Potash Royalty Reduction Act of 2004

This bill would temporarily lower the royalty rate that mining companies pay the federal government for extracting potash—a mineral primarily used in fertilizer—from federal lands. For a five-year period, the rate would be set at 1.0 percent for potassium compounds derived from the mineral sylvite.

The legislation also directs that half of these collected royalties be returned to the mining companies specifically to fund land reclamation projects, which involve restoring the environment after mining operations are complete. For citizens, this measure aims to support the domestic fertilizer industry and ensure that funds are dedicated to cleaning up and stabilizing mining sites. Additionally, the Department of the Interior would be required to report to Congress on whether this tax break effectively achieved its goals before the five-year period ends.