[Federal Register Volume 89, Number 223 (Tuesday, November 19, 2024)]
[Rules and Regulations]
[Pages 91257-91261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26781]
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DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation and Enforcement
30 CFR Part 926
[SATS No. MT-040-FOR; Docket No. OSM-2023-0001; S1D1S SS08011000
SX064A000 231S180110; S2D2S SS08011000 SX064A000 23XS501520]
Montana Regulatory Program/Reclamation Plan
AGENCY: Office of Surface Mining Reclamation and Enforcement, Interior.
ACTION: Final rule; approving, in part.
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SUMMARY: We, the Office of Surface Mining Reclamation and Enforcement
(OSMRE), are approving, in part, an amendment to the Montana regulatory
program under the Surface Mining Control and Reclamation Act of 1977
(SMCRA or the Act). During the 2019 legislative session, Montana
updated its Montana Strip and Underground Mine Reclamation Act codified
in the Montana Code Annotated. Accordingly, Montana submitted this
amendment to OSMRE on its own initiative. The amendment requires a
permit applicant's compliance information to be updated and approved if
a bankruptcy or reorganization results in
[[Page 91258]]
a change of ownership for the applicant. Furthermore, the amendment
requires permit owners to provide financial assurance for employee
pensions. Lastly, the amendment makes a typographical correction.
DATES: The effective date is December 19, 2024.
FOR FURTHER INFORMATION CONTACT: Jeffrey Fleischman, Field Office
Director, Office of Surface Mining Reclamation and Enforcement, 100
East B Street, Casper, Wyoming 82602, Telephone: (307) 261-6550, Email:
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background on the Montana Program
II. Submission of the Amendment
III. OSMRE's Findings
IV. Summary and Disposition of Comments
V. OSMRE's Decision
VI. Statutory and Executive Order Reviews
I. Background on the Montana Program
Section 503(a) of SMCRA permits a State to assume primacy for the
regulation of surface coal mining and reclamation operations on non-
Federal and non-Indian lands within its borders by demonstrating that
its program includes, among other things, State laws and regulations
that govern surface coal mining and reclamation operations in
accordance with the Act and consistent with the Federal regulations.
See 30 U.S.C. 1253(a)(1) and (7). On the basis of these criteria, the
Secretary of the Interior approved the Montana program on October 24,
1980. You can find background information on the Montana program,
including the Secretary's findings, the disposition of comments, and
conditions of approval of the Montana program in the October 24, 1980,
Federal Register (45 FR 70445). You can also find later actions
concerning the Montana program and program amendments at 30 CFR 926.25.
II. Submission of the Amendment
By letter dated February 16, 2023 (Administrative Record No. MT-
040-01), Montana sent OSMRE an amendment to its program under SMCRA (30
U.S.C. 1201 et seq.). We found Montana's proposed amendment to be
administratively complete on February 17, 2023. Montana submitted the
proposed amendment to OSMRE, on its own volition, following changes to
its statutes in 2019. During the 2019 legislative session, the Montana
legislature passed Senate Bill 201 (SB 201). SB 201 updated the Montana
Strip and Underground Mine Reclamation Act codified at Montana Code
Annotated (Mont. Code Ann. or MCA) sec. 82-4-222. In order to implement
SB 201, Montana first proposed to add language at Mont. Code Ann. sec.
82-4-222(1)(g)(i) that would require an applicant for a permit to
update its ownership information in the Applicant Violator System and
with the Montana Department of Environmental Quality (DEQ) if
bankruptcy or reorganization results in changes to ownership parties
specified in this section. The proposed language also requires that DEQ
approve these changes.
Second, Montana proposed to add language at Mont. Code Ann. sec.
82-4-222(1)(g)(iii) that would require DEQ to develop rules for permit
owners to provide bonding or other financial assurance necessary to
meet their financial obligations for employee pensions and reclamation
obligations. Furthermore, operators would be prohibited from passing
associated costs from financial assurance for employee pension programs
onto purchasers who are dependent on the operator to generate
electricity for customers. Lastly, Montana proposed a typographical
correction at Mont. Code Ann. sec. 82-4-222(1)(q).
