FEDERAL REGISTER: 47 FR 33154 (July 30, 1982)

DEPARTMENT OF THE INTERIOR

AGENCY: Minerals Management Service

30 CFR Part 211

Coal Exploration and Mining Operations

ACTION: Final rulemaking.

SUMMARY: The rules of this Part delineate the functions and responsibilities of the Minerals Management Service 

(MMS) for regulating both exploration for Federal coal and mining operations on Federal coal regarding production, 

development, resource recovery and protection, royalties, diligent development, continued operations, advance royalty, 

and maximum economic recovery (MER) under the Mineral Leasing Act of 1920, as amended (MLA). These rules 

streamline and consolidate in this Part regulations previously promulgated by the Bureau of Land Management (BLM) 

and the Office of Surface Mining Reclamation and Enforcement (OSM) regarding MMS responsibilities under MLA for 

management of operations on Federal coal.

EFFECTIVE DATE: August 30, 1982.

ADDRESS: Acting Chief, Onshore Solid Minerals Division, Minerals Management Service, Mail Stop 653, 12203 

Sunrise Valley Drive, Reston, Virginia 22091.

FOR FURTHER INFORMATION CONTACT:

Mr. Thomas V. Leshendok, (703) 860-7506, (FTS) 928-7506, or Mr. Harold W. Moritz, (703) 860-7136, (FTS) 

928-7136.

SUPPLEMENTARY INFORMATION:

 The principal authors of this final rulemaking are Mr. Harold W. Moritz, Chief, Energy Section, Branch of 

Operations, MMS; and Mr. Allen B. Agnew, Mr. Ralph J. Blumer, and Mr. Herbert B. Wincentsen, all of the Energy 

Section, Branch of Operations, MMS; assisted by other MMS field and headquarters personnel and the Office of the 

Solicitor, Department of the Interior (DOI).

The predecessor of MMS, Conservation Division of the U.S. Geological Survey, published the 30 CFR Part 211 

proposed rulemaking on December 16, 1981 (46 FR 61424). The Department of Energy (DOE) published the 10 CFR 

Part 378 proposed rulemaking related to Diligence on Federal Coal Leases on December 22, 1981 (46 FR 62226). 

Comments for both sets of proposed rulemakings were invited for 60 days ending February 16 and 22, 1982, 

respectively. Upon enactment of Pub. L. 97-100 on December 23, 1981, authority for promulgating rules related to 

diligence requirements for Federal coal reverted to DOI. Notice of this fact was published in the Federal Register on 

January 7, 1982 (47 FR 819). The MMS subsequently adopted and received all public comments on DOE's proposed 

rulemaking. As a result of the MMS and DOE 1981 proposed rulemaking, more than 150 comments were received. In 

addition, more than 25 comments were received on an earlier 30 CFR Part 211 proposed rulemaking on May 19, 1980 

(45 FR 32715). All comments are addressed in the SUPPLEMENTARY INFORMATION of this final rulemaking and 

the text of the 30 CFR Part 211 rules has been changed as appropriate.

RESPONSIBILITIES UNDER MLA

The MLA has been amended numerous times, most recently by the Federal Coal Leasing Amendments Act of 1976 

(FCLAA) (Pub. L. 94-377) and by Pub. L. 95-554. The DOI is responsible for management of mining operations on 

Federal coal pursuant to the requirements of MLA. The MMS exercises the Secretary of the Interior's (Secretary's) 

authority to regulate Federal coal mining operations in compliance with MLA requirements concerning production, 

development, resource recovery and protection, MER, diligent development, continued operation, and rentals and 

royalties on producing Federal coal leases.
This final rulemaking for 30 CFR Part 211: (1) Separates responsibilities of OSM under the Surface Mining Control 

and Reclamation Act of 1977 (SMCRA) for mining on Federal coal (30 CFR Chapter VII, Subchapter D) from 

responsibilities of MMS under MLA; (2) retains and clarifies MMS responsibilities under requirements of MLA and the 

30 CFR Part 211 regulations of May 17, 1976, and August 22, 1978, for exploration, production, development, resource 

recovery and protection, and royalties; and (3) revises and clarifies the existing regulations and requirements of FCLAA, 

for exploration, MER, resource recovery and protection plans, and logical mining units (LMU's).

One general change which has been included in this final rulemaking is the revision of responsible officials' titles to 

reflect the creation of MMS on January 19, 1982 (47 FR 4751). These title changes do not change or alter the basic 

responsibility of these officials except for those detailed in the definitions section.

RELATION TO OSM'S FEDERAL LANDS PROGRAM

These final rules no longer contain the regulations in the 1981 30 CFR Part 211 rules relating to the initial Federal 

Lands Program under Section 523 of SMCRA. Until final rulemaking is promulgated and implemented by OSM 

regarding the initial Federal Lands Program, the existing (1981 30 CFR Part 211) rules regarding OSM's initial Federal 

Lands Program shall remain in effect to the same extent they are now. These final rules are intended to eliminate any 

duplication of effort by MMS, OSM, and States regarding management of exploration and mining operations that involve 

Federal coal lands.

EXPLORATION ON FEDERAL LANDS

These final rules contain provisions under which MMS will have primary responsibility for exploration activities on 

unleased Federal lands, on leased Federal lands not in an approved permit area, and within an approved permit area prior 

to the commencement of mining operations. Until mining operations commence within an approved permit area, both 

MMS and BLM share responsibilities regarding exploration.

As a result of the public comments, MMS is considering entering into MMS/State agreements, under the authority of 

MLA, to allow States to assume a more active role in regulating exploration for leased Federal coal. When these rules are 

effective, MMS will initiate consultations with individual States to effect the preparation of such MMS/State agreements.

Comments Received on Proposed 30 CFR Part 211 and 10 CFR Part 378

GENERAL COMMENTS 

One comment concerned modification of a lease issued prior to August 4, 1976, under the provisions of Section 3 of 

MLA, as amended. The comment questioned whether such a modification after August 4, 1976, and prior to the lease 

readjustment date would be considered to be a lease readjustment, thus initiating new diligence requirements. A Section 3 

modification is not a lease readjustment; the modified lease is not subject to the production requirements imposed by 

FCLAA.

Several comments stated that the proposed rules contained sufficiently different interpretations of concepts like 

LMU, MER, and diligent development to require a new environmental impact statement (EIS) or a supplemental EIS to 

the existing coal programmatic EIS before issuing these rules in final form. The DOI considers the existing programmatic 

EIS to have evaluated a "worst case" situation under the alternatives to the preferred program. The preexisting diligence 

provisions under 43 CFR Group 3400 were built into the preferred alternative of the final programmatic EIS on the 

Federal Coal Management Program; however, the diligence provisions contained in this final rulemaking were considered 

under the alternatives to the preferred alternative. Thus, DOI has determined that the environmental assessment prepared 

on the final 43 CFR Part 3400 and 30 CFR Part 211 rules satisfies DOI's National Environmental Policy Act of 1969 

(NEPA) obligations on these rules; no formal supplement to the final programmatic EIS is required.

Several comments requested that DOI extend the comment deadline for the proposed 30 CFR Part 211 rules in order

to review those rules simultaneously with OSM rules. The DOI has set priorities for the final promulgation of this 

rulemaking which do not allow for any extensions of the comment period.

Two comments stated that the requirements regarding plans and maps in the proposed rules exceed both the 

reasonable planning expectations of a coal operation and the current industry standard for information. One comment 
stated further that the proposed rules reflect an underlying distrust and suspicion of the motives and integrity of the coal 

industry. The DOI disagrees with these conclusions. The DOI has determined that the requirements at 30 CFR Part 211 

are necessary to enforce the provisions of MLA. In addition, most of the informational requirements at 30 CFR Part 211 

do not place an additional burden on the coal industry since industry currently collects the data for its individual 

operations.

One comment stated that the effect of the proposed diligent development rules would be two large increases of 

production, one increase occurring around 1994 and the other occurring from 1994 to 2000. It is the position of DOI, if 

diligence rules generate production, that the current rules would cause a much larger increase in production by 1986. 

These final rules extend the period during which new operations may be initiated on leases issued prior to August 4, 

1976.

One comment questioned whether failure to mine out the LMU recoverable coal reserves within the 40-year limit 

would preclude an operator/lessee from obtaining additional Federal leases under MLA. The answer is no; this is not 

prohibited under Section 2(a)(2)(A) of MLA.

SPECIFIC COMMENTS 

30 CFR 211.1 - SCOPE, PURPOSE, AND RESPONSIBILITIES. 

30 CFR 211.1(a) 

Several comments addressed the relationship between OSM and MMS. Two comments were concerned that the 

rules apply only to Federal coal. These comments are discussed in the preamble discussion of comments received on 30 

CFR 211.10 (b) and (c).

Several comments suggested that 30 CFR Part 211 and DOE's diligence rules be promulgated simultaneously. The 

proposed 10 CFR Part 378 diligence rules are incorporated in this final rulemaking.

One comment reflected confusion regarding the reorganization of royalty management functions. Ultimate 

responsibilities will be clarified upon full implementation of the new royalty management system. The 30 CFR 211.100, et

seq., consolidates certain royalty management functions that were proposed at 30 CFR Part 211 on December 16, 1981. 

Future rules related to royalty management for Federal coal will also be consolidated at 30 CFR 211.100, et seq.

30 CFR 211.1(b)

Several comments stated that the purpose paragraphs should be dropped or streamlined. The MMS believes that the 

purpose paragraphs concisely state its responsibilities. These comments were rejected.

One comment stated that the rules contained redundancies and contradicting directives. The MMS believes that the 

rules do not contain any contradictions or needless redundancies. A major focus of this rulemaking has been the 

elimination of redundancies and contradictions, both within these rules and between these rules and those of other 

agencies. The MMS believes that this streamlining has been accomplished.

One comment approved of the discussion of the Federal and State roles regarding the coal operating rules. The 

MMS believes that Federal and State roles in the rules of this Part are clearly explained. As a result of specific comments 

on the text of the rules, these roles have been further clarified. See also the discussion of comments received on 30 CFR 

211.10(b) and (c).

One comment questioned the meaning of the term "unnecessary damage" as used at 30 CFR 211.1(b) and whether 

mining constitutes a significant damage. Unnecessary damage, as used at 30 CFR 211.1(b), means damage to the coalbearing or mineral-bearing formations which has affected or may affect other minerals due to practices or operations 

performed by the operator/lessee that may have been avoidable. Mining, itself, does not constitute unnecessary damage 

to the coal-bearing or mineral-bearing formations; however, improper mining sequences or techniques may produce an 

undesirable and unnecessary waste of the resource.
30 CFR 211.1(c)(3) 

Several comments suggested that "licenses to mine" be restricted to MLA responsibilities. The BLM is responsible 

for the promulgation of rules regarding the issuance of licenses to mine (43 CFR 3400). The 30 CFR 211.1(c)(3) 

reiterates that responsibility.

30 CFR 211.1(c)(4) 

One comment stated that DOE rules for diligent coal development must not conflict with the revised 30 CFR Part 

211 or with the State's authority to regulate coal mining on Federal lands. By incorporation of DOE diligence rules at 30 

CFR Part 211, any conflicts have been eliminated. States cannot exercise the Secretary's responsibility to set diligence 

standards for Federal coal leases.

Due to incorporation of 10 CFR Part 378 at 30 CFR Part 211, and the revision of 30 CFR Part 211 to consolidate 

royalty management provisions, the sequencing at 30 CFR Part 211 has been changed as follows: 

Proposed at 10 Proposed at 30 Codified at final 30 CFR 211

CFR 378 CFR 211

378.102 Deleted.

.002 211.2(a)(18) 211.2(a)(22).

.301(a) 211.20(b).

.301(b) 211.20(c)(1) and (2).

.301(c) 211.20(d).

.302 "Advance Royalty" 211.2(a)(1).

211.2(a)(2) 211.2(a)(2).

211.2(a)(3) 211.2(a)(4).

"Commercial Quantities" 211.2(a)(5).

"Continued Operation" 211.2(a)(7).

"Continued Operation Year" 211.2(a)(8).

211.2(a)(8) 211.2(a)(9).

211.2(a)(9) 211.2(a)(12).

"Diligent Development" 211.2(a)(13).

"Diligent Development 

Period"

211.2(a)(14).

211.2(a)(10) 211.2(a)(15).

211.2(a)(11) 211.2(a)(16).

211.2(a)(12) Deleted.

211.2(a)(13) 211.2(a)(17).

211.2(a)(14) 211.2(a)(18).

211.2(a)(15) 211.2(a)(19).

211.2(a)(16) 211.2(a)(20).

211.2(a)(17) 211.2(a)(21).

"LMU Recoverable Coal 

Reserves"

211.2(a)(23).

211.2(a)(20) 211.2(a)(24).

211.2(a)(21) 211.2(a)(25).

211.2(a)(22) 211.2(a)(26).

211.2(a)(23) 211.2(a)(27).

211.2(a)(5) 211.2(a)(29).

211.2(a)(24) 211.2(a)(30).

211.2(a)(25) 211.2(a)(31).

"Lessee" 211.2(a)(26) 211.2(a)(32).

211.2(a)(27) 211.2(a)(33).

211.2(a)(28) 211.2(a)(34).
Proposed at 10 Proposed at 30 Codified at final 30 CFR 211

CFR 378 CFR 211

211.2(a)(29) 211.2(a)(35).

211.2(a)(30) 211.2(a)(36).

"Recoverable Coal Reserves" 211.2(a)(4) 211.2(a)(37).

211.2(a)(31) 211.2(a)(38).

211.2(a)(32) 211.2(a)(39).

"Royalty Reporting Period" 211.2(a)(40).

211.2(a)(33) 211.2(a)(41).

211.2(a)(34) 211.2(a)(42).

.303(a) 211.10(b).

211.10(b) 211.10(b) and (c).

211.10(c), (d), and (e) 211.11(a), (b), and (c).

.303(b) 211.80(e)(1).

.303(c) 211.80(g)(2).

.304(a) 211.40(b)(2) 211.20(a)(1).

.304(b) 211.40(b)(2) 211.20(a)(2).

211.40(b)(4) 211.20(a)(2).

.305(a) 211.21(a).

.305(b) 211.21(b).

.305(c) 211.21(c).

211.40(b)(3) 211.22(a).

.306(a) 211.22(a)(1).

.306(b) 211.22(a)(2).

.306(c) 211.22(b).

.306(d) 211.40(b)(4)(iii) 211.22(b).

.306(e) 211.22(b).

211.63(1), (m), (n), (o), and 

(p)

211.22(b).

.307(a) 211.23(a).

.307(b) 211.23(b).

.307(c) 211.40(b)(4)(ii) and 

211.80(h)(4)(ii)

211.23(c).

.307(d) 211.23(d).

.307(e) 211.23(e).

.307(f) 211.23(f).

211.40(b)(4)(i) and 

211.80(h)(4)(i)

211.23(g).

.308(a) 211.24(a).

.308(b) 211.24(b).

.308(c) 211.24(c).

.308(d) 211.24(e).

.308(e) 211.24(f).

.309(a) 211.25(a).

.306(b) 211.25(b).

.310 Deleted.

211.40(b)(9) 211.40(b)(1)

211.40(c)(6) 211.40(c)(7).

211.62(b)(7) 211.62(c).

211.62(c) 211.62(d).

211.80(h)(1) 211.80(e)(1) and (6).

211.80(h)(4)(iii) 211.80(g).

211.80(h)(2) 211.80(h)(1).

211.80(h)(3) Deleted.

211.65 211.101.
Proposed at 10 Proposed at 30 Codified at final 30 CFR 211

CFR 378 CFR 211

211.67 211.102.

Note. -- Several definitions have been revised to reflect the formation of MMS or as a result of incorporation of 

comments.

30 CFR 211.2 - DEFINITIONS. 

Many comments stated that the definitions in 43 CFR Part 3400, 10 CFR Part 378, and 30 CFR Part 211 are 

inconsistent and that cross-references could eliminate this confusion. The proposed 10 CFR Part 378 is eliminated as a 

separate rulemaking; further coordination with BLM has eliminated other discrepancies.

30 CFR 211.2(a)(1) Advance Royalty. 

One comment stated that payment of advance royalty should be allowed in lieu of diligent development, as well as 

continued operation. The advance royalty provisions in Section 7(b) of MLA state, in part, that the "Secretary of the 

Interior * * * may suspend the condition of continued operation upon the payment of advance royalties." The Section 

states further that "[n]othing in this subsection shall be construed to affect the requirement * * * relating to 

commencement of production at the end of ten years." Section 7(b) thus allows the Secretary to accept advance royalty 

in lieu of continued operation, but not in lieu of diligent development. Further, Section 7(a) of MLA, second sentence, 

states in part, that any Federal lease "not producing in commercial quantities at the end of ten years shall be terminated." 

This comment was rejected.

Two comments stated that it was not clear if advance royalty could be paid after production is achieved. Advance 

royalty can only be paid in lieu of continued operation. Continued operation commences with the first royalty reporting 

period following the production of 1 percent of the recoverable coal reserves. Therefore, until an operation has produced 

1 percent of the recoverable coal reserves, advance royalty cannot be accepted. The language contained at 30 CFR 

211.23 further clarifies MMS's implementation of this provision of MLA.

Two comments stated that the advance royalty provisions should be established so that Federal leases could be 

retained for a longer period without production. Section 7(b) of MLA prohibits the payment of advance royalty in the 

aggregate for a period greater than 10 years. These comments were rejected.

30 CFR 211.2(a)(4) Coal Reserve Base. 

Two comments stated that coal reserve base calculations should be based upon existing published information, new 

unpublished information, or any combination thereof. These rules are not intended to require any additional data 

acquisition (drilling) to satisfy this requirement. The rules have been modified to reflect this position more clearly.

One comment suggested that the terms "coal reserve base" and "coal resources" appear to represent a generally 

reasonable and workable standard.

Several comments suggested that the term "coal reserve base" should be deleted from the rule, or modified to read 

"coal resource base." The MMS believes that coal reserve base is adequately defined and is an integral part of the 

determination of minable reserve base and recoverable coal reserves. These factors are, in turn, critical elements used in 

the determination of diligent development, continued operation, and MER. These comments were rejected.

Two comments stated that the depth criterion used for the inclusion of coal in the coal reserve base should be 

standardized for all coal grades (30 CFR 211.2(a)(4)(ii)). The depth criterion applies to all coal grades and is 

standardized in the definition of coal reserve base. These comments were rejected.

One comment questioned the economics of recovering coal beds lying at a depth greater than 3,000 feet. The 30 

CFR 211.2(a)(4)(iv) adequately addresses this situation. This comment was rejected.

One comment stated that DOI should refrain from imposing its own profitability determination, in lieu of the lessee's 

analysis. It is not the intent of DOI to impose its own determination of profitability in lieu of an analysis conducted by an 

operator/lessee. See discussion of comments received on 30 CFR 211.2(a)(24).
One comment suggested the deletion of the terms "measured, indicated, and inferred" as the terms were considered 

to be confusing and overly inclusive. The MMS agrees and has deleted these terms from the definitions of "coal reserve 

base" and "coal reserves," the latter of which has been redefined as "recoverable coal reserves."

30 CFR 211.2(a) (4), (27), and (36) Coal Reserve Base, Minable Reserve Base, and Recoverable Coal Reserves. 

The following discussion is presented to further clarify these terms.

A hypothetical federally leased 640-acre tract contains a single flat-lying uniform bed, 40-feet thick, of 

subbituminous coal at an average depth of 60 feet. Using the criteria at 30 CFR 211.2(a)(4), and assuming an average 

coal density of 1,770 tons per acre-foot, the coal reserve base is estimated to be 45.3 million tons (640 X 40 X 

1,770=45.312, rounded to 45.3 million tons). All of the coal in the coal reserve base is commercially minable using 

standard industry surface mining techniques. However, one-third of the tract consists of an area classified as unsuitable 

for coal mining operations in accordance with SMCRA. This SMCRA classification results in a reduction of one-third 

from the coal reserve base. Therefore, the minable reserve base is 30.2 million tons (45.3-15.1 million tons). In 

conducting mining operations on this tract, it is estimated that 10 percent of the minable reserve base will be left in 

fenders and property barriers, thus yielding 90 percent recovery. The recoverable coal reserves for this tract would be 

estimated to be 27.2 million tons (30.2 X 0.9=27.18, rounded to 27.2 million tons).

30 CFR 211.2(a) (5), (7), (13), and (14) Commercial Quantities, Continued Operation, Diligent Development, and 

Diligent Development Period. 

One comment stated that the definition of commercial quantities should be revised to reflect more accurately the 

wording of MLA which does not specify a rate of production. Additionally, several comments stated that no rate should 

be set for commercial quantities and that diligent development should be based on development costs, or any other 

significant financial undertakings which would serve as valid indicators of attempts to develop a Federal lease. Although 

MLA does not specify a rate of production to be the definition of diligent development, it does require that coal be 

produced in commercial quantities from new and readjusted leases. In order to implement this provision and, at the same 

time, to accommodate regional diversity in meeting the requirement, MMS believes that production of 1 percent of the 

recoverable coal reserves by the end of 10 years and 1 percent every year thereafter on a 3-year average does not impose 

an onerous burden on an operator/lessee. These comments were rejected.

Several comments stated that the applicability of the definition of commercial quantities, as that term is used in 

Section 2(a)(2)(A) of MLA, should be clarified. The DOI has determined that the use of commercial quantities in Section 

2(a)(2)(A) and Section 7(b) of MLA should be synonymous. Neither DOI's analysis nor any comment has presented any 

reason why the two uses of the same term should have different definitions.

Two comments stated that the definition of commercial quantities does not state a timeframe by which commercial 

quantities must be produced. The MMS agrees. Commercial quantities is the amount of recoverable coal reserves that 

must be produced. Section 7(a) of MLA states that any Federal lease not producing (implying continuing production) this 

amount at the end of 10 years from lease issuance or readjustment, whichever occurs first after August 4, 1976, shall be 

terminated.

Several comments supported the change of the commercial quantities requirement for Federal leases issued prior to 

August 4, 1976, from 2 1/2 percent to 1 percent. Several comments stated that the commercial quantities requirement for 

Federal leases issued prior to and after August 4, 1976, should be identical and be 1 percent. Several comments stated 

that the commercial quantities requirement for Federal leases issued prior to August 4, 1976, should remain at production 

of 2 1/2 percent of the recoverable coal reserves. The DOI believes that reducing the requirement from 2 1/2 percent to 1 

percent will allow for more orderly, environmentally sound development of Federal coal. The DOI believes that 

production of 1 percent as implemented in the 1979 rules for leases issued after August 4, 1976, indicates a significant 

undertaking on the part of an operator/lessee that is accomplished only after significant financial expenditure for the 

development of the property. The DOI believes that this 1 percent standard is appropriate for the diligence requirements 

for all leases, regardless of issue date.

Many comments supported the proposed application of the 10-year diligent development period requirement to 

Federal leases issued prior to August 4, 1976, only upon the first lease readjustment after August 4, 1976. Many 

comments were opposed to this concept. One comment stated that the 10-year period for diligent development for 

Federal leases issued prior to August 4, 1976, should begin on the effective date of this final rulemaking. One comment 
stated that the 10-year period for Federal leases issued prior to August 4, 1976, should begin on a date determined from 

the Federal lease issuance, disregarding the first lease readjustment date after August 4, 1976. One comment stated that 

diligence requirements cannot be applied to Federal leases issued prior to August 4, 1976, even upon the first lease 

readjustment after August 4, 1976. The DOI has determined that the congressional intent in mandating this 10-year 

period was prospective. The statutory period cannot be applied retroactively to Federal leases issued prior to August 4, 

1976. Upon the first lease readjustment after August 4, 1976, this 10-year mandate must, however, be imposed as a 

readjusted Federal lease term (see Solicitor's Opinion M-36939 dated September 17, 1981). It should be noted that if an 

operator/lessee elects to be subject to the rules of this Part prior to Federal lease readjustment, he may apply to the 

District Mining Supervisor in accordance with 30 CFR 211.20 and 30 CFR 211.24.

