[Federal Register Volume 66, Number 100 (Wednesday, May 23, 2001)]
[Rules and Regulations]
[Pages 28634-28637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13057]



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Part III





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; Final Rule

  Federal Register / Vol. 66 , No. 100 / Wednesday, May 23, 2001 / 
Rules and Regulations  

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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: Final rule.

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SUMMARY: The Office of Surface Mining Reclamation and Enforcement (we 
or OSM) is revising its regulations governing Abandoned Mine Land (AML) 
reclamation fee reporting to allow for the electronic filing of the 
information required on the OSM-1 Form.

EFFECTIVE DATE: June 22, 2001.

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]. Additional information concerning OSM and 
related documents may be found on OSM's Internet home page at 
www.osmre.gov under Financial Management.

SUPPLEMENTARY INFORMATION:

I. Background Information.
II. How Does This Final Rule Change Reporting Requirements?
III. Procedural Matters and Certifications.

I. Background Information

Why Are We Publishing This Rule?

    On October 21, 1998, the Government Paperwork Elimination Act 
(GPEA), Pub. L. 105-277, Title XVII, was signed into law. GPEA requires 
agencies, by October 21, 2003, to provide for (1) the option of 
electronic maintenance, submission, or disclosure of information, when 
practicable as a substitute for paper; and (2) the use and acceptance 
of electronic signatures, when practicable. GPEA Sec. 1707 specifies 
that ``[e]lectronic records submitted or maintained in accordance with 
procedures developed under this title, or electronic signatures or 
other forms of electronic authentication used in accordance with such 
procedures, shall not be denied legal effect, validity, or 
enforceability because such records are in electronic form.''
    In compliance with GPEA, we published a proposed rule on February 
15, 2000 (65 FR 7706), which would allow a coal operator (or the entity 
reporting for the operator) the option of electronically filing 
information required by OSM's Abandoned Mine Land (AML) Reclamation 
Program.

What Is the 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 
produced 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?

    Sections 402(a) and (b) of SMCRA, 30 U.S.C. 1232(a) and (b), 
require companies to pay a reclamation fee on coal production 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.

What Options Were Considered for Electronic Filing?

    The proposed rule published on February 15, 2000, contained rule 
language which would have revised our regulations to allow a coal 
operator (or the entity reporting for the operator) the option of 
filing the OSM-1 Form electronically. Because of the notary requirement 
in section 402(c) of SMCRA, the proposed rule also required the 
operator 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.
    In order to further simplify the process and to make it easier for 
the operator to store records electronically, we reopened the comment 
period on January 22, 2001 (66 FR 6511) and presented additional 
options for consideration. In the reopening notice, we asked for 
comments on an option which would allow the operator to electronically 
submit the OSM-1 Form and include a statement made under penalty of 
perjury that the information contained in the form is true and correct. 
The statement would not have to be notarized but it would have to be 
electronically signed, dated, and transmitted to OSM as part of the 
OSM-1 Form.
    In the reopening notice, we also solicited comments on whether we 
should issue a final rule which would provide the operator with two 
alternative electronic filing methods in addition to the existing paper 
process. The electronic filing methods would be the one contained in 
the proposed rule which requires the operator to maintain on file a 
properly notarized paper copy of the OSM-1 Form submitted 
electronically, or in the alternative, the electronic filing method 
contained in the reopening notice which requires the operator to submit 
an electronically

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signed and dated statement made under penalty of perjury.

II. How Does This Final Rule Change Reporting Requirements?

    No comments were received on either the proposed rule or on the 
reopening notice. Therefore, based on the options contained in the 
proposed rule and in the reopening notice, we are adopting a final rule 
which will allow the operator to: (1) Submit a properly notarized paper 
copy of the OSM-1 Form as is currently authorized by regulation, (2) 
submit the OSM-1 Form electronically while maintaining a properly 
notarized paper copy of the identical form, or (3) submit the OSM-1 
Form electronically with an electronically signed and dated statement 
made under penalty of perjury that the information contained in the 
form is true and correct.

How Will the Electronic Submission Process Work?

    Under current procedures, 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 have 
developed a computer-based electronic form that also contains the same 
information.
    The computer-based electronic form may be accessed at the OSM 
website www.osmre.gov/finance.htm. Companies can log in and complete 
the OSM-1 Form on-line. Access to the website will be controlled by 
User ID and password which will be used as the method of electronic 
signature. When initially accessing the website, companies can down-
load encryption software which is free. The data which is encrypted can 
be read only by the company and OSM and the data submitted by the 
company cannot be changed by unauthorized persons. A file transfer 
protocol (FTP) version of the electronic OSM-1 Form allows companies 
with a large number of reporting permits to automate their filing 
process by transferring their data report files directly from their 
computer to OSM. The FTP process uses a form of electronic signature 
called a Public Key Infrastructure (PKI). PKI is a system for 
encrypting, decrypting, signing and verifying the data transferred 
electronically. With PKI, the company (user) can obtain a free download 
of the software for a private signing key. With this key, the user 
creates a digital signature on an electronic file or encrypts the data. 
OSM, as the recipient of the file, employs the public key to validate 
the signature made with the private key or decrypts the data. The two 
keys are mathematically linked and form a unique pair. Only the public 
key can validate the signature made with the associated private key(s). 
This process also verifies that the file has not been altered since its 
encryption. The companies that use FTP will also need a user 
identification and password which can be obtained from the OSM website 
at www.osmre.gov/finance.htm. This will enable them to print their OSM-
1 report from the website after their data is transferred.