SB 201 states that the purpose of the statute is to ensure private
pensions plans remain in good standing and that employees who have
earned benefits under those plans receive them. It also states that it
is imperative that private employers not backtrack on pension plans or
shift the burden to the State of Montana, and that if a private pension
plan fails to provide earned benefits, the State of Montana may be
burdened with additional financial responsibilities and demands.
We announced receipt of the proposed amendment in the May 23, 2023,
Federal Register (88 FR 33018). In the same document, we opened the
public comment period and provided an opportunity for a public hearing
or meeting on the adequacy of the amendment. No hearing or meeting was
requested, and we did not receive any comments in relation to the
proposed rule. The public comment period ended on June 22, 2023.
III. OSMRE's Findings
The following are the findings we made concerning the amendment
under SMCRA and the Federal regulations at 30 CFR 732.15 and 732.17. We
are approving, in part, the amendment as described below.
A. Mont. Code Ann. Sec. 82-4-222(1)(g)(i)
We are not approving Montana's proposed revision of Mont. Code Ann.
sec. 82-4-222(1)(g)(i). Montana proposed a substantive revision to
Mont. Code Ann. sec. 82-4-222(1)(g)(i) that does not have a direct
counterpart in the Federal regulations. As proposed, Mont. Code Ann.
sec. 82-4-222(1)(g)(i) would require an applicant for a permit to
update its compliance history and ownership and control information in
the Applicant Violator System and with the Montana DEQ if bankruptcy or
reorganization results in changes in a permittee's officers, partners,
directors, ``or any individual owning of record or beneficially, alone
or with associates, 10% or more of any class of stock of the
applicant.''. The proposed language would also require that DEQ approve
these changes.
Montana's proposed amendment conflicts with Federal regulations
because all changes to ownership information resulting from bankruptcy
would trigger permit approval provisions and give DEQ approval
authority over changes in a permittee's applicant and operator
information. Under Federal regulations, while a regulatory authority
has approval authority over transfer, assignment, or sale of permit
rights (TAS), it does not have approval authority over changes in
applicant and operator information. See 30 CFR 774.17. OSMRE clarified
this distinction in its December 3, 2007, rule, which states that ``a
change of a permittee's owners or controllers does not constitute a
transfer, assignment, or sale.'' (72 FR 68000, 68008-09). While there
could be situations related to bankruptcy that would trigger a TAS,
such as the conveying of permit rights to a new person or a
reorganization resulting in a new type of business entity, not all
changes from bankruptcy, including a change in individual owners or
operators, would trigger a TAS. Under the proposed regulation, all
changes resulting from bankruptcy trigger a TAS, even when those
changes do not effectuate a transfer, assignment, or sale of permit
rights, and that conflicts with the Federal regulations.
With this issue in mind, OSMRE is denying the proposed amendment to
Mont. Code Ann. sec. 82-4-222(1)(g)(i). We note that this permittee
information is still required to be updated anytime there is a change
of ownership or control, regardless of the reason for the change. And
while the regulatory authority must require changes to ownership and
control information to be updated in the Applicant Violator System, it
cannot provide for all ownership and control information changes
resulting from bankruptcy to trigger the need for a permit approval.
We note that the proposed amendment to Mont. Code Ann. sec. 82-4-
222(1)(g)(i) has only been interpreted in terms of whether the
[[Page 91259]]
section conflicts with SMCRA and its regulations. There has been no
official determination as to whether Mont. Code Ann. sec. 82-4-
222(1)(g)(i) conflicts with other Federal laws, such as Federal
bankruptcy law under 11 U.S.C. 101-1532.
While we understand and commend Montana's effort to limit the
financial burden on the State should a bankruptcy occur, this section
of the statute, as currently written, is less effective than the
Federal regulations and must be denied. We encourage Montana and DEQ to
resubmit the amendment with changes addressing this issue to OSMRE
through the informal amendment process. Through the informal amendment
process, OSMRE and the State can collaborate on proposed changes to
Montana's coal regulations that may achieve the State's goal of
lessening the State's financial burden while also meeting SMCRA
requirements.
