Coal Management Regulations

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Parts 3400, 3410, 3420, 3440, 3450, 3460, 3470, 3480

[WO-320-1320-02-1A]

RIN 1004-AD11

Coal Management Regulations

AGENCY: Bureau of Land Management, Interior.

ACTION: Advance notice of proposed rulemaking.

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

SUMMARY: The Bureau of Land Management (BLM) requests comments to

assist in the revision of its regulations governing coal operations on

Federally leased lands. The purpose of the revision is to clarify and

streamline current processes and policies related to exploration and

post-lease actions and to comply with the President's Government-wide

regulatory reform initiative to eliminate, streamline, or rewrite

regulations in plain English. The proposed rule will reorganize,

clarify and revise portions of the existing Federal coal management

program regulations, including exploration licenses, lease suspensions,

lease administration, diligence, and exploration and mining operations

on leased Federal coal. Many of the changes contemplated will be

administrative and procedural in nature and provide more explicit and

coherent direction for situations not anticipated by the existing

regulations.

DATES: BLM will accept comments until 5:00 p.m. Eastern time on May 9,

1997. BLM will not necessarily consider comments received after this

time in developing the proposed rule or include them in the

administrative record.

ADDRESSES: Commenters may mail written comments to the Bureau of Land

Management, Administrative Record, Room 401LS, 1849 C Street, NW,

Washington, D.C. 20240; or hand-deliver written comments to the Bureau

of Land Management, Administrative Record, Room 401, 1620 L Street, NW,

Washington, D.C. See the Supplementary Information section for the

electronic access and filing address. Comments will be available for

public review at the L Street address from 7:45 a.m. to 4:15 p.m.

Eastern time, Monday through Friday, excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Bill Radden-Lesage, (202) 452-0350

(Commercial or FTS).

[[Page 17142]]

SUPPLEMENTARY INFORMATION:

I. Public Comment Procedures

II. Background

III. Description of Information Solicited

I. Public Comment Procedures

Your written comments should be specific; be confined to issues

outlined in the notice; explain the reason for any recommended change;

and where possible, reference the specific section or paragraph of the

current regulations which you are addressing. BLM appreciates any and

all comments, but those most useful and likely to influence decisions

on the content of the proposed rule are those that either are supported

by quantitative information or studies or include citations to and

analyses of the applicable laws and regulations. Except for comments

provided in electronic format, commenters should submit two copies of

their written comments, where practicable. Comments received after the

time indicated under the Dates section or at locations other than those

listed in the Addresses section will not necessarily be considered or

included in the administrative record of this rule.

Electronic Access and Filing Address

Commenters may transmit comments electronically via the Internet to

WOC[email protected]. Please submit comments as an ASCII file and avoid

the use of special characters or encryption. Please include ``Attn:

AD11'' and your name and address in your message. If you do not receive

a confirmation from the system that we have received your Internet

message, contact us directly at (202) 452-5030.

II. Background

On July 12, 1991, BLM published a proposed rule to simplify and

streamline existing Federal coal management program regulations at 43

CFR Parts 3400, 3410, 3420, 3440, 3450, 3460, 3470, and 3480 (56 FR

32002). This rule proposed to revise portions of the existing Federal

coal management program regulations, specifically those relating to

exploration licenses, lease suspensions, lease management, diligence,

and exploration. In response to this proposal, BLM received 31 sets of

comments. The initial comment period was to close on September 12,

1991, but was extended an additional 30 days, closing on October 12,

1991. Subsequently, BLM completed its analysis and prepared a draft

final rule.

On March 4, 1995, the President issued a memorandum to all Federal

Departments and Agencies directing them to simplify their regulations.

BLM reviewed its rules and identified about 1,000 pages in the Code of

Federal Regulations that would be eliminated, streamlined or rewritten

in ``plain English.'' Because the draft rules were written before the

regulatory reform initiative, they were not written in plain English

and therefore, required redrafting.

In October 1996, the National Mining Association (NMA) requested

that BLM repropose this rulemaking due to the Association's perception

that substantial restructuring and other changes in the electric

utility industry have occurred since the comment period on the 1991

proposed rule. NMA asserted that additional public comment was

warranted due to deregulation of the electric transmission industry,

implementation of the Clean Air Act Amendments of 1990, the need to

preserve industry's flexibility to accommodate dynamic changes in coal

markets, and the need to avoid imposing additional regulatory burdens.

BLM also received a request from a Senator in a prominent coal-

producing State objecting to final promulgation of the 1991 regulations

due to his concern that there have been changes in the market since

1991. To give interested members of the public the opportunity to

identify any changes in the industry and coal markets which may not

have been considered in the 1991 proposal and to recommend regulatory

modifications that may be warranted as a consequence of these changed

circumstances, BLM withdrew the 1991 rulemaking on its coal management

program on February 14, 1997 (see 62 FR 6910). This notice is intended

to solicit additional information relating to any relevant changes

which have occurred since 1991 in the coal industry and coal markets

and how such changes affect BLM's regulatory program.

III. Description of Information Solicited

Many of the changes BLM is planning to make are for the purpose of

streamlining and clarifying the coal management regulations. Readers

should note that BLM does not plan to address public participation in

the coal leasing process in this rulemaking effort. That topic will be

addressed separately, in connection with a pending case, Environmental

Policy Institute v. Baca, No. 93-5029 (D.C.Cir.), appealing NRDC v.

Jamison, 815 F.Supp. 454 (1992). Therefore, BLM is not soliciting

comments on public participation in the coal leasing process at this

time. Nor is BLM now soliciting additional comment on issues raised by

our pending logical mining units rule, which was proposed on December

28, 1994 (59 FR 66874).

Areas we are considering for proposed revision include, but are not

limited to the following:

Definitions of terms, including ``commercial quantities,''

``continued operation,'' and ``maximum economic recovery;''

Incidental exploration;

Duration of licenses to mine;

Application of 30 U.S.C. 201(a)(2)(A) to lessee

qualifications;

Acceptable payment instruments for fees and rentals;

Clarification that the 8% royalty rate for coal produced

by underground mining operations does not apply to existing leases

issued with a higher royalty rate;

Types of lease assignments requiring BLM approval;

Notification requirements for lease readjustments;

Use of the Office of Surface Mining Applicant Violator

System under 30 CFR 773.15(b) to screen applicants;

Lease suspensions;

Use or sale of coal extracted for ``test burns'';

Royalty rate reductions; and

Inspection and enforcement and production verification.

Other revisions to the current coal management regulations may also

be considered, but in general, the scope of this rulemaking is expected

to be limited to exploration and post-lease actions.

BLM requests specific quantitative information and documentation as

to:

(1) changes in the coal industry and markets since 1991;

(2) how these changes relate to the current rules;

(3) the impacts of these changes (and their extent or magnitude) on

coal operations on Federal lands and non-Federal lands; and

(4) any suggestions as to how these impacts can be addressed within

the current statutory or regulatory framework, and if they cannot be

addressed within the current regulations, the need for and nature of

any regulatory changes suggested.

We also welcome suggestions for consolidation, reorganization, and

improvements in clarity and readability.

Dated: April 3, 1997.

Sylvia V. Baca,

Acting Assistant Secretary for Land and Minerals Management.

[FR Doc. 97-9101 Filed 4-8-97; 8:45 am]

BILLING CODE 4310-84-P