[Federal Register Volume 65, Number 31 (Tuesday, February 15, 2000)]
[Proposed Rules]
[Pages 7706-7708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3519]



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Part VII





Department of the Interior





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Office of Surface Mining Reclamation and Enforcement



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30 CFR Part 870



Abandoned Mine Land (AML) Fee Collection and Coal Production Reporting 
On the OSM-1 Form; Proposed Rule

  Federal Register / Vol. 65, No. 31 / Tuesday, February 15, 2000 / 
Proposed Rules  

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DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation and Enforcement

30 CFR Part 870

RIN 1029-AB95


Abandoned Mine Land (AML) Fee Collection and Coal Production 
Reporting on the OSM-1 Form

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

ACTION: Proposed rule.

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SUMMARY: We, the Office of Surface Mining Reclamation and Enforcement 
(OSM) propose to amend our regulations governing Abandoned Mine Land 
(AML) reclamation fee reporting to allow for the electronic filing of 
the information required on the OSM-1 Form.

DATES: Written comments: We will accept written comments on the 
proposed rule until 5 p.m., Eastern time, on April 17, 2000.
    Public hearings: Upon request, we will hold a public hearing on the 
proposed rule at a date, time and location to be announced in the 
Federal Register prior to the hearing. We will accept requests for 
public hearings until 5 p.m., Eastern time, on March 17, 2000.

ADDRESSES: If you wish to comment, you may submit your comments by any 
one of the following methods. You may mail or hand-deliver comments to 
the Office of Surface Mining Reclamation and Enforcement, 
Administrative Record, Room 101, 1951 Constitution Avenue, NW, 
Washington, D.C. 20240. You may also submit comments to OSM via the 
Internet at: [email protected].
    You may submit a request for a public hearing orally or in writing 
to the person and address specified under FOR FURTHER INFORMATION 
CONTACT. The address, date and time for any public hearing held will be 
announced prior to the hearing. Any disabled individual who requires 
special accommodation to attend a public hearing should also contact 
the person listed under FOR FURTHER INFORMATION CONTACT.

FOR FURTHER INFORMATION CONTACT: Mr. Sean Spillane, Office of Surface 
Mining Reclamation and Enforcement, Denver Federal Center, Building 20, 
Room B-2005, Denver, Colorado 80225; Telephone 303-236-0330, Ext 278. 
E-mail: [email protected].

SUPPLEMENTARY INFORMATION:
I. Background Information.
II. What Would this Rule Do?
III. How Do I Submit Comments on the Proposed Rule?
IV. Procedural Matters and Certifications.

I. Background Information.

What Is the Abandoned Mine Land (AML) Reclamation Program?

    Title IV of the Surface Mining Control and Reclamation Act of 1977 
(SMCRA) created the Abandoned Mine Reclamation Fund (fund) in response 
to concern over extensive environmental damage caused by past coal 
mining activities. Money from the fund is used to reclaim abandoned and 
inadequately reclaimed mining areas where there is no continuing 
reclamation responsibility by any person under state or federal law. 
The fund is financed by a reclamation fee assessed on every ton of coal 
sold, used, or transferred at the rate of 35 cents per ton of surface 
mined coal, 15 cents per ton of underground mined coal, and 10 cents 
per ton for lignite. The reclamation fee must be paid to OSM once every 
calendar quarter.
    The authority to collect the reclamation fee at the above rate is 
due to expire in 2004. After that date, the fee will be established and 
collected at a rate sufficient to allow the Secretary to transfer from 
the fund to the United Mine Workers of America Combined Benefit Fund 
the sum necessary to fulfill the responsibilities under section 402(h) 
of SMCRA.
    OSM administers the AML program and fund. Reclamation is 
accomplished through grants to approved state and tribal AML 
reclamation programs. These AML reclamation programs are implemented 
through regulations in 30 CFR subchapter R and through implementing 
guidelines published in the Federal Register on March 6, 1980 (45 FR 
27123), and revised on December 30, 1996 (45 FR 68777). Currently, 23 
states and 3 Indian tribes have approved AML reclamation programs.

