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(H. R. 13280, 85th Cong., 2d sess.)
A BILL To encourage the discovery, exploration, and development of the mineral resources

of the United States, its Territories and possessions, and to maintain and stabilize the
production of essential minerals and metals from domestic mines, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That this Act may be cited as the 'Domestic
Minerals Exploration and Stabilization Act of 1958”.

1

DECLARATION OF POLICY

SEC. 2. It is hereby recognized that the discovery, development, and production of essential minerals and metals by mining enterprises in the United States is indispensable to the economy and welfare of our Nation and reduces the dependence of the United States on foreign sources of supply; that many essential minerals and metals available in the United States cannot be produced by mine labor and management in competition with unrestricted imports produced by low-wage labor, nationalized industries, or cartels; and that in the absence of adequate controls or restrictions on imports, Federal financial assistance will be required to assure the continuation of the production of certain essential minerals and metals within the United States, its Territories and possessions. Therefore, it is declared to be the policy of the Congress to stimulate exploration for minerals and to provide Federal financial assistance to assure the continuation of production of certain essential minerals and metals within the United States, its Territories and possessions. In the furtherance of this policy, each department and agency of the Federal Government charged with responsibilities concerning geological investigations, minerals and metals studies and research, and the exploration, development, production, acquisition, and disposal of minerals and metals shall undertake to assist and to improve the position of each segment of the domestic mining and minerals industry in the United States, its Territories and possessions.

TITLE 1-EXPLORATION SEC. 101. The Secretary of the Interior is hereby authorized and directed, in order to provide for discovery of additional domestic mineral reserves, to establish and maintain a program for exploration by private industry within the United States, its Territories and possessions for such minerals, excluding organic fuels, as he shall from time to time designate, and to provide Federal financial assistance on a participating basis for that purpose.

SEC. 102. (a) In order to carry out the purposes of this title, and subject to the provisions of this section, the Secretary is authorized to enter into exploration contracts with individuals, partnerships, corporations, or other legal entities which shall provide for such Federal financial participation as he deems in the national interest. Such contracts shall contain terms and conditions as the Secretary deems necessary and appropriate, including terms and conditions for the repayment of the Federal funds made available under any contract together with interest thereon, as a royalty on the value of the production from the area described in the contract. Interest shall be calculated from the date of certification. Such interest shall be at rates which (1) are not less than the rates of interest which the Secretary of the Treasury shall determine the Department of the Interior would have to pay if it borrowed such funds from the Treasury of the United States, taking into consideration current average yields on outstanding marketable obligations of the United States with maturities comparable to the terms of the particular contracts involved and (2) plus 2 per centum per annum in lieu of recovering the cost of administering the particular contracts.

(b) Royalty payments received under paragraph (a) of this section shall be covered into the miscellaneous receipts of the Treasury.

(c) When in the opinion of the Secretary an analysis and evaluation of the results of the exploration project discloses that mineral production from the area covered by the contract may be possible he shall so certify within the time specified in the contract. Upon certification, payment of royalties shall be a charge against production for the full period specified in the contract or until the obligation has been discharged, but in no event shall such royalty payments continue for a period of more than twenty-five years from the date of contract. When the Secretary determines not to certify he shall promptly notify the contractor. When the Secretary deems it necessary and in the public interest, he may enter into royalty agreements to provide for royalty payments in the same manner as though the project had been certified.

(d) No provision of this Act, nor any rule or regulation which may be issued by the Secretary, shall be construed to require any production from the area described in the contract.

(e) The Secretary shall establish and promulgate such rules and regulations as may be necessary to carry out the purposes of this Act: Provided, however, That he may modify and adjust the terms and conditions of any contract to reduce the amount and term of any royalty payment when he shall determine that such action is necessary and in the public interest: Provided further, That no such single contract shall authorize Government participation in excess of $250,000.

(f) No funds shall be made available under this title unless the applicant shall certify that the proposed project would not be undertaken by the applicant under current conditions or circumstances without the assistance available under this title.

SEC. 103. As used in this title, the term "exploration" means the search for new or unexplored deposits of minerals, including related development work, within the United States, its Territories and possessions, whether conducted from the surface or underground, using recognized nad sound procedures, including standard geophysical and geochemical methods for obtaining mineralogical and geological information.

Sec. 104. Departments and agencies of the Government are hereby authorized to advise and assist the Secretary of the Interior, upon his request, in carrying out the provisions of this title and may expend their funds for such purposes, with or without reimbursement, in accordance with such agreements as may be necessary.

