PERCENTAGE DEPLETION RATES.

SEC. 501. PERCENTAGE DEPLETION RATES. (a) Change in Certain Percentage Depletion Rates.—Subsection (b) of section 613 (relating to percentage depletion) is amended to read as follows: “(b) Percentage Depletion Rates.—The mines, wells, and other natural deposits, and the percentages, referred to in subsection (a) are as follows: “(1) 22 percent— “(A) oil and gas wells; “(B) sulphur and uranium; and “(C) if from deposits in the United States—anorthosite, clay, laterite, and nephelite syenite (to the extent that alumina and aluminum compounds are extracted therefrom), asbestos, bauxite, celestite, chromite, corundum, fluorspar, graphite, ilmenite, kyanite, mica, olivine, quartz crystals (radio grade), rutile, block steatite talc, and zircon, and ores of the following metals: antimony, beryllium, bismuth, cadmium, cobalt, columbium, lead, lithium, manganese, mercury, molybdenum, nickel, platinum and platinum group metals, tantalum, thorium, tin, titanium, tungsten, vanadium, and zinc. “(2) 15 percent—if from deposits in the United States— “(A) gold, silver, copper, and iron ore, and “(B) oil shale (except shale described in paragraph (5)). “(3) 14 percent— “(A) metal mines (if paragraph (1)(C) or (2)(A) does not apply), rock asphalt, and vermiculite; and “(B) if paragraph (1)(C), (5), or (6)(B) does not apply, ball clay, bentonite, china clay, sagger clay, and clay used or sold for use for purposes dependent on its refractory properties. “(4) 10 percent—asbestos (if paragraph (1)(C) does not apply), brucite, coal, lignite, perlite, sodium chloride, and wollastonite. “(5) 7½ Percent—clay and shale used or sold for use in the manufacture of sewer pipe or brick, and clay, shale, and slate used or sold for use as sintered or burned lightweight aggregates. “(6) 5 percent— “(A) gravel, peat, pumice, sand, scoria, shale (except shale described in paragraph (2)(B) or (5)), and stone except stone described in paragraph (7)); “(B) clay used, or sold for use, in the manufacture of drainage and roofing tile, flower pots, and kindred products; and “(C) if from brine wells—bromine, calcium chloride, and magnesium chloride. “(7) 14 percent—all other minerals, including, but not limited to, aplite, barite, borax, calcium carbonates, diatomaceous earth, dolomite, feldspar, fullers earth, garnet, gilsonite, granite, limestone, magnesite, magnesium carbonates, marble, mollusk shells (including clam shells and oyster shells), phosphate rock, potash, quartzite, slate, soapstone, stone (used or sold for use by the mine owner or operator as dimension stone or ornamental stone), thenardite, tripoli, trona, and (if paragraph (1)(C) does 83 Stat. 630 not apply) bauxite, flake graphite, fluorspar, lepidolite, mica, spodumene, and talc (including pyrophyllite), except that, unless sold on bid in direct competition with a bona fide bid to sell a mineral listed in paragraph (3), the percentage shall be 5 percent for any such other mineral (other than slate to which paragraph (5) applies) when used, or sold for use, by the mine owner or operator as rip rap, ballast, road material, rubble, concrete aggregates, or for similar purposes. For purposes of this paragraph, the term ‘all other minerals’ does not include— “(A) soil, sod, dirt, turf, water, or mosses; or “(B) minerals from sea water, the air, or similar inexhaustible sources. For the purposes of this subsection, minerals (other than sodium chloride) extracted from brines pumped from a saline perennial lake within the United States shall not be considered minerals from an inexhaustible source.” (b) Effective Date.—The amendment made by subsection (a) shall apply to taxable years beginning after October 9, 1969.