Several comments opposed the 10-year deadline for achievement of diligent development because the deadline is set 

without consideration of market conditions or amount of recoverable coal reserves. This deadline is based upon the 

explicit requirements of MLA which, in Section 7(a), specifies that any Federal lease "not producing in commercial 

quantities at the end of ten years shall be terminated." By defining "diligent development" in terms of "commercial 

quantities," DOI thus allows operators/lessees the maximum flexibility to tailor the timing of the operations while still 

complying with the statutory mandate. Another alternative considered by DOI to implement this statutory requirement 

was to establish uniform, nationwide milestones for every operation to meet in ensuring that an operation would be 

producing commercial quantities at the end of 10 years. However, DOI believes that the methods for development of 

operations should be left to the individual operators/lessees under an approved permit and should not be mandated by 

DOI. For this reason, DOI decided that the 10-year requirement for producing commercial quantities was equated with 

the definition of diligent development, leaving the method for achieving this amount of production to the individual 

operators/lessees. It should be noted that in the second sentence of Section 7(a) of MLA, the term "producing" implies a 

continuing obligation; therefore, this final rulemaking defines the statutory production requirement of "continued 

operation" as 1 percent every year thereafter based on a 3-year average. This will allow the operator/lessee additional 

flexibility in meeting this production requirement.

One comment stated that the 10-year mandate was too long and not in the interest of environmental protection. The 

MLA allows an operator/lessee 3 years within which to submit a resource recovery and protection plan. Allowing an 

additional 2 to 3 years for compliance with NEPA and SMCRA, and an additional 2 to 3 years for development of an 

operation only leaves 1 to 3 years for the operation to have produced an amount of 1 percent of the recoverable coal 

reserves and be capable of maintaining production at a rate of 1 percent of the recoverable coal reserves every continued 

operation year thereafter. Thus, DOI believes that the 10-year period is realistic. This comment was rejected.

The following hypothetical examples illustrate the concept of the diligent development period for LMU's.

(1) For an LMU containing a Federal lease issued prior to August 4, 1976, but not readjusted after August 4, 1976, 

prior to LMU approval: 

Date Event

Apr. 15, 1974 Federal lease "A" issued.

Mar. 30, 1978 Federal lease "B" issued.

May 30, 1980 Federal lease "C" issued.

Apr. 1, 1983 LMU approved containing Federal leases "A," 

"B," and "C."

Do. Diligent development period begins.

Apr. 1, 1993 Latest date that diligent development period 

can end.

(2) For all other LMU's, i.e., those which do not contain a unreadjusted Federal lease issued prior to August 4, 1976:

Date Event

Mar. 20, 1957 Federal lease "A" issued.

Mar. 20, 1977 Federal lease "A" readjusted.

May 27, 1980 Federal lease "B" issued.
Date Event

Apr. 1, 1983 LMU approved containing Federal leases "A" 

and "B."

May 27, 1980 Diligent development period begins.

May 27, 1990 Latest date that diligent development period 

can end. 

Note. -- The two key dates in this second example are the readjustment date of Federal lease "A" (3-20-

1977) and the issuance date of Federal lease "B" (5-27-1980). The most recent of these dates, hence the date 

upon which the diligent development period begins, is the issuance date of Federal lease "B" (5-27-1980). 

Several comments stated that the diligent development requirement should be modified to provide reasonable 

flexibility because of the lengthy development time required for in situ operations. The DOI is currently reviewing the 

mineral leasing laws (see 46 FR 40588, August 1, 1981) to determine their applicability to, and implementation of 

regulations for, synthetic fuel production methods. Regulations related to synthetic fuel production will be promulgated 

at a later date. These comments will be considered in that rulemaking effort.

One comment suggested that the termination of the diligent development period upon achievement of production of 

coal in commercial quantities should coincide with commencement of the continued operation year, which begins the first 

royalty reporting period after achievement of production in commercial quantities. The 30 CFR 211.2(a)(14) has been 

revised to allow for this continuity.

30 CFR 211.2(a)(6) Contiguous.

Several comments supported the change to the definition of contiguous. One comment stated that the definition is 

unduly restrictive because an LMU could consist of noncontiguous segments. However, the LMU definition expressly 

states that "all lands in an LMU shall * * * be contiguous." The requirement of contiguity is mandated by MLA. 

Therefore, this comment was rejected.

Two comments stated that the definition should be redefined to replace the one-point-in-common requirement with 

the concepts of "close proximity," "common facilities," or "nearby." The MMS has determined that the primary definition 

of "contiguous," i.e., at least one point in common, most accurately reflects the congressional intent of Section 2(d)(1) of 

MLA. This definition will, therefore, be used in implementing the LMU concept. These comments were rejected.

30 CFR 211.2(a)(12) Development.

One comment requested that "after approval of a permit application package" be deleted from the definition of 

"development." However, Section 506 of SMCRA, 30 U.S.C. 1256, states that "no person shall engage in * * * any 

surface coal mining operations unless such person has first obtained a permit * * *. (emphasis added) Therefore, this 

comment was rejected.

30 CFR 211.2(a)(17) Exploration.

One comment requested that "taking of bulk samples" should be included in the definition of exploration. The MMS 

believes that the definition, in conjunction with 30 CFR 211.10(a)(3)(vi), encompasses this concern. Thus, this comment 

was rejected.

One comment requested that "soil samples [taken] for reclamation purposes" should be included in the definition of 

exploration. The MMS agrees and 30 CFR 211.2(a)(17) has been revised accordingly.

30 CFR 211.2(a)(18) Exploration Plan.

One comment requested that the definition of exploration plan be restricted to "leased Federal lands." Since MMS is 

responsible for all exploration for Federal coal prior to commencement of mining operations within an approved permit 

area, this comment was rejected. Prelease exploration for Federal coal must comply with the performance standards at
30 CFR 211.40(a) and the provisions at 43 CFR Part 3410. In addition, all exploration plans for Federal coal must 

comply with the requirements at 30 CFR 211.10(a).

Two comments requested modification of the definition of exploration plan to include "applicable State laws." The 

MMS believes that 30 CFR 211.10(a)(1)(vii) and 30 CFR 211.40(a)(3) encompass this concern. Thus, the comment was 

rejected.

30 CFR 211.2(a)(20) Gross Value. 

Many comments requested the exclusion of reimbursed and nonreimbursed Federal royalties and Federal fees when 

determining the gross value, for Federal royalty assessment, of the Federal recoverable coal produced. Two comments 

stated that the proposed method for determining gross value not only artificially inflates the price of coal but that those 

making the comments would pass such costs on to the consumers, whether the costs were direct or indirect. Several 

comments also requested exclusion of reimbursed and nonreimbursed State and local royalties and fees. The Secretary 

has concluded that the current method for computing royalties will be retained.

One comment suggested that the unit sale or contract price for synthetic fuel production from coal should be made 

at the well head (for in situ coal gasification). A notice published in the Federal Register on August 10, 1981, requested

public comments regarding the royalty base for in situ coal gasification. From comments received, the royalty valuation 

procedures have been narrowed to two methods, which will soon be published in the Federal Register for public 

comment. No determination has been made on royalty calculation for in situ coal gasification.

One comment suggested that if DOI investigated current leasing that not only should the definition remain the same, 

but that all "surface-mined coal [should] be at a 16 percent or greater royalty rate." The current Federal Coal 

Management Program has investigated coal leasing in the private sector and has not found a royalty rate above the 12 1/2 

percent minimum statutory rate for surface-mined Federal coal to be warranted.

One comment requested that gross value should be established at "approximately the same place in the production 

stream for all coal properties." Another comment requested that this point be the "point of severance after primary 

crushing." The MMS believes that the language contained at 30 CFR 211.63 (f) and (h) addresses this concern; i.e. 

"gross value at the point of sale, [which is] normally the mine."

One comment requested that the definition be left as proposed because historically, "[t]he only real indication of the 

market value of coal is the unit sale or contract price."

One comment requested that gross value be determined on an annual basis versus a spot-price basis. The present 

definition of gross value does not use a spot-price basis in its language. In actual practice, gross value is the weighted 

average selling price for the reporting period. Royalty based on an annual gross value calculation would represent the 

loss of use of funds to the royalty owner for the period of 1 year. Conversely, the operator/lessee would have the use of 

the royalty owner's money for the period of 1 year. This comment was rejected as being contrary to the policy of DOI.

30 CFR 211.2(a)(22) Logical Mining Unit (LMU). 

One comment stated that all Federal leases should automatically be designated as LMU's because this would give 

operators/lessees incentives to produce coal. The designation of LMU's under Section 2(d) of MLA is discretionary. It is 

not DOI policy to automatically designate any lease as an LMU. The MMS believes that the diligent development and 

continued operation provisions already provide the incentives to produce coal.

Supplemental resource recovery and protection plan requirements and conditions for approval are addressed in the 

preamble discussion of comments received on 30 CFR 211.80.

Several comments suggested that BLM and MMS definitions for LMU's should be consistent. The definitions have 

been made consistent in this final rulemaking.

Several comments addressed the 40-year mine-out requirement beginning with the date that coal is first produced 

after LMU approval. Two comments favored and two comments opposed this interpretation of the statute. Based on a 

review of the legislative history, DOI has determined that this implementation of the 40-year mine-out period is correct. 

Therefore, the requirement has not been changed.

Several comments suggested additional wording for the LMU definition to clarify DOI's position that Federal leases 

are not automatically LMU's. The designation of LMU's is discretionary under Section 2(d) of MLA. With these final 
rules, it is not DOI policy automatically to designate any Federal lease to be an LMU. The former rules designating each 

lease an LMU are repealed with this final rulemaking and BLM's final rulemaking for 43 CFR 3400. Therefore, these 

comments were rejected.

Several comments favored the proposed removal of the restriction that all lands included in the LMU be underlain by 

coal. This removal more correctly reflects the provisions of MLA and has been retained in this final rulemaking.

One comment suggested that lands underlain by Federal coal could be set aside for ancillary facilities, thus rendering 

some Federal coal unmineable. The addition of these words to the definition is not appropriate. Such provisions, if 

proposed in a resource recovery and protection plan submittal, will be reviewed and a decision made by the District 

Mining Supervisor prior to approval of the permit application package.

Several comments requested clarification of any penalties levied at the end of 40 years if production were not 

completed. The rules of this Part provide that an LMU shall be terminated at the end of the 40-year statutory production 

period. Upon termination of the LMU, each Federal coal lease contained in the LMU shall revert to its original Federal 

lease diligence requirements, including the governing regulations related to diligent development and continued 

operation.

Several comments stated that the cost of environmental compliance (SMCRA and NEPA) and the requirement for 

meeting MER should be part of the LMU definition. Such wording is not consistent with the statutory requirement of 

MLA. Environmental costs are an integral part of the MER determination and is a factor considered in any resource 

recovery and protection plan approval. This concern is addressed in the preamble discussion of comments received on 30 

CFR 211.11(a)(2) for both Federal leases and LMU's.

Several comments stated that the term "contiguous" and the 25,000-acre limitation are unduly restrictive. These 

restrictions are required by MLA, which cannot be amended by rulemaking. Therefore, these comments were rejected. 

However, the 25,000-acre limitation is not part of the LMU definition and has been codified at 30 CFR 211.80(f)(6).

Two comments supported the inclusion of the concept that a single operation may include a series of excavations. 

This concept remains unchanged in this final rulemaking. However, it is not part of the LMU definition and has been 

codified at 30 CFR 211.80(f)(2).

Two comments requested clarification of the contiguous concept as related to unsuitable lands and mixed ownership 

(i.e., Federal and non-Federal lands included in an LMU). Contiguous is defined as having at least one point in common 

including cornering tracts. Intervening physical or legal separations do not destroy the concept of contiguity as long as 

legal subdivisions have at least one point in common. Therefore, neither mixed ownerships nor lands declared unsuitable 

after LMU formation necessarily destroy the concept of contiguity.

One comment questioned the procedure for modifying LMU boundaries and LMU recoverable coal reserves. Such 

procedures are not part of the LMU definition. These procedures are addressed at 30 CFR 211.11(a)(3) and 30 CFR 

211.80(a) and (g). The LMU acreage and boundaries may be modified as long as the statutory maximum of 25,000 acres 

is not exceeded.

One comment questioned whether the 40-year mine-out period would be altered upon LMU modifications. Any 

revised resource recovery and protection plan shall provide for the mining of all LMU recoverable coal reserves not later 

than the end of the original 40-year period, in accordance with MLA (see 30 CFR 211.80(g)(2) through (4)).

Two comments questioned the authority and criteria under which MMS would require any operator/lessee to form 

an LMU. While MLA authorizes DOI to order the establishment of an LMU involving leases issued after August 4, 

1976, it is not DOI policy to exercise this option. Criteria for requiring LMU formation will be established on a case-bycase basis.

One comment requested clarification that an LMU which includes non-Federal recoverable coal reserves does not 

mandate Federal jurisdiction over mining of non-Federal recoverable coal reserves. Federal jurisdiction under MLA is 

limited to the Federal recoverable coal reserves contained in the LMU; whether Federal permitting under SMCRA 

remains applicable is a matter treated in OSM rules and State programs under SMCRA and those rules. Non-Federal 

recoverable coal reserves are only considered for the diligence requirements of the LMU and the determination of MER 

for the Federal LMU recoverable coal reserves. The 30 CFR 211.80(e)(5) has been revised to reflect this intent.
30 CFR 211.2(a)(23) and (36) Logical Mining Unit (LMU) Recoverable Coal Reserves and Recoverable Coal 

Reserves. 

Two comments stated that the term "reserves" is inconsistent with industry practice. The MMS believes that the 

redefinition of the term "coal reserves" as "recoverable coal reserves" clarifies the intent of the definition.

Several comments stated that LMU recoverable coal reserves must be adjusted upon receipt of new information. 

One comment stated that reserves should only be adjusted upon request of an operator/lessee. Two comments stated that 

reserve estimates, once established, should not be revised.

If reserve estimates are revised upward, MER may be adjusted accordingly in order to ensure fair return to the 

Federal Government and the public. By the same logic, an operator/lessee should not be penalized if, during operations, 

fewer recoverable coal reserves are discovered than originally estimated. In order to ensure that an operation is in 

compliance with MLA, the District Mining Supervisor must be able to adjust the recoverable coal reserves figures as new 

information becomes available. The 30 CFR 211.11(a)(3) has been inserted and 30 CFR 211.80(e)(5) has been modified 

to reflect this requirement.

One comment stated that reserves should be adjusted based on the periodic submittals of data required under 

General Mining Order Number 1 (GMO #1). The GMO #1 is currently under review for revision or replacement. If 

GMO #1 is continued, it will be utilized as one source of new information in determining whether recoverable coal 

reserves or LMU recoverable coal reserves should be adjusted.

Two comments requested that environmental constraints be considered in the determination of recoverable coal 

reserves. This suggestion was rejected because environmental constraints are encompassed in the wording of "other areas 

where mining is not permissible."

Several comments requested adding words concerning mining or economic constraints. These comments were 

rejected because such constraints are encompassed in the wording of "coal that can be mined commercially under

existing technology and economics." (emphasis added)

One comment concerned overlapping definitions. The BLM and MMS have resolved the inconsistencies.

30 CFR 211.2(a)(24) Maximum Economic Recovery (MER). 

Many comments were received concerning the definitions of MER. These comments fall into three broad categories: 

favoring the proposed definition with modification; favoring the preamble definition with modification; and, favoring 

retention of the existing (1981 43 CFR 3400) definition. In the first two categories, suggested modifications addressed 

not the definition but the actual method of determination of MER. Therefore, the suggestions are addressed in the 

preamble discussions of comments received on 30 CFR 211.11(a)(2). Factors contained in both the proposed and 

preamble definition that related to the method of MER determination have been combined and revised, as appropriate, 

based on comments received.

One comment states that the definition of MER "violates Section 3(C) [sic]" of FCLAA. The MMS believes that this 

concern is already covered by provisions at 30 CFR 211.10(c)(3)(ii) which require the operator/lessee to submit data on 

the "methods of mining and/or variation of methods * * * " The District Mining Supervisor has discretionary authority to 

approve or require modifications, such as alternative methods of mining, to resource recovery and protection plans.

Two comments stated that the proposed definition is inconsistent with both MLA and SMCRA. In addition, one 

comment stated that the revised definition of MER would result in "high-grading of [sic] 'cream skimming! ' " The 

comment also requested the deletion of the term "or equal to." The MMS believes that the definition is not inconsistent 

with either MLA or Section 515(b)(1) of SMCRA (30 U.S.C. 1265(b)(1)). The MSS will not force an operator/lessee to 

operate continuously at the "break even" point of the operation. The MMS is responsible for ensuring conservation of the 

"coal reserves and other resources." Thus, the definition, used in conjunction with the provisions at 30 CFR 211.11(a)(2),

meets the statutory requirements of both MLA and SMCRA.

30 CFR 211.2(a)(26) Mine 

One comment suggested that the word "commercial" be inserted before the word "mining" in order to clarify that 

"extraction of coal for bulk sampling purposes does not constitute mining in the context of this definition * * * " The 
30 CFR 211.10(a)(3)(vi) covers bulk sampling as exploration, under the provision that states "a description of the 

methods to be used to determine those amounts * * * " Thus, this comment was rejected.

30 CFR 211.2(a)(27) Minable Reserve Base. 

Several comments requested that coal which is not recoverable due to legal or regulatory constraints (including, but 

not limited to, coal in land classified unsuitable for coal mining operations) should be excluded from the definition. The 

MMS agrees and the definition has been changed accordingly. Also, since comparison of the recoverable coal reserves 

with the minable reserve base is important in determining the efficiency of a proposed operation and to determine that a 

proposed operation will achieve MER, the definition of recoverable coal reserves has been redefined in terms of the 

minable reserve base. By the same reasoning, minable reserve base has been redefined in terms of the coal reserve base.

30 CFR 211.2(a)(30) Notice of Availability.

Two comments suggested that "adequate newspaper publication is required" for notices of availability of LMU 

applications and decisions on LMU's. The MMS believes that the definition is an inappropriate place for a publication 

requirement. However, MMS agrees with the comment. Publication in newspapers was proposed at 30 CFR 211.5 (b)(1) 

and (2) and has been retained in the final rulemaking.

One comment requested public participation on exploration plans and resource recovery and protection plans. Public 

participation procedures for post lease exploration plans are provided by the posting of the exploration plans at the office 

of the District Mining Supervisor. See also the discussion of comments received on 30 CFR 211.5(b). Public 

participation in prelease exploration is the responsibility of BLM. Public participation in the approval of permit 

application packages, which contain the resource recovery and protection plan required by MLA and the permit 

application required by SMCRA, is the responsibility of OSM or the State regulatory authority.

30 CFR 211.2(a)(33) Permanent Abandonment of Mining Operations.

One comment questioned whether "permanent abandonment of mining operations" applies only to MLA 

requirements, or also to reclamation requirements of SMCRA. The intent of the definition is to satisfy only MLA 

requirements. The OSM or State regulatory authority is responsible for completion and permanent abandonment of 

reclamation operations under SMCRA.

30 CFR 211.2(a)(38) Resource Recovery and Protection Plan.

Two comments stated that the purpose of the resource recovery and protection plan was to address only MLA 

requirements and was to be submitted within the 3-year period required by MLA. The comments further stated that 

submittal of a resource recovery and protection plan was not sufficient to allow mining. The MMS agrees with these 

comments as discussed at 30 CFR 211.10(b) in the proposed rulemaking. That discussion has been retained in this final 

rulemaking.

One comment requested that the resource recovery and protection plan be "a detailed plan" to satisfy MLA 

requirements. The MMS believes that the resource recovery and protection plan fully complies with the requirements of 

MLA. It is more reasonable to allow a company to submit the detailed information at the time it submits a permit 

application to the regulatory authority. Therefore, this comment was rejected.

One comment stated that the resource recovery and protection plan should not be for the life-of-the-mine but for the 

entire Federal lease or LMU. The MMS believes that this comment reflects confusion between MMS responsibilities 

under MLA and regulatory authority responsibilities under SMCRA. The MMS use of "life-of-the-mine" in these rules 

pertains to the life-of-the-mine on Federal coal leases and, for LMU's, non-Federal coal only if that non-Federal coal is 

used by the operator/lessee to satisfy MLA requirements for the Federal coal lease(s) contained in the LMU. The MMS 

requires the resource recovery and protection plan to contain the total Federal lease or LMU recoverable coal reserves 

estimates so that the District Mining Supervisor can determine that MER of the Federal coal will be achieved. Therefore, 

this comment was rejected.
30 CFR 211.2(a)(41) Subsidence.

Two comments stated that the definition of subsidence should include offsite impacts caused by subsidence. The 

MMS disagrees. Although offsite impacts may occur as a result of subsidence, they are not part of the definition of 

subsidence. Offsite impacts resulting from subsidence fall under the purview of the regulatory authority, not MMS. The 

proposed 30 CFR 211.40(c)(2) entitled "Subsidence" inadvertently omitted a cross-reference to 30 CFR 784.20. This 

omission has been corrected in this final rulemaking.

30 CFR 211.2(c) 

One comment stated that cross-referencing definitions was appropriate but that some of the cross-referenced 

definitions were being revised. The MMS is aware that the cross-referenced definitions are being revised; however, the 

cross-referenced definitions are those that deal with 30 CFR Chapter VII requirements, not those at 30 CFR Part 211. 

Therefore, by cross-referencing the definitions, as they are changed by OSM, the change will be made simultaneously in 

their use at 30 CFR Part 211.

One comment suggested that the definition of "approved State program" be cross-referenced to 30 CFR Chapter 

VII. Since neither "approved State program" nor "State program" are specifically defined at 30 CFR Chapter VII, this 

comment was rejected.

One comment suggested that the definition of "Indian lands" be cross-referenced to 30 CFR Chapter VII. The MMS 

agrees and the definition of "Indian lands" has been cross-referenced to 30 CFR Chapter VII.

30 CFR 211.3 - GENERAL RESPONSIBILITIES. 

One comment stated that the District Mining Supervisors have "too much discretionary authority" and that there are 

"no apparent checks and balances * * * [to] * * * prevent interference by a District Mining Supervisor in the economic 

viability of a mine." The MMS disagrees. The District Mining Supervisor is the most knowledgeable professional familiar 

with the operations under his supervision. Regarding checks and balances, 30 CFR 211.3(b) already addresses the 

supervisory authority and "line of command." This comment was rejected.

One comment stated that this section should be clarified regarding the responsibilities of MMS, BLM, and OSM. 

These responsibilities are stated at 30 CFR 211.1(c) and no further clarification is needed. In general, the 30 CFR Part 

211 rules are a statement of the responsibilities of MMS, 30 CFR Chapter VII is a statement of the responsibilities of 

OSM, and 43 CFR Part 3400 is a statement of the responsibilities of BLM.

30 CFR 211.3 (c) and (d) 

Several comments stated that these two paragraphs were overly broad in the authority to "determine whether there is 

compliance with all provisions of applicable laws, rules, and orders * * *" The MMS interprets the term "applicable" in 

the above sentence to mean those laws, rules, and orders for which MMS is responsible pursuant to MLA. It should be 

noted that the "District Mining Supervisor shall enforce requirements of SMCRA only if he finds a violation, condition, 

or practice regarding emergency situations for which an authorized representative of the Secretary is required to act 

pursuant to 30 CFR 843.11 and 843.12." (emphasis added) The provisions at 30 CFR 843.11 state in part that "[a]n 

authorized representative of the Secretary shall immediately order a cessation of * * * operations or of the relevant 

portion thereof, if he finds, on the basis of any Federal inspection, any condition or practice, or any violation of the Act 

[SMCRA], * * * any applicable program, or any condition of * * * [a] permit imposed under any such program, the 

Act [SCMRA], or this chapter (30 CFR Chapter VII), which" creates imminent danger to the health and safety of the 

public or "is causing or can reasonably be expected to cause significant, imminent environmental harm to land, air, or 

water resources." (emphasis added) Thus, in emergency situations discovered during normal inspection of operations by 

MMS personnel, the inspecting person is authorized to enforce laws, rules, and orders beyond those for which MMS is 

responsible pursuant to MLA. Thus, these comments were rejected.