SEC. 105. The Secretary of the Interior is authorized and directed to present to the Congress, through the President, within two years from the date of this Act, a report containing a review and evaluation of the operations of the programs authorized in this title, together with his recommendations regarding the need for the continuation of the programs and such amendments to this title as he deems desirable.

SEC. 106. There are hereby authorized to be appropriated, from any funds in the Treasury not otherwise appropriated, such sums as may be necessary to carry out the provisions of this title.

TITLE II—CHROMITE

Sec. 201. (a) In order to assure the continuation of the production of chrome ore in the United States, its Territories and possessions, the Secretary of the Interior is hereby authorized and directed to establish and maintain a program to purchase from a chrome ore producers cooperative association such quantities of chromium alloys as may be offered by the cooperative association over a sixyear period, but not to exceed an aggregate of fifty thousand tons, subject to limitations herein contained : Provided, That

(1) the chromium alloys purchased by the Secretary shall be produced by or for the account of the chrome ore producers cooperative association from newly mined ores, or concentrates of such ores, produced by or for its members from domestic mines;

(2) the chrome ore producers cooperation association shall be composed of independent chrome ore producers in the United States, its Territories and possessions;

(3) any independent producer of chrome ore or concentrates who would have been eligible to participate under the “Purchase Program for Domestic Chrome Ore and Concentrates at Grants Pass, Oregon”, pursuant to regulations issued by the General Services Administration and in effect on January 1, 1958, had he been in production at that time, shall be eligible for membership and participation in the chrome ore producers association; and

(4) the operations of the chrome ore producers cooperative association, which may include mining, milling, beneficiation, blending, storing, the purchasing of equipment and supplies for resale or rental to members, the conversion of chrome ores and concentrates to higher end-use and more salable products, marketing, research, and such other activities as may be conducted by cooperative associations, shall be conducted for the mutual

benefit of its members. (b) (1) The chromium alloys purchased by the Secretary under this program shall be of such types and grades as are consumed or desired by domestic industries: Provided, That with the exception of standard grades of high- and low-carbon ferrochromium, low-carbon ferrochromium silicon, and exothermic ferrochromium, the Secretary may, to such extent as he deems advisable and upon giving not less than ninety days' notice to the cooperative association, restrict purchases to types and grades of materials more commonly used or Deeded by domestic consumers and/or to quantities of such materials which are proportionate to the apparent or anticipated future domestic consumption of or needs for such types or grades of materials.

(2) The Secretary shall purchase materials offered by the cooperative asso ciation, free on board carriers conveyance at the cooperative's shipping points, at prices equivalent to the apparent domestic market price for carload lots of such materials at time of shipment, as determined by the Secretary: Provided, That the cooperative association shall be reimbursed by the Secretary for the cost of any special packaging or preparation of chromium alloys which may be required by the Secretary, where and to the extent such costs are in excess of the normal cost of packaging and preparing such materials for sale and shipment to consumers.

(3) Chromium alloys purchased by the Secretary shall be stored at such existing stockpile deposit or other locations on the west coast as he may select as will minimize the cost of transportation, handling, storage, and administration.

(c) (1) Purchases of chromium alloys made by the Secretary under this program during any one year shall not be in excess of a quantity which is equal to the difference between sixteen thousand tons and such lesser quantity of chromium alloys as may be sold in the market by the cooperative association, but not to exceed twelve thousand tons in the first year, ten thousand eight hundred tons in the second year, nine thousand six hundred tons in the third year, eight thousand tons in the fourth year, six thousand four hundred tons in the fifth year, and three thousand two hundred tons in the sixth year: Provided, That for purposes of achieving stabilization in the annual rate of production, the Secretary may fix quarterly limitations on the quantity of material which he will purchase: Provided further, That if the quantity of material which the Secretary purchases in any one year is in excess of the quantity limitation for that year, or if the quantity of material purchased by the Secre tary in any one year is less than the cumulative quantity which the cooperative association was eligible to ship or the Secretary would have been required to purchase within the quantity limitation for that year if such quantity had been offered or shipped by the cooperative association, the Secretary shall adjust quantity limitations and purchases during the next succeeding year so as to compensate in full for such excess or deficiency.

(2) The Secretary shall endeavor to accept delivery of materials from the cooperative association from week to week or at other frequent intervals on the basis of an apparent deficiency between the rate chromium alloys are being sold in the market by the cooperative association and a rate of sixteen thousand tons per year, insofar as this is feasible.

(3) The Secretary is hereby authorized, subject to the limitations of this title, to enter into such contracts with the chrome ore producers cooperative association as may be required by the cooperative association to facilitate the private financing of its enterprises.

SEC. 202. Materials acquired by the Secretary of the Interior under this title shall be placed in the stabilization stockpile established pursuant to title III of this Act.