B. Mont. Code Ann. Sec. 82-4-222(1)(g)(iii)
We are not approving Montana's proposed revision of Mont. Code Ann.
sec. 82-4-222(1)(g)(iii). Montana proposed a substantive revision to
Mont. Code Ann. sec. 82-4-222(1)(g)(iii) that does not have a direct
counterpart in the Federal regulations. As proposed, Mont. Code Ann.
sec. 82-4-222(1)(g)(iii) would require the DEQ to develop rules for
permit owners to provide bonding or other financial assurance necessary
to meet its financial obligations for employee pensions and reclamation
obligations. Operators are prohibited from passing associated costs
from financial assurance for pension programs onto purchasers who are
dependent on the operator to generate electricity for customers.
Following our review, OSMRE has noted the following issues with this
proposed section:
First, while normally outside the purview of SMCRA, requiring
pension bonds could impact Montana's ability to fully collect on a
performance bond as required by 30 U.S.C. 1259(a). In a situation where
both a pension and a reclamation bond would be forfeited at the same
time, there is the potential that fulfilling a pension bond could
interfere with Montana's ability to fully collect the mining
operation's performance bond. This is especially true if an operation
is self-bonded or if both the performance and pension bond come from
the same surety company. Therefore, Montana's inclusion of pension
bonds in this framework would make its program less effective in
accomplishing SMCRA's requirements than the Federal program.
Second, while we have not made an official determination as to
whether a prohibition on passing costs associated with bonds,
reclamation, or otherwise onto purchasers who depend on the mine to
generate electricity conflicts with SMCRA or our regulations, we
believe the proposed prohibition on passing costs associated with
pension bonds onto these purchasers conflicts with SMCRA because
pension bonds in this framework conflict with 30 U.S.C. 1259(b) (see
above). Because this proposed prohibition is applicable to pension
bonds only, it cannot be approved in part.
With these issues in mind, we are denying the proposed changes to
Mont. Code Ann. sec. 82-3-222(1)(g)(iii). Please note that the proposed
amendment to Mont. Code Ann. sec. 82-4-222(1)(g)(iii) has only been
interpreted in terms of whether the section conflicts with SMCRA and
its regulations. There has been no official determination as to whether
Mont. Code Ann. sec. 82-4-222(1)(g)(iii) conflicts with other Federal
laws, like the Employee Retirement Income Security Act (ERISA) at 29
U.S.C. 1001-1461.
While we understand and commend Montana's effort to limit the
financial risk to pension programs and the financial burden on the
State should a bankruptcy occur, this section of the statute, as
currently written, is less effective than the Federal regulations and
must be denied. The financial assets would be at the discretion of the
bankruptcy court, and the pension bonds could take precedence over the
reclamation bonds, leaving inadequate funding for DEQ to collect on the
reclamation bond and reclaim the permit. We encourage Montana and DEQ
to resubmit the amendment, with changes addressing the efficacy issue,
to OSMRE through the informal amendment process. Through the informal
amendment process, OSMRE and the State can collaborate on proposed
changes to Montana's coal regulations that may achieve the State's
goals for employee pension protection against bankruptcy and lessening
of the State's financial burden while also meeting SMCRA requirements.
C. Mont. Code Ann. Sec. 82-4-222(1)(q)
We are approving Montana's proposed revision of Mont. Code Ann.
sec. 82-4-222(1)(q). Montana proposed a minor revision to Mont. Code
Ann. sec. 82-4-222(1)(q). The specific minor revision to Mont. Code
Ann. sec. 82-4-222(1)(q) is a correction of a typographical error,
removing the word ``and'' from the end of the section. Montana does not
propose any substantive changes to the text of this previously approved
section. Because the proposed revision is minor and results in no
substantive changes to the Montana program, we are approving the
revision and find that it is no less effective than the corresponding
Federal regulations at 30 CFR part 780.
IV. Summary and Disposition of Comments
Public Comments
We asked for public comments on the proposed rule and received
none.
