[Federal Register Volume 60, Number 232 (Monday, December 4, 1995)]
[Notices]
[Page 62106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29237]



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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[NM-932-4120-06; OKNM 96155]


Notice of 5-year Extension of Current Qualification of the 
Designated Nine (9) County ``Area'' of Oklahoma Federal Coal for 
``Category 5'' Royalty Rate Reductions

AGENCY: Bureau of Land Management, Interior.

ACTION: Notices.

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SUMMARY: This announcement gives notice that since the lands within the 
nine (9) Oklahoma Counties of Atoka, Coal, Haskell, Latimer, LeFlore, 
McIntosh, Muskogee, Pittsburg, and Sequoyah were designated in 1990 by 
the New Mexico State Office of the Bureau of Land Management as a 
Federal Coal ``Area'', and that said Area was determined to be 
``Qualified'' as eligible for ``Category 5'' royalty rate reductions in 
order to establish fair and competitive royalties, and since no basic 
changes in the Area coal market have occurred, the State Director of 
the New Mexico State Office of the Bureau of Land Management has 
extended the Qualification of the Designated Area for ``Category 5'' 
Royalty Rate Reductions from December 17, 1995 to, and inclusive of, 
December 17, 2000.

FOR FURTHER INFORMATION CONTACT:
Mr. Darwyn F. Pogue, Geologist/Minerals Review Appraiser, Minerals 
Support Team, Division of Planning, Use and Protection, New Mexico 
State Office, Bureau of Land Management, P.O. Box 27115, Mail Stop 
93000, Santa Fe, New Mexico 87502-0115, Phone (505) 438-7466.

SUPPLEMENTARY INFORMATION: According to data contained in the latest 
available Annual Report to the Governor of Oklahoma by the Oklahoma 
Mining Commission, Department of Mines, the nine (9) Oklahoma Counties 
of Atoka, Coal, Haskell, Latimer, LeFlore, McIntosh, Muskogee, 
Pittsburg, and Sequoyah contain approximately 80% of the known coal 
resources of Oklahoma, as determined by the latest studies of the 
Oklahoma Geological Survey. These same nine (9) counties also contain 
100% of the known Federally owned and economically recoverable coal 
resources in Oklahoma. The Federally owned coal resources are 
``acquired minerals'' contained within coal deposits that were 
purchased from the Choctaw and Chickasaw Native American Tribes in the 
late 1940's. Therefore, the New Mexico Bureau of Land Management State 
Director in 1990 designated the aforementioned nine (9) counties as a 
Federal Coal area, hereinafter referred to as the ``Area'', for the 
purposes of Federal coal management under the guidelines set forth in 
Bureau of Land Management (BLM) Manual 3485--Reports, Royalties, and 
Records; in 43 CFR Part 3400--Coal Management: General; and in Subpart 
3485--Reports, Royalties, and Records. BLM Manual 3485 sets forth five 
(5) Categories by which the holder and/or operator of a Federal Coal 
Lease may apply for a royalty that is less than the base royalty stated 
in the lease. Categories 1 through 4 refer to royalty reductions based 
mainly upon mining and financial criteria, or combinations thereof, 
that are specific to the mining operation requesting relief. Category 
5, however, refers to royalty reductions granted within a designated 
State or Area that the BLM has concluded to have met all of the 
following criteria:
    1. The Federal Government is not market dominant.
    2. Federal royalty rates are above the current market royalty rates 
for non-Federal coal in the Area.
    3. Federal coal would be bypassed or remain undeveloped due to 
royalty rate differentials.
    4. The above conditions exist throughout the Area.
    5. A royalty rate reduction under this Category is not likely to 
result in undue competitive advantages over neighboring areas.
    Studies supplementary to those completed in 1990 that resulted in 
the present Area and subsequent ``Category 5'' reduced royalties, and 
continuous Area coal economic studies since 1990, have shown, and 
continue to show, that there have not been any basic changes in the 
Area coal markets that would substantiate the discontinuation of the 
present policy. As a result, the State Director has determined that the 
Qualification of the nine (9) county Area should be extended for 
another five (5) years, as provided by the Guidelines in BLM Manual 
3485--Reports, Royalties, and Records. This will allow operators and/or 
holders of Federal Coal leases within the Area the continued 
opportunity to obtain fair and competitive Federal royalty rates; i.e., 
2% for Federal coal mined by accepted underground methods, and 4% for 
Federal coal mined by accepted surface methods. It will further allow 
for the continued economic viability of the Area.
    All Oklahoma coal operators that currently hold Federal coal leases 
within the Area have been mailed a copy of the above notice.

    Dated: November 22, 1995.
Rich Whitley,
Deputy State Director, Division of Planning, Use and Protection, Bureau 
of Land Management, New Mexico State Office.
[FR Doc. 95-29237 Filed 12-1-95; 8:45 am]
BILLING CODE 4310-84-M