[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