2000
[DOCID: f:s1389eah.txt]
107th CONGRESS
1st Session
S. 1389
_______________________________________________________________________
AMENDMENT
In the House of Representatives, U. S.,
December 18, 2001.
Resolved, That the bill from the Senate (S. 1389) entitled ``An Act to
provide for the conveyance of certain real property in South Dakota to the State
of South Dakota with indemnification by the United States Government, and for
other purposes'', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
TITLE I--CONVEYANCE OF HOMESTAKE MINE
SEC. 101. SHORT TITLE.
This title may be cited as the ``Homestake Mine Conveyance Act of
2001''.
SEC. 102. FINDINGS.
Congress finds the following:
(1) The United States is among the leading nations in the
world in conducting basic scientific research.
(2) That leadership position strengthens the economy and
national defense of the United States and provides other
important benefits.
(3) The Homestake Mine in Lead, South Dakota, owned by the
Homestake Mining Company of California, is approximately 8,000
feet deep and is situated in a unique physical setting that is
ideal for carrying out certain types of particle physics and
other research.
(4) The Mine has been selected by the National Underground
Science Laboratory Committee, an independent panel of
distinguished scientists, as the preferred site for the
construction of the National Underground Science Laboratory.
(5) Such a laboratory would be used to conduct scientific
research that would be funded and recognized as significant by
the United States.
(6) The establishment of the laboratory is in the national
interest and would substantially improve the capability of the
United States to conduct important scientific research.
(7) For economic reasons, Homestake intends to cease
operations at the Mine in 2001.
(8) On cessation of operations of the Mine, Homestake
intends to implement reclamation actions that would preclude
the establishment of a laboratory at the Mine.
(9) Homestake has advised the State that, after cessation
of operations at the Mine, instead of closing the entire Mine,
Homestake is willing to donate the underground portion of the
Mine and certain other real and personal property of
substantial value at the Mine for use as the National
Underground Science Laboratory.
(10) Use of the Mine as the site for the laboratory,
instead of other locations under consideration, would result in
a savings of millions of dollars for the Federal Government.
(11) If the Mine is selected as the site for the
laboratory, it is essential that closure of the Mine not
preclude the location of the laboratory at the Mine.
(12) Homestake is unwilling to donate, and the State is
unwilling to accept, the property at the Mine for the
laboratory if Homestake and the State would continue to have
potential liability with respect to the transferred property.
(13) To secure the use of the Mine as the location for the
laboratory and to realize the benefits of the proposed
laboratory it is necessary for the United States to--
(A) assume a portion of any potential future
liability of Homestake concerning the Mine; and
(B) address potential liability associated with the
operation of the laboratory.
SEC. 103. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Affiliate.--
(A) In general.--The term ``affiliate'' means any
corporation or other person that controls, is
controlled by, or is under common control with
Homestake.
(B) Inclusions.--The term ``affiliate'' includes a
director, officer, or employee of an affiliate.
(3) Conveyance.--The term ``conveyance'' means the
conveyance of the Mine to the State under section 104(a).
(4) Fund.--The term ``Fund'' means the Environment and
Project Trust Fund established under section 108.
(5) Homestake.--
(A) In general.--The term ``Homestake'' means the
Homestake Mining Company of California, a California
corporation.
(B) Inclusion.--The term ``Homestake'' includes--
(i) a director, officer, or employee of
Homestake;
(ii) an affiliate of Homestake; and
(iii) any successor of Homestake or
successor to the interest of Homestake in the
Mine.
(6) Independent entity.--The term ``independent entity''
means an independent entity selected jointly by Homestake, the
South Dakota Department of Environment and Natural Resources,
and the Administrator--
(A) to conduct a due diligence inspection under
section 104(b)(2)(A); and
(B) to determine the fair value of the Mine under
section 105(a).
(7) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(8) Laboratory.--
(A) In general.--The term ``laboratory'' means the
national underground science laboratory proposed to be
established at the Mine after the conveyance.
(B) Inclusion.--The term ``laboratory'' includes
operating and support facilities of the laboratory.
(9) Mine.--
(A) In general.--The term ``Mine'' means the
portion of the Homestake Mine in Lawrence County, South
Dakota, proposed to be conveyed to the State for the
establishment and operation of the laboratory.
(B) Inclusions.--The term ``Mine'' includes--
(i) real property, mineral and oil and gas
rights, shafts, tunnels, structures, backfill,
broken rock, fixtures, facilities, and personal
property to be conveyed for establishment and
operation of the laboratory, as agreed upon by
Homestake and the State; and
(ii) any water that flows into the Mine
from any source.
