[Federal Register Volume 59, Number 59 (Monday, March 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7189]


[Federal Register: March 28, 1994]


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Part IV





Department of the Interior





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Office of Surface Mining Reclamation and Enforcement



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30 CFR Part 870



Wire Transfer; Final Rule
DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation and Enforcement

30 CFR Part 870

RIN 1029-AB50


Wire Transfer

AGENCY: Office of Surface Mining Reclamation and Enforcement, Interior.

ACTION: Final rule.

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SUMMARY: The Office of Surface Mining Reclamation and Enforcement (OSM) 
of the U.S. Department of the Interior (DOI) is amending its 
regulations governing abandoned mine land (AML) reclamation fee 
payments. The revised rule establishes a new dollar threshold of 
$25,000 or more for quarterly fee payments made by electronic transfer 
of funds to the Treasury Financial Communications System (TFCS) or 
other electronic fund transfer mechanisms approved by the U.S. 
Department of the Treasury. The increased use of the electronic 
transfer of funds by those making reclamation fee payments will allow 
the Department to expedite and streamline its fee collection efforts.

EFFECTIVE DATE: April 27, 1994.

FOR FURTHER INFORMATION CONTACT:
JoAnn F. Hagan, Division of Financial Management, Office of Surface 
Mining Reclamation and Enforcement, Room B 2125--Building 20, P.O. Box 
25065, Denver Federal Center, Denver, Colorado 80202; Telephone (303) 
236-0368.

SUPPLEMENTARY INFORMATION: 

I. Background.
II. Discussion of Final Rule and Response to Comments.
III. Procedural Matters.

I. Background

    On August 30, 1993, OSM published a proposed rule in the Federal 
Register (58 FR 45736) which would amend its regulations at 30 CFR 
870.15 to require that surface coal mine operators who owe $25,000 or 
more in quarterly reclamation fees for one or more mines shall forward 
payments by electronic transfer. The comment period closed on October 
29, 1993. The rule was proposed pursuant to the Surface Mining Control 
and Reclamation Act of 1977 (the Act) (30 U.S.C. 1201 et seq., as 
amended).
    Section 402(b) of the Act (30 U.S.C. 1232(b)) provides that a 
reclamation fee on produced coal shall be paid no later than thirty 
days after the end of each calendar quarter. Section 413(a) of the Act 
(30 U.S.C. 1242(a)) authorizes the Secretary of the Interior to do all 
things necessary or expedient, including promulgation of rules and 
regulations, to implement and administer the provisions of the Act 
relating to Abandoned Mine Land Reclamation (Title IV).
    This rule amends OSM regulations at 30 CFR Part 870.15(d) by 
lowering the wire transfer threshold from $100,000 to $25,000. This 
rule will require those companies which owe $25,000 or more for 
quarterly reclamation fees to submit such payments through the use of 
an electronic fund transfer mechanism approved by the U.S. Department 
of the Treasury. The first electronic payment for those companies which 
owe $25,000 or more shall be made no later than 30 days after the end 
of the first complete quarter following April 27, 1994.
    Approximately 100 companies currently pay via wire transfer; 
however, by lowering the threshold to $25,000, OSM estimates that 
approximately 1,500 companies will utilize the wire transfer method of 
payment. Payments from these companies total approximately $55 million 
per quarter. Instead of submitting checks to OSM for these amounts, 
these companies will be required to have their banks wire funds using 
an electronic fund transfer mechanism approved by the U.S. Department 
of the Treasury.
    Through the use of electronic fund transfer mechanisms for these 
large accounts, the Department will be able to expedite and streamline 
its fee collection efforts.
    The TFCS is the computer-to-computer link between the U.S. 
Department of the Treasury and the Federal Reserve Bank of New York 
(FRBNY). This system provides the capability for: (1) Automated receipt 
and processing of funds transfer, and (2) computer-assisted generation 
of funds transferred between Treasury, Federal Reserve banks, and other 
banks utilizing the Federal Reserve Communications System (FRCS). The 
TFCS also integrates these transactions into Treasury's Government-wide 
Accounting System which accounts for all Federal receipts and outlays. 
Treasury maintains an account at FRBNY. As a result, banks that 
maintain an account at a Federal Reserve bank may transfer funds to 
Treasury through the FRCS for credit to the Account of the U.S. 
Treasury at FRBNY. Funds transferred between Treasury and banks that do 
not maintain an account at a Federal Reserve bank are processed through 
correspondent banks that do maintain an account at a Federal Reserve 
bank,
    The following are the TFCS transfer message format and specific 
instructions from the Treasury Fiscal Requirements Manual for fund 
transfer message to be used in paying reclamation fees:

