84 



17 



1 attributable to that portion of the underreporting for 



2 which the person responsible for paying the royalty dem- 



3 onstrates that — 



4 (A) such person had written authorization from 



5 the Secretary to report royalty on the value of the 



6 production on basis on which it was reported, or 



7 (B) such person had substantial authority for 



8 reporting royalty on the value of the production on 



9 the basis on which it was reported, or 



10 (C) such person previously had notified the Sec- 



1 1 retary, in such manner as the Secretary may by rule 



12 prescribe, of relevant reasons or facts affecting the 



13 royalty treatment of specific production which led to 



14 the underreporting, or 



15 (D) such person meets any other exception 



16 which the Secretary may, by rule, establish. 



17 (7) All penalties collected under this subsection shall 



18 be deposited in the Treasury, 



19 (g) Expanded Royalty Obligations. — Each per- 



20 son liable for royalty payments under this section shall 



21 be jointly and severally liable for royalty on all locatable 



22 minerals, concentrates, or products derived thereft*om lost 



23 or wasted from a mining claim located or converted under 



24 this section when such loss or waste is due to negligence 



25 on the part of any person or due to the failure to comply 