30 CFR 211.3(c)(1) 

One comment stated that "the Department illegally proposes giving [MMS] sole regulatory jurisdiction over coal 

exploration activities on Federal leases." The comment further asserts that "Section 201(b) [of SMCRA] bars agencies 

with coal development responsibilities, like [MMS], from exercising any functions under [SMCRA]." Also, the comment 
states that "[u]nder Section 523 of SMCRA, * * * OSM, is the regulatory authority on Federal lands unless there is a 

cooperative agreement," in which case "OSM shares regulatory jurisdiction with the state regulatory authority." These 

final rules implement MLA, not SMCRA. The OSM has no authority to implement MLA requirements and thus neither 

OSM nor the State regulatory authority have authority for exploration for Federal coal until mining operations have 

commenced within an approved permit area. Until this point, BLM and MMS share responsibility for exploration. This 

comment was rejected.

One comment stated that "state activities must be constrained so as not to intrude * * * with the sovereignty and 

roles of Tribal governments" or Bureau of Indian Affairs (BIA) and tribes. The MMS agrees and will continue to work 

closely with BIA in effecting the Indian trust responsibilities of DOI.

30 CFR 211.3(c)(2) 

One comment suggested that the final rules should be clarified to state that the Secretary has the approval authority 

only with respect to the resource recovery and protection plan, but that "ultimate approval for operations on federal [sic] 

lands rests with the State regulatory authority where an approved cooperative agreement is in existence." Section 523(c) 

of SMCRA states that "[n]othing in this subsection shall be construed as authorizing the Secretary to delegate to the 

States his duty to approve mining plans on Federal lands * * * or to regulate other activities taking place on Federal 

lands." The State regulatory authority under a cooperative agreement has the responsibility for ensuring that the permit 

application submitted pursuant to SMCRA meets the requirements of the approved State program and the Permanent 

Federal Lands Program rules at 30 CFR Part 740. The ultimate responsibility for ensuring that MLA requirements are 

met rests with the Secretary and cannot be delegated to a State under a cooperative agreement. Therefore, this comment 

was rejected.

One comment suggested that the Secretary develop a "threshold warning system" enabling the Secretary to know in 

advance when an operator/lessee will not meet the statutory 40-year mine-out deadline. The comment also suggested that 

this warning system "coupled with tough penalties" would provide "sufficient incentives to assure that the 40-year 

deadline is met * * *" The MMS agrees with the concept of a threshold warning system. The provisions at 30 CFR 

211.3(c)(4) require inspections of all operations to determine whether there is compliance with all provisions of 

"applicable laws, rules, and orders, all terms and conditions of Federal leases * * * and all requirements of approved * * * 

resource recovery and protection plans." These inspections must be performed "as frequently as necessary, but at least 

quarterly." (emphasis added) The MMS believes that such inspections will provide the Secretary with a "threshold 

warning system." With respect to penalties, 30 CFR 211.21(b) states that any "Federal coal lease included in an LMU 

which has been terminated * * * shall then be subject to the diligent development and continued operation requirements 

that would have been imposed on that Federal lease * * * if the Federal lease had not been included in the LMU." If the 

conditions of diligent development and continued operation are not met on a Federal lease-by-lease basis, the Secretary 

"may cancel any Federal coal lease" in accordance with 30 CFR 211.21. Thus, such Federal leases would revert "to the 

Department for reissuance" as the comment requested. The MMS agrees with the entire comment and believes it is 

adequately addressed in this final rulemaking.

30 CFR 211.3(c)(8) 

Several comments requested that the provision at 30 CFR 211.3(c)(7) concerning the regulatory authority be 

repeated at 30 CFR 211.3(c)(8). The MMS agrees and the addition has been made in this final rulemaking. It should be 

noted that the final term "and the rules of this Part" has been deleted at both 30 CFR 211.3(c) (7) and (8) because the 

regulatory authority cannot enforce the provisions at 30 CFR 211.

One comment stated that the concept of abandonment or relinquishment of a Federal lease or license should 

encompass the possibility of relinquishing only portions of Federal leases or licenses. The MMS agrees. Since 43 CFR 

3452.1-1 for Federal leases, and 43 CFR 3410.3-1(d) for Federal licenses, already incorporate this concept, appropriate 

cross-references to these provisions have been inserted at 30 CFR 211.3(c)(8).

30 CFR 211.3(c)(11) 

One comment asked what authority MMS had to enforce this provision. This concern has been previously addressed 

in the preamble discussion of comments received on 30 CFR 211.3(c) (4) and (5). This comment was rejected.
One comment questioned whether the Federal Government can inspect and enforce State law requirements. It is the 

intention of MMS to enforce only Federal requirements, and the language of this paragraph has been revised to reflect 

this intent.

30 CFR 211.3(c)(12) 

One comment questioned issuance of oral orders and when they would become effective. The 30 CFR 211.72(c) 

reflects the concern stated in the comment that such oral orders "probably would be of an emergency nature." The 

paragraph, in part, states that under emergency conditions, "the District Mining Supervisor shall order the immediate 

cessation of such activities without prior notice of noncompliance." (emphasis added) The provisions at 30 CFR 

211.3(c)(12) require prompt confirmation in writing of such oral orders. Thus, the provisions at 30 CFR 211.73 

concerning appeals would be effective immediately. The MMS believes these provisions address the concerns expressed 

in the comment.

30 CFR 211.3(c)(13) 

Several comments expressed concern regarding duplicate bonding requirements by States and MMS concerning 

MLA responsibilities. Lease bonds are required in order to ensure that the dollar obligations of the operator/lessee are 

adequately covered. Reclamation bonds under SMCRA cover the reclamation of operations upon completion of mining 

operations. The reclamation bonds are a requirement implemented by the regulatory authority, not MMS. Therefore, 

these comments were rejected.

30 CFR 211.4 - GENERAL OBLIGATIONS OF THE OPERATOR/LESSEE. 

30 CFR 211.4(c) and (d) 

Several comments requested a definition of "other resources" that must be conserved under Section 2(d)(1) of MLA. 

Other resources include, but are not limited to, leasable minerals under MLA and other subsurface resources. 

Conservation of "other resources" will be addressed on a case-by-case basis by appropriate State and Federal Agencies. 

Such consultations are procedural, not regulatory. Therefore, these comments were rejected.

One comment stated that it was "difficult to ascertain what the phrase 'related to the resource recovery and 

protection plan' modifies." The intent of the paragraph was to ensure that the District Mining Supervisor would be 

advised if severe injury or loss of life would affect MLA requirements of the resource recovery and protection plan. The 

wording has been clarified to reflect this intent. The comment further stated that MMS "does not possess the authority 

over mine safety implied * * *" The MMS agrees and believes that the revisions to this paragraph in conjunction with 30 

CFR 211.1(c)(2) clarify this situation.

30 CFR 211.5 - PROCEDURES AND PUBLIC PARTICIPATION. 

One comment requested that a procedure be adopted "whereby logical mining units may be terminated while 

retaining one or more of the underlying federal [sic] leases previously subject to the logical mining unit." The provisions 

at 30 CFR 211.21(a) allow for such termination of LMU's and the provisions at 30 CFR 211.21(b) allow for the retention 

of the Federal leases.

One comment stated that the public participation procedures at 30 CFR 211.5 should be expanded to address 

termination or cancellation of an LMU. Under Section 7 of MLA, terminations are mandatory. Termination or 

cancellation of an LMU is an administrative procedure (see discussion of comments received on 30 CFR 211.5(b) and 30 

CFR 211.21(c)). This comment was rejected.

30 CFR 211.5(b) 

Two comments stated that publication of a notice in a newspaper of general circulation "is made discretionary with 

the Supervisor." The MMS disagrees. The final sentence at 30 CFR 211.5(b)(1) and the first sentence at 30 CFR 

211.5(b)(2) require the notice to be submitted "to a local newspaper of general circulation" by the District Mining 

Supervisor. The comment was rejected.
One comment stated that a notice of availability of a proposed LMU or modification should not be provided to 

"surface owners of areas to be underground mined and which would not be disturbed by the placement of surface support 

facilities." Depending on the contemplated underground mining method, subsidence could result that could adversely 

affect the surface owner's use of the land. Based on a continuing DOI commitment to public participation, it is logical 

that the surface owner be informed of any action taken subsequent to Federal lease issuance. This comment was rejected.

One comment "object[ed] strenuously to the elimination of all public participation from the mine plan [sic] and 

exploration plan approval process." With respect to public participation in the permit application package review process, 

the provisions at 30 CFR Chapter VII apply to the permit application package, which contains the MLA resource 

recovery and protection plan and the SMCRA permit application. Public participation in the exploration plan approval 

process has historically been covered by the "written findings" at 30 CFR 211.5(a) which provides that all major 

decisions and determinations, including approval of an exploration plan, shall be in writing and "shall be available for 

public inspection * * * during normal business hours at the appropriate office." The MMS has not been presented with 

any arguments justifying a change in the current procedure, nor is MMS aware of any instances where public 

participation was not served by the current procedures. This comment was rejected.

30 CFR 211.6 - CONFIDENTIALITY.

Two comments requested that proprietary data be provided to States. Several comments were opposed to this 

concept. Several comments suggested that proprietary data should not be provided to States unless the States had 

enacted laws as strict as the restrictions imposed by the Freedom of Information Act (FOIA) (5 U.S.C. 552). Two 

comments stated that the operators/lessees should be notified prior to release of proprietary data. The 30 CFR 

211.6(a)(2) provisions state that proprietary data shall not be made available to the public "without the consent of the 

operator/lessee."

Proprietary data cannot be disseminated publicly because release of such data would compromise the 

competitiveness of the coal industry. The proprietary data provided to MMS are used by MMS to enforce MLA 

requirements, not those of SMCRA. It should be noted that Section 507(b)(17) of SMCRA provides for confidentiality 

of analysis of chemical and physical properties of coal, except information regarding mineral or elemental content which 

is potentially toxic in the environment. Also, it should be noted that Section 512(b) of SMCRA mandates confidentiality 

of trade secrets or commercial or financial information which relate to the competitive rights of the person or entity to 

explore a described area. With regard to MLA, Section 2(b)(3) requires the Secretary to maintain the confidentiality of 

all data obtained under an exploration license until after Federal lease issuance or until a determination by the Secretary 

that releasing the data to the public would not damage the competitive position of the licensee. However, no copies of 

such proprietary data can be released to the States. Therefore, 30 CFR 211.6 has not been revised. Two comments stated 

that FOIA (5 U.S.C. 552(b)) does not cover coal. The comments stated that confidentiality of geologic and geophysical 

data and maps pertains only to oil wells. The FOIA specifies "wells" and does not tie them to a specific mineral 

commodity. It is DOI's position that "wells" includes exploration holes for leasable minerals. Thus, these comments were 

rejected.

Several comments stated that 30 CFR 211.6(a)(2) is contrary to SMCRA provisions at Sections 507(b) and 

508(a)(12). The 30 CFR 211.6 provisions implement MLA requirements and do not affect data submitted to the 

regulatory authority in compliance with SMCRA. Thus, these comments were rejected.

One comment stated that requests for economic and financial data should only be related to royalty calculations and 

should be held confidential. Profitability is a function of coal conservation and mining techniques and, in order to ensure 

the conservation of the coal, financial and economic data may be required. The 30 CFR 211.6 ensures the confidentiality 

of any such submitted material. This comment was rejected.

One comment stated that trade secrets and financial information should be kept confidential even after Federal lease 

termination. The 30 CFR 211.6(a)(3) only provides for the release of geologic and geophysical data and maps. Trade 

secrets and financial information can only be released to the public after consent of the operator/lessee in accordance 

with 30 CFR 211.6(a)(2). The 30 CFR 211.6(a) (2) and (3) have not been revised, since they adequately address the 

concerns stated in the comment.

One comment stated that proprietary data should not be released upon termination of a Federal lease when the 

termination is being appealed. As long as a termination is under appeal, DOI does not consider a Federal lease to be 

terminated. Thus, the proprietary data are protected by the provisions at 30 CFR 211.6(a)(2).
Two comments objected to the release of recoverable coal reserves estimates at the time of Federal lease issuance or 

Federal lease readjustment even if such release was required by a Federal lease term. The provisions at 30 CFR 

211.6(a)(4) recognize that a Federal coal lease is a binding legal document. Therefore, if the Federal lease contains a 

provision requiring data release, the condition is binding on the operator/lessee. If a Federal lease does not contain such a 

term, release of data at the time of Federal lease issuance is at the Secretary's discretion pursuant to Section 2(b)(3) of 

MLA.

One comment stated that 30 CFR 211.6(a)(3) does not distinguish between data from exploration and from resource 

recovery and protection plans. The provisions at 30 CFR 211.6(b) in concert with 30 CFR 211.6(a) adequately cover 

both data obtained from licensees and from operators/lessees (see definition of "operator/lessee" at 30 CFR 

211.2(a)(32)).

Several comments requested that MMS not provide proprietary data to other Federal Agencies unless they had 

controls for the proprietary data as strict as those developed by MMS. One comment also suggested that MMS develop 

procedures for the handling of proprietary data by DOI Bureaus and other Federal Agencies. Within DOI, data is 

released only to those Bureaus that agree to become a "secondary office of control." Approved secondary offices of 

control must comply with MMS requirements for the handling and dissemination of proprietary data. Secondary offices 

of control are strictly prohibited from disseminating data maintained as proprietary by MMS. The secondary office of 

control requirements also apply to Federal Agencies other than DOI Bureaus. Prior to the release of proprietary data to 

any Federal Agency or Bureau, that Federal Agency or Bureau must demonstrate a need for the proprietary data. Thus, 

MMS standards are adhered to prior to release of proprietary data to any other Federal entity.

30 CFR 211.10 - EXPLORATION AND RESOURCE RECOVERY AND PROTECTION PLANS. 

30 CFR 211.10(a) 

One comment stated that it is "clear on its ace [sic]" that authority under Section 523 of SMCRA could only be

"exercised by the [MMS] to the degree necessary to * * * perform * * * duties under" MLA. The MMS agrees.

Several comments requested MMS to give regulatory control of exploration activities to the States. Two comments 

requested that State laws should govern exploration where State laws are at least as stringent as Federal standards. One 

comment stated that MMS supervision of exploration is contrary to the Federal Lands Program pursuant to SMCRA. 

Section 2(b)(3) of MLA prohibits delegation by the Secretary of responsibilities for prelease exploration for Federal coal. 

Release of data obtained from such exploration is also prohibited. Sections 512(e) and 701(28) of SMCRA do not 

include exploration in the term "surface coal mining and reclamation operations." Currently, MMS has approval authority 

for exploration for all post lease Federal coal outside a permit area, and inside a permit area prior to commencement of 

mining operations. The suggestion that the States be given responsibilities for post lease exploration for Federal coal 

under State-specific MMS/State Memoranda of Understanding or MMS/State Cooperative Agreements may be a viable 

alternative. The MMS is considering such action subsequent to this final rulemaking.

One comment stated that MMS should "delete references to the OSM regulations on coal exploration (30 CFR Part 

815) and to state programs when promulgating its final regulations on coal exploration on Federal lands." This has also 

been of great concern to individual coal States. The States have stated that wherever the 30 CFR Part 211 rules crossreference applicable provisions at 30 CFR 815.15 and approved State programs, MMS is attempting to compromise 

authorities given to the State regulatory authority under either approved State programs or OSM/State Cooperative 

Agreements. The performance standards at 30 CFR 815.15 are "applicable to coal exploration which substantially 

disturbs land surface." The MLA, however, specifically prohibits the taking of any action which might cause "substantial 

disturbance to the natural land surface" (Section 2(b)(2)), or which might cause "a significant disturbance of the 

environment" (Section 7(c)) prior to the Secretary's approval of a resource recovery and protection plan. Therefore, 

some of the provisions at 30 CFR 815.15 cannot be applied to federally leased or licensed lands because of MLA's 

specific prohibitions. The MMS is responsible for exploration for Federal coal within an approved permit area prior to 

commencement of mining operations. Upon commencement of mining operations, the regulatory authority assumes this 

responsibility in accordance with SMCRA. Under MLA, once the MLA resource recovery and protection plan and the 

SMCRA permit application which constitute part of the permit application package have been approved and the first 5-

year permit has been issued, an exploration plan could be submitted for lands within the life-of-the-mine area covered by 

the resource recovery and protection plan that could result in significant/substantial disturbance. In order to avoid 
duplication of enforcement of the performance standards at 30 CFR 815.15, 30 CFR 211.10(a)(3)(vii) cross-references 

the applicable performance standards at 30 CFR 815.15. Therefore, this comment was rejected.

One comment stated that an exploration plan should not be required within the area encompassed in the resource 

recovery and protection plan or within an approved permit area. If the drilling would constitute development drilling 

immediately preceding mining operations, such drilling would have to take place within the 5-year permit area. However, 

in line with the preamble discussion immediately above, this comment was rejected for any exploration within the area 

encompassed by the resource recovery and protection plan, other than that occurring within an approved permit area 

following commencement of mining operations (i.e., development drilling).

One comment stated that the data requirements for exploration plans are excessive. The MMS has determined that 

the requirements at 30 CFR 211.10(a) are necessary in order to enforce the provisions of MLA. This comment was 

rejected.

One comment requested that cross-references to 43 CFR 3410 regarding exploration licenses be deleted. A crossreference to 43 CFR 3410 was included at 30 CFR 211.10(a) to avoid confusion as to the processing of exploration 

licenses. This comment was rejected.

30 CFR 211.10(a)(1)

One comment suggested removal of the term "leased or licensed lands." This comment was rejected because MMS 

responsibilities under MLA concern both federally leased and licensed lands.

One comment suggested that 30 CFR 211.10(a)(1) should cross-reference the 43 CFR 3400.0-5 definition of casual 

use. Casual use as defined at 30 CFR 211.10(a)(1) more accurately defines the concept required for exploration under 

MLA. It should be noted that the words "as used in this paragraph" sufficiently reduce the applicability of the term, which

is why it is not defined at 30 CFR 211.2(a). This comment was rejected.

Two comments stated that off-road travel and use of explosives should be considered as casual use. This comment 

was rejected because such activities may result in disturbance to surface resources. Under MLA, MMS in conjunction 

with the surface management agency is responsible for the protection of surface resources during exploration activities 

for Federal coal. These comments were rejected.

30 CFR 211.10(a)(2) 

One comment requested that relocation or addition of exploration drill holes under an approved exploration plan 

should not require a modification of the plan. This comment was rejected. Such modifications of plans do not impose an 

onerous burden on operators/lessees. They must be approved to ensure protection of surface resources.

Several comments suggested that the requirement to submit the name, address, and phone number of the person who 

will be present during the conducting of the exploration should be deleted. Two of these comments also requested 

deletion of the requirement of providing the same information for the person responsible for the exploration. These 

comments were rejected because notices of noncompliance must be delivered to an operator/lessee in a timely manner to 

prevent undue environmental damage.

30 CFR 211.10(a)(3)(iii) 

Two comments requested deletion of "districts, sites, buildings, structures, or objects [listed on or] eligible for 

inclusion on the National Register of Historic Places." In addition, these two comments requested that the phrase 

"identified by the State Historic Preservation Officer" be inserted in the provision for known cultural and archeological 

resources located within the proposed exploration area. The requirement of reporting eligible properties is mandated by 

an amendment to the National Historic Preservation Act of 1966. The requirement to report known cultural or 

archeological resources in the plan does not require an operator/lessee to determine eligibility for listing on the National 

Register. The requirement is intended merely to enable the State Historic Preservation Officer and/or the District Mining 

Supervisor to request a determination of eligibility from the Keeper of the National Register, if necessary. Under the 

National Historic Preservation Act of 1966, as amended, a cultural resource clearance must be obtained from the surface 

management agency or, where applicable, State Historic Preservation Officer prior to undertaking any such operations on 

Federal lands. Therefore, these comments were rejected. It should be noted that protection of cultural resources is 

mandated by SMCRA and implemented by the regulatory authority at the time of permit application package review.
One comment requested deletion of "critical habitats of endangered or threatened species" as not being the 

responsibility of MMS. This comment was accepted in part. The MMS as the approval agency is responsible for ensuring 

that the operation is in compliance with certain Federal laws other than MLA. Endangered and threatened species must 

be protected under the provisions of Section 7 of the Endangered Species Act of 1973, as amended. However, 

publication of critical habitats of endangered and threatened species could prove detrimental to such species by 

encouraging increased unauthorized collection or destruction of the species. Therefore, the words "critical habitats of"

have been deleted from the information submittal requirements.

30 CFR 211.10(a)(3)(iv)(E) 

One comment stated that submission of plans for transfer and modification of exploration drill holes for use as 

surveillance, monitoring, or water wells is unnecessary and that this is a reclamation issue beyond the scope of an 

exploration plan. The MMS disagrees that this is a reclamation issue. The stipulation is included specifically to aid the 

operator/lessee since transfer and modification of exploration drill holes to surveillance, monitoring, or water wells can be

used to fulfill SMCRA requirements to gather baseline data for modeling ground-water hydrology for proposed mining 

operations. Also, the conversion of exploration drill holes to water wells utilized for domestic or livestock purposes 

transfers liability from the operator/lessee (transferor) to the transferee.

30 CFR 211.10(a)(3)(viii) 

One comment requested that the word "known" be inserted in identifying critical habitats of endangered and/or 

threatened species. For the reasons stated in the preamble discussion of comments received on 30 CFR 211.10(a)(3)(iii), 

the requirement that critical habitats be contained on the maps submitted has been deleted. This requirement has not been 

inserted at 30 CFR 211.12 for these same reasons.

30 CFR 211.10(a)(3)(ix) 

Two comments requested that the word "enter" be inserted in the second sentence prior to "that land for the purpose 

of conducting exploration and reclamation." The MMS agrees with this comment and the change has been made to this 

paragraph.

Two other comments requested that the provision of the second sentence in this paragraph be deleted in its entirety. 

These comments were rejected since MMS will not approve an exploration plan for an area where permission to enter the 

area has not been obtained. Since the necessary permission to enter may vary with the statutory source of the private 

surface title (e.g., 30 U.S.C. 81 and 85), this requirement is intended to notify MMS of potential problems.

30 CFR 211.10(a)(3)(x) 

Several comments requested deletion of this paragraph as being "open-ended." These comments were rejected. The 

District Mining Supervisor, based on his professional judgment and expertise, may find the information submitted in a 

proposed plan to be inadequate. In addition, a situation may arise during operations that could require additional data or 

adjustments to the approved plan. The District Mining Supervisor under MLA has discretionary authority to request such 

additional data.

30 CFR 211.10 (b) and (c) and 30 CFR 211.80(e) (1) and (5) 

One comment stated that the resource recovery and protection plan should be submitted within 3 years from the 

effective date of the rules of this Part for all undeveloped Federal leases and LMU's. One comment stated that the 3-year 

resource recovery and protection plan submittal is inadequate for compliance with MLA. Two comments stated that the 

resource recovery and protection plan should not be required within 3 years. One comment stated that the 3-year

submittal deadline for a resource recovery and protection plan is a burdensome requirement. The DOI has determined 

that the information to be submitted within the 3-year period mandated by Section 7(c) of MLA is necessary in order to 

enable MMS to determine whether the operator/lessee is in compliance with MLA. No provisions of this final rulemaking 

prohibit submittal of a resource recovery and protection plan prior to the end of the 3-year period. The DOI has 

determined that the 1976 amendments to MLA are prospective and therefore the 3-year resource recovery and protection 

plan submission requirement does not apply to leases issued prior to August 4, 1976, prior to the effective date of the 
first lease readjustment after August 4, 1976. This has been DOI's policy since the first revision to 30 CFR 211 after 

August 4, 1976. Since Section 7(c) of MLA mandates the 3-year period, that requirement for leases issued or readjusted 

after August 4, 1976, cannot be modified by rulemaking. These comments were rejected.

