[Federal Register Volume 67, Number 35 (Thursday, February 21, 2002)]
[Notices]
[Pages 8036-8037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4156]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[MT-921-2002-1320-EM]


Establishment of Category 5 Royalty Rate at 2.4 Percent in Fort 
Union Federal Coal Production Region

AGENCY: Bureau of Land Management, Montana State Office, Interior.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice is issued for the purpose of announcing the 
determination of Category 5 Royalty Rate at 2.4 percent within the Fort 
Union Federal Coal Production Region in the Counties of McLean, Mercer, 
and Oliver, North Dakota, and Richland County, Montana.

EFFECTIVE DATE: February 21, 2002.

FOR FURTHER INFORMATION CONTACT: Randy D. Heuscher, Chief, Branch of 
Solid Minerals, telephone (406) 896-5118, Montana State Office, Bureau 
of Land Management, P.O. Box 36800, Billings, Montana 59107-6800.

SUPPLEMENTARY INFORMATION: The ``Fort Union Region Category 5 Royalty 
Reduction Study'' requested by the State Director, Montana State 
Office, Bureau of Land Management, was completed by the Northwest 
Regional Evaluation Team of the Bureau of Land Management of the 
Department of the Interior in 1991. The geographic area qualification 
and establishment of the competitive royalty rate under Category 5 of 
the ``Royalty Rate Reduction Guidelines for the Solid Leasable 
Minerals'' have been reviewed, and are the basis for the following 
determinations:
    A. Geographic Area Qualification--The Counties of McLean, Mercer, 
and Oliver, North Dakota, and Richland County, Montana, continue to 
meet the established five criteria to qualify under Category 5 for 
royalty rate differentials

[[Page 8037]]

as follows: (1) The Federal Government is not market dominant in this 
area; (2) Federal royalty rates are above the current market royalty 
rate for non-Federal rates in the area; (3) Based on a mine-by-mine 
examination, it is apparent that there are instances where Federal coal 
can be expected to be bypassed in the near future due to the royalty 
rate differential between Federal and non-Federal coal; (4) All three 
previous criteria considerations have been found to exist throughout 
the region; and (5) A plant-by-plant analysis, based on actual 
shipments, indicates that Fort Union coal is competitive in the area. 
However, it has also been shown that a reduction in the Federal royalty 
rate would not have a significant impact on this competitiveness.
    B. Establishment of Competitive Royalty Rates--The competitive 
royalty rate of 2.4 percent is established to promote development of 
Federal coal reserves situated in the Counties of McLean, Mercer, and 
Oliver, North Dakota, and Richland County, Montana, that may otherwise 
be bypassed in favor of non-Federal coal having a lower royalty rate.
    C. Category 5 Reduction in Royalty Applications--Federal lease-
specific applications for Category 5 Reduction in Royalty for Coal 
deposits within the Counties in North Dakota and Montana named above 
will be accepted by the Montana State Office, Bureau of Land 
Management, P.O. Box 36800, Billings, Montana 59107-6800 effective upon 
publication of this Notice. Applications will be processed pursuant to 
the regulations at 43 CFR part 3485 as established by the ``Royalty 
Rate Reduction Guidelines for the Solid Leasable Minerals''.
    The geographic area qualification and the establishment of the 
competitive royalty rate under Category 5 of the ``Royalty Rate 
Reduction Guidelines for the Solid Leasable Minerals'' will be reviewed 
again and updated 2 years from the effective date hereof.

    Dated: January 11, 2002.
Randy D. Heuscher,
Chief, Branch of Solid Minerals.
[FR Doc. 02-4156 Filed 2-20-02; 8:45 am]
BILLING CODE 4310-$$-P