(C) Exclusions.--The term ``Mine'' does not
include--
(i) the feature known as the ``Open Cut'';
(ii) any tailings or tailings storage
facility (other than backfill in the portion of
the Mine described in subparagraph (A)); or
(iii) any waste rock or any site used for
the dumping of waste rock (other than broken
rock in the portion of the Mine described in
subparagraph (A)).
(10) Person.--The term ``person'' means--
(A) an individual;
(B) a trust, firm, joint stock company, corporation
(including a government corporation), partnership,
2000
association, limited liability company, or any other
type of business entity;
(C) a State or political subdivision of a State;
(D) a foreign governmental entity;
(E) an Indian tribe; and
(F) any department, agency, or instrumentality of
the United States.
(11) Project sponsor.--The term ``project sponsor'' means
an entity that manages or pays the costs of 1 or more projects
that are carried out or proposed to be carried out at the
laboratory.
(12) Scientific advisory board.--The term ``Scientific
Advisory Board'' means the entity designated in the management
plan of the laboratory to provide scientific oversight for the
operation of the laboratory.
(13) State.--
(A) In general.--The term ``State'' means the State
of South Dakota.
(B) Inclusions.--The term ``State'' includes an
institution, agency, officer, or employee of the State.
SEC. 104. CONVEYANCE OF REAL PROPERTY.
(a) In General.--
(1) Delivery of documents.--Subject to paragraph (2) and
subsection (b) and notwithstanding any other provision of law,
on the execution and delivery by Homestake of 1 or more
quitclaim deeds or bills of sale conveying to the State all
right, title, and interest of Homestake in and to the Mine,
title to the Mine shall pass from Homestake to the State.
(2) Condition of mine on conveyance.--The Mine shall be
conveyed as is, with no representations as to the condition of
the property.
(b) Requirements for Conveyance.--
(1) In general.--The Administrator's acceptance of the
final report or certification of the independent entity under
paragraph (4) is a condition precedent of the conveyance and of
the assumption of liability by the United States in accordance
with this title.
(2) Due diligence inspection.--
(A) In general.--As a condition precedent of
conveyance and of Federal participation described in
this title, Homestake shall permit an independent
entity to conduct a due diligence inspection of the
Mine to determine whether any condition of the Mine may
present an imminent and substantial endangerment to
public health or the environment.
(B) Consultation.--As a condition precedent of the
conduct of a due diligence inspection, the
Administrator, in consultation with Homestake, the
South Dakota Department of Environment and Natural
Resources, and the independent entity, shall define the
methodology and standards to be used, and other factors
to be considered, by the independent entity in--
(i) the conduct of the due diligence
inspection;
(ii) the scope of the due diligence
inspection; and
(iii) the time and duration of the due
diligence inspection.
(C) Participation by homestake.--Nothing in this
paragraph requires Homestake to participate in the
conduct of the due diligence inspection.
(3) Report to the administrator.--
(A) In general.--The independent entity shall
submit to the Administrator a report that--
(i) describes the results of the due
diligence inspection under paragraph (2); and
(ii) identifies any condition of or in the
Mine that may present an imminent and
substantial endangerment to public health or
the environment.
(B) Procedure.--
(i) Draft report.--Before finalizing the
report under this paragraph, the independent
entity shall--
(I) issue a draft report;
(II) submit to the Administrator,
Homestake, and the State a copy of the
draft report;
(III) issue a public notice
requesting comments on the draft report
that requires all such comments to be
filed not later than 45 days after
issuance of the public notice; and
(IV) during that 45-day public
comment period, conduct at least 1
public hearing in Lead, South Dakota,
to receive comments on the draft
report.
(ii) Final report.--In the final report
submitted to the Administrator under this
paragraph, the independent entity shall respond
to, and incorporate necessary changes suggested
by, the comments received on the draft report.
(4) Review and approval by administrator.--
(A) In general.--Not later than 60 days after
receiving the final report under paragraph (3), the
Administrator shall--
(i) review the report; and
(ii) notify the State in writing of
acceptance or rejection of the final report.
(B) Conditions for rejection.--The Administrator
may reject the final report if the report discloses 1
or more conditions that--
(i) as determined by the Administrator, may
present an imminent and substantial
endangerment to the public health or the
environment and require a response action; or
(ii) otherwise make the conveyance in
section 104, or the assumption of liability,
the release of liability, or the
indemnification in section 106 contrary to the
public interest.