One comment stated that resource recovery and protection plan content requirements are excessive. The MMS 

believes that the requirements at 30 CFR 211.10 (b) and (c) are necessary to enforce the provisions of MLA. This 

comment was rejected.

Several comments stated that MMS should have a specified time period within which to act on a resource recovery 

and protection plan. One comment stated it would be "absurd for the operator/lessee to discover that his plan was found 

to be incomplete years later after the permit application package has been submitted * * *" The MMS disagrees with 

these comments. The 3-year timeframe for resource recovery and protection plan submittal does not apply to SMCRA 

permit application submittal. During the time, if any, between the two submittals, additional information may be obtained 

by the operator/lessee and incorporated in the permit application package. Since the resource recovery and protection 

plan cannot be approved until the permit application is in an approvable form, any deviations from the original resource 

recovery and protection plan that are reflected in the permit application must be submitted to MMS in order to ensure 

that the resource recovery and protection plan and the permit application address the same proposed operation at the 

time of approval of commencement of mining operations.

Many comments reflected a misunderstanding of the process for approval of proposed mining operations and 

issuance of a permit. The MMS is responsible for determining that a resource recovery and protection plan is in an 

approvable form. Under revisions that OSM will soon propose to its Federal lands program (30 CFR Chapter VII, 

Subchapter D), the regulatory authority would be responsible for determining that a permit application is approvable. The 

mining plan that the Secretary must approve under Section 523(c) of SMCRA would be the plan for mining leased 

Federal coal required by MLA. The permit application package submitted to the regulatory authority would consist of the 

resource recovery and protection plan, the permit application, and other information required by applicable laws and 

regulations. The regulatory authority's review and approval of the permit application would be independent of the 

Secretary's approval of the mining plan. The regulatory authority could issue the permit prior to mining plan approval, 

though commencement of mining operations could not occur prior to mining plan approval. The approved permit would 

have to conform, however, to the mining plan approved by the Secretary.

The OSM will be responsible for the Secretarial decision document for the approval of mining operations, including 

preparation of NEPA-compliance documentation. The Secretary in evaluating the proposed mining within the "full 

spectrum" of requirements, such as NEPA, MLA, and other Federal laws, would not be obligated to accept the 

recommendations of the regulatory authority or MMS. The Secretary's decision to allow or not allow mining on Federal 

lands must be based on his independent analysis. Thus, after the Secretary approves or authorizes approval of the mining 

plan, and after the regulatory authority concludes that mining could be conducted satisfactorily on Federal lands within 

the requirements of SMCRA and issues a permit, mining operations may commence.

Several comments stated that the life-of-the-mine information to be submitted in a resource and protection plan 

exceeds State-approved regulations. The resource recovery and protection plan is submitted to satisfy MLA 

requirements. As noted previously, enforcement of MLA requirements cannot be delegated to States. Diligent 

development and continued operation, as well as the MER requirement, cannot be determined on the basis of the 

information submitted the SMCRA permit applications. These provisions of MLA require life-of-the-mine data. Thus, 

these comments were rejected.

One comment stated that the reclamation portion of the resource recovery and protection plan compromises 

SMCRA reclamation responsibilities. Several comments stated that the data to be submitted in a resource recovery and 

protection plan were insufficient. Two comments stated that there is a lack of baseline data for a detailed resource 

recovery and protection plan. Several comments stated that too much detail is required in a resource recovery and 

protection plan. Section 7(c) of MLA requires the resource recovery and protection plan to address reclamation. The 

MLA does not, however, specify the level of detail required. Enforcement of MLA, however, requires only sufficient 

general reclamation information to enable the District Mining Supervisor to determine that MER will be achieved for the 

life-of-the-mine. As stated previously, MMS has determined that the requirements at 30 CFR 211.10 (b) and (c) are 

necessary to enforce the provisions of MLA. Several comments agreed with this MMS position. One comment stated 

that a general description of reclamation procedures and practices would be more appropriate than a general reclamation 

schedule. An LMU operation may last for 40 years. If an operator/lessee were to operate a mine on a Federal lease at the 

minimum production level to meet diligent development, maintain continued operation, and exercise his full option of 

paying advance royalty in lieu of continued operation, a Federal lease operation could be in existence for a much longer 
period of time. During the 40 years or more, reclamation procedures and practices are likely to become more efficient 

and more cost-effective; they are likely to change in any event. The requirement of a general reclamation schedule allows 

projections for the life-of-the-mine for associated costs based on today's technology. This information is used to 

determine that MER will be achieved. It should be noted that as more information becomes available during the life-ofthe-mine, the recoverable coal reserves estimate may be adjusted up or down; additional information may also affect the 

determination that MER will be achieved. Thus, these comments were rejected.

Two comments stated that approved permits should satisfy the 3-year resource recovery and protection plan 

submittal. The 30 CFR 211.10(b) states that a resource recovery and protection plan is not required if a current mining 

plan or resource recovery and protection plan has previously been submitted, in accordance with the existing (1981 30 

CFR Part 211 and 30 CFR Part 740) rules and contains the information required at 30 CFR Part 211. For a permit to 

have been approved, the operation must have been in compliance with 30 CFR Part 211. Therefore, existing approved 

permits satisfy the 3-year resource and protection plan submittal. Several comments requested that MMS coordinate with 

OSM prior to approval of a resource recovery and protection plan. This coordination is addressed in the BLM-MMSOSM Memorandum of Understanding on Federal coal. It is also absolutely necessary as is addressed in the preamble 

discussion of the interrelationships between MMS and the regulatory authority. However, such coordination is 

procedural, not regulatory and therefore is not addressed in this final rulemaking.

Two comments expressed concern that the regulatory authority would retain approval authority of the resource 

recovery and protection plan. These concerns have been addressed previously in this preamble.

One comment supported the elimination of the duplicative review process on submitted resource recovery and 

protection plans and permit applications. One comment stated that it was clear that duplication would be avoided if the 

resource recovery and protection plan and permit application were submitted concurrently. This provision is covered at 

30 CFR 211.10(c)(6) which allows for cross-referencing information submitted concurrently in a permit application.

Two comments requested clarification of the amount of data on non-Federal recoverable coal reserves required in a 

resource recovery and protection plan for an LMU. The detail must be sufficient to determine the non-Federal 

recoverable coal reserves in the LMU for the purposes of diligent development and continued operation and to determine 

that MER of Federal LMU recoverable coal reserves will be achieved. Otherwise these regulations do not apply to lands 

that do not contain Federal coal. This requirement is addressed at 30 CFR 211.80 (c)(4), (e), and (f)(2).

One comment stated that GMO #1 should not be revised until 30 CFR Part 211 is promulgated as final rulemaking. 

The MMS agrees. Action on GMO #1 will take place after the effective date of this final rulemaking.

One comment stated that MMS neglected to state what constitutes production from an LMU. Production is deemed 

to have commenced on the date of the first mining of coal from the LMU recoverable coal reserves. This provision has 

been inserted at 30 CFR 211.80(e)(6) for clarification.

30 CFR 211.10(c)(3)(i) 

One comment stated that the quality data required should not be limited to the list provided since other factors such 

as sodium content could significantly affect marketing opportunities and therefore affect mine economics and MER. The 

MMS agrees that the list is not all-inclusive and the paragraph has been revised accordingly.

30 CFR 211.10(c)(3)(ii) 

One comment stated that this paragraph and 30 CFR 211.10(c)(4)(iv)(A) have extended reporting timetables for 

mining sequence, production rate, and planned sequence of mining in 5-year increments. The MMS disagrees. The 

information is required by MMS in order to enforce the requirements of MLA. If these data have changed by the time 

that the SMCRA permit application is submitted, the changes must be supplied to MMS so that both the resource 

recovery and protection plan and the permit application cover the same proposed operation.

30 CFR 211.10(c)(4)(iii) 

One comment stated that "technically" should be deleted from this paragraph. The MMS agrees with this comment 

in part. The paragraph has been revised to request typical structure cross sections of all coal contained in the 

operator/lessee's coal reserve base estimate which is the first integral step in the determination of MER.
30 CFR 211.10(c)(4)(iv)(B) 

One comment stated that "all fenders" should be changed to "major fenders," and that negligible amounts of coal 

should not be considered. The MMS disagrees. In making MER determinations, the District Mining Supervisor must 

know how much coal is to be left in any fender.

30 CFR 211.10(c)(5) 

One comment stated that "30 U.S.C. 207(c) and 30 U.S.C. 1258 should be read in pari materia [sic]" since the 

"permit application * * * must contain * * * much more than a reclamation schedule * * * " The MMS agrees. Only the 

resource recovery and protection plan under MLA contains the reclamation schedule. The permit application under 

SMCRA will contain the detailed reclamation data for the approved permit area. See also the preamble discussion on the 

interrelationships of MMS and OSM regarding the resource recovery and protection plan and the permit application 

package.

One comment stated that because MLA and SMCRA "inherently include overlapping features, the elements of a 

statute primarily administered by one agency which are more extensively covered in a statute administered by another 

agency should be delegated to that second agency." The MMS believes that to the maximum extent possible under both 

statutes this has been accomplished. See also the preamble discussion on the interrelationships of MMS and OSM 

regarding the resource recovery and protection plan and permit application package.

One comment stated that "for the life-of-the-mine" should be deleted. The MMS disagrees for reasons stated 

previously. The comment further requested that the "specific contents [should be] listed to show that [the general 

reclamation schedule] is nonduplicative of the [permit application] * * *" It is not the intent of MMS to dictate 

nationwide general standards for reclamation. The operators/lessees are aware at the time of permit application submittal 

that the provisions at 30 CFR Chapter VII must be complied with and, based on this knowledge, the operator/lessee 

should be able to develop a generalized reclamation schedule when the resource recovery and protection plan is 

submitted.

One comment requested that a provision similar to the cross-reference to SMCRA for the permit application should 

be inserted regarding "mining plans." The MMS disagrees. The data submitted to the regulatory authority in permit 

applications are not sufficient to enable MMS to determine that a proposed operation will be in compliance with the 

requirements of MLA for the life-of-the-mine. The MMS has determined that the requirements at 30 CFR 211.10 (b) and 

(c) are necessary to enforce the provisions of MLA.

30 CFR 211.10(c)(6) 

To clarify the provisions at 30 CFR 211.10(c)(5) as used in conjunction with 30 CFR 211.10(c)(6), it should be 

noted that a cross-reference to the data contained in the permit application is inappropriate if submittal of a resource 

recovery and protection plan precedes submittal of the permit application. The 30 CFR 211.10(c)(6) specifically states 

that when cross-references are used "a copy of the relevant portion of [the cross-referenced submittal] must be included 

in" the resource recovery and protection plan.

30 CFR 211.11 - ACTION ON PLANS. 

30 CFR. 211.11(a)(1) 

Several comments requested that action on proposed exploration plans should be taken by the District Mining 

Supervisor "within 60 days from filing" rather than promptly. Due to the interagency coordination required prior to 

action on plans, the fact that plans as received may not contain sufficient detail thus requiring additional data, and other 

factors (e.g., inclement weather delaying preoperation inspections), specification of a time period for action on a 

proposed plan is inappropriate. The MMS will act on plans in a timely manner, i.e., promptly. These comments were 

rejected.

Several comments stated that the regulation of exploration plans should be delegated to the regulatory authority. 

These concerns are addressed in the preamble discussion of comments received on 30 CFR 211.10(a). Several comments 

addressed the interaction of MMS, OSM, and regulatory authority regarding the resource recovery and protection plan, 
permit application, and permit application package. The preamble discussion of comments received on 30 CFR 211.10 

(b) and (c) details these interrelationships.

One comment further stated that in States with approved State programs under SMCRA, approval or denial of a 

resource recovery and protection plan shall be completed within the permit application package review and approval time 

period specified under State program requirements. The MMS disagrees. The State cannot impose a time limit on DOI 

for completing its review process under mandates that cannot be delegated to States. The preamble discussion of 

comments received on 30 CFR 211.10(b) further clarifies the Federal/State relationship regarding permit issuance.

30 CFR 211.11(a)(2) 

Due to the many comments received related to MER, DOI policy from the proposed rulemaking and its preamble is 

revised and restated below.

In choosing the methodology for determining MER, MMS considered approaches based on economic data and 

standard industry operating practices. The MMS has decided to determine MER primarily on the basis of standard 

industry operating practices, supplemented by economic data as necessary. This approach is less burdensome to the 

mining industry and more administratively efficient; it also provides a satisfactory basis from which the District Mining 

Supervisor can ensure that the resource recovery and protection plan will achieve MER. Under this approach, MMS will 

make the MER determination based primarily on the mine design submitted in the resource recovery and protection plan. 

The DOI believes that this approach will work equally well for captive and noncaptive operations. Where a resource 

recovery and protection plan shows total mining of all coal beds, the plan itself shows MER will be achieved and no 

additional data for MER will be required. Where a resource recovery and protection plan does not show total mining of 

all coal beds or portions thereof, the resource recovery and protection plan will be analyzed by MMS for its conformance 

with standard industry operating practices, many of which are dependent on economic conditions for similar operations. 

The MER determinations will be made giving consideration to existing proven technology; commercially available and 

economically feasible equipment; coal quality, quantity, and marketability; exploration, planning, and reclamation costs; 

and operating, processing, and transportation costs.

Where the analysis indicates that the operator/lessee's mine design does not conform to standard industry operating 

practices in the region, MMS may require the operator/lessee to submit additional data to justify specific parts of the 

mine design. Such requests, as warranted, would be on a case-specific basis.

The MMS does not intend to require every operator/lessee to submit additional data to justify MER. Additional data 

for MER will be requested only where some condition in the resource recovery and protection plan appears not to 

conform to standard industry operating practices. Standard industry operating practices will be used as the primary basis 

for determining MER; but it must be stressed that conformity with standard industry operating practices is not dispositive 

of MER and variances from the practices may be required where case-specific conditions warrant such a variance. The 

DOI does not intend to use MER to force any operator/lessee to produce coal at the exact "break-even" point. The MMS 

does not intend to use MER to force a company to mine Federal coal at a loss or to mine Federal coal that cannot be sold 

under existing market conditions. The burden of establishing MER is on the operator/lessee.

In general, several comments favored the MER definition proposed in the rules and many comments favored the 

MER definition stated in the preamble. In each instance, comments suggested minor changes in the wording of the 

definition which they supported. Additionally, several comments rejected both versions for various reasons. The details of 

these comments are discussed below.

The MLA requires that MMS make an MER determination prior to approval of a resource recovery and protection 

plan for either a Federal lease or LMU. The statute does not detail the procedures to be used. Although it is 

inappropriate to include MMS procedures in a definition, a clarifying second sentence has been added at 30 CFR 

211.2(a)(24) because of the wide interest in this issue. This second sentence includes those terms which several 

comments suggested were necessary for consideration in an MER determination. Those terms which are not included in 

this new second sentence are considered under those which are included. This is further discussed below.

Several comments stated that the costs of compliance with environmental and reclamation laws and regulations need 

to be included in the MER determination. The definition of MER (30 CFR 211.2(a)(24)) states that "compliance with 

applicable laws and regulations" will be considered. Additionally, standard industry operating practices include the costs

of compliance with environmental and reclamation laws and regulations. The MMS agrees with these comments and has 

determined that associated costs are included in the term "compliance with applicable laws and regulations."
Several comments suggested that inclusion of a reasonable rate of return should be included in the MER definition. 

As noted, MMS analysis of an operator/lessee's mine design will include conformance with standard industry operating 

practices. This analysis assumes that other operators/lessees include a rate of return in their mine design. Rather than set 

an arbitrary rate of return by rulemaking, which may become obsolete in the dynamic financial market, MMS believes 

that comparison with standard industry operating practices provides an appropriate method for MER determinations 

including a rate of return. By the same reasoning, MMS believes that detailed financial analyses, such as a discounted 

cash flow analysis, are not an appropriate tool for use in the MER determination.

Several comments expressed concern that MMS would use an interpretation of MER which could force an 

operator/lessee to mine portions of a Federal coal deposit that were either unprofitable or unmarketable. While an 

operator/lessee may propose to mine coal which is unprofitable if he believes it is in his best interest to do so, it is not 

MMS policy to use MER to force an operator/lessee to mine Federal coal at a loss or to mine Federal coal that cannot be 

sold under existing market conditions. This policy is clearly stated in the definition (30 CFR 211.2(a)(24)) and previously 

discussed in this preamble. These comments were rejected.

Several comments suggested that necessary land use should be included in the MER determination. Specifically 

mentioned was the siting of mine support facilities over Federal coal, thus rendering a portion of the recoverable coal 

reserves unrecoverable. The siting of any facility which would render Federal recoverable coal reserves unrecoverable 

must be justified in a resource recovery and protection plan submittal. Any resource recovery and protection plan that 

proposes such a siting will be examined to determine whether MER would be adversely affected by the approval. These 

comments were rejected.

Several comments suggested that the proposed definitions of MER could lead to less coal being mined from Federal 

leases and high-grading of the deposits. In the comparison of any proposed operation with standard industry operating 

practices, MMS believes that the assumption can be made that operators/lessees on non-Federal lands, Federal leases, or 

a combination of both will mine as much coal as is profitable. The District Mining Supervisor is able to determine if highgrading is taking place or if less coal is being mined on a Federal lease than from non-Federal lands. If such a condition is 

noted, the District Mining Supervisor has authority to request justification for such action under the provisions at 30 CFR

211.10 (b) and (c) and 30 CFR 211.72(a). These comments were rejected.

Several comments suggested that a "prudent man concept" be incorporated in the MER determination as a measure 

of profitability. Standard industry operating practices indicate what a "prudent man" would do when faced with mining 

operation decisions which affect profitability. These comments were rejected.

Several comments suggested that standard industry operating practices be determined on a "local or regional" basis. 

As previously stated in this preamble, "[w]here the analysis indicates that the operator/lessee's mine design does not 

conform to standard industry operating practices in the region, MMS may require * * * additional data." Thus, MMS 

agrees with these comments but does not believe that such elaboration is required in the rules of this Part.

Several comments suggested that the MER definition in 43 CFR 3400.0-5 be the same as the definition at 30 CFR 

211.2(a)(24). The definition of MER which appears at 43 CFR 3400.0-5 applies only to prelease, that is lease sale, 

activities and therefore is not binding on any operator/lessee after a lease has been issued. The MER determinations made 

at the time of approval of a resource recovery and protection plan and upon revision of the recoverable coal reserves or 

LMU recoverable coal reserves estimates are the only MER determinations with which operators/lessees must comply. 

These comments were rejected.

Several comments questioned the meaning of the term "other resources." These comments have been addressed 

previously in this preamble.

One comment suggested that MER is to be determined only upon approval of the resource recovery and protection 

plan. The determination of MER is a critical part of any modification of any resource recovery and protection plan (in 

accordance with 30 CFR 211.11 (b)(2) and (c)(2)) or estimation of recoverable coal reserves or LMU recoverable coal 

reserves (in accordance with 30 CFR 211.11(a)(3)). This comment was rejected.

30 CFR 211.11(a)(3) 

Two comments recommended that provisions be included in the rules for adding and subtracting beds from estimates 

of LMU recoverable coal reserves. The MMS agrees and the provisions at new 30 CFR 211.11(a)(3) and 30 CFR 

211.80(g) reflect these concerns.
The following example illustrates the revision of the estimate of recoverable coal reserves for a Federal lease in

accordance with 30 CFR 211.11(a)(3).

Date and Event

4-15-1965, Federal lease issued.

6-1-1968, Mining plan approved.

6-1-1970, Production commences.

8-1-1982, Operator/lessee elects to come under these rules and apply production after August 4, 1976, to diligence. 

From August 4, 1976, to the date of election, 12 million tons of coal were produced. The District Mining Supervisor 

estimates the Federal recoverable coal reserves to be 100 million tons.

4-15-1985, Lease readjusted.

5-1-1990, Recoverable coal reserves estimate revised to 70 million tons, based on new information. From date of 

election to date of revision, 10 million tons of coal were produced.

For the purpose of determining the commercial quantities requirement, the recoverable coal reserves are estimated at 

the time of election. The estimate includes the recoverable coal reserves estimate of 100 million tons remaining at the 

time of election plus production of the 12 million tons credited to diligence. Therefore the estimate of recoverable coal

reserves at the time of election is 112 million tons, the diligent development requirement and the commercial quantities 

requirement is 1.12 million tons. Upon acquisition of new information, it is found that the estimate made at the time of 

election was 30 million tons too high. Therefore, in 1990 the estimate is revised downward from 112 million tons to 82 

million tons. The 1990 revision of the estimate is not diminished by the 10 million tons of production achieved between 

the election and the revision. As a result of the 1990 revision, the commercial quantities requirement is reestablished at 

0.82 million tons.

30 CFR 211.11(b)(1) 

Several comments stated that this paragraph should contain a provision for consultation with the regulatory 

authority. The States have authority under SMCRA to regulate exploration for Federal coal only within a permit area 

after mining operations commence. These concerns are further discussed in the preamble discussion of comments 

received on 30 CFR 211.10(a). These comments were rejected.

30 CFR 211.11(b)(2) 

One comment stated that "this provision [subjects] lessees to further regulations by * * * any governmental entity" 

and that they "vigorously [contend] that DOI lacks the authority to subject lessees to future regulations * * *." This will 

be addressed by BLM when it reinitiates its review of the standard Federal coal lease form. The current standard Federal 

coal lease form contains such a stipulation; any entity has the option not to obtain a Federal coal lease if the entity either 

disagrees with or cannot comply with Federal lease terms. This comment was rejected.

Several comments stated that a provision should be included to resolve differences in the requirements of OSM, a 

State regulatory authority, and the District Mining Supervisor. The MMS believes the provision allowing the District 

Mining Supervisor to "require modifications, after consultation with the operator/lessee and the regulatory authority as 

necessary" addresses these concerns. If three are disagreements among the entities, differences are raised to higher levels 

of authority for resolution. This is a procedural rather than regulatory issue. These comments were rejected.

One comment stated that "changes in plans initiated by the District Mining Supervisor * * * should be limited to 

situations where they are of considerable necessity and should be implemented under reasonable circumstances." The 

MMS agrees. This is already contained in 30 CFR 211.11(b)(2) by stating that the plans may be "revised or 

supplemented reasonably for modification * * *." (emphasis added). The comment further stated that "the reciprocal 

opportunity for operators to request changes should be viewed reasonably to allow for oversights and unforeseen 

circumstances." An operator/lessee may request any change, provided the request for the change is accompanied by a 

written justification as provided at 30 CFR 211.11(c)(2).
30 CFR 211.11(c) 

One comment stated that "the modifications section on exploration plans allows the District Mining Supervisor to 

make sweeping changes at the request of the applicant with no required consultation * * *." The provisions at 30 CFR 

211.11(c)(1) state, in part, "[t]he District Mining Supervisor shall promptly approve or disapprove in writing any such 

modifications, after consultation with the authorized officer and the regulatory authority as necessary * * *." (emphasis 

added) The "as necessary" was inserted because under certain circumstances the regulatory authority does not have to be 

consulted; for example, the regulatory authority has no jurisdiction over prelease exploration for Federal coal unless more 

than 250 tons of coal are to be removed. Therefore, were an operator/lessee (see definition of operator/lessee) to request 

a modification of prelease exploration being conducted under an approved BLM license, the regulatory authority would 

not be consulted; if less than 250 tons of coal were to be removed, only the authorized officer would be consulted. This 

comment was rejected.