How Is the AML Fee Reported Under the Current Regulations?

    Section 402(b) of SMCRA, 30 U.S.C. 1232(b), requires companies to 
pay a reclamation fee on coal sold, used, or transferred no later than 
30 days after the end of each calendar quarter. SMCRA and the 
implementing regulations also require all operators of coal mining 
operations to submit a statement identifying:
    (1) The permittee;
    (2) The operator in addition to the permittee;
    (3) The owner of the coal;
    (4) The person purchasing the coal;
    (5) The amount of coal sold, used, or transferred during the 
calendar quarter;
    (6) The type of coal;
    (7) The method of coal removal;
    (8) The preparation plant, tipple, or loading point for the coal;
    (9) The permit number required under section 506 of SMCRA; and
    (10) The Mine Safety and Health Administration identification 
number.
    Each quarterly report must also contain a notification of any 
changes in the information required by section 402(c) of SMCRA since 
the date of the preceding quarterly report. The accuracy of the report 
must be sworn to by the operator and notarized. The operator is 
responsible for the information provided and subject to the sanctions 
provided for in section 402(d)(1) of SMCRA. See 30 U.S.C. 1232(c) and 
30 CFR 870.15.

II. What Would This Rule Change?

    Currently, our regulations at 30 CFR 870.15(b) require that the 
operator use the OSM-1 Form to report the required information when 
paying the AML fee. A paper copy of the OSM-1 Form must be used and 
submitted. There is no provision for filing the OSM-1 Form 
electronically. By this rulemaking, we propose to accept future 
quarterly filings of the OSM-1 Form by approved electronic transmission 
in place of paper filings. Under current procedures, OSM uses 
information technology to reduce the reporting burden on those filing 
the OSM-1 Form. When the OSM-1 Form is mailed to a respondent, the 
majority of the information on the OSM-1 Form (i.e., company name, 
address, contact person, telephone number, permit number, MSHA ID, 
etc.) is already pre-printed on the OSM-1 before it is mailed to the 
respondent, thus reducing the time to complete the form. We expect to 
develop a computer-based electronic form that will also contain the 
company information. The respondent would only need to update changes, 
add the missing information, and send the electronic version of the 
OSM-1 Form back to OSM.
    The electronic filing of the OSM-1 Form would be an option 
available to the reporting entity. However, because of the notary 
requirement in SMCRA, and because we are not aware of any means by 
which a document may be electronically notarized and transmitted, the 
operator (or entity reporting for the operator) would be required to 
print out and maintain on file, a properly notarized paper copy of the 
OSM-1 Form for review by OSM's Fee Compliance auditors.
    We believe that the option of electronically transmitting data may 
result in some savings to those in industry who choose to use it and to 
the government. We hope that as electronic commerce becomes more 
sophisticated

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the electronic notarization and transmission of documents will become 
possible. This would allow us to dispense with the requirement that the 
operator or reporting entity keep a notarized paper copy of the 
quarterly OSM-1 Form on file. We specifically request comments on any 
technology currently available which would allow the electronic 
notarization and transmission of documents so that we may dispense with 
the requirement in this proposed rule that the operator filing 
electronically also maintain a notarized paper copy of the OSM-1 Form.
    We are proposing this rule under the authority of section 413(a) of 
SMCRA which gives the Secretary authority to do all things necessary or 
expedient, including the promulgation of rules, to implement and 
administer the provisions of Title IV of SMCRA.

