincerely yours,

TRUE D. MORSE, Under Secretary.

Estimated number of unpatented mining claims on the national forests (as of Jan.

1, 1952)

Patented mining claims on the national forests (as of Jan. 1, 1952)

368,000 8,425,000 440,000

2,000,000 36, 307,000 542, 000 40,000

417,000

103, 527,000

Estimated percent which are or have. ever been commercial mining operations

Chairman, Committee on Interior and Insular Affairs,
United States Senate, Washington 25, D.C.

MY DEAR MR. CHAIRMAN: This is in reply to the request from your committee for the views of the Bureau of the Budget with respect to S. 687, to authorize the Secretary of Agriculture to protect the timber and other surface values of lands within the national forests, and for other purposes, and S. 1713, to amend the act of July 31, 1947 (61 Stat. 681), and the mining laws to provide for multiple use of the surface of the same tracts of the pyblic lands, and for other purposes. It is our understanding that S. 1713 supersedes S. 687, therefore, our remarks are directed to S. 1713.

This bill would remove common varieties of sand, stone, gravel, pumicite, and cinders from the purview of the United States mining laws and make them subject to disposal only under the provisions of the so-called Materials Act of July 31, 1947 (61 Stat. 681). Disposal of such materials would be by the Secretary of Agriculture for lands under his jurisdiction and by the Secretary of the Interior for other public lands.

Mining claims located after enactment of the bill could not, prior to patent, be used for other than mining purposes and such locations would be subject to the right of the United States to manage and dispose of the vegetative surface resources, to manage other surface resources (except minerals subject to location under the United States mining laws) and to use so much of the surface as necessary for such purposes or for access to adjacent lands. However, any use of the surface by the United States, its permittees and licensees, must not endanger or materially interfere with mining uses. Locators of mining claims could not use surface resources subject to management and disposal by the United States except to the extent required for mining purposes, and any timber cut for such purposes, except for clearance, must be in accordance with sound principles of forest management. Upon issuance of a patent the owner of the claim would receive the same title to the land, including timber if any, as he would under existing law.

The bill would set forth a procedure whereby the Secretary of the Interior shall, at the request of the Federal Department having the responsibility for administering the surface of the lands, initiate action for a determination of surface rights. Under this procedure, a holder of a claim located prior to enactment of this bill could assert and establish his rights in the lands covered by his claim, and such claim would be unaffected by the proceeding. If the claimant fails to establish his rights, or fails to assert his rights, or if he voluntarily waives his rights to the surface, he will be in the same position as a holder of a claim located after enactment of the bill.

It is our understanding that general agreement has been reached among the mining industry, some conservation groups, and the Federal agencies concerned, and that this general agreement is reflected in the provisions of the bill, which would be of material aid in the management of public lands and their resources in the future.

This Bureau would have no objection to the enactment of S. 1713.
Sincerely yours,

DONALD R. BELCHER,
Assistant Director.

CHANGES IN EXISTING LAW

In compliance with the Cordon rule (subsec. (4) of rule XXIX of the Standing Rules of the Senate), changes in existing law made by the bill, S. 1713, as reported, are shown as follows (existing law proposed to be repealed is enclosed in black brackets, additions to existing law are italicized; existing law in which no change is proposed is shown in roman):

SECTION 1 OF THE ACT OF JULY 31, 1947 (61 STAT. 681)

[That the Secretary of the Interior, under such rules and regulations as he may prescribe, may dispose of materials including but not limited to sand, stone, gravel, yucca, manzanita, mesquite, cactus, common clay, and timber or other forest products, on public lands of the United States if the disposal of such materials (1) is not otherwise expressly authorized by law, including the United States mining laws, (2) is not expressly prohibited by laws of the United States, and (3) would not be detrimental to the public interest. Such materials may be disposed of only in accordance with the provisions of this Act and upon the payment of adequate compensation therefor, to be determined by the Secretary: Provided, however, That, to the extent not otherwise authorized by law, the Secretary is authorized in his discretion to permit any Federal, State, or Territorial agency, unit or subdivision, including municipalities, or any person, or any association or corporation not organized for profit, to take and remove, without charge, materials and resources subject to this Act, for use other than for commercial or industrial purposes or resale. Where the lands have been withdrawn in aid of a function of a Federal department or agency other than the Department of the Interior or of a State, Territory, county, municipality, water district, or other local governmental subdivision or agency, the Secretary of the Interior may make disposals under this Act only with the consent of such Federal department or agency or of such State, Territory, or local governmental unit. Nothing in this Act shall be construed to apply to lands in any national forest, national park, or

national monument or to any Indian lands, or lands set aside or held for the use or benefit of Indians, including lands over which jurisdiction has been transferred to the Department of the Interior by Executive order for the use of Indians.]

The Secretary, under such rules and regulations as he may prescribe, may dispose of mineral materials (including but not limited to common varieties of the following: sand, stone, gravel, pumice, pumicite, cinders and clay) and vegetative materials (including but not limited to yucca, manzanita, mesquite, cactus, and timber or other forest products) on public lands of the United States, if the disposal of such mineral or vegetative materials (1) is not otherwise expressly authorized by law, including the United States mining laws, and (2) is not expressly prohibited by laws of the United States, and (3) would not be detrimental to the public interest. Such materials may be disposed of only in accordance with the provisions of this Act and upon the payment of adequate compensation therefor, to be determined by the Secretary: Provided, however, That, to the extent not otherwise authorized by law, the Secretary is authorized in his discretion to permit any Federal, State, or Territorial agency, unit or subdivision, including municipalities, or any person, or any association or corporation not organized for profit, to take and remove, without charge, materials and resources subject to this Act, for use other than for commercial or industrial purposes or resale. Where the lands have been withdrawn in aid of a function of a Federal department or agency other than the Department headed by the Secretary or of a State, Territory, county, municipality, water district, or other local governmental subdivision of agency, the Secretary may make disposals under this Act only with the consent of such other Federal department or agency or of such State, Territory, or local governmental unit. Nothing in this Act shall be construed to apply to lands in any national park, or national monument or to any Indian lands, or lands set aside or held for the use or benefit of Indians, including lands over which jurisdiction has been transferred to the Department of the Interior by Executive order for the use of Indians. As used in this Act, the word "Secretary" means the Secretary of the Interior except that it means the Secretary of Agriculture where the lands involved are administered by him for national forest purposes or for the purposes of title III of the Bankhead-Jones Farm Tenant Act or where withdrawn for the purpose of any other function of the Department of Agriculture.

SECTION 3 OF THE ACT OF JULY 31, 1947 (61 STAT. 681), AS AMENDED BY THE ACT OF AUGUST 31, 1950 (64 STAT. 571)

[SEC. 3. All moneys received from the disposal of materials under this Act shall be disposed of in the same manner as moneys received from the sale of public lands, except that moneys received from the disposal of materials from school section lands in Alaska, reserved under section 1 of the Act of March 4, 1915 (38 Stat. 1214; 48 U.S.C., sec. 353), shall be set apart as separate and permanent funds in the Territorial Treasury as provided for income derived from said school section lands pursuant to said Act.]

All moneys received from the dispoal of materials under this Act shall be disposed of in the same manner as moneys received from the sale of public lands, except that moneys received from the disposal of materials