Two comments stated that the procedures proposed for modifying an approved exploration plan are inconsistent 

with SMCRA and coal exploration provisions at 30 CFR Part 776 and 30 CFR 815.15, fail to limit the extent of 

permissible modifications, exclude public participation in violation of SMCRA, MLA, and Federal Land Policy and 

Management Act and that MMS has no authority to approve modifications to exploration activities within an approved 

permit area. For modifications inside an approved permit area, MMS will consult as necessary with the regulatory 

authority to determine if such modifications constitute a major change from contemplated operations approved for the 

permit area. The other concerns have been previously discussed in this preamble.

Two comments objected to the lack of criteria limiting the extent to which an approved resource recovery and 

protection plan may be changed by operator/lessee initiative and to exclusion of the public. One comment also requested 

that OSM concur, rather than be consulted with, in any modification of an approved resource recovery and protection 

plan. The consultation provisions of 30 CFR 211.11(c) and the District Mining Supervisor's discretion in approving or 

not approving modifications of an approved resource recovery and protection plan limit the extent to which an approved 

resource recovery and protection plan may be changed by operator/lessee initiative. If, during consultation with the 

regulatory authority, a proposed modification is found to constitute a significant departure from the method of conduct 

of mining or reclamation operations contemplated by the original permit, the provisions at 30 CFR 788.12 and thus 30 

CFR Part 786 are automatically implemented by the regulatory authority. Any changes to the conditions of the approved 

permit by the regulatory authority would automatically constitute concurrence with the modification of an approved 

resource recovery and protection plan. These comments were rejected.

30 CFR 211.12 - MINING OPERATIONS MAPS. 

30 CFR 211.12(a)

One comment stated that the final two sentences of this paragraph "illustrate the type of cooperation or sharing of 

information between Federal Agencies which can reduce the burden on an operator on Federal coal lands." The comment 

also urged MMS to utilize this type of cross-referencing to the maximum extent possible.

Two comments requested that the "scale of maps required by [MMS] and the regulatory authority should be the 

same." The MMS agrees with these comments. This is reflected by the lack of a map scale requirement at 30 CFR 

211.10(c) and 30 CFR 211.12 and the nonspecific, but not smaller than 1:24,000, map scale requirement at 30 CFR 

211.10(a)(3)(viii).

30 CFR 211.12(b)

One comment stated that this paragraph "is directed solely to mines wherein coal is extracted by conventional 

underground mining techniques." The comment further stated that "[i]n situ [sic] production of coal does not permit 

accumulation of data necessary to meet the requirements of paragraph 211.12(b)." The comment recommended the 

addition of the following two sentences at the end of this paragraph: "The foregoing requirements apply to coal 

extraction using standard industry [operating] practices for conventional underground mining. When coal mining is to be 

accomplished by in situ [sic] gasification, the operator/lessee shall submit a program for underground mine maps to the 

District Mining Supervisor, which upon approval will become the basis for preparation of underground mine maps." The 

DOI is currently reviewing the mineral leasing laws to determine their applicability to, and implementation of regulations 
for, synthetic fuel production methods. Regulations related to synthetic fuel production will be promulgated at a later 

date. This comment will be considered in that rulemaking.

30 CFR 211.20 - DILIGENT DEVELOPMENT AND CONTINUED OPERATION REQUIREMENT. 

Several comments stated that they were opposed to MLA diligence requirements being imposed on Federal leases 

issued prior to August 4, 1976, unless the operator/lessee elected to be subject to the rules of this Part prior to first lease 

readjustment after August 4, 1976. The MMS agrees. The provisions at 30 CFR 211.20 and 30 CFR 211.24 have been 

revised to reflect these concerns.

30 CFR 211.20(a)(2)

One comment opposed the use of any percentage of reserve requirement as a criterion for continued operation in an 

LMU. The MMS agrees in part. An operator/lessee must mine out the LMU recoverable coal reserves within a 40-year 

period. Assuming that production at the time that coal was first produced following LMU approval was at the maximum 

achievable rate to mine out the LMU in 40 years, the operation would have to be producing at least 2 1/2 percent per 

continued operation year. The MMS believes that imposition of a requirement to produce 1 percent per continued 

operation year does not impose an onerous burden on the operator/lessee. In addition, an operator/lessee who for some 

reason cannot produce 1 percent of LMU recoverable coal reserves has the option to request the District Mining 

Supervisor to approve payment of advance royalty in lieu of this requirement for a total of up to 10 years over the life of 

the LMU.

30 CFR 211.21 - TERMINATION OR CANCELLATION FOR FAILURE TO MEET DILIGENT DEVELOPMENT 

AND CONTINUED OPERATION. 

30 CFR 211.21(c)

Several comments stated that production from an LMU should be allowed to be prorated to individual Federal leases 

contained in the LMU upon termination or cancellation for failure to meet diligent development and continued operation 

for the LMU. Several comments opposed such prorating.

Two comments stated that upon such termination or cancellation of an LMU, Federal leases should be reviewed 

individually for compliance with MLA. Two comments stated that if an LMU is relinquished or cancelled, individual 

Federal coal leases should be terminated. Several comments stated that the rules do not adequately address continuation 

of Federal leases upon such termination or cancellation of the LMU. The DOI has determined that upon termination or 

cancellation of an LMU, Federal leases automatically are subject to their individual Federal lease terms. Therefore, 

individual Federal leases would then be subject to requirements imposed on each Federal lease for such MLA 

requirements as diligent development and continued operation as if the Federal lease had not been included in an LMU. 

Federal leases may continue after termination or cancellation of the LMU if the Federal leases are in compliance with the 

individual Federal lease terms. Prorating of recoverable coal reserves would allow operators/lessees to hold certain 

Federal leases for speculative purposes. By not allowing prorating, DOI is encouraging the development of those Federal 

leases that are currently economical while forcing noneconomic Federal leases to be relinquished. (See the preamble 

discussion of comments received on 30 CFR 211.3(c)(2) regarding a "threshold warning system" coupled with "tough 

penalties.")

One comment stated that if diligent development is met for the LMU, diligent development should have been 

considered to have been met for all Federal leases contained in the LMU even if the LMU is subsequently terminated or 

cancelled. The MMS disagrees. Were the LMU to be terminated or cancelled for failure to maintain continued operation, 

such a suggestion would force the holder of each individual Federal lease to maintain continued operation under its 

specific Federal lease terms, thus subjecting most if not all such Federal leases to termination. Also, since DOI has 

determined that the 1976 amendments to MLA are prospective, if one of the Federal leases was issued prior to August 4, 

1976, and not readjusted after that date, the continued operation requirement should not be applied unless the holder of 

the Federal lease has elected to be subject to the rules of this Part. This comment was rejected.

Several comments questioned the authority of DOI to cancel any Federal coal lease or LMU which fails to meet the 

3-year resource recovery and protection plan submittal requirement. One comment stated that no discretion for such a 

cancellation is allowable; rather, such a provision must be enforced. One comment requested clarification of the language 
"may cancel" for failure to submit a resource recovery and protection plan within 3 years, versus the language "shall be 

terminated" for failure to meet diligent development. Failure to submit a resource recovery and protection plan is breach 

of a statutory term in 30 U.S.C. 207(c). The current Federal coal lease form states that DOI will not waive breaches of 

statutory terms. Although MLA does not expressly require Federal lease cancellation for failure to submit a resource 

recovery and protection plan within 3 years, DOI may cancel a Federal lease for a breach of a Federal lease term. The 

MLA states in 30 U.S.C. 207(a) that any Federal lease not producing commercial quantities at the end of 10 years "shall 

be terminated." This termination is not discretionary, nor does it require judicial action like cancellation does. No changes

to these rules were made based on these comments.

One comment stated that the cancellation of a Federal lease for failure to meet continued operation should not be 

discretionary. The MMS agrees with this comment and 30 CFR 211.21(a) has been revised accordingly and continued 

operation has been deleted from 30 CFR 211.21(c). One comment suggested revising the terms of 30 CFR 211.21(a) by 

the addition of "during the diligent development period." This comment was rejected as the additional language would be 

repetitious of 30 CFR 211.2(a) (13) and (14).

30 CFR 211.22 - EXTENSION OR SUSPENSION OF CONTINUED OPERATION, 3-YEAR RESOURCE 

RECOVERY AND PROTECTION PLAN SUBMITTAL REQUIREMENT, AND OPERATIONS AND PRODUCTION.

One comment stated that authority to promulgate rules for the suspension of operations was not granted to DOE. 

Section 302(b)(3) of the DOE Organization Act transferred to DOE the authority to promulgate rules relating to 

suspensions for failure to meet diligence requirements. Since MMS now has promulgation authority for diligent 

development and continued operation rules, both rules are contained in this final rulemaking.

Several comments stated that extensions provided at 30 CFR 211.22(a)(1) and (b), 30 CFR 211.40(b)(4)(iii), and 30 

CFR 211.63 (l), (m), (n), (o), and (p), are contrary to MLA, which does not provide for extensions or suspensions of 

these requirements. Specifically, it was stated that normal business risks are not justification for suspensions or 

extensions. The MMS agrees that normal business risks are not justification for suspensions or extensions. However, 30 

CFR 211.22 (a)(1) and (b) do not contain any provision that implies this. With respect to extensions, Section 7(b) states, 

in part, that Federal leases are "subject to the conditions of diligent development and continued operation * * * except 

where operations under the lease are interrupted by strikes, the elements, or casualties not attributable to the lessee * * 

*." Section 7(b) states further that the "Secretary * * *, upon determining that the public interest will be served thereby, 

may suspend the condition of continued operation * * *." Section 39 of MLA states, in part, that the "Secretary * * *, in 

the interest of conservation [of resources], shall direct or shall assent to the suspension of operations and production 

under any lease granted * * *, any payment of * * * minimum royalty * * * likewise shall be suspended during such 

period of suspension of operations and production; and the term of such lease shall be extended by adding any such 

suspension period thereto." The MMS considers the foregoing to be sufficient authority to promulgate the final rules of 

this Part as written and rejected these comments.

One comment stated that extensions or suspensions for LMU's should extend the 40-year mine-out requirement. The 

MMS agrees in part. The DOI has determined that only suspensions under Section 39 of MLA extend the 40-year period.

30 CFR 211.22(a)(1)

One comment stated that Federal leases should only be extended if the lessee appealed on the grounds that the 

mining plan approval took too much time. The MLA provides only for the force majeure provisions contained in 30 

CFR 211.22(a)(1).

One comment stated that it was not explained why extensions were deleted for administrative delays and 

extraordinary circumstances. Several comments stated that extensions for administrative delays and extraordinary 

circumstances should be allowed. The MLA does not provide for extensions beyond the 10-year period provided in 

Section 7(b) due to administrative delays and extraordinary circumstances, thus these provisions were deleted. Such 

extensions were formerly allowed under 43 CFR 3475.4(b) only for Federal leases issued prior to August 4, 1976. Since 

the rules of this Part will only be applied to such leases upon first lease readjustment after August 4, 1976, or when 

operators/lessees elect to be subject to the rules of this Part prior to such readjustment, and since such extensions are not

allowed for leases issued or readjusted after August 4, 1976, under MLA, these comments were rejected.
30 CFR 211.22(a)(2)

One comment stated that the rules should state a presumption against acceptance of advance royalty in lieu of 

continued operation. One comment stated that the term "public interest" contained in the "lease [form], the statute, and

the regulations" make "public interest" presumptive; thus, MMS would always approve advance royalty paid in lieu of 

continued operation. Another comment requested the definition of the term "public interest." The acceptance of advance 

royalty, when the Secretary determines that the public interest will be served, is discretionary under the second sentence 

of Section 7(b) of MLA. These comments were rejected.

One comment stated that payment of advance royalty in lieu of continued operation should be at the discretion of the 

operator/lessee. The MMS agrees in part. The rules of this Part provide for the operator/lessee to request that he be 

permitted to pay advance royalty. However, the District Mining Supervisor has discretion to accept or reject such request 

under Section 7(b) of MLA.

30 CFR 211.22(b) 

One comment was in favor of suspensions of diligent development. The DOI has determined that such extensions are 

not provided for by MLA. Several comments stated that suspensions should not extend the 10-year diligent development 

period. The MMS agrees and this final rulemaking has been revised accordingly.

One comment stated that refunds with interest of advance royalty payments should be made where circumstances 

beyond control of the company prevent the operator/lessee from recovering such payments through mining. The MMS 

agrees in part. The DOI has determined that in such situations, all excess advance royalty payments shall be refunded; 

however, no interest that accrued on the advance royalty payment shall be refunded.

Two comments objected to the direction of a suspension by DOI. The comments stated that a Federal lease could be 

extended "out of existence" by making extensions longer than the period allowed for the payment of advance royalty. 

Section 39 of MLA provides for a suspension of operations and production in the interest of conservation. Therefore, 

these comments were rejected.

One comment state that suspensions of operations should be liberally implemented in consideration of diverse 

problems and conditions encountered in coal mining. Two comments stated that advance royalty should be suspended in 

addition to suspension of an operation subject to continued operation. The following discussion clarifies suspensions, 

exclusions, and extensions allowed by MLA, as amended, specifically by FCLAA.

Section 7(b) of MLA, as amended, conditions Federal coal leases upon "continued operation of the mine or mines" 

by the operator/lessee. This condition may be excused or suspended in three situations. First, at the operator/lessee's 

request because of market or similar conditions, the Secretary may "suspend" under Section 7(b) of MLA only the 

condition of continued operation, as opposed to the entire Federal lease, by accepting advance royalty in lieu of 

continued operation. The operator/lessee still has beneficial use of the Federal leasehold; rental and Federal lease 

readjustment periods still run under the Section 7(b) advance royalty suspension. When the Secretary suspends only the 

condition of continued operation, Section 39 of MLA specifies that the Secretary is not authorized to "waive, reduce, or 

suspend" advance royalty payments.

Second, the Federal lease condition of continued operation is excused by operation of Section 7(b) of the statute 

when "strikes, the elements, or casualties not attributable to the lessee" prevent operation. In such cases and if it is "in the 

interest of conservation," the Secretary may also suspend rental payments and extend the term of the Federal lease under 

the authority of Section 39.

Finally, the Secretary in the interest of conservation may require or assent to "the suspension of operations and 

production" under Section 39 of MLA. The Secretary, in other words, is authorized to suspend the Federal lease and all 

of its conditions including the operator/lessee's right to beneficially use the Federal leasehold. In such cases, suspension 

of the Federal lease, by terms of the statute, also suspends rental payments and extends the term of the Federal lease.

The MLA thus authorizes exceptions from and suspensions of continued operation in several situations. The DOI 

has concluded that the restriction on the Secretary's authority contained in the last sentence of Section 39 of MLA is not 

inconsistent with the construction adopted here. The Secretary is not waiving, reducing, or suspending advance royalty 

payments when force majeure intervenes because there is no condition of continued operation in such situations. 

Similarly, the Secretary is not waiving, suspending, or reducing advance royalty payments when the Secretary suspends 
the entire Federal lease "in the interest of conservation." When a Federal lease is suspended under these provisions, the 

operator/lessee is under no obligation to pay advance royalty because the condition of continued operation is not in force.

This interpretation is further supported by the significant contractual problems that might result from an alternative 

construction of these three types of relief from the condition of continued operation. For example, if the Secretary were 

to order a suspension in the interest of conservation for more than a total of 10 years, the operator/lessee would be 

caught between requirements of Sections 7(b) and 39. Similarly, the Secretary could order a suspension of operations 

near the end of the primary 20-year Federal lease term and thereby preclude the operator/lessee from recouping the 

advance royalty payments made prior to the 20th year out of royalty owed on production after the 20th year.

For these reasons, DOI has concluded that the final sentence in Section 39 of MLA does not preclude the Secretary 

from suspending a Federal lease in the interest of conservation during the period of the lease when it is subject to the 

condition of continued operation.

30 CFR 211.23 - PAYMENT OF ADVANCE ROYALTY IN LIEU OF CONTINUED OPERATION. 

30 CFR 211.23 (a), (b), and (c) 

Several comments stated that advance royalty should be allowed in lieu of diligent development. Advance royalty 

can only be paid in lieu of continued operation (Section 7(b) of MLA) which commences upon achieving diligent 

development (Section 7(a) of MLA). These comments were rejected.

One comment suggested that a minor change should be made at 30 CFR 211.23(b) to clarify the wording between 

30 CFR 211.23 (a) and (b) by inserting "however" at the beginning of the first sentence. The MMS agrees and the change 

has been made as suggested.

Several comments stated that advance royalty should be made on a schedule that considered the individual Federal 

lease royalty rate rather than arbitrarily setting 8 percent or 12 1/2 percent flat rates. One comment stated that 8 percent 

should be the flat rate regardless of the type of mining. Additionally, several comments suggested that advance royalty 

rates should be based on the schedule of production proposed for the LMU in the resource recovery and protection plan. 

Several comments were in favor of the proposed wording at 30 CFR 211.23(c). Section 2(d)(4) of MLA states that the 

"Secretary may amend the provisions of any lease included in a logical mining unit so that mining under that lease will be 

consistent with the requirements imposed on that logical mining unit." This mandate is implemented at 30 CFR 211.80 

(b) and (e) of the rules of this Part. For the purposes of determining the amount of advance royalty to be paid on an 

LMU, DOI has determined that 12 1/2 percent and 8 percent are applicable as stated at 30 CFR 211.23(c). Although the 

District Mining Supervisor may direct establishment of an LMU in accordance with 30 CFR 211.80(b) implementing 

Sections 2(d)(1) and 2(d)(5) of MLA, DOI has determined that the District Mining Supervisor will only direct 

establishment of an LMU if it is absolutely necessary to ensure MER of Federal coal bed(s). Absent such direction by the 

District Mining Supervisor, the operator/lessee would have to agree with approval stipulations for the LMU for which 

the operator/lessee applied. Thus, any operator/lessee would be able to retract his application for an LMU.

Several comments stated that advance royalty should be based on 1 percent of the Federal LMU recoverable coal 

reserves. The MMS agrees and the provisions at 30 CFR 211.23(c) have been revised accordingly. See also the preamble 

discussion of comments received on 30 CFR 211.80(e)(5).

30 CFR 211.23(d) 

One comment suggested that the provisions would invite pro forma annual requests by operators/lessees to pay 

advance royalty and suggested the deletion of the fourth sentence. The MMS disagrees. The operators/lessees would not 

submit pro forma applications for the acceptance of advance royalty in lieu of continued operation because action by the 

District Mining Supervisor accepting such requests would require the actual payment of such advance royalty, thus tying 

up capital that could otherwise be used in mining operations. In addition, an operator/lessee would soon use up the 

maximum 10 years in which advance royalty could be paid. This comment was rejected.

One comment, although supporting this provision, questioned DOI's authority to refuse to accept advance royalty 

for the full 10 years authorized by MLA. This concern is addressed in the preamble discussion of comments received on 

30 CFR 211.22(a)(2).
30 CFR 211.24 - CREDITING OF PRODUCTION TOWARD DILIGENT DEVELOPMENT. 

30 CFR 211.24(b) 

Several comments stated that the operators/lessees should be allowed to elect to apply production for Federal leases 

issued prior to August 4, 1976, to diligent development rather than elect not to apply production. The MMS agrees and 

the provisions at 30 CFR 211.24 have been revised.

30 CFR 211.24(g) 

One comment stated that production achieved before formation of an LMU should be applied toward diligent 

development for the LMU. The MMS agrees. The provisions at 30 CFR 211.24(g) have been revised to state that

Federal production may be so applied toward diligent development.

30 CFR 211.25 - SPECIAL LOGICAL MINING UNIT RULES.

30 CFR 211.25(a)

Several comments suggested inserting the phrase "of production in commercial quantities and" after the word 

"requirements." These comments were rejected because achievement of diligent development and maintaining continued 

operation, by definition, requires production of commercial quantities.

30 CFR 211.25(b)

One comment requested that DOI allow flexibility for achievement of diligent development if an LMU were enlarged 

or diminished. The MMS disagrees for reasons stated earlier in this preamble that resulted in the revisions at 30 CFR 

211.80(g).

30 CFR 211.40 - PERFORMANCE STANDARDS FOR EXPLORATION AND SURFACE AND UNDERGROUND 

MINING.

30 CFR 211.40(a)(1)

Two comments stated that rules governing exploration need to be more clearly delineated with respect to MMS, 

BLM, and regulatory authority responsibilities. Two comments suggested substituting State performance standards for 

Federal performance standards. One comment stated that these rules should only apply to exploration activities on 

federally leased or licensed lands and not to development activities in a permitted area. These comments are addressed in 

the preamble discussion of comments received on 30 CFR 211.10(a).

30 CFR 211.40(a) (2) and (3)

Two comments stated that it should be the responsibility of the operator/lessee to ensure against potential hazards 

(e.g., blowouts) when drilling on lands valuable or prospectively valuable for oil, gas, or geothermal resources. The 

MMS agrees that it is the responsibility of the operator/lessee to ensure against potential hazards. However, it is the 

responsibility of MMS to enforce Federal mandates to conserve resources, protect the environment, and protect public 

health and safety. These comments were rejected.

One comment stated that there should be flexibility in regulating plugging and abandonment. Another comment 

stated that the requirement of 5 feet of cement for capping of holes is unreasonable. Another comment stated that as 

written this provision is overregulation. The first sentence at 30 CFR 211.40(a)(3) was miswritten in the proposed rules. 

This paragraph has been reordered in this final rulemaking. When read with this revision, it is clear that 5 feet of cement 

is the minimum cap and that exploration activities must be managed in a manner approved by the District Mining 

Supervisor to prevent pollution or mixing of waters and ensure safety. Flexibility is already addressed by the fact that 

lesser caps or plugs may be approved by the District Mining Supervisor.
One comment questioned the applicability of Federal regulations when in conflict with State regulations. It is not the 

intent of DOI to supersede State requirements where a State has jurisdiction.

One comment stated that more stringent plugging standards are needed. Where conditions warrant, the District 

Mining Supervisor has discretionary authority to impose more strict requirements.

30 CFR 211.40(a)(4) and (5)

Several comments stated that the requirement that representative core samples be retained for 1 year is an 

unnecessary burden on operators/lessees.

The MMS agrees with these comments. The 30 CFR 211.40(a)(4) has been revised accordingly. The District Mining 

Supervisor may require that an operator/lessee keep representative samples of drill cores for 1 year.

Two comments stated that the District Mining Supervisor does not have authority to authorize conversion of drill 

holes to water wells. The MMS does not assume any regulatory authority over water use from such a converted well. 

This provision is intended to allow the surface owner or authorized officer to request that a drill hole be converted to a 

water well rather than to force an operator/lessee to abandon the drill hole in accordance with 30 CFR 211. This request 

must be approved by the District Mining Supervisor, because such a request must be treated as an amendment to the 

approved exploration plan. The District Mining Supervisor's primary concern on this issue is to determine that final 

liability for securing the drill hole is accepted by a responsible party. Appropriate consultation must be made as provided 

for at 30 CFR 211.40(a)(5) so that the jurisdiction of the State over rights to the water is not compromised.

