[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]
[[Page 28633]]
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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
[[Page 28634]]
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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