Section 870.17(b)--Partial Electronic Transmission

    Under Sec. 870.17(b), the operator (or entity reporting for the 
operator) only needs to access the electronic version of the OSM-1 
Form, update changes, add missing information, and send it back to OSM. 
However, because of the notary requirement in section 402(c) of SMCRA, 
this method of filing also requires the operator to print out and 
maintain on file, a properly notarized paper copy of the identical OSM-
1 Form for review by OSM's Fee Compliance auditors.
    We had hoped to implement a system by which the operator could 
electronically transmit the OSM-1 Form as described above, and also 
electronically sign and notarize it prior to sending it to OSM. This 
would have eliminated the need to print out and maintain a properly 
notarized paper copy of the form. We determined, however, that while 
electronic notarization is legal, the majority of states have not 
enacted laws governing its use, and the infrastructure required to 
electronically notarize and transmit a document is not readily 
available nationwide. As the means to electronically notarize a 
document become readily available, we will review our regulations and 
process to determine whether there is a need to modify our system to 
accept electronic notarization.

Section 870.17(c)--Complete Electronic Transmission

    Under Sec. 870.17(c), the operator (or entity reporting for the 
operator) can electronically submit the OSM-1 Form and include a 
statement made under penalty of perjury that the information contained 
in the OSM-1 Form is true and correct. The statement does not have to 
be notarized but it does have to be electronically signed, dated, and 
transmitted to OSM as part of the OSM-1 Form.
    The authority for filing the form without notarization is found in 
28 U.S.C. 1746. Section 1746 provides in part:

    Wherever, under any law of the United States or under any rule, 
regulation, order, or requirement made pursuant to law, any matter 
is required or permitted to be supported, evidenced, established, or 
proved by the sworn declaration, verification, certificate, 
statement, oath, or affidavit, in writing of the person making the 
same (other than a deposition, or an oath of office, or an oath 
required to be taken before a specified official other than a notary 
public), such matter may, with like force and effect, be supported, 
evidenced, established, or proved by the unsworn declaration, 
certificate, verification, or statement, in writing of such person 
which is subscribed by him, as true under penalty of perjury, and 
dated, in substantially the following form:
* * * * *
    (2) If executed within the United States, its territories, 
possessions, or commonwealths: ``I declare (or certify, verify, or 
state) under penalty of perjury that the foregoing is true and 
correct. Executed on (date). (Signature)''.

    It was the intent of Congress in enacting the provisions of 28 
U.S.C. 1746 to spare people the cost and inconvenience of notarizing a 
document. Its use in conjunction with the electronic filing of the OSM-
1 Form allows us to further simplify the filing process for the 
operator. It also makes it possible for the operator to store records 
electronically since it is no longer necessary, as in the other two 
methods, to maintain on file, a properly notarized paper copy of the 
OSM-1 Form. Under GPEA Sec. 1707, an electronic record of the OSM-1 
Form with the unsworn statement made under penalty of perjury is 
sufficient.

When Can I Start To File the OSM-1 Form Electronically?

    This rule is effective on June 22, 2001. We will accept electronic 
filings of the OSM-1 form after that date.

III. Procedural Matters and Certifications

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

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proposed rule will 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 is expected to 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 is an option available to 
industry and it 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 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 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 rule does not have Federalism implications. It will 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 rule will 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 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.

List of Subjects in 30 CFR Part 870

    Incorporation by reference, Reporting and record keeping 
requirements, Surface mining, Underground mining.

    Dated: May 16, 2001.
Piet de Witt,
Acting Assistant Secretary for Land and Minerals Management.


    For the reasons set forth 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 is revised to read as 
follows:

    Authority: 28 U.S.C. 1746, 30 U.S.C. 1201 et seq., and Pub. L. 
105-277.


    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.

* * * * *
    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 use a methodology and medium approved by OSM, and do one of the 
following:
    (a) Maintain a properly notarized paper copy of the identical OSM-1

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Form for review and approval by OSM's Fee Compliance auditors. (This is 
needed to comply with the notary requirement in the Act.); or
    (b) Submit an electronically signed and dated statement made under 
penalty of perjury that the information contained in the OSM-1 Form is 
true and correct.

[FR Doc. 01-13057 Filed 5-22-01; 8:45 am]
BILLING CODE 4310-05-P