30 CFR 211.40(b)(1)

One comment stated that MMS is obligated "to proceed with due regard for the conservation of unique 

paleontological and archeological resources * * *." This protection is included as standard Federal coal lease terms and, 

with respect to regulating surface coal mining operations, falls under the purview of the regulatory authority pursuant to 

30 CFR Chapter VII, Subchapter K (specifically 30 CFR 810.2(h)).

One comment stated that this paragraph "violates Section 3(c) [sic] of FCLAA which calls for an independent 

examination of alternative mining methods." Section 2(a)(3)(C) of MLA does contain such a requirement. However, this 

Section 2(a)(3)(C) requirement applies solely to a prelease evaluation. The authority for 30 CFR 211.40(b) is Section 

2(d)(1) of MLA (Section 5(b) of FCLAA) for LMU's. A different part of Section 2(a)(3)(C) of MLA (Section 3 of 

FCLAA) pertains to mining plans regarding MER. In neither case is an examination of alternative mining methods either 

the sole or a mandatory criteria for post lease MER determinations. The comment continues, stating "MER can be used 

as a technology forcing [sic] standard to compel lessees to employ new technologies to increase the amount and rate of 

coal production." The MMS agrees. Standard industry operating practices require operators/lessees to maintain state-ofthe-art capability in order to remain competitive in mining and marketing of coal. The MMS believes that standard 

industry operating practices are the most accurate indicator of state-of-the-art.

30 CFR 211.40(b) (3) and (4) 

One comment stated that these paragraphs and "30 CFR 211.80(h) (6) and (7) [sic]" are redundant. The MMS 

agrees that the proposed revisions were redundant; however, it is necessary to retain some duplicative language because 

diligent development, continued operation, and royalties are handled differently for Federal leases than for LMU's. The 

diligence provisions proposed at 10 CFR 378 have been incorporated in this final rulemaking. See preamble discussion of 

comments received on 30 CFR 211.1(c)(4) and the associated tabulation of revised paragraphs.

30 CFR 211.40(b)(5) 

Several comments stated that this paragraph imposes an onerous burden and requested that it be deleted. The MMS 

agrees. This paragraph has been deleted and the rest of 30 CFR 211.40(b) renumbered accordingly. If an operator/lessee 

elects to store waste for later processing, the provisions at 30 CFR 211.63(k) shall apply.
30 CFR 211.40(b)(9) 

Two comments commended the word changes in this paragraph as improvements on the 30 CFR 211 proposed 

rulemaking of May 19, 1980. One comment stated further that "coal preparation also results in inherent losses of coal in 

processing, and requires a prudent operator to consider the overall effect and extent of preparation versus the alternative 

of not processing to achieve overall economies of resource recovery." The MMS agrees, as is reflected in the wording at 

30 CFR 211.40(b)(1) that the operator/lessee shall consider coal preparation operations to avoid wasting of coal and to 

encourage achieving of MER. It is not a requirement that all operations contain coal preparation operations. Individual 

operations and specific operating economics will determine whether an operator/lessee proposes to use coal preparation 

facilities.

30 CFR 211.40(c) (2) and (e) 

One comment recommended that OSM and MMS coordinate closely on regulations such as those regarding 

subsidence and auger mining. The MMS agrees. At the time of permit application package review, MMS will review the 

resource recovery and protection plan under its MLA responsibilities concurrently and in coordination with the 

regulatory authority's review of the permit application package under its SMCRA responsibilities.

One comment noted that this paragraph does not apply to synthetic fuels production and requested that two 

sentences applicable to in situ gasification operations be added to the paragraph. The DOI is currently reviewing the 

mineral leasing laws to determine the applicability to, and implementation of regulations for, synthetic fuel production 

methods. Regulations related to synthetic fuel production will be promulgated at a later date. This comment will be 

considered in that rulemaking.

30 CFR 211.40(c)(3) 

Several comments expressed concern regarding top coal being used as primary roof support in underground mines. 

This paragraph was written primarily to address top coal left by standard mining technologies. The first sentence of this 

paragraph has been revised accordingly. One of the comments further stated that this paragraph "appears to contemplate 

the top-slicing method only." The 30 CFR 211.40(c)(3) specifically does not exclude advanced technologies.

30 CFR 211.40(c)(4)(i) 

Several comments stated that it should be permissible to mine lower bed(s) before the upper bed if the upper bed is 

not economically recoverable or where such recovery of the lower bed(s) would not cause subsidence or interaction with 

the upper bed. The MMS agrees.

The paragraph as written allows operators/lessees to justify such sequencing to the District Mining Supervisor.

30 CFR 211.40(c)(6) 

One comment stated that abandonment of a mining area due to thinning of coal beds or reduction in quality of the 

coal should be at the discretion of the operator/lessee. This comment was rejected because the District Mining Supervisor 

must adjust the determination of MER under such circumstances as required by MLA and implemented at 30 CFR 

211.40(c)(7).

30 CFR 211.40(d)(2) 

One comment stated that this paragraph "attempts to completely defeat MER * * *." This comment was rejected. As 

written, the paragraph allows changes in the mining operations which may be necessary to reflect such factors as differing 

coal quality or unsuspected geologic conditions.

30 CFR 211.40(d)(3) 

One comment stated that abandonment of a mining area under this paragraph should be at the discretion of the 

operator/lessee. This comment was rejected. See preamble discussion of comments received on 30 CFR 211.40(c)(6).
30 CFR 211.40(d)(4)

One comment recommended that the word "necessary" be changed to "possible." This comment was rejected 

because such a word change could be construed to require that every method for extinguishing a fire be applied 

immediately. "Necessary" takes into account the safety of the personnel who could be affected.

30 CFR 211.40(d)(5) and 30 CFR 211.41 Completion of Operations and Abandonment. 

Several comments stated that all "abandonment proposals should involve the [regulatory authority (RA)] at an early 

date in order for RA review and approval." These comments were rejected because either temporary or permanent 

abandonment of mining operations, as used in the rules of this Part, applies to resource recovery and protection plan 

requirements only. Such provisions in no way infringe upon the purview of the regulatory authority pursuant to 30 CFR 

Chapter VII, Subchapter K, or upon the purview of BLM pursuant to 43 CFR Part 3400.

30 CFR 211.62 - REPORTS. 

30 CFR 211.62(a) 

One comment stated that there appears to be an unnecessary duplication of filing of exploration reports in the three 

paragraphs. The MMS agrees and this paragraph has been clarified accordingly.

Several comments stated that the reporting requirement for exploration licenses should only be at the end of the 2-

year license term. Exploration license data are necessary at least annually so that Federal lease tract delineation can be 

conducted as efficiently as possible using the maximum amount of data available. These comments were rejected.

30 CFR 211.62(b)(7) 

Several comments requested deletion of "geologic interpretation." The MMS agrees with this deletion. The 

paragraph has been amended accordingly and is now codified at 30 CFR 211.62(c); the rest of 30 CFR 211.62 has been 

renumbered accordingly. The remaining language states that if a licensee generates any recoverable coal reserves or coal 

reserve base estimates based on the data obtained under the exploration license, they shall be submitted to the District 

Mining Supervisor. It should be noted that since these estimates were based on data obtained from an exploration license, 

the information is deemed proprietary in accordance with Section 2(b)(3) of MLA as implemented at 30 CFR 211.6.

30 CFR 211.62(b)(10) 

One comment stated that any request for additional information "should be required only upon the statement of 

specific reasons for needing such data on an individual case basis." The only time the District Mining Supervisor requests 

additional information is to ensure that the operator/lessee is in compliance with MLA as regulated by MMS. These 

provisions are not intended to be a harassment mechanism.

30 CFR 211.62(d)(1) 

One comment stated that consideration "should be given to allowing quarterly royalty payments and reports rather 

than monthly submissions." The 30-day period following the end of the period covered by the report does not require 

monthly reporting. Each Federal lease contains a specific term establishing the royalty reporting period. Prior to 

enactment of FCLAA, 30 U.S.C. 207 (Section 7 of MLA) required royalties to be paid at least quarterly. The FCLAA 

deleted this requirement. Following final rulemaking for 43 CFR Part 3400 and 30 CFR Part 211, DOI will revise the 

standard Federal coal lease form. This concern will be addressed at that time.

30 CFR 211.62(e) 

One comment stated that some "proof of adverse intend [sic] is needed before a double royalty is imposed for failure 

to report the true weight or value of coal mined." Since "adverse intent" is not a commonly used or understood standard, 

this paragraph has been revised to require the penalty when an operator/lessee "knowingly" records or reports less than 
the true weight or value. It is the responsibility of the operator/lessee to ensure that such oversights or inadvertent errors 

do not occur.

30 CFR 211.63 - ROYALTIES.

30 CFR 211.63(b) 

One comment was in favor of the overriding royalty provisions. Several comments stated that the override 

provisions would not significantly affect the ability to finance a mining venture. Several comments stated that the override

limitations could adversely affect financing and that financing agreements should not be considered an override. Several 

comments stated that production payments for financing should not be considered an override. The 30 CFR 211.63(b) 

states that overriding royalty interests and production payments or other similar interests are not constrained by the 50 

percent override limitation when these interests are created in order to finance a mine. The 30 CFR 211.63(b) adequately 

addresses the concerns expressed by these comments.

One comment stated that production payments should not be considered an override. Production payments are not 

overriding royalty interests. However, production payments reduce the profit realized by the operator/lessee. As profit 

decreases for a property, the amount of recoverable coal reserves may decrease. Therefore, in the interest of 

conservation, both overriding royalty interests and production payments are not allowed unless created in order to 

finance a mine.

One comment stated that the original lessee should be able to retain override interests for improvements if the 

assignee subsequently reassigns the Federal lease. Override interests created in order to improve a mine are not affected 

by subsequent assignments of Federal lease.

Two comments stated that the 50 percent override limitation was unnecessary since an assignment would not occur 

if the override was excessive or a burden on the assignee. The MMS disagrees. The 50 percent limitation will prevent 

speculation and undue dealing in Federal coal leases by intervening interest owners.

Two comments stated that the 50 percent override limit should apply to the Federal lease royalty rate in effect at the 

time of assignment, not the royalty rate for the Federal lease at issuance. The 50 percent limitation applies to the Federal 

royalty due on production. The term "first payable" means paid first out of any unit of production to the United States, 

which as lessor has first claim on proceeds to satisfy its royalty. Overrides are "second" and "third" payable after the 

Federal royalty. The 30 CFR 211.63(b) has been modified by the deletion of "rate of" to clarify the administrative intent 

of the 50 percent limitation.

Two comments stated that net profit shares or other interests should only be considered an override if calculated 

directly on production. Two comments stated that net profit interests allow for an override in excess of 50 percent and 

should not be allowed. The term "net profit shares" has been deleted.

One comment questioned what constitutes expenditures for Federal lease improvements. Expenditures for 

improvements are allowed as the basis for a greater than 50 percent override on a case-by-case basis. In general, only 

expenditures that are directly related to development of the Federal lease will be allowed.

Several comments identified differences between the 30 CFR 211.63(b) and 43 CFR 3473.3-2(c) override provisions 

and questioned which governs. The differences have been resolved in this final rulemaking.

30 CFR 211.63(c)(1)

One comment stated that the phrases "whenever necessary to promote development" and "cannot be successfully 

operated under its terms" are too broad. The MLA (30 U.S.C. 209) specifically provides the Secretary with discretionary 

authority to reduce royalties for these purposes. This comment was rejected.

Several comments objected to giving royalty reduction approval to the District Mining Supervisor. These comments 

stated that the Secretary should exercise approval authority. The Secretary has delegated approval authority to the 

District Mining Supervisor. These comments were rejected.

Several comments stated that reduction of royalties is inconsistent with DOI's goal to increase production. Two 

comments stated that reductions reduce revenues to the Federal Government. The MLA (30 U.S.C. 209) authorizes 

royalty reductions in order to promote development or whenever the Federal lease cannot be successfully operated under 
Federal lease terms. Reductions are often essential to allow for increased production. In addition, revenues will not be 

reduced because royalty reductions will enable operators/lessees to extract coal that would be uneconomic under Federal 

lease terms and would not be produced.

Two comments stated that unwarranted relief should not be allowed via reductions. One comment stated that 

reductions subsidize bad business judgment and poor mine design. The 30 CFR 211.63(c) specifies criteria for a royalty 

reduction and, in accordance with 30 CFR 211.63(c)(3), royalty reductions will not be approved unless they are 

warranted and meet the criteria. Royalty reductions are not intended to subsidize marginal or poorly run operations.

One comment stated that allowing reductions implies that too much Federal coal has been leased. Royalty reductions 

are not related to additional coal leasing. Reductions are based on current operational difficulties; they are granted in the

interest of conservation. If royalty reductions are not allowed, additional leasing may be necessary to replace production 

that could have been achieved had a royalty reduction been granted.

Two comments stated that deletion of the 5 percent floor for reductions for underground operations was not 

addressed by the environmental assessment for revision to the regulations. The environmental assessment on the 

proposed rules addressed removal of the 5 percent floor on pages 2 and 16. These comments were rejected.

One comment stated that the limit for reductions for underground minable coal should be specified. One comment 

stated that reductions below 5 percent for underground coal should only be granted for difficult operations or to make an 

underground operation competitive with a surface operation. One comment questioned how the 5 percent floor applies to 

a surface mine that subsequently shifts to underground mining. One comment was in favor of removal of the 5 percent 

floor and one comment questioned whether royalty for an in situ operation could be reduced below 5 percent. The MLA 

does not specify a minimum limit for royalty reductions for underground or surface mines. Royalties can be reduced, but 

in no case can they be reduced to zero. To make royalty reduction provisions consistent for underground and surface 

operations, the 5 percent floor was removed for underground operations. This revision is not inconsistent with 30 U.S.C. 

209. A minimum royalty has not been specified in the rules of this Part because the degree of reduction varies by 

operation and type of operation.

One comment stated that granting reductions without notice to the public, other operators, or the regulatory 

authority is destructive to the public interest. As previously stated in this preamble, MMS believes that the provisions at 

30 CFR 211.5(a), which make decisions of the District Mining Supervisor available for public inspection provide 

adequate public notice.

Several comments were in favor of the 30 CFR 211.63(c)(1) provisions as written.

30 CFR 211.63(c) (3) and (4) 

One comment stated that the reduction criteria are vague and that MMS royalty reduction guidelines do not have 

force or effect of law. The information necessary for evaluating a royalty reduction varies on a case-by-case basis. The 

application requirements at 30 CFR 211.63(c) have been written to request general data applicable to most operations. In 

order not to require information irrelevant to an operation, MMS has developed guidelines that more adequately address 

specific situations. The guidelines detail the information required by the provisions at 30 CFR 211.63(c) and derive their 

authority from that same paragraph. Therefore, this comment was rejected.

One comment recommended that "act" at 30 CFR 211.63(c)(4) should be changed to "grant." This comment was 

rejected since it would deny the District Mining Supervisor discretion to consider relevant factors not included in the 

application.

30 CFR 211.63(d) 

Two comments stated that royalty payments should be allowed on a quarterly rather than monthly basis. As noted, 

the royalty reporting period is specified in individual Federal leases.

One comment stated that production royalty for an LMU should be based on the Federal lease royalty rate. The 

MMS agrees. The royalty paid on coal produced from the LMU is based on the royalty rate for the Federal coal leases 

from which production is achieved. No Federal royalty is due for non-Federal coal.
30 CFR 211.63(e) 

One comment stated that the District Mining Supervisor should not have authority to assess royalty on inventory. 

The assessment of royalty on inventory is determined on a case-by-case basis. A royalty will be assessed only where the 

inventory is in excess of operational needs. This comment was rejected.

30 CFR 211.63 (f) and (g) 

Many comments objected to including reimbursed and nonreimbursed royalties and fees in the gross value. Two of 

the comments also objected to including reimbursed and nonreimbursed transportation costs; and one objected to 

including reimbursed and nonreimbursed cleaning costs. The comments asserted that inclusion of reimbursed and 

nonreimbursed royalties and fees in gross value was inflationary, anticompetitive, contrary to MER, decreased the value 

of coal especially where royalties and fees are high, and contrary to environmental protection and public welfare. It was 

also stated that production would be curtailed by the higher royalty due. Several comments asserted that gross value 

should be the unit sale or contract price minus royalties and fees. Two comments stated that gross value should be the 

"F.O.B." mine price excluding all royalties and fees. One comment stated overriding royalties should be excluded from 

gross value. Many comments stated a preference as to the point where gross value should be determined. Several 

comments stated the point for gross value determination should be at the mine mouth, one stated at the mine after 

primary crushing, and three stated at the point of sale. One comment asked for clarification of when transportation or 

processing costs can be excluded from gross value in accordance with 30 CFR 211.63(h). All of these comments are 

addressed in the discussion of comments received on 30 CFR 211.2(a)(20).

30 CFR 211.63(i) and (j) 

Several comments questioned the procedures that MMS will use for gross value determinations for in situ 

technology. As previously stated, rules governing in situ technology will be promulgated at a later date. These 

comments will be considered as part of that rulemaking.

30 CFR 211.70- INSPECTIONS. 

30 CFR 211.70(a) 

Several comments asserted that the provisions were overly broad and that the District Mining Supervisor's authority 

should be limited to MLA responsibilities at 30 CFR 211.70(b). The District Mining Supervisor has authority to inspect 

operations to determine compliance with applicable laws. This concern has been addressed in this preamble.

30 CFR 211.72- ENFORCEMENT. 

30 CFR 211.72(a) 

Two comments stated that elimination of OSM's enforcement role on Federal lands is contrary to SMCRA. The 

responsibilities of OSM under the interim Federal Lands Program are detailed at 30 CFR Part 211 (1981) and remain in 

effect until repromulgated or deleted by OSM (see 30 CFR 211.1(a) and the introductory discussion of RELATION TO 

OSM'S FEDERAL LANDS PROGRAM). These comments were rejected.

30 CFR 211.72(b) 

One comment suggested that all orders issued by mail be sent via certified mail, return receipt requested. The MMS 

agrees and 30 CFR 211.71(b) has been changed accordingly.

30 CFR 211.72(c) 

One comment suggested that the provisions at 30 CFR 211.72(c) be sparingly applied. The provisions will be applied 

by the District Mining Supervisor following an assessment of the situation utilizing his professional judgment. This 

comment was rejected.
30 CFR 211.72(d) 

One comment stated that this provision is too broad. This comment was rejected. Enforcement of SMCRA 

provisions is authorized only in emergency situations by Section 521(a)(2) of SMCRA and may be appealed pursuant to 

43 CFR Part 4.

30 CFR 211.73 - APPEALS. 

One comment suggested setting a time limit for processing appeals. The time required to process an appeal is 

dependent on the complexity of the appeal and varies for different actions under appeal. Setting a time limit for 

processing an appeal would not be conducive to a thorough review. Therefore, this comment was rejected.

One comment suggested that in order to reduce processing time, appeals pursuant to 30 CFR Part 290 should be 

waived in favor of utilizing procedures contained in 43 CFR Part 4. Any notice or order issued pursuant to 30 CFR 

211.72(e) is processed in accordance with 43 CFR Part 4. Other notices or orders issued by the District Mining 

Supervisor, if appealed, must first be processed pursuant to 30 CFR Part 290.

30 CFR 211.80 - LOGICAL MINING UNITS. 

30 CFR 211.80(a) 

Several comments favored deleting the requirement for automatic LMU designations.

Two comments opposed removing the policy on automatic formation of LMU's. They further stated that no basis 

was given for this change and that the change was not conducive to future planning for the lands' nonfuel resources. The 

diligence requirements of the 1976 amendments to MLA do not apply to Federal leases issued prior to August 4, 1976, 

until the first lease readjustment after August 4, 1976. Since the 40-year mine-out period is a diligence requirement for 

LMU's, it will not be applied to Federal leases issued prior to August 4, 1976, without consent of the affected 

operators/lessees. The MLA requirement that a resource recovery and protection plan for the life-of-the-mine be 

submitted 3 years from lease issuance or first lease readjustment after August 4, 1976, is conducive to land-use planning. 

The two comments opposing discretionary LMU formation were rejected.

30 CFR 211.80(b) 

Several comments stated that the District Mining Supervisor should not be given authority to order formation of an 

LMU. The MLA authorizes the Secretary to require an operator/lessee of a lease issued or readjusted after August 4, 

1976, to form an LMU. The Secretary has delegated this authority to the District Mining Supervisor. These comments 

were rejected.

One comment requested clarification of circumstances in which a District Mining Supervisor would require 

formation of an LMU. The District Mining Supervisor may only require formation of an LMU when MER of the coal 

deposit(s) would be increased in accordance with Section 2(d)(1) of MLA.

One comment suggested that 30 CFR 211.80(b) be modified to make it clear that an operator/lessee has the option 

of creating an LMU for Federal leases issued prior to 1976. The MMS agrees and 30 CFR 211.80(b) has been modified 

to reflect this change.

Several comments stated that only Federal leases included in an LMU should have their terms amended for 

consistency with stipulations required for approval of the LMU. The rules of this Part are intended to apply only to 

Federal coal leases. The wording in this paragraph has been modified to reflect more clearly this intent.

Two comments stated that Federal lease terms should only be amended at lease readjustment. Also, one comment 

stated that royalty rates should not be amended at the time of LMU formation. The MLA provides for amendment of any 

Federal lease term so that mining under that lease will be consistent with requirements imposed on that LMU. Under 

these rules, royalty rates do not enter into determination of the establishment of an LMU. The 30 CFR 211.80(e)(4) 

states that royalty rates will not be amended at the time of LMU formation. Further, royalty rates will only be subject to 

change at the times of Federal lease readjustment.
One comment asked whether a Federal lease issued prior to August 4, 1976, and included in an LMU is subject to 

diligence requirements and the 40-year mine-out provision. One comment stated that Federal lease obligations should not 

be increased if such a lease is included in an LMU. Section 2(d)(5) of MLA states "[l]eases issued before the date of 

enactment of this Act may be included with the consent of all lessees in such logical mining unit and if so included, shall 

be subject to the provisions of this section." (emphasis added) Therefore, leases issued prior to August 4, 1976, included 

in an LMU will be subject to diligence requirements and the 40-year mine-out period. These comments were rejected.

30 CFR 211.80(c)(3) 

Several comments stated that the term "effective control" should only apply to coal mining operations. The rules of 

this Part are intended to require the operator/lessee to demonstrate his right to enter and mine all recoverable coal 

reserves contained in the proposed LMU. The rules of this Part have been modified to more clearly reflect this intent. It 

should also be noted that an approved permit under SMCRA is not a prerequisite to formation of an LMU.

One comment requested clarification of the criteria that MMS will use to determine what constitutes a sufficient 

property interest in particular lands to include them in a proposed LMU. Legal documentation conferring upon the 

operator/lessee the right to enter and extract recoverable coal reserves from the proposed LMU, or if the land contains 

no coal, to use the surface for coal mining purposes, constitutes effective control. The determination of sufficient 

property interest for establishment of effective control will be made on a case-by-case basis.

30 CFR 211.80(c)(4) 

Two comments stated that an LMU application should not be required to contain a resource recovery and protection 

plan. This was not the intent of the paragraph; 30 CFR 211.80(c)(4) has been deleted and the remainder of 30 CFR 

211.80(c) has been renumbered.

30 CFR 211.80(c)(5) 

One comment stated that 30 CFR 211.80(c)(5) gives the District Mining Supervisor too much authority to require 

additional information. For the District Mining Supervisor to fulfill his responsibilities under MLA, additional information 

be required. The additional information will be used to facilitate review of the LMU application. This comment was 

rejected.

30 CFR 211.80(d) 

One comment stated that the District Mining Supervisor should consult with the LMU applicant about deeper bed(s) 

that may be subject to reclassification from resources to reserves for in situ operations during the 40-year mine-out 

period. The 30 CFR 211.11(a)(3) states that recoverable coal reserves estimates may be adjusted as new information 

becomes available. Additionally, regulations related to synthetic fuel production will be promulgated at a later date. This 

comment will be considered in that rulemaking.

30 CFR 211.80(e) 

Two comments stated that the 40-year mine-out period can be avoided by not forming an LMU. Section 2(d)(2) of 

MLA imposes the 40-year mine-out requirement only on LMU's. The MLA does not impose this requirement on Federal 

leases. The Federal lease mine-out period will be controlled by provisions of diligent development and continued 

operation.