III. How Do I Submit Comments on the Proposed Rule?

    Written Comments: If you submit written or electronic comments on 
the proposed rule during the 60-day comment period, they should be 
specific, should be confined to issues pertinent to the notice, and 
should explain the reason for any recommended change(s). Where 
practical, you should submit three copies of your comments. We may not 
be able to consider or include in the Administrative Record comments 
delivered to an address other than those listed above (see ADDRESSES) .
    Electronic Comments: Please submit Internet comments as an ASCII or 
WordPerfect file avoiding the use of special characters and any form of 
encryption. Please also include ``Attn: RIN 1029-AB95'' and your name 
and return address in your Internet message. If you do not receive a 
confirmation from the system that we have received your Internet 
message, contact us directly at 202-208-2847.
    Availability of Comments: Our practice is to make comments, 
including names and home addresses of respondents, available for public 
review during regular business hours at the OSM Administrative Record 
Room (see ADDRESSES). Individual respondents may request that we 
withhold their home address from the rulemaking record, which we will 
honor to the extent allowable by law. There also may be circumstances 
in which we would withhold from the rulemaking record a respondent's 
identity, as allowable by law. If you wish us to withhold your name 
and/or address, you must state this prominently at the beginning of 
your comment. However, we will not consider anonymous comments. We will 
make all submissions from organizations or businesses, and from 
individuals identifying themselves as representatives or officials of 
organizations or businesses, available for public inspection in their 
entirety.
    Public hearings: We will hold a public hearing on the proposed rule 
upon request only. The time, date, and address for any hearing will be 
announced in the Federal Register at least 7 days prior to the hearing.
    Any person interested in participating at a hearing should inform 
Mr. Sean Spillane (see FOR FURTHER INFORMATION CONTACT), either orally 
or in writing by 5:00 p.m., Eastern time, on March 7, 2000. If no one 
has contacted Mr. Spillane to express an interest in participating in a 
hearing by that date, a hearing will not be held. If only one person 
expresses an interest, a public meeting rather than a hearing may be 
held, with the results included in the Administrative Record.
    The public hearing will continue on the specified date until all 
persons scheduled to speak have been heard. If you are in the audience 
and have not been scheduled to speak and wish to do so, you will be 
allowed to speak after those who have been scheduled. We will end the 
hearing after all persons scheduled to speak and persons present in the 
audience who wish to speak have been heard. To assist the transcriber 
and ensure an accurate record, we ask that you give us a written copy 
of your testimony.

IV. Procedural Matters

1. Executive Order 12866--Regulatory Planning and Review

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget under Executive Order 
12866.
    a. This rule will not have an effect of $100 million or more on the 
economy. It will not adversely affect in a material way the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or state, local, or tribal governments or communities.
    Approximately 1,021 respondents submit the OSM-1 Form covering more 
than 3,900 permits 4 times a year. The proposed rule would give 
respondents the option of submitting the reports electronically. 
Because electronic filing under the proposed rule is optional and 
because the requirement to file the information already exists, any 
increase in costs that may result would be negligible.
    b. This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. The rule 
merely provides the option of transmitting the required information 
electronically.
    c. This rule does not alter the budgetary effects of entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients.
    d. This rule does not raise novel legal or policy issues.

2. Regulatory Flexibility Act

    The Department of the Interior certifies that this rule will not 
have a significant economic impact on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
This determination is based on the findings that the additions to the 
rule will not significantly change costs to industry and will not 
affect state or local governments. Furthermore, the rule produces no 
adverse effects on competition, employment, investment, productivity, 
innovation, or the ability of United States enterprises to compete with 
foreign-based enterprises in domestic or export markets. Use of the 
electronic filing method for the OSM-1 Form would be an option for 
industry and it is expected that as technology improves its use may 
reduce the cost of reporting.

3. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    a. Does not have an annual effect on the economy of $100 million or 
more for the reasons stated above.
    b. Will not cause a major increase in costs or prices for 
consumers, individual industries, federal, state, or local government 
agencies, or geographic regions because the rule does not impose major 
new requirements on the coal mining industry or consumers.
    c. Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S. based enterprises to compete with foreign-based enterprises for 
the reason stated above.

4. Unfunded Mandates

    This rule does not impose an unfunded mandate on state, local, or 
tribal governments or the private sector of more than $100 million per 
year. The rule does not have a significant or unique effect on state, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates

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Reform Act (2 U.S.C. 1531, et seq.) is not required.

5. Executive Order 12630--Takings

    In accordance with Executive Order 12630, the rule does not have 
takings implications. This determination is based on the fact that the 
rule will not have an impact on the use or value of private property 
and so, does not result in significant costs to the government.

