[Federal Register Volume 71, Number 117 (Monday, June 19, 2006)]
[Notices]
[Pages 35292-35293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9553]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[NM-922-1320-06, OKNM 96155]


Extension of the ``Category 5'' Royalty Rate Reduction 
Qualification for Oklahoma Federal Coal within a Designated Area of 
Nine (9) Oklahoma Counties

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice.

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SUMMARY: The notice announces that the Federal coal lands within the 
nine (9) Oklahoma Counties of Atoka, Coal, Haskell, Latimer, LeFlore, 
McIntosh, Muskogee, Pittsburgh, and Sequoyah continue to qualify as a 
Category 5 royalty rate reduction ``Area'' as set forth in the Bureau 
of Land Management (BLM) Royalty Rate Reduction Guidelines (55 FR 6841 
and 55 FR 18401) and BLM Manual 3485, Reports, Royalties, and Records. 
Analysis by the Bureau of Land Management, New Mexico State Office 
indicates that there have been no significant changes in the coal 
market for the Area during the last 5 years. Therefore, the State 
Director of the New Mexico State Office of the BLM has determined to 
extend the qualification of the Area for Category 5 Royalty Rate 
Reductions for five (5) additional years.

DATES: The Qualification of the Designated Area for ``Category 5'' 
Royalty Rate Reductions is extended for five (5) years from December 
17, 2005 to, and inclusive of, December 17, 2010.

ADDRESSES: New Mexico State Office, Bureau of Land Management, P.O. Box 
27115, Santa Fe, NM 87502-0115.

[[Page 35293]]


FOR FURTHER INFORMATION CONTACT: Vincent N. Vogt, at (505) 438-7455, or 
Darwyn F. Pogue, at (505) 438-7466.

SUPPLEMENTARY INFORMATION: The New Mexico State Office first designated 
these same nine counties in Oklahoma as a Category 5 ``Area'' effective 
December 17, 1990 (56 FR 27771-27773). A Category 5 Area may be 
established only if all of the following criteria are affirmed to exist 
within the Area.
    1. The Federal coal resources are not the dominate coal resources 
available for mining in the Area.
    2. The royalty rate for Federal coal leases (43 CFR 3473.3-2(a)) is 
greater than the royalty rate for comparable non-Federal coal in the 
Area.
    3. The Federal coal resources in the Area would be bypassed or 
remain undeveloped in favor of development of non-Federal coal 
resources due to the difference in royalty rate.
    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 coal producing 
areas.
    The BLM has concluded that the nine county Oklahoma Area continues 
to meet all of these criteria. The royalty rates for Federal coal in 
the Area shall continue to be: 2% for Federal coal mined by underground 
mining methods, and 4% for Federal coal mined by surface mining 
methods. These royalty rates are only granted if the Federal coal 
lessee applies to BLM in writing for a Category 5 royalty rate 
reduction and the application is approved by BLM.

    Dated: May 17, 2006.
Gary Johnson
Deputy State Director, Minerals & Lands.
 [FR Doc. E6-9553 Filed 6-16-06; 8:45 am]
BILLING CODE 4310-FB-P