One comment asserted that the 40-year mine-out period is too short. Several comments stated that the 40-year mineout period should begin after diligent development for the LMU has been achieved. Section 2(d)(2) of MLA specifies 

that the LMU shall "be mined within a period * * * which shall not be more than forty years." (emphasis added) This 

provision cannot be altered by rulemaking. The DOI has determined that it is consistent with legislative history of the 

1976 amendments to MLA that the date that coal is first produced (i.e., mined) from the LMU following the effective 

date of LMU approval is the latest date that the 40-year mine-out period can commence. These comments were rejected.

30 CFR 211.80(e)(1) 
One comment asked what time limitation is imposed on the resource recovery and protection plan, since a resource 

recovery and protection plan does not have a 40-year mine-out requirement unless it covers Federal leases in an LMU. 

One comment stated that there is a discrepancy between proposed 10 CFR 378.303(b) and 30 CFR 211.80(e)(1). The 

proposed 10 CFR 378.303(b) more accurately reflected the MLA requirement. Therefore, 30 CFR 211.80(e)(1) has been 

revised accordingly.

30 CFR 211.80(e)(5) 

One comment requested clarification of the amount of detailed information, particularly with respect to recoverable 

coal reserves and the treatment of proprietary data, that would be required for non-Federal lands to be included in a 

proposed LMU. All proprietary data submitted will be treated in accordance with 30 CFR 211.6. The MMS must have 

separate estimates of Federal LMU recoverable coal reserves and non-Federal LMU recoverable coal reserves in order to 

determine that MER of Federal LMU recoverable coal reserves will be achieved. The total LMU recoverable coal 

reserves are needed so that MMS can ensure that the LMU meets diligent development and continued operation 

requirements, especially where production from non-Federal recoverable coal reserves is used to satisfy these 

requirements. The provisions at 30 CFR 211.80(e)(5) have been revised to reflect more accurately the requirement that 

both recoverable coal reserves estimates must be submitted to the District Mining Supervisor.

30 CFR 211.80(f)(3) 

One comment questioned whether, when a portion of a Federal lease is segregated into a new Federal lease, all 

reserves under that portion of the Federal lease are consigned to the new Federal lease. One comment questioned 

whether the lessee of a segregated Federal lease would be forced to relinquish any part of the Federal lease. One 

comment questioned whether a single Federal lease could be included in two LMU's.

A new Federal lease formed by segregation could include all leased reserves of that portion of the original Federal 

lease or only specific bed(s). Where two LMU's cover a single Federal lease, the Federal lease would have to be 

segregated by bed or portion of bed so that separate Federal leases would be created for each LMU. No operator/lessee 

will be forced to relinquish a Federal lease or portion of a Federal lease that is in compliance with MLA requirements.

Several comments questioned whether a new Federal lease created as a result of a segregation would be subject to 

the Federal coal leasing program. Federal leases created by segregation retain rent and royalty provisions of the original 

Federal lease and will be subject to readjustment at the same time that the original Federal lease is subject to 

readjustment. Federal leases created as a result of segregation are not new Federal leases issued under MLA and do not 

require additional NEPA documentation.

One comment stated that segregation of a Federal lease or relinquishment of a portion of a Federal lease should not 

be restrained by legal subdivisions. The general practice is to lease by legal subdivisions. This practice will not be 

changed for purposes of Federal lease segregation or relinquishment. This comment was rejected.

One comment asserted that DOI should implement this paragraph in a way which would reflect individual 

circumstances of each Federal lease. The MMS agrees with this comment. The intent of the rules of this Part is to 

provide for flexibility based on case-specific circumstances.

30 CFR 211.80(g)

One comment asked whether recoverable coal reserves can be modified if boundaries of an LMU remain unchanged. 

The District Mining Supervisor has authority to adjust LMU recoverable coal reserves estimates in accordance with 30 

CFR 211.11(a)(3).

One comment stated that termination of an LMU should be allowed at the operator/lessee's request and that Federal 

leases contained in the LMU continue in effect after termination of the LMU. One comment stated that a lessee should be 

allowed to relinquish part or all of the Federal leases or beds in an LMU. The LMU's cannot be terminated by any party 

unless the operator/lessee has failed to comply with diligent development, continued operation, the 3-year resource 

recovery and protection plan submittal requirement, the 40-year mine-out requirement, or the operator/lessee has 

relinquished all Federal leases in the LMU. In order to clarify this issue further, the language at 30 CFR 211.80(h)(4)(iii) 

has been incorporated at 30 CFR 211.80(g).

One comment questioned whether the 40-year mine-out period changes if additional land or reserves are added to 
the LMU. The 40-year mine-out period is not affected by any modification to an LMU. This position is reflected at 30 

CFR 211.80(g).

Several comments stated that diligence requirements and the 40-year mine-out period should be revised when an 

LMU is enlarged or diminished. Although an increase or decrease in the amount of LMU recoverable coal reserves based 

on new information (see 30 CFR 211.11(a)(3)) will affect the amount of recoverable coal reserves that must be produced 

to satisfy the commercial quantities requirement for diligent development and continued operation, the 40-year mine-out 

period imposed on the LMU cannot be changed by an increase or decrease of the amount of LMU recoverable coal 

reserves, regardless of the method used to increase or decrease reserves (see 30 CFR 211.80(g)). Therefore, these 

comments were rejected.

One comment requested clarification of diligent development and continued operation requirements where 

production occurs within a portion of an LMU, and that portion is subsequently eliminated from the LMU. The DOI 

interprets 30 CFR 211.25(a) to mean that production from anywhere within the LMU will be credited toward diligent 

development and continued operation of the entire LMU. The production is LMU-specific and does not change with 

modification of LMU boundaries.

30 CFR 211.80(h)

Several comments stated that the starting point of the 40-year period was unclear. The intent of proposed 30 CFR 

211.80(h)(1) was that the 40-year LMU mine-out period will begin on the date that coal is first produced following 

approval of the LMU. The provisions at 30 CFR 211.80(e)(6) have been revised to clarify this intent.

One comment stated that the 40-year period should start upon the date that diligent development is achieved for the 

LMU. Several comments stated that beginning the 40-year period upon production was contrary to MLA and was not 

addressed in the supporting documentation. The DOI does not believe that operators/lessees should be penalized for not 

being in production immediately upon LMU approval. Section 2(d)(2) of MLA provides that the LMU must be mined 

within a period not to exceed 40 years.

Therefore, DOI has determined that the 40-year mine-out period commences on the date that coal is first produced 

(mined). These comments were rejected.

Several comments were in favor of the rulemaking as proposed.

Executive Order 12291 Federal Regulation

The DOI has determined that this document is not a major rule and does not require a regulatory analysis under 

Executive Order 12291 because the existing regulatory scheme was found to be basically sound and required only 

streamlining to reflect changed conditions. The organization of the rules is revised to group similar provisions in general 

headings. The streamlining of application processing may result in a decrease in the ultimate cost for consumers and an 

increase in productivity of United States coal operations.

Regulatory Flexibility Act

The DOI has also determined that the rulemaking will not have a significant economic effect on a substantial number of 

small entities, and does not require a regulatory flexibility analysis under the Regulatory Flexibility Act (5 U.S.C. 601, et 

seq.). The updating of 30 CFR Part 211 will have a minor beneficial economic effect on a substantial number of small 

entities. The reduction of the filing requirements for advance approval of routine operations will have a beneficial effect 

on a large number of coal operations. There are no adverse economic effects due to revision of the rules of this Part.

Paperwork Reduction Act

The information collection requirements contained in 30 CFR 211.62(d)(1) have been approved by the Office of 

Management and Budget (OMB) under 44 U.S.C. 3507 and assigned clearance number 1028-0001.

The information collection requirements contained in 30 CFR 211.4, .10, .11, .12, .22, .23, .62, .63, .72, .80, and .101 

have been approved by OMB under 44 U.S.C. 3507 and assigned clearance number 1028-0042.
Environmental Effects

Based on the final environmental assessment prepared on both the final rulemaking for 43 CFR Part 3400 and 30 CFR 

Part 211, it is hereby determined that this final rulemaking does not constitute a major Federal action significantly 

affecting the quality of the human environment and that no detailed statement pursuant to section 102(2)(C) of the 

National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is required.

List of Subjects in 30 CFR Part 211

Administrative practice and procedure, Coal, Government contracts, Intergovernment relations, Mineral royalties, Mines, 

Public lands/mineral resources, Reporting requirements.

Under the authority of the Act of February 25, 1920, as amended and supplemented (30 U.S.C. 181, et seq.), the Act of 

August 7, 1947 (30 U.S.C. 351, et seq.), 43 U.S.C. 2, and 43 U.S.C. 1201, Part 211, Chapter II, Title 30 of the Code of 

Federal Regulations is revised to read as set forth below.

Dated: July 13, 1982.

James G. Watt,

Secretary of the Interior.

PART 211 -- COAL EXPLORATION AND MINING OPERATIONS RULES

GENERAL PROVISIONS

Section

211.1 Scope, purpose, and responsibilities.

211.2 Definitions.

211.2-1 Information collection.

211.3 General responsibilities.

211.4 General obligations of the operator/lessee.

211.5 Procedures and public participation.

211.6 Confidentiality.

211.7-211.9 [Reserved]

211.10 Exploration and resource recovery and protection plans.

211.11 Action on plans.

211.12 Mining operations maps.

211.13-211.19 [Reserved]

DILIGENCE REQUIREMENTS

211.20 Diligent development and continued operation requirement.

211.21 Termination or cancellation for failure to meet diligent development and continued operation.

211.22 Extension or suspension of continued operation, 3-year resource recovery and protection plan submission 

requirement, and operations and production.

211.23 Payment of advance royalty in lieu of continued operation.

211.24 Crediting of production toward diligent development.

211.25 Special logical mining unit rules.

211.26-211.39 [Reserved]

PERFORMANCE STANDARDS

211.40 Performance standards for exploration and surface and underground mining.

211.41 Completion of operations and abandonment.

211.42-211.61 [Reserved]
REPORTS, ROYALTIES, AND RECORDS

211.62 Reports.

211.63 Royalties.

211.64-211.65 [Reserved]

211.66 Maintenance of and access to records.

211.67-211.69 [Reserved]

INSPECTION, ISSUANCE OF ORDERS, ENFORCEMENT, AND APPEALS

211.70 Inspections.

211.71 Notices and orders.

211.72 Enforcement.

211.73 Appeals.

211.74-211.79 [Reserved]

LOGICAL MINING UNITS

211.80 Logical mining units.

211.81-211.99 [Reserved]

ROYALTIES

211.100 [Reserved]

211.101 Audits.

211.102 Late payment or underpayment charges.

211.103-211.999 [Reserved]

Authority: The Mineral Leasing Act of February 25, 1920, as amended (30 U.S.C. 181, et seq.); the Mineral Leasing Act 

for Acquired Lands, as amended (30 U.S.C. 351-359); the Surface Mining Control and Reclamation Act of 1977 (30 

U.S.C. 1201, et seq.); the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470, et seq.); the 

Endangered Species Act of 1973, as amended (16 U.S.C. 1531, et seq.); the Act of March 3, 1909, as amended (25 

U.S.C. 396); the Act of May 11, 1938, as amended (25 U.S.C. 396a-396q); the Act of February 28, 1891, as amended 

(25 U.S.C. 397); the Act of May 29, 1924 (25 U.S.C. 398); the Act of March 3, 1927 (25 U.S.C. 398a-398e); the Act of 

June 30, 1919, as amended (25 U.S.C. 399); R.S. Section 441 (43 U.S.C. 1457); the Federal Property and 

Administrative Services Act of 1949, as amended, (40 U.S.C. 471, et seq.); the National Environmental Policy Act of 

1969, as amended (42 U.S.C. 4321, et seq.); and the Freedom of Information Act (30 U.S.C. 552).

SECTION 211.1 - SCOPE, PURPOSE, AND RESPONSIBILITIES.

(a) Scope. The rules of this Part shall govern operations for the exploration, development, and production of Federal 

coal under Federal coal leases, licenses, and permits, regardless of surface ownership, pursuant to the Mineral Leasing 

Act of February 25, 1920, as amended (MLA), and in conjunction with the rules at 43 CFR Group 3400 and 30 CFR 

Chapter VII. Included are provisions relating to resource recovery and protection, royalties, diligent development, 

continued operation, maximum economic recovery (MER), and logical mining units (LMU's). Except as otherwise 

provided in 25 CFR Chapter I or Indian lands leases, these rules do not apply to operations on Indian lands. The 

provisions in these rules relating to advance royalty, diligent development, continued operation, MER, and LMU's shall 

not apply to Indian lands, leases and permits. The rules governing exploration licenses for unleased Federal coal are 

codified at 43 CFR Part 3410. Until final rulemaking is promulgated and implemented by the Office of Surface Mining 

Reclamation and Enforcement (OSM) regarding the initial Federal lands Programs, the initial Federal lands Program rules 

codified at 30 CFR Part 211 (1981) shall remain in effect.

(b) Purpose. The purposes of the rules of this Part are to ensure orderly and efficient development, mining, preparation, 

and handling operations for Federal coal; ensure production practices that prevent wasting or loss of coal or other 
resources; avoid unnecessary damage to coal-bearing or mineral-bearing formations; ensure MER of Federal coal; ensure 

that operations meet requirements for diligent development and continued operation; ensure resource recovery and 

protection plans are submitted and approved in compliance with MLA; ensure effective and reasonable regulation of 

surface and underground coal mining operations; require an accurate record and accounting of all coal produced; ensure 

efficient, environmentally sound exploration and mining operations; and eliminate duplication of efforts by the Minerals 

Management Service (MMS), OSM, and the States in the Federal coal program.

(c) Responsibilities of other Federal Agencies. -- (1) Office of Surface Mining Reclamation and Enforcement. The 

responsibility for administration of the Surface Mining Control and Reclamation Act of 1977 (SMCRA) (30 U.S.C. 1201, 

et seq.) is vested in OSM.

(2) Mine Safety and Health Administration. The responsibility for enforcement of the Federal Coal Mine 

Health and Safety Act of 1969, as amended (83 Stat. 742), and the coal mine health and safety rules contained in Chapter 

I of this Title are vested in the Mine Safety and Health Administration, Department of Labor.

(3) Bureau of Land Management. The responsibility for the issuance of exploration licenses for unleased 

Federal coal, the issuance of licenses to mine, and the issuance, readjustment, modification, termination, cancellation, 

and/or approval of transfers of Federal coal leases pursuant to MLA, as amended, is vested in the Bureau of Land 

Management.

SECTION 211.2 - DEFINITIONS.

(a) As used in the rules of this Part, the following terms shall have the following meanings:

(1) Advance royalty means a payment under a Federal lease in advance of actual production when authorized by 

the District Mining Supervisor to be made in lieu of continued operation. Payments made under the minimum production 

clause, in lieu of actual production from a Federal lease issued prior to 1977 and not readjusted after August 4, 1976, are 

not advance royalty under the provisions at 30 CFR 211.23.

(2) Assistant Secretary for Energy and Minerals means Assistant Secretary for Energy and Minerals, or 

designee, Department of the Interior (DOI).

(3) Associate Director for Onshore Minerals Operations means Associate Director for Onshore Minerals 

Operations, or designee, MMS, DOI.

(4) Associate Director for Royalty Management means Associate Director for Royalty Management, or 

designee, MMS, DOI.

(5) Chief, Onshore Solid Minerals Division means Chief, Onshore Solid Minerals Division, or designee, MMS, 

DOI.

(6) Coal reserve base shall be determined using existing published or unpublished information, or any 

combination thereof, and means the estimated tons of Federal coal in place contained in beds of:

(i) Metallurgical or metallurgical-blend coal 12 inches or more thick; anthracite, semianthracite, 

bituminous, and subbituminous coal 28 inches or more thick; and lignite 60 inches or more thick to a depth of 500 feet 

below the lowest surface elevation on the Federal lease.

(ii) Metallurgical and metallurgical-blend coal 24 inches or more thick; anthracite, semianthracite, 

bituminous and subbituminous coal 48 inches or more thick; and lignite 84 inches or more thick occurring from 500 to 

3,000 feet below the lowest surface elevation on the Federal lease.

(iii) Any thinner bed of metallurgical, anthracite, semianthracite, bituminous, and subbituminous coal 

and lignite at any horizon above 3,000 feet below the lowest surface elevation on the Federal lease, which is currently 

being mined or for which there is evidence that such coal bed could be mined commercially at this time.

(iv) Any coal at a depth greater than 3,000 feet where mining actually is to occur.

(7) Commercial quantities means 1 percent of the recoverable coal reserves or LMU recoverable coal reserves.

(8) Contiguous means having at least one point in common, including cornering tracts. Intervening physical 

separations such as burn or outcrop lines and intervening legal separations such as rights-of-way do not destroy 

contiguity as long as legal subdivisions have at least one point in common.

(9) Continued operation means the production of not less than commercial quantities of recoverable coal 

reserves in each of the first 2 continued operation years following the achievement of diligent development and an 

average amount of not less than commercial quantities of recoverable coal reserves per continued operation year 

thereafter, computed on a 3-year basis consisting of the continued operation year in question and the 2 preceding 

continued operation years.
(10) Continued operation year means the 12-month period beginning with the commencement of the first 

royalty reporting period following the date that diligent development is achieved and each 12-month period thereafter, 

except as suspended in accordance with 30 CFR 211.22(b).

(11) Deputy Minerals Manager for Mining means Deputy Minerals Manager for Mining, or designee, MMS, 

DOI.

(12) Development means activities conducted by an operator/lessee, after approval of a permit application 

package, to prepare a mine for commercial production.

(13) Diligent development means the production of recoverable coal reserves in commercial quantities prior to 

the end of the diligent development period.

(14) Diligent development period means a 10-year period which:

(i) For Federal leases shall begin on either --

(A) The effective date of the Federal lease for all Federal leases issued after August 4, 1976; 

or

(B) The effective date of the first lease readjustment after August 4, 1976, for Federal leases 

issued prior to August 4, 1976; and

(ii) For LMU's shall begin on either --

(A) The effective approval date of the LMU, if the LMU contains a Federal lease issued prior 

to August 4, 1976, but not readjusted after August 4, 1976, prior to LMU approval; or

(B) The effective date of the most recent Federal lease issuance or readjustment prior to LMU 

approval, for any LMU that does not contain a lease issued prior to August 4, 1976, that has not been readjusted after 

August 4, 1976, prior to LMU approval.

The diligent development period shall terminate at the end of the royalty reporting period in 

which the production of recoverable coal reserves in commercial quantities was achieved, or at the end of 10 years, 

whichever occurs first.

(15) Director means Director, or designee, MMS, DOI.

(16) District Mining Supervisor means District Mining Supervisor, or designee, MMS, DOI.

(17) Exploration means drilling, excavating, and geological, geophysical or geochemical surveying operations 

designed to obtain detailed data on the physical and chemical characteristics of Federal coal and its environment including 

the strata below the Federal coal, overburden, soil, and strata above the Federal coal, and the hydrologic conditions 

associated with the Federal coal.

(18) Exploration plan means a detailed plan to conduct exploration; it shows the location and type of 

exploration to be conducted, environmental protection procedures, present and proposed roads, and reclamation and 

abandonment procedures to be followed upon completion of operations.

(19) General Mining Order means any numbered formal order, issued by the Deputy Minerals Manager for 

Mining, which is published in the Federal Register after opportunity for public comment. General Mining Orders apply to 

coal exploration, mining, and related operations.

(20) Gross value, for the purpose of royalty calculations, means the unit sale or contract price times the number 

of units sold, subject to the provisions at 30 CFR 211.63 under which gross value is determined.

(21) License means a license to mine coal pursuant to the provisions of 43 CFR Part 3440, or an exploration 

license issued pursuant to the provisions of 43 CFR 3410.

(22) Logical mining unit (LMU) means an area of land in which the recoverable coal reserves can be developed 

in an efficient, economical, and orderly manner as a unit with due regard to conservation of recoverable coal reserves and 

other resources. An LMU may consist of one or more Federal leases and may include intervening or adjacent lands in 

which the United States does not own the coal. All lands in an LMU shall be under the effective control of a single 

operator/lessee, be able to be developed and operated as a single operation, and be contiguous.

(23) Logical mining unit (LMU) recoverable coal reserves means the sum of estimated Federal and nonFederal recoverable coal reserves in the LMU.

(24) Maximum economic recovery (MER) means that, based on standard industry operating practices, all 

profitable portions of a leased Federal coal deposit must be mined. At the times of MER determinations, consideration 

will be given to: existing proven technology; commercially available and economically feasible equipment; coal quality, 

quantity, and marketability; safety, exploration, operating, processing, and transportation costs; and compliance with 

applicable laws and regulations. The requirement of MER does not restrict the authority of the District Mining 

Supervisor to ensure the conservation of the recoverable coal reserves and other resources and to prevent the wasting of 

coal.

(25) Methods of operation means the methods and manner, described in an exploration or resource recovery 

and protection plan, by which exploration, development, or mining activities are to be performed by the operator/lessee.
(26) Mine means an underground or surface excavation or series of excavations and the surface or underground 

support facilities that contribute directly or indirectly to mining, production, preparation, and handling of coal.

(27) Mineable reserve base means that portion of the coal reserve base which is commercially mineable and 

includes all coal that will be left, such as in pillars, fenders, or property barriers. Other areas where mining is not 

permissible (including, but not limited to, areas classified as unsuitable for coal mining operations) shall be excluded from

the mineable reserve base.

(28) Minerals Management Service (MMS) means the DOI Bureau created from the Conservation Division, 

U.S. Geological Survey, by Secretarial Order No. 3071, (January 19, 1982).

(29) Minerals Manager means the regional Minerals Manager, or designee, MMS, DOI.

(30) MLA means the Act of February 25, 1920, as amended, commonly referred to as the Mineral Leasing Act 

and codified at 30 U.S.C. 181, et seq., and the Mineral Leasing Act for Acquired Lands, as amended, 30 U.S.C. 351-359.

(31) Notice of availability means formal notification by the District Mining Supervisor to: appropriate Federal, 

State, and local government agencies; to the surface and mineral owners; and to the public in accordance with 30 CFR 

211.5.

(32) Operator/lessee means lessee, licensee, and/or one conducting operations on a Federal lease or license 

under a written contract or written agreement with the lessee or licensee.

(33) Permanent abandonment of exploration operations means the completion of all activities conducted under 

an approved exploration plan, including plugging of all drill holes, submission of required records, and reclamation of all 

disturbed surfaces.

(34) Permanent abandonment of mining operations means the completion of all development, production, and 

resource recovery and protection requirements conducted under an approved resource recovery and protection plan, 

including satisfaction of all Federal rental and royalty requirements.

(35) Preparation means any physical or chemical treatment to prepare coal for market. Treatment may include 

crushing, sizing, drying, mixing, or other processing, and removal of noncoal waste such as bone or other impurities to 

enhance the quality and therefore the value of the coal.

(36) Production means mining of recoverable coal reserves and/or commercial byproducts from a mine using 

surface, underground, auger, or in situ methods.

(37) Recoverable coal reserves means the mineable reserve base excluding all coal that will be left, such as in 

pillars, fenders, and property barriers.

(38) Resource recovery and protection includes practices to: recover efficiently the recoverable coal reserves 

subject to these rules; avoid wasting or loss of coal or other resources; prevent damage to or degradation of coal/bearing 

or mineral-bearing formations; ensure MER of the Federal coal; and ensure that other resources are protected during 

exploration, development, and mining, and upon abandonment.

(39) Resource recovery and protection plan means a plan showing that the proposed operation meets the 

requirements of MLA for development, production, resource recovery and protection, diligent development, continued 

operation, MER, and the rules of this Part for the life-of-the-mine.

(40) Royalty reporting period means the period of time established by DOI for the calculation of production 

royalties due.

(41) Secretary means Secretary, or designee, DOI.