(C) Response actions and certification.--
(i) Response actions.--
(I) In general.--If the
Administrator rejects the final report,
Homestake may carry out or bear the
cost of, or permit the State or another
person to carry out or bear the cost
of, such response actions as are
necessary to correct any condition
identified by the Administrator under
subparagraph (B)(i) that may present an
imminent and substantial endangerment
to public health or the environment.
(II) Long-term response actions.--
(aa) In general.--In a case
in which the Administrator
determines that a condition
identified by the Administrator
under subparagraph (B)(i)
requires contin
2000
uing response
action, or response action that
can be completed only as part
of the final closure of the
laboratory, it shall be a
condition of conveyance that
Homestake, the State, or
another person deposit into the
Fund such amount as is
estimated by the independent
entity, on a net present value
basis and after taking into
account estimated interest on
that basis to be sufficient to
pay the costs of the long-term
response action or the response
action that will be completed
as part of the final closure of
the laboratory.
(bb) Limitation on use of
funds.--None of the funds
deposited into the Fund under
item (aa) shall be expended for
any purpose other than to pay
the costs of the long-term
response action, or the
response action that will be
completed as part of the final
closure of the Mine, identified
under that item.
(ii) Contribution by homestake.--The total
amount that Homestake may expend, pay, or
deposit into the Fund under subclauses (I) and
(II) of clause (i) shall not exceed--
(I) $75,000,000; less
(II) the fair value of the Mine as
determined under section 105(a).
(iii) Certification.--
(I) In general.--After any response
actions described in clause (i)(I) are
carried out and any required funds are
deposited under clause (i)(II), the
independent entity may certify to the
Administrator that the conditions for
rejection identified by the
Administrator under subparagraph (B)
have been corrected.
(II) Acceptance or rejection of
certification.--Not later than 60 days
after an independent entity makes a
certification under subclause (I), the
Administrator shall accept or reject
the certification.
(c) Review of Conveyance.--For the purposes of the conveyance, the
requirements of this section shall be considered to be sufficient to
meet any requirement of the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.).
SEC. 105. ASSESSMENT OF PROPERTY.
(a) Valuation of Property.--The independent entity shall assess the
fair value of the Mine.
(b) Fair Value.--For the purposes of this section, the fair value
of the Mine shall be the fair market value as determined by an
appraisal in conformance with the Uniform Appraisal Standards for
Federal Land Acquisition. To the extent appraised items only have value
to the Federal Government for the purpose of constructing the
laboratory, the appraiser shall also add to the assessment of fair
value the estimated cost of replacing the shafts, winzes, hoists,
tunnels, ventilation system and other equipment and improvements at the
Mine that are expected to be used at, or that will be useful to, the
laboratory.
(c) Report.--Not later than the date on which each report developed
in accordance with section 104(b)(3) is submitted to the Administrator,
the independent entity described in subsection (a) shall submit to the
State a report that identifies the fair value assessed under subsection
(a).
SEC. 106. LIABILITY.
(a) Assumption of Liability.--
(1) Assumption.--Subject to paragraph (2), notwithstanding
any other provision of law, on completion of the conveyance in
accordance with this title, the United States shall assume any
and all liability relating to the Mine and laboratory,
including liability for--
(A) damages;
(B) reclamation;
(C) the costs of response to any hazardous
substance (as defined in section 101 of the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601)), contaminant,
or other material on, under, or relating to the Mine
and laboratory; and
(D) closure of the Mine and laboratory.
(2) Claims against united states.--In the case of any claim
brought against the United States, the United States shall be
liable for--
(A) damages under paragraph (1)(A), only to the
extent that an award of damages is made in a civil
action brought under chapter 171 of title 28, United
States Code, notwithstanding that the act or omission
giving rise to the claim was not committed by an
employee of the United States; and
(B) response costs under paragraph (1)(C), only to
the extent that an award of response costs is made in a
civil action brought under--
(i) the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.);
(ii) the Solid Waste Disposal Act (42
U.S.C. 6901 et seq.);
(iii) the Comprehensive Environmental
Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.); or
(iv) any other applicable Federal
environmental law, as determined by the
Administrator.
(b) Liability Protection.--On completion of the conveyance, neither
Homestake nor the State shall be liable to any person or the United
States for injuries, costs, injunctive relief, reclamation, damages
(including damages to natural resources or the environment), or
expenses, or liable under any other claim (including claims for
indemnification or contribution, claims by third parties for death,
personal injury, illness, or loss of or damage to property, or claims
for economic loss), under any law (including a regulation) for any
claim arising out of or in connection with contamination, pollution, or
other condition, use, or closure of the Mine and laboratory, regardless
of when a condition giving rise to the liability originated or was
discovered.