Federal Agency Comments
On February 23, 2023, under 30 CFR 732.17(h)(11)(i) and section
503(b) of SMCRA, we requested comments on the amendment from various
Federal agencies with an actual or potential interest in the Montana
program (Administrative Record No. MT-040-06). We received one comment
from the Bureau of Land Management saying it has reviewed the document
and has no comments to offer (Administrative Record No. MT-040-07).
Environmental Protection Agency (EPA) Concurrence and Comments
Under 30 CFR 732.17(h)(11)(ii), we are required to get a written
concurrence from EPA for those provisions of the program amendment that
relate to air or water quality standards issued under the authority of
the Clean Water Act (33 U.S.C. 1251 et seq.) or the Clean Air Act (42
U.S.C. 7401 et seq.). None of the revisions that Montana proposed to
make in this amendment pertain to air or water quality standards.
Therefore, we did not ask EPA to concur on the amendment. However, on
February 21, 2023, under 30 CFR 732.17(h)(11)(i), we requested comments
from the EPA on the amendment (Administrative Record No. MT-040-06).
The EPA did not respond to our request.
State Historical Preservation Officer (SHPO) and the Advisory Council
on Historic Preservation (ACHP)
Under 30 CFR 732.17(h)(4), we are required to request comments from
the SHPO and ACHP on amendments that may have an effect on historic
properties. On February 21, 2023, we requested comments on the Montana
amendment (Administrative Record No.MT-040-04 and MT-040-05). We did
not receive comments from the SHPO or ACHP.
V. OSMRE's Decision
Based on the above findings, we are approving, in part, Montana's
proposed amendment (MT-040-FOR) that it sent to OSMRE on February 26,
2023
[[Page 91260]]
(Administrative Record No. MT-040-01). To implement this decision, we
are amending the Federal regulations at 30 CFR part 926, which codify
decisions concerning the Montana program. In accordance with the
Administrative Procedure Act, this rule will take effect 30 days after
the date of publication. Section 503(a) of SMCRA requires that the
State's program demonstrate that the State has the capability of
carrying out the provisions of the Act and meeting its purposes. SMCRA
requires consistency between State and Federal standards.
VI. Statutory and Executive Order Reviews
Executive Order 12630--Governmental Actions and Interference With
Constitutionally Protected Property Rights
This rule would not effect a taking of private property or
otherwise have taking implications that would result in public property
being taken for government use without just compensation under the law.
Therefore, a takings implication assessment is not required. This
determination is based on an analysis of the corresponding Federal
regulations.
Executive Orders 12866--Regulatory Planning and Review, Executive Order
13563--Improving Regulation and Regulatory Review, and Executive Order
14094--Modernizing Regulatory Review
Executive Order 12866, as amended by Executive Order 14094,
provides that the Office of Information and Regulatory Affairs in the
Office of Management and Budget (OMB) will review all significant
rules. Pursuant to OMB guidance, dated October 12, 1993 (OMB Memo M-94-
3), the approval of State program amendments is exempted from OMB
review under Executive Order 12866, as amended by Executive Order
14094. Executive Order 13563, which reaffirms and supplements Executive
Order 12866, retains this exemption.
Executive Order 12988--Civil Justice Reform
The Department of the Interior has reviewed this rule as required
by Section 3 of Executive Order 12988. The Department determined that
this Federal Register document meets the criteria of Section 3 of
Executive Order 12988, which is intended to ensure that the agency
review its legislation and proposed regulations to eliminate drafting
errors and ambiguity; that the agency write its legislation and
regulations to minimize litigation; and that the agency's legislation
and regulations provide a clear legal standard for affected conduct
rather than a general standard, and promote simplification and burden
reduction. Because Section 3 focuses on the quality of this Federal
Register document and to changes to the Federal regulations. The review
under this Executive Order did not extend to the language of the State
regulatory program amendment that Montana drafted.
Executive Order 13132--Federalism
This rule has potential Federalism implications, as defined under
Section 1(a) of Executive Order 13132. Executive Order 13132 directs
agencies to ``grant the States the maximum administrative discretion
possible'' with respect to Federal statutes and regulations
administered by the States. Montana, through its approved regulatory
program, implements and administers SMCRA and its implementing
regulations at the state level. This rule approves in part an amendment
to the Montana program submitted and drafted by the State and, thus, is
consistent with the direction to provide maximum administrative
discretion to States.