BILLING CODE 4310-05-M

TR28MR94.000


BILLING CODE 4310-05-C

Funds Transfer Message Format

    Item 1--Priority Code--The priority code will be provided by the 
sending bank. (Note: Some Federal Reserve district banks may not 
require this item.)
    Item 2--Treasury Department Code--The nine-digit identifier 
``021030004'' is the routing symbol of the Treasury. This item is a 
constant and is required for all funds transfer messages sent to 
Treasury.
    Item 3--Type Code--The code will be provided by the sending bank.
    Item 3--Sending Bank Code--This nine-digit identifier will be 
provided by sending bank.
    Item 5--Class Code--This class code may be provided by the sending 
bank at its option (if permitted by its Federal Reserve district bank).
    Item 6--Reference Number--The reference number may be inserted by 
the sending bank to identify the transaction.
    Item 7--Amount--The amount will include the dollar sign and the 
appropriate punctuation including cents digits. This item will be 
provided by the depositor.
    Item 8--Sending Bank Name--The telegraphic abbreviation which 
corresponds to item 4 will be provided by the sending bank.
    Item 9--Treasury Department Name--This item is of critical 
importance. It must appear on the funds transfer message in the precise 
manner as stated to allow for the automated processing and 
classification of the funds transfer message to the agency location 
code of the appropriate agency. The item is comprised of a rigidly 
formatted, non-variable sequence of 11 characters defined as follows: 

                                                                                                                
                         Character #(s)      Character(s)                    Definition                         
                                                                                                                
                                     1-5              TREAS   First part of Treasury Department                 
                                                               telegraphic abbreviation.                        
                                       6   .................  Space (leave blank).                              
                                     7-9                 NYC  Second part of Treasury Department                
                                                               Telegraphic abbreviation.                        
                                      10                  /   Slash.                                            
                                      11                  (   Left parenthesis.D                                
                                                                                                                

    The 11 characters must be left-justified on Line 5 of the funds 
transfer message and must appear as follows:
TREAS NYC/(14180001)
    Item 10--Agency Location Code--This item is of critical importance. 
It must appear on the funds transfer message in the precise manner as 
stated to allow the automated processing and classification of the 
funds transfer message to the agency location code of the appropriate 
agency. The agency location code refers to three-, four-, or eight-
digit numeric symbols used to identify Government departments and 
agencies (e.g., accounting stations, disbursing and collecting 
offices). OSM's unique code must be specified in the funds transfer 
message in order for the funds to be correctly classified to the 
agency. The code must immediately follow the left parenthesis of item 
9, must contain no spaces, dasher, or other extra characters, and must 
be immediately followed by a right parenthesis. This item would appear 
on line 5 of the funds transfer message in conjunction with item 9 as 
shown below:
TREAS NYC/(14180001)
    Item 11--Agency Name--OSM
    Item 12--Third party information--Information to identify the 
reason for the funds transfer should be provided here. This should 
include the six-digit Master Entity No.(s) from Part 1, Block 4 of the 
OSM-1 form, i.e., 012345, and the six-digit OSM Document No.(s) from 
the upper right corner of Part 1, i.e., 401234.
    These instructions will be mailed to coal companies, along with the 
OSM-1 form which is the form used to report quarterly coal reclamation 
fees to OSM. Submission of the OSM-1 form will remain the same, except 
that companies required to use wire transfer should indicate in Part 1, 
Block 4 of the OSM-1 form that fees have been submitted via wire 
transfer.

II. Discussion of Final Rule and Response to Comments

    Only one comment letter was received. The comment supported the 
adoption of the rule as proposed. No comments were received objecting 
to the proposal. In view of the lack of objections, OSM is adopting the 
rule with only minor changes for clarity and for consistency with the 
existing regulations. A discussion of the rule and comments follows.