(c) Indemnification.--Notwithstanding any other provision of law,
on completion of the conveyance in accordance with this title, the
United States shall indemnify, defend, and hold harmless Homestake and
the State from and against--
(1) any and all liabilities and claims described in
subsection (a), without
2000
regard to any limitation under
subsection (a)(2); and
(2) any and all liabilities and claims described in
subsection (b).
(d) Waiver of Sovereign Immunity.--For purposes of this title, the
United States waives any claim to sovereign immunity with respect to
any claim of Homestake or the State under this title.
(e) Timing for Assumption of Liability.--If the conveyance is
effectuated by more than 1 legal transaction, the assumption of
liability, liability protection, indemnification, and waiver of
sovereign immunity provided for under this section shall apply to each
legal transaction, as of the date on which the transaction is completed
and with respect to such portion of the Mine as is conveyed under that
transaction.
(f) Exceptions for Certain Claims.--Nothing in this section
constitutes an assumption of liability by the United States, or relief
of liability of Homestake, for--
(1) any unemployment, worker's compensation, or other
employment-related claim or cause of action of an employee of
Homestake that arose before the date of conveyance;
(2) any claim or cause of action that arose before the date
of conveyance, other than claims relating to environmental
response costs or natural resource damages; or
(3) any violation of any provision of criminal law.
(g) Exception for Off-Site Environmental Claims.--Nothing in this
title constitutes an assumption of liability by the United States,
relief of liability for Homestake, or obligation to indemnify
Homestake, for any claim, injury, damage, liability, or reclamation or
cleanup obligation with respect to any property or asset that is not
conveyed under this title, except to the extent that any such claim,
injury, damage, liability, or reclamation or cleanup obligation is
based on activities or events at the Mine subsequent to the date of
conveyance.
SEC. 107. INSURANCE COVERAGE.
(a) Property and Liability Insurance.--
(1) In general.--To the extent property and liability
insurance is available and subject to the requirements
described in paragraph (2), the State shall purchase property
and liability insurance for the Mine and the operation of the
laboratory to provide coverage against the liability described
in subsections (a) and (b) of section 106.
(2) Requirements.--The requirements referred to in
paragraph (1) are the following:
(A) Terms of insurance.--In determining the type,
extent of coverage, and policy limits of insurance
purchased under this subsection, the State shall--
(i) periodically consult with the
Administrator and the Scientific Advisory
Board; and
(ii) consider certain factors, including--
(I) the nature of the projects and
experiments being conducted in the
laboratory;
(II) the availability and cost of
commercial insurance; and
(III) the amount of funding
available to purchase commercial
insurance.
(B) Additional terms.--The insurance purchased by
the State under this subsection may provide coverage
that is--
(i) secondary to the insurance purchased by
project sponsors; and
(ii) in excess of amounts available in the
Fund to pay any claim.
(3) Financing of insurance purchase.--
(A) In general.--Subject to section 108, the State
may finance the purchase of insurance required under
this subsection by using--
(i) funds made available from the Fund; and
(ii) such other funds as are received by
the State for the purchase of insurance for the
Mine and laboratory.
(B) No requirement to use state funds.--Nothing in
this title requires the State to use State funds to
purchase insurance required under this subsection.
(4) Additional insured.--Any insurance purchased by the
State under this subsection shall--
(A) name the United States as an additional
insured; or
(B) otherwise provide that the United States is a
beneficiary of the insurance policy having the primary
right to enforce all rights of the United States under
the policy.
(5) Termination of obligation to purchase insurance.--The
obligation of the State to purchase insurance under this
subsection shall terminate on the date on which--
(A) the Mine ceases to be used as a laboratory; or
(B) sufficient funding ceases to be available for
the operation and maintenance of the Mine or
laboratory.
(b) Project Insurance.--
(1) In general.--The State, in consultation with the
Administrator and the Scientific Advisory Board, may require,
as a condition of approval of a project for the laboratory,
that a project sponsor provide property and liability insurance
or other applicable coverage for potential liability associated
with the project described in subsections (a) and (b) of
section 106.
(2) Additional insured.--Any insurance obtained by the
project sponsor under this section shall--
(A) name the State and the United States as
additional insureds; or
(B) otherwise provide that the State and the United
States are beneficiaries of the insurance policy having
the primary right to enforce all rights under the
policy.
(c) State Insurance.--
(1) In general.--To the extent required by State law, the
State shall purchase, with respect to the operation of the Mine
and the laboratory--
(A) unemployment compensation insurance; and
(B) worker's compensation insurance.