Executive Order 13175--Consultation and Coordination With Indian Tribal
Governments
The Department of the Interior strives to strengthen its
government-to-government relationship with Tribes through a commitment
to consultation with Tribes and recognition of their right to self-
governance and tribal sovereignty. We have evaluated this rule under
the Department's consultation policy and under the criteria in
Executive Order 13175 and have determined that it has no substantial
direct effects on the distribution of power and responsibilities
between the Federal government and Tribes. The basis for this
determination is that our decision on the Montana program does not
include Indian lands as defined by SMCRA or other Tribal lands and it
does not affect the regulation of activities on Indian lands or other
Tribal Lands. Indian lands under SMCRA are regulated independently
under the applicable approved Federal Indian program. The Department's
consultation policy also acknowledges that our rules may have Tribal
implications where the State proposing the amendment encompasses
ancestral lands in areas with mineable coal. We are currently working
to identify and engage appropriate Tribal stakeholders to devise a
constructive approach for consulting on these amendments.
Executive Order 13211--Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
Executive Order 13211 requires agencies to prepare a Statement of
Energy Effects for a rulemaking that is (1) considered significant
under Executive Order 12866, and (2) likely to have a significant
adverse effect on the supply, distribution, or use of energy. Because
this rule is exempt from review under Executive Order 12866 and is not
a significant energy action under the definition in Executive Order
13211, a Statement of Energy Effects is not required.
National Environmental Policy Act
Consistent with sections 501(a) and 702(d) of SMCRA (30 U.S.C.
1251(a) and 1292(d), respectively) and the U.S. Department of the
Interior Departmental Manual, part 516, section 13.5(A), State program
amendments are not major Federal actions within the meaning of section
102(2)(C) of the National Environmental Policy Act (42 U.S.C.
4332(2)(C).
Paperwork Reduction Act
This rule does not include requests and requirements of an
individual, partnership, or corporation to obtain information and
report it to a Federal agency. As this rule does not contain
information collection requirements, a submission to the Office of
Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501
et seq.) is not required.
Regulatory Flexibility Act
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.). The State submittal, which is the subject
of this rule, is based upon corresponding Federal regulations for which
an economic analysis was prepared, and certification made that such
regulations would not have a significant economic effect upon a
substantial number of small entities. In making the determination as to
whether this rule would have a significant economic impact, the
Department relied on the data and assumptions for the corresponding
Federal regulations.
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; (b) will not
cause a major increase in
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costs or prices for consumers, individual industries, Federal, State,
or local government agencies, or geographic regions; and (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. This
determination is based on an analysis of the corresponding Federal
regulations, which were determined not to constitute a major rule.
Unfunded Mandates Reform Act
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. This determination
is based on an analysis of the corresponding Federal regulations, which
were determined not to impose an unfunded mandate. Therefore, a
statement containing the information required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not required.
List of Subjects in 30 CFR Part 926
State regulatory program approval, State-Federal cooperative
agreement, required program amendments.
David A. Berry
Regional Director, Unified Regions, 5, 7-11.
For the reasons set out in the preamble, 30 CFR part 926 is amended
as set forth below:
PART 926--MONTANA
0
1. The authority citation for part 926 continues to read as follows:
Authority: 30 U.S.C. 1201 et seq.
0
2. In Sec. 926.15 amend in the table by adding an entry in
chronological order by ``Date of final publication'' for ``Mont. Code.
Ann. 82-4-222(1)(q)'' to read as follows:
Sec. 926.15 Approval of Montana regulatory program amendment.
* * * * *
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Original amendment submission Date of final
date publication Citation/description
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* * * * * * *
February 26, 2023............. November 19, 2024 Mont. Code. Ann. 82-4-
222(1)(q) Permit
Applications--Applic
ation Revisions--
Approved in part.
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[FR Doc. 2024-26781 Filed 11-18-24; 8:45 am]
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