Section 870.15(d)--Reclamation Fee Payment

    Under revised Sec. 870.15(d), an operator who owes total quarterly 
reclamation fees of $25,000 or more for one or more mines will be 
required to: Use an electronic fund transfer mechanism approved by the 
U.S. Department of the Treasury; forward its payments by electronic 
transfer, include the applicable Master Entity Number (Part 1, Block 4, 
on the OSM-1 form) and OSM Document No. (Part 1, upper right corner on 
the OSM-1 form) on the wire message; and use OSM's approved form to 
report coal tonnage sold, used, or for which ownership was transferred 
to the address indicated in the Instructions for Completing the OSM-1 
Form.
    Operators who owe less than $25,000 in quarterly reclamation fees 
for one or more mines may either forward payments by an electronic fund 
transfer mechanism in accordance with the procedures specified in 
amended paragraph 870.15(d)(1); or submit a check or money order 
payable to the Office of Surface Mining Reclamation and Enforcement, in 
the same envelope with OSM's approved form to: Office of Surface Mining 
Reclamation and Enforcement, P.O. Box 360095M, Pittsburgh, Pennsylvania 
15251.
    A new paragraph has been added to the rule at (d)(3) clarifying 
that operators who submit a payment of more than $25,000 by a method 
other than an electronic fund transfer mechanism approved by the U.S. 
Department of the Treasury would be in violation of the requirements of 
the Act, as amended.

Changes to the Proposed Rule

    Certain changes have been made to the rule as originally proposed 
in the Federal Register on August 30, 1993. The changes were made to 
ensure consistency and accuracy with the existing regulations, and to 
provide flexibility in the mechanism used to transfer funds. OSM is 
adopting the language contained in the proposed rule with the following 
modifications.
    (1) The proposed rule at Sec. 870.15(d)(1)(i) would have required 
that any person transferring funds electronically use TFCS. OSM has 
replaced ``TFCS'' with the phrase ``an electronic fund transfer 
mechanism approved by the U.S. Department of the Treasury'' in order to 
allow for future developments and changes in the field of electronic 
communications.
    (2) At Sec. 870.15(d)(1)(iii), the language has been revised to 
clarify the identifying information (OSM Document No. from the OSM-1 
form) that must be included on the wire message in order to insure that 
credit is given to the person making the payment. This revision will 
help insure accurate processing of quarterly coal reclamation fees.
    (3) In Sec. 870.15(d)(1)(iv), the word ``production'' has been 
changed to ``tonnage of coal sold, used, or for which ownership was 
transferred.'' The revised language has been added for clarity and 
accuracy.

Response to Comment

    One comment letter was received during the comment period. The 
commenter was in favor of lowering the mandatory threshold for 
electronic transfer of reclamation fee payments in order to reduce 
transaction costs. The commenter stated that he opposed the electronic 
filing of the OSM-1 form without receipt of a hard copy because of the 
importance of signed certifications contained on hard copies. Neither 
the proposed rule, nor this final rule contain any provisions that 
would allow the electronic filing of the OSM-1 form.

III. Procedural Matters

Federal Paperwork Reduction Act

    This rule does not contain collections of information which require 
approval by the Office of Management and Budget under 44 U.S.C. 3501 et 
seq.

Executive Order 12866

    This rule has been reviewed under Executive Order 12866.

Regulatory Flexibility Act

    The Department of the Interior has determined, pursuant to the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., that the final rule 
will not have a significant economic impact on a substantial number of 
small entities. The final rule merely specifies the manner in which 
reclamation fee payments are to be made to OSM. It does not alter the 
amount or frequency of payment. The rule does not distinguish between 
small and large entities.