6. Executive Order 13132--Federalism

    This proposed rule does not have Federalism implications. It would 
not have ``substantial direct effects on the states, on the 
relationship between the national government and the states, or on the 
distribution of power and responsibilities among the various levels of 
government.'' As previously stated, the proposed rule would provide 
coal operators with the option of electronically filing reports which 
they are currently required to file in paper form with OSM. States are 
not involved in the process.

7. Executive Order 12988--Civil Justice Reform

    In accordance with Executive Order 12988, the Office of the 
Solicitor has determined that this rule does not unduly burden the 
judicial system and meets the requirements of sections 3(a) and 3(b)(2) 
of the Order.

8. Paperwork Reduction Act

    The information collection authority for this rulemaking has been 
approved by the Office of Management and Budget under 44 U.S.C. 3501 et 
seq. and assigned clearance number 1029-0063.

9. National Environmental Policy Act

    OSM has reviewed this proposed rule and determined that it is 
categorically excluded from the National Environmental Policy Act 
process in accordance with the Departmental Manual 516 DM 2, Appendix 
1.10.

10. Clarity of this Regulation

    Executive Order 12866 requires each agency to write regulations 
that are easy to understand. We invite your comments on how to make 
this proposed rule easier to understand, including answers to questions 
such as the following: (1) Are the requirements in the proposed rule 
clearly stated? (2) Does the proposed rule contain technical language 
or jargon that interferes with its clarity? (3) Does the format of the 
proposed rule (grouping and order of sections, use of headings, 
paragraphing, etc.) aid or reduce its clarity? (4) Would the rule be 
easier to understand if it were divided into more (but shorter) 
sections? (A ``section'' appears in bold type and is preceded by the 
symbol ``Sec. '' and a numbered heading; for example, Sec. 773.15). (5) 
Is the description of the proposed rule in the SUPPLEMENTARY 
INFORMATION section of this preamble helpful in understanding the 
proposed rule? What else could we do to make the proposed rule easier 
to understand?
    Send a copy of any comments that concern how we could make this 
proposed rule easier to understand to: Office Regulatory Affairs, 
Department of the Interior, Room 7229, 1849 C Street NW, Washington, DC 
20240. You may also e-mail the comments to this address: 
[email protected] .

List of Subjects in 30 CFR Part 870

    Incorporation by reference, Reporting and recordkeeping 
requirements, Surface mining, Underground mining.

    Dated: January 22, 2000.
Sylvia V. Baca,
Acting Assistant Secretary for Land and Minerals Management.

    Accordingly, 30 CFR part 870 is proposed to be 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.
    2. Section 870.15 is amended as follows:
    a. In paragraph (b), remove the first sentence and add three new 
sentences in its place; and
    b. Revise paragraph (d)(1)(iv) to read as follows:


Sec. 870.15  Reclamation fee payments.

* * * * *
    (b) Each operator must use mine report Form OSM-1 (or any approved 
successor form) to report the tonnage of coal sold, used, or 
transferred. The report must also include the name and address of any 
person or entity who, in a given quarter, is the owner of 10 percent or 
more of the mineral estate for a given permit, and any entity or 
individual who, in a given quarter, purchases ten percent or more of 
the production from a given permit during the applicable quarter. The 
operator can file a report under this section either in paper format or 
in electronic format as specified in Sec. 870.17. * *  *
* * * * *
    (d) * * *
    (1) * * *
    (iv) Use OSM's approved form or approved electronic 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.
* * * * *
    3. Section 870.17 is added to read as follows:


Sec. 870.17  Filing the OSM-1 Form electronically.

    You, the operator, may submit a quarterly electronic OSM-1 Form in 
place of a quarterly paper OSM-1 Form. Submitting the OSM-1 Form 
electronically is optional. If you submit your form electronically, you 
must:
    (a) Use a methodology and medium approved by OSM; and
    (b) Maintain a properly notarized paper copy of the identical OSM-1 
Form for review and approval by OSM's Fee Compliance auditors. (This is 
needed to comply with the notary requirement in the Act.)

[FR Doc. 00-3519 Filed 2-14-00; 8:45 am]
BILLING CODE 4310-05-P