SEC. 203. For the purpose of this title

(1) The term “independent producer" means a producer of chrome ore or concentrates who is not a consumer of such materials or whose mine(s) is not owned or controlled, directly or indirectly, by a consumer of chrome ore or concentrates, the cooperative association excepted.

(2) The term "newly mined" means material mined or processed into concentrates subsequent to the date of enactment of this Act and shall include chrome ore and concentrates held by a producer on the termination of the purchase program for domestic chrome ore and concentrates at Grants Pass, Oregon, in May 1958.

SEC. 204. No funds in excess of $25,000,000 shall be committed or expended by the Secretary for the purchase of materials under this title, exclusive of the cost of transportation, storage, handling, and administration.

SEC. 205. The provisions of this title shall take effect on the first day of the first quarter next following the date of enactment of this Act, and shall terminate on June 30, 1965.

TITLE III-STABILIZATION STOCKPILE

SEC. 301. The Secretary of the Interior is hereby authorized and directed to establish a stockpile hereinafter referred to as the "stabilization stockpile".

Sec. 302. (a) Materials held in the stabilization stockpile shall be released only in times such materials are in short supply in the United States, as determined by the Secretary following consultations with representatives of domestic industries producing and consuming such materials. Materials released from the stabilization stockpile shall be sold by the Secretary only where necessary to meet deficiencies in the current use requirements of domestic industries or of agencies of Federal and State governments. Such materials may be sold only to domestic consumers and producers, to established independent dealers and distributors in the United States primarily dependent upon domestic sources of supply for such material, and to agencies of Federal and State governments under the following terms and conditions, subject to limitations herein contained and to such rules and regulations as the Secretary may provide :

(1) Material shall be sold to a consumer upon the application and submission by a domestic consumer of evidence satisfactory to the Secretary that the material desired is required for current consumption and is not available or cannot be made available within a reasonable length of time from the consumer's suppliers. Sales to consumers shall be made at a price 3 per centum in excess of the apparent current domestic market price at time of shipment, as determined by the Secretary, plus or minus such amount on the total shipment as may be necessary to provide a transportation cost to the consumer which is approximately equal to the transportation cost which the consumer would incur, if any, if the shipment originated from the usual shipping point of the consumer's principal supplier of the material.

(2) Material shall be sold to a dealer or distributor upon the application and submission by a dealer or distributor of evidence satisfactory to the Secretary that the material desired is for resale to and is required for current consumption by domestic consumers and is not available or cannot be made available within a reasonable length of time from the dealer's or distributor's suppliers. Sales to dealers and distributors shall be made at a price 2 per centum in excess of the current average producer price to dealers and distributors at time of shipment, as determined by the Secretary, plus or minus such amount on the total shipment as may be necessary to provide a transportation cost to the consumer which is approximately equal to the transportation cost which the consumer would incur, if any, if the shipment originated from the usual shipping point of the dealer's or distributor's principal supplier of the material,

(3) Material shall be sold to a producer upon the application and submission by a producer of evidence satisfactory to the Secretary that the material desired is required for current domestic consumption and is not available or cannot be made available within a reasonable length of time by the producer or by other domestic producers within a reasonable shipping distance of the customers' plant or facility. Sales to producers shall be at a price 2 per centum below the apparent current domestic market price at time of shipment, as determined by the Secretary, plus or minus such amount on the total shipment as may be necessary to provide a transportation cost to the producer approximately equal to the transportation cost which the producer would incur, if any, if the shipment originated from the producer's production facility which normally would be the source of supply of the required material.

(4) Material shall be sold to an agency of the Federal Government or of State governments upon the application and submission by such an agency of evidence satisfactory to the Secretary that the material is required for current consumption by the agency and is not available or cannot be made available within a reasonable length of time by the agency's suppliers. Sales to such agencies shall be at a price approximately equal to the apparent price which the agency would have been required to pay had the material been available from the agency's suppliers, as determined by the Secretary, plus or minus such amount on the total shipment as may be necessary to provide a transportation cost to the agency which is approximately equal to the transporation cost which the agency would incur, if any, if the shipment originated from the usual shipping point of the agency's principal supplier of the material. (b) Notwithstanding the provisions of subsection (a)

(1) the Secretary may limit the quantity of material which may be purchased by an applicant in order to provide an equitable distribution of such material among current or anticipated applicants ;

(2) priority shall be given to applications for material intended primarily for the direct or indirect relief of small-business enterprises ;

(3) no material shall be sold for export or for use in materials intended primarily for export; and

(4) no sale or shipment consisting of less than a minimum carload of a particular type of material need be made by the Secretary.

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