Executive Order 12778; Civil Justice Reform Certification

    This wire transfer rule has been reviewed under the applicable 
standards of section 2(b)(2) of Executive Order 12778, Civil Justice 
Reform. In general, the requirements of section 2(b)(2) of Executive 
Order 12778 are covered by the preamble discussion of this wire 
transfer rule.
    Additional remarks follow concerning individual elements of the 
Executive Order:
    A. What is the preemptive effect, if any, to be given to the 
regulation?
    The wire transfer rule will not have any preemptive effect on any 
state law. This relates only to Federal obligations.
    B. What is the effect on existing Federal law or regulation, if 
any, including all provisions repealed or modified?
    This rule modifies the implementation of the Act as described 
herein, and is not intended to modify the implementation of any other 
Federal statute. The preceding discussion of this rule specifies the 
Federal regulatory provisions that are affected by this rule.
    C. Does the rule provide a clear and certain legal standard for 
affected conduct rather than a general standard, while promoting 
simplification and burden reduction?
    The standards established by this rule are as clear and certain as 
practicable, given the complexity of the topics covered and the 
mandates of the Act.
    D. What is the retroactive effect, if any, to be given to the 
regulation?
    This rule is not intended to have retroactive effect.
    E. Are administrative proceedings required before parties may file 
suit in court? Which proceedings apply? Is the exhaustion of 
administrative remedies required?
    No administrative proceedings are required before parties may file 
suit in court challenging the provisions of this rule under section 
526(a) of the Act, 30 U.S.C. 1276(a).
    F. Does the rule define key terms, either explicitly or by 
reference to other regulations or statutes that explicitly define those 
items?
    Terms which are important to the understanding of this rule are set 
forth in 30 CFR 700.5, 701.5, and 870.5.
    G. Does the rule address other important issues affecting clarity 
and general draftsmanship of regulations set forth by the Attorney 
General, with the concurrence of the Director of the Office of 
Management and Budget, that are determined to be in accordance with the 
purpose of the Executive Order?
    The Attorney General and the Director of the Office of Management 
and Budget have not issued any guidance on this requirement.

National Environmental Policy Act (NEPA)

    This rule has been reviewed by OSM and it has been determined to be 
categorically excluded from the National Environmental Policy Act 
(NEPA) process in accordance with the Departmental Manual (516 DM 2, 
Appendix 1.10) and the Council on Environmental Quality Regulations for 
Implementing the Procedural Provisions of NEPA (40 CFR 1507.3).

Authors

    The authors of this final rule are JoAnn F. Hagan, Division of 
Financial Management, Office of Surface Mining Reclamation and 
Enforcement, room B 2125--Building 20, P.O. Box 25065, Denver Federal 
Center, Denver, Colorado 80202; Telephone (303) 236-0368, and John A. 
Trelease, Division of Technical Services, Office of Surface Mining 
Reclamation and Enforcement, 1951 Constitution Avenue, room 640 NC, 
NW., Washington, DC 20240; Telephone (202) 343-1475.

List of Subjects in 30 CFR Part 870

    Reporting and recordkeeping requirements, Surface mining, 
Underground mining.

    Dated: February 25, 1994.
Bob Armstrong,
Assistant Secretary, Land and Minerals Management.

    For the reasons set out in the preamble, 30 CFR part 870 is amended 
as set forth below:

PART 870--ABANDONED MINE RECLAMATION FUND--FEE COLLECTION AND COAL 
PRODUCTION REPORTING

    1. The authority citation for part 870 continues to read as 
follows:

    Authority: 30 U.S.C. 1201 et seq. as amended; and Pub. L. 100-
34.

    2. Section 870.15(d) is revised to read as follows:


Sec. 870.15  Reclamation fee payment.

* * * * *
    (d)(1) An operator who owes total quarterly reclamation fees of 
$25,000 or more for one or more mines shall: (i) Use an electronic fund 
transfer mechanism approved by the U.S. Department of the Treasury;
    (ii) Forward its payments by electronic transfer;
    (iii) Include the applicable Master Entity No.(s) (Part 1--Block 4 
on the OSM-1 form), and OSM Document No.(s) (Part 1--upper right corner 
of the OSM-1 form) on the wire message; and
    (iv) Use OSM's approved form to report coal tonnage sold, used, or 
for which ownership was transferred, to the address indicated in the 
Instructions for Completing the OSM-1 Form.
    (2) An operator who owes less than $25,000 in quarterly reclamation 
fees for one or more mines may: (i) Forward payments by electronic 
transfer in accordance with the procedures specified in paragraph 
(d)(1) of this section; or
    (ii) Submit a check or money order payable to the Office of Surface 
Mining Reclamation and Enforcement, in the same envelope with OSM's 
approved form to: Office of Surface Mining Reclamation and Enforcement, 
P.O. Box 360095M, Pittsburgh, Pennsylvania 15251.
    (3) An operator who submits a payment of more than $25,000 by a 
method other than an electronic fund transfer mechanism approved by the 
U.S. Department of the Treasury shall be in violation of the Surface 
Mining Control and Reclamation Act of 1977, as amended.
* * * * *
[FR Doc. 94-7189 Filed 3-25-94; 8:45 am]
BILLING CODE 4310-05-M