(2) Prohibition on use of funds from fund.--A State shall
not use funds from the Fund to carry out paragraph (1).
SEC. 108. ENVIRONMENT AND PROJECT TRUST FUND.
(a) Establishment.--On completion of the conveyance, the State
shall establish, in an interest-bearing account at an accredited
financial institution located within the State, the Environment and
Project Trust Fund.
(b) Amounts.--The Fund shall consist of--
(1) an annual deposit from the operation and maintenance
funding provided for the laboratory in an amount to be
determined--
(A) by the State, in consultation with the
Administrator and the Scientific Advisory Board; and
(B) after taking into consideration--
(i) the nature of the projects and
experiments being conducted at the laboratory;
(ii) available amounts in the Fund;
(iii) any pending costs or claims that may
be required to be paid out of the Fund; and
(iv) the amount of funding required for
future actions associated with the closure of
the facility;
(2) an amount determined by the State, in consultation with
the Administrator and the Scientific Advisory Board, and to be
paid by the appr
12f3
opriate project sponsor, for each project to be
conducted, which amount--
(A) shall be used to pay--
(i) costs incurred in removing from the
Mine or laboratory equipment or other materials
related to the project;
(ii) claims arising out of or in connection
with the project; and
(iii) if any portion of the amount remains
after paying the expenses described in clauses
(i) and (ii), other costs described in
subsection (c); and
(B) may, at the discretion of the State, be
assessed--
(i) annually; or
(ii) in a lump sum as a prerequisite to the
approval of the project;
(3) interest earned on amounts in the Fund, which amount of
interest shall be used only for a purpose described in
subsection (c); and
(4) all other funds received and designated by the State
for deposit in the Fund.
(c) Expenditures From Fund.--Amounts in the Fund shall be used only
for the purposes of funding--
(1) waste and hazardous substance removal or remediation,
or other environmental cleanup at the Mine;
(2) removal of equipment and material no longer used, or
necessary for use, in conjunction with a project conducted at
the laboratory;
(3) a claim arising out of or in connection with the
conducting of such a project;
(4) purchases of insurance by the State as required under
section 107;
(5) payments for and other costs relating to liability
described in section 106; and
(6) closure of the Mine and laboratory.
(d) Federal Payments From Fund.--The United States--
(1) to the extent the United States assumes liability under
section 106--
(A) shall be a beneficiary of the Fund; and
(B) may direct that amounts in the Fund be applied
to pay amounts and costs described in this section; and
(2) may take action to enforce the right of the United
States to receive 1 or more payments from the Fund.
(e) No Requirement of Deposit of Public Funds.--Nothing in this
section requires the State to deposit State funds as a condition of the
assumption by the United States of liability, or the relief of the
State or Homestake from liability, under section 106.
SEC. 109. WASTE ROCK MIXING.
After completion of the conveyance, the State shall obtain the
approval of the Administrator before disposing of any material quantity
of laboratory waste rock if--
(1) the disposal site is on land not conveyed under this
title; and
(2) the State determines that the disposal could result in
commingling of laboratory waste rock with waste rock disposed
of by Homestake before the date of conveyance.
SEC. 110. REQUIREMENTS FOR OPERATION OF LABORATORY.
After the conveyance, nothing in this title exempts the laboratory
from compliance with any law (including a Federal environmental law).
SEC. 111. CONTINGENCY.
This title shall be effective contingent on the making of an award
by the National Science Foundation for the establishment of the
laboratory at the Mine.
SEC. 112. OBLIGATION IN THE EVENT OF NONCONVEYANCE.
If the conveyance under this title does not occur, any obligation
of Homestake relating to the Mine shall be limited to such reclamation
or remediation as is required under any applicable law other than this
title.
SEC. 113. PAYMENT AND REIMBURSEMENT OF COSTS.
The United States may seek payment--
(1) from the Fund, under section 108(d), to pay or
reimburse the United States for amounts payable or liabilities
incurred under this title; and
(2) from available insurance, to pay or reimburse the
United States and the Fund for amounts payable or liabilities
incurred under this title.
SEC. 114. CONSENT DECREES.
Nothing in this title affects any obligation of a party under--
(1) the 1990 Remedial Action Consent Decree (Civ. No. 90-
5101 D. S.D.); or
(2) the 1999 Natural Resource Damage Consent Decree (Civ.
Nos. 97-5078 and 97-5100, D. S.D.).
SEC. 115. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this title.
Attest:
Clerk.
0