(42) Subsidence means a lowering of surface elevations over an underground mine caused by loss of support 

and subsequent settling or caving of strata lying above the mine.

(b) The following shall have the meanings as defined at 43 CFR 3400.0-5:

Authorized officer 

Federal lands 

Lease 

Licensee 

(c) The following shall have the meanings as defined at 30 CFR Chapter VII:

Alluvial valley floors 

Federal Lands Program 

Ground water 

Indian lands 

Overburden 

Permit 

Permit application 

Permit application package 
Permit area 

Regulatory authority 

Roads 

Spoil 

SECTION 211.2-1 - INFORMATION COLLECTION.

 The information collection requirements contained in 30 CFR 211 which require the filing of forms have been approved 

by the Office of Management and Budget (OMB) under 44 U.S.C. 3507. The Coal Production and Royalty Report form 

in 30 CFR 211.62(d)(1), U.S. Geological Survey Form 9-373A, has been approved by OMB under 44 U.S.C. 3507 and 

assigned clearance number 1028-0001.

 The information is being collected for Federal royalty accounting purposes. The information will be used to permit 

accounting and auditing of royalties submitted by the operators/lessees of Federal coal leases. The obligation to respond 

is mandatory for all operators/lessees of Federal coal leases. For nonproducing Federal leases, the report is required on 

an annual basis. For producing Federal leases, the report is required monthly or quarterly as specified in the Federal lease.

 The information collection requirements contained at 30 CFR 211.4 211.10, 211.11, 211.12, 211.22, 211.23, 211.62, 

211.63, 211.72, 211.80, and 211.101 have been approved by OMB under 44 U.S.C. 3507 and assigned clearance number 

1028-0042. The information may be collected from some operators/lessees to either provide data so that proposed 

operations may be approved or to enable the monitoring of compliance with approvals already granted. The information 

will be used to grant approval to begin or alter operations or to allow operations to continue. The obligation to respond 

is required to obtain the benefit under the Federal lease.

SECTION 211.3 - GENERAL RESPONSIBILITIES.

(a) The MMS has the general responsibility to administer MLA with respect to coal mining, production, and resource 

recovery and protection operations on Federal coal leases and licenses, and to supervise exploration operations for 

Federal coal.

(b) Subject to the supervisory authority of the Secretary, the rules of this Part shall be administered by MMS through the 

Director; Associate Director for Onshore Minerals Operations; Associate Director for Royalty Management; Chief, 

Onshore Solid Minerals Division; Minerals Manager; Deputy Minerals Manager for Mining; and District Mining 

Supervisor.

(c) The District Mining Supervisor is empowered to oversee exploration, development, production, resource recovery 

and protection, diligent development, continued operation, preparation, handling, product verification, and abandonment 

operations subject to the rules of this Part, and shall be responsible for the following:

(1) Exploration plans. Approve, disapprove, approve upon condition(s), or require modification to exploration 

plans for Federal coal.

(2) Resource recovery and protection plans. Recommend to the Assistant Secretary for Energy and Minerals 

the approval, disapproval, or approval upon condition(s) of resource recovery and protection plans.

(3) LMU applications. Approve, disapprove, or approve upon condition(s) LMU applications or modifications 

thereto; direct the establishment of LMU's in the interest of conservation of recoverable coal reserves and other 

resources; conduct public hearings on LMU applications, as appropriate, recommend amendments to Federal lease terms 

when determined necessary to ensure consistency with LMU stipulations; monitor and ensure compliance with LMU 

stipulations and the rules of this Part; and require reports and information for the establishment of an LMU.

(4) Inspection of operations. Examine as frequently as necessary, but at least quarterly, federally leased or 

licensed lands where operations for exploration, development, production, preparation, and handling of coal are 

conducted or are to be conducted; inspect such operations for product verification, resource recovery and protection, 

MER, diligent development and continued operation; inspect such operations for the purpose of determining whether 

wasting or degradation of other resources or damage to formations and deposits or nonmineral resources affected by the 

operations is being avoided or minimized; and determine whether there is compliance with all provisions of applicable 

laws, rules, and orders, all terms and conditions of Federal leases and licenses, and all requirements of approved 

exploration or resource recovery and protection plans.

(5) Compliance. Require operators/lessees to conduct operations subject to the rules of this Part in compliance 

with all provisions of applicable laws, rules, and orders, all terms and conditions of Federal leases and licenses under 

MLA requirements, and approved exploration or resource recovery and protection plans for requirements of production, 
development, resource recovery and protection, MER, diligent development and continued operation upon 

commencement of production.

(6) Waiver, suspension, or reduction of rentals, or reduction of royalties. Receive and act on applications for 

waiver, suspension, or reduction of rentals, and receive and act on applications for reduction of royalties, but not advance 

royalty, filed pursuant to the rules of this Part.

(7) Extensions or suspensions. Receive and act on applications for extensions or suspensions filed in accordance 

with 30 CFR 211.22 and, when appropriate, terminate extensions or suspensions that have been granted, provided that 

approval of an extension or a suspension shall not preclude the regulatory authority from requiring the operator/lessee to 

continue to comply with the reclamation requirements of 30 CFR Chapter VII, Subchapter K, or an approved State 

program.

(8) Cessation and abandonment. Upon receipt of notice of proposed abandonment or upon relinquishment of a 

Federal lease, in accordance with 43 CFR 3452.1-2, or Federal license, in accordance with 43 CFR 3410.3-1(d), the 

District Mining Supervisor shall conduct an inspection to determine whether the applicable exploration, development, 

production, resource recovery and protection, and abandonment requirements of the Federal lease or license have been 

met. Relinquishment or abandonment of a Federal lease shall not preclude the regulatory authority from requiring the 

operator/lessee to comply with the reclamation requirements of 30 CFR Chapter VII, Subchapter K, or an approved 

State program.

(9) Exploration drill holes. Prescribe or approve the methods for protecting coal-bearing formations from 

damage or contamination that might occur as a result of any holes drilled to, or through, the coal-bearing formations for 

any purpose under an approved exploration plan.

(10) Trespass. Report to the authorized officer, with a copy to the regulatory authority, any trespass on Federal 

lands that involves exploration activities or removal of unleased Federal coal, determine the quantity and quality of coal 

removed, and recommend the amount of trespass damages.

(11) Water and air quality. Inspect exploration operations to determine compliance with air and surface and 

ground water pollution control measures required by Federal statutes as implemented by the terms and conditions of 

applicable Federal leases, licenses or approved exploration plans, and promptly notify appropriate representatives of the 

regulatory authority and Federal Agencies in the event of any noncompliance.

(12) Implementation of rules. Issue General Mining Orders and other orders for enforcement, make 

determinations, and grant consents and approvals as necessary to implement or ensure compliance with the rules of this 

Part. Any oral orders, approvals, or consents shall be promptly confirmed in writing.

(13) Lease bonds. (i) Determine whether the total amount of Federal lease bond with respect to operations 

under the rules of this Part is adequate at all times to satisfy the reclamation requirements of the exploration plan.

(ii) Determine whether the total amount of any bond furnished with respect to operations subject to the 

rules of this Part is at all times adequate to satisfy the requirements of the Federal lease or license relating to exploration, 

development, production, resource recovery and protection, and shall determine if the bond amount is adequate to satisfy 

any payments of rentals on producing Federal leases and payments of Federal royalties.

(iii) Notify the authorized officer of determinations under (i) and (ii) above.

(d) The Associate Director for Royalty Management:

(1) Shall oversee all matters related to the collection of Federal rentals and royalties and obtain appropriate 

records, computations, and any audits of the royalty payments and obligations of the operators/lessees.

(2) Shall be responsible for obtaining copies of and auditing Federal coal production and sales records.

(3) Shall determine Federal rental liability of operators/lessees, on a Federal lease-by-lease basis, upon transfer 

of such responsibility from the Bureau of Land Management to MMS.

(4) Shall determine Federal royalty liability of operators/lessees.

(5) Shall collect and deposit Federal rental and royalty payments and maintain Federal rental and royalty 

accounts.

SECTION 211.4 - GENERAL OBLIGATIONS OF THE OPERATOR/LESSEE.

(a) The operator/lessee shall conduct exploration activities, reclamation, and abandonment of exploration operations for 

Federal coal pursuant to the performance standards of the rules of this Part, applicable requirements of 30 CFR 815.15 

(OSM permanent performance standards for coal exploration) or an approved State program, any Federal lease or license 

terms and/or conditions, the requirements of the approved exploration plan, and orders issued by the District Mining 

Supervisor.
(b) The operator/lessee shall conduct surface and underground coal mining operations involving development, 

production, resource recovery and protection, and preparation and handling of coal in accordance with the rules of this 

Part, terms and conditions of the Federal leases or licenses, the approved resource recovery and protection plan, and any 

orders issued by the District Mining Supervisor.

(c) The operator/lessee shall prevent wasting of coal and other resources during exploration, development, and 

production and shall adequately protect the recoverable coal reserves and other resources upon abandonment.

(d) The operator/lessee shall immediately report to the District Mining Supervisor any conditions or accidents causing 

severe injury or loss of life that could affect mining operations conducted under the resource recovery and protection 

plan or threaten significant loss of recoverable coal reserves or damage to the mine, the lands, or other resources, 

including, but not limited to, fires, bumps, squeezes, highwall caving, landslides, inundation of mine with water, and gas 

outbursts, including corrective action initiated or recommended. Within 30 days after such accident, the operator/lessee 

shall submit a detailed report of damage caused by such accident and of the corrective action taken.

(e) The principal point of contact for the operator/lessee with respect to any requirement of the rules of this Part shall be 

the District Mining Supervisor. All reports, plans, or other information required by the rules of this Part shall be 

submitted to the District Mining Supervisor. The principal point of contact for the operator/lessee regarding payments of 

Federal rentals and royalties shall be the Associate Director for Royalty Management.

(f) The operator/lessee shall provide the District Mining Supervisor or the Associate Director for Royalty Management 

free access to the Federal premises.

SECTION 211.5 - PROCEDURES AND PUBLIC PARTICIPATION.

(a) Written findings. All major decisions and determinations of the Minerals Manager, Deputy Minerals Manager for 

Mining, District Mining Supervisor and/or Associate Director for Royalty Management shall be in writing; shall set forth 

with reasonable detail the facts and rationale upon which such decisions or determinations are based; and shall be 

available for public inspection, pursuant to 30 CFR 211.6, during normal business hours at the appropriate office.

(b) Logical mining units (LMU's). -- (1) Availability of LMU proposals. Applications for the approval of an LMU or 

modification thereto submitted under 30 CFR 211.80, or a proposal by the District Mining Supervisor to establish an 

LMU, shall be available for public inspection, pursuant to 30 CFR 211.6, in the office of the District Mining Supervisor. 

A notice of the availability of any proposed LMU or modification thereto shall be prepared immediately by the District 

Mining Supervisor, promptly posted at his office, and mailed to the surface and coal owners, if other than the United 

States; appropriate State and Federal Agencies; and the clerk or other appropriate officer of the county in which the 

proposed LMU is located. The notice will be posted or published in accordance with the procedures of such offices. The 

notice shall be submitted by the District Mining Supervisor to a local newspaper of general circulation in the locality of 

the proposed LMU for publication at least once a week for 2 weeks consecutively.

(2) Notice of proposed decision. Prior to the final approval or establishment of any LMU, the District Mining 

Supervisor shall have the proposed decision published in a local newspaper of general circulation in the locality of the

proposed LMU at least once a week for 2 weeks consecutively and shall not approve the application for at least 30 days 

after the first publication of the proposed decision. Such notice may be published concurrently with the notice of 

availability.

(3) Public participation. A public hearing shall be conducted upon the receipt by the District Mining 

Supervisor of a written request for a hearing from any person having a direct interest which is or may be affected 

adversely by approval of the proposed LMU, provided that the written request is received within 30 days after the first 

publication of the notice of proposed decision in a newspaper of general circulation in the locality of the proposed LMU. 

A complete transcript of any such public hearing, including any written comments submitted for the record, shall be kept 

and made available to the public during normal business hours at the office of the District Mining Supervisor that held the 

hearing, and shall be furnished at cost to any interested party. In making any decision or taking any action subsequent to 

such public hearing, the District Mining Supervisor shall take into account all testimony presented at the public hearing.

SECTION 211.6 - CONFIDENTIALITY.

(a) Information on file with MMS obtained pursuant to the rules of this Part or 43 CFR 3400 shall be open for public 

inspection and copying during regular office hours upon a written request, pursuant to rules at 43 CFR Part 2, except 

that:
(1) Information such as geologic and geophysical data and maps pertaining to Federal recoverable coal reserves 

obtained from exploration licensees under the rules of this Part or 43 CFR 3410 shall not be disclosed except as provided 

in 43 CFR 2.20(c).

(2) Information obtained from an operator/lessee under the rules of this Part that constitutes trade secrets and 

commercial or financial information which is privileged or confidential or other information that may be withheld under 

the Freedom of Information Act (5 U.S.C. 552(b)), such as geologic and geophysical data and maps, shall not be 

available for public inspection or made public or disclosed without the consent of the operator/lessee.

(3) Upon termination of a Federal lease, such geologic and geophysical data and maps shall be made available to 

the public.

(4) Upon issuance or readjustment of a Federal lease, the estimated Federal lease recoverable coal reserves 

figure shall not be made available to the public unless such a release has been included as a Federal lease term.

(b) Information requested by the operator/lessee to be kept confidential under this section shall be clearly marked 

"CONFIDENTIAL INFORMATION." All pages so marked shall be physically separated from other portions of the 

submitted materials. All information not marked "CONFIDENTIAL INFORMATION" will be available for public 

inspection, except as stated at 30 CFR 211.6(a) for data submitted prior to August 30, 1982.

SECTIONS 211.7-211.9 [RESERVED]

SECTION 211.10 - EXPLORATION AND RESOURCE RECOVERY AND PROTECTION PLANS.

(a) Exploration plans. For background and application procedures for exploration licenses for unleased Federal coal, see 

43 CFR 3410. For background and application procedures for exploration for Federal coal within an approved permit 

area after mining operations have commenced, see 30 CFR Chapter VII. For any other exploration for Federal coal prior 

to commencement of mining operations, the following rules apply:

(1) Except for casual use, before conducting any exploration operations on federally leased or licensed lands, the 

operator/lessee shall submit an exploration plan to and obtain approval from the District Mining Supervisor. Casual use, 

as used in this paragraph, means activities which do not cause appreciable surface disturbance or damage to lands or 

other resources and improvements. Casual use does not include use of heavy equipment or explosives or vehicular 

movement off established roads and trails.

(2) The operator/lessee shall submit five copies of exploration plans to the District Mining Supervisor. 

Exploration plans shall be consistent with and responsive to the requirements of the Federal lease or license for the 

protection of recoverable coal reserves and other resources and for the reclamation of the surface of the lands affected by 

the operations. The exploration plan shall show that reclamation is an integral part of the proposed operations and that 

reclamation will progress as contemporaneously as practicable with such operations.

(3) Exploration plans shall contain all of the following:

(i) The name, address, and telephone number of the applicant, and, if applicable, the operator/lessee of 

record.

(ii) The name, address, and telephone number of the representative of the applicant who will be present 

during and be responsible for conducting the exploration.

(iii) A narrative description of the proposed exploration area, cross-referenced to the map required 

under 30 CFR 211.10(a)(2)(viii), including applicable Federal lease and license serial numbers; surface topography; 

geologic, surface water, and other physical features; vegetative cover; endangered or threatened species listed pursuant 

to the Endangered Species Act of 1973 (16 U.S.C. 1531, et seq.); districts, sites, buildings, structures, or objects listed 

on, or eligible for listing on, the National Register of Historic Places; and known cultural or archeological resources 

located within the proposed exploration area.

(iv) A narrative description of the methods to be used to conduct coal exploration, reclamation, and 

abandonment of operations including, but not limited to --

(A) The types, sizes, numbers, capacity, and uses of equipment for drilling and blasting, and 

road or other access route construction;

(B) Excavated earth- or debris-disposal activities;

(C) The proposed method for plugging drill holes;

(D) Estimated size and depth of drill holes, trenches, and test pits; and,

(E) Plans for transfer and modification of exploration drill holes to be used as surveillance, 

monitoring, or water wells.
(v) An estimated timetable for conducting and completing each phase of the exploration, drilling, and 

reclamation.

(vi) The estimated amounts of coal to be removed during exploration, a description of the method to 

be used to determine those amounts, and the proposed use of the coal removed.

(vii) A description of the measures to be used during exploration for Federal coal to comply with the 

performance standards for exploration (30 CFR 211.40(a)) and applicable requirements of 30 CFR 815.15 or an 

approved State program.

(viii) A map at a scale of 1:24,000 or larger showing the areas of land to be affected by the proposed 

exploration and reclamation. The map shall show existing roads, occupied dwellings, and pipelines; proposed location of 

trenches, roads, and other access routes and structures to be constructed; applicable Federal lease and license boundaries; 

the location of land excavations to be conducted; coal exploratory holes to be drilled or altered; earth- or debris-disposal 

areas; existing bodies of surface water; and topographic and drainage features.

(ix) The name and address of the owner of record of the surface land, if other than the United States. If 

the surface is owned by a person other than the applicant or if the Federal coal is leased to a person other than the 

applicant, a description of the basis upon which the applicant claims the right to enter that land for the purpose of 

conducting exploration and reclamation.

(x) Such other data as may be required by the District Mining Supervisor.

(b) Resource recovery and protection plans. Before conducting any Federal coal development or mining operations on 

Federal leases or licenses, the operator/lessee shall submit and obtain approval of a resource recovery and protection 

plan, unless a current resource recovery and protection plan has been approved prior to August 30, 1982. If the resource 

recovery and protection plan is submitted solely to meet the MLA 3-year submittal requirement, the resource recovery 

and protection plan shall be submitted to the District Mining Supervisor. Upon receipt of a resource recovery and 

protection plan, the District Mining Supervisor will review such plan for completeness and for compliance with MLA. 

Prior to commencement of any coal development or mining operations on a Federal lease or license, a permit application 

package containing, among other documents, a resource recovery and protection plan and a permit application shall be 

submitted to the regulatory authority. On any Federal lease issued after August 4, 1976, MLA requires that a resource 

recovery and protection plan shall be submitted no later than 3 years after the effective date of the Federal lease. On any 

Federal lease issued prior to August 4, 1976, MLA requires that a resource recovery and protection plan shall be 

submitted no later than 3 years after the effective date of the first lease readjustment after August 4, 1976, or the 

effective date of the operator/lessee's election provided for at 30 CFR 211.20(b)(1), unless a current resource recovery 

and protection plan has been approved. Any resource recovery and protection plan submitted but not approved as of the 

effective date of these rules shall be revised to comply with these rules.

 A resource recovery and protection plan for an LMU shall be submitted to the District Mining Supervisor as provided 

in 30 CFR 211.80(e)(1).

(c) The District Mining Supervisor may contact directly operators/lessees regarding MLA requirements. The resource 

recovery and protection plan shall contain all the requirements pursuant to MLA for the life-of-the-mine and, unless 

previously submitted in an LMU application or as directed by the District Mining Supervisor, shall include all of the 

following:

(1) Names, addresses, and telephone numbers of persons responsible for operations to be conducted under the 

approved plan to whom notices and orders are to be delivered; names and addresses of operators/lessees; Federal lease 

serial numbers; Federal license serial numbers, if appropriate; and names and addresses of surface and subsurface coal or 

other mineral owners of record, if other than the United States.

(2) A general description of geologic conditions and mineral resources, with appropriate maps, within the area 

where mining is to be conducted.

(3) A description of the proposed mining operation, including:

(i) Sufficient coal analyses to determine the quality of the minable reserve base in terms including, but 

not limited to, Btu content on an as-received basis, ash, moisture, sulphur, volatile matter, and fixed carbon content.

(ii) The methods of mining and/or variation of methods, basic mining equipment and mining factors 

including, but not limited to, mining sequence, production rate, estimated recovery factors, stripping ratios, highwall 

limits, and number of acres to be affected.

(iii) An estimate of the coal reserve base, minable reserve base, and recoverable coal reserves for each 

Federal lease included in the resource recovery and protection plan. If the resource recovery and protection plan covers 
an LMU, recoverable coal reserves will also be reported for the non-Federal lands included in the resource recovery and 

protection plan.

(iv) The method of abandonment of operations proposed to protect the unmined recoverable coal 

reserves and other resources.

(4) Maps and cross sections, as follows:

(i) A plan map of the area to be mined showing the following --

(A) Federal lease boundaries and serial numbers;

(B) LMU boundaries, if applicable;

(C) Surface improvements, and surface ownership and boundaries;

(D) Coal outcrop showing dips and strikes; and,

(E) Locations of existing and abandoned surface and underground mines.

(ii) Isopach maps of each coal bed to be mined and the overburden and interburden.

(iii) Typical structure cross sections showing all coal contained in the coal reserve base.

(iv) General layout of proposed surface or strip mine showing --

(A) Planned sequence of mining by year for the first 5 years, thereafter in 5-year increments 

for the remainder of mine life;

(B) Location and width of coal fenders; and,

(C) Cross sections of typical pits showing highwall and spoil configuration, fenders, if any, 

and coal beds.

(v) General layout of proposed underground mine showing --

(A) Planned sequence of mining by year for the first 5 years, thereafter in 5-year increments 

for the remainder of mine life;

B) Location of shafts, slopes, main development entries and barrier pillars, panel 

development, bleeder entries, and permanent barrier pillars;

(C) Location of areas where pillars will be left and an explanation why these pillars will not be 

mined;

(D) A sketch of a typical entry system for main development and panel development entries 

showing centerline distances between entries and crosscuts;

(E) A sketch of typical panel recovery (e.g., room and pillar, longwall, or other mining 

method) showing, by numbering such mining, the sequence of development and retreat; and,

(vi) For auger mining --

(A) A plan map showing the area to be auger mined and location of pillars to be left to allow 

access to deeper coal;

(B) A sketch showing details of operations including coal bed thickness, auger hole spacing, 

diameter of holes and depth or length of auger holes.

(5) A general reclamation schedule for the life-of-the-mine. This should not be construed as meaning duplication 

of a permit application in a permit application package under SMCRA. The resource recovery and protection plan may 

cross-reference, as appropriate, a permit application submitted under SMCRA to fulfill this requirement.

(6) Any required data which are clearly duplicated in other submittals to the regulatory authority or Mine Safety 

and Health Administration may be used to fulfill the requirements of the above paragraphs provided that the crossreference is clearly stated. A copy of the relevant portion of such submittals must be included in the resource recovery 

and protection plan.

(7) Explanation of how MER of the Federal coal will be achieved for the Federal coal leases included in the 

resource recovery and protection plan. If a coal bed, or portion thereof, is not to be mined or is to be rendered 

unmineable by the operation, the operator/lessee shall submit appropriate justification to the District Mining Supervisor 

for approval.

SECTION 211.11 - ACTION ON PLANS.

(a)(1) Exploration plans. The District Mining Supervisor after evaluating a proposed exploration plan and all comments 

received thereon, and after consultation with the authorized officer, and with the regulatory authority when exploration is 

to be conducted within an approved permit area prior to commencement of mining operations, shall promptly approve or 

disapprove in writing an exploration plan. In approving an exploration plan, the District Mining Supervisor shall 

determine that the exploration plan complies with the rules of this Part, applicable requirements of 30 CFR 815.15 or an 

approved State program, and any Federal lease or license terms and/or conditions. Reclamation must be accomplished as 

set forth in the exploration plan. The District Mining Supervisor may impose additional conditions to conform to the 
rules of this Part. In disapproving an exploration plan, the District Mining Supervisor shall state what modifications, if 

any, are necessary to achieve such conformity. No exploration plan shall be approved unless the bond, executed pursuant 

to the provisions of 43 CFR 3474 or 43 CFR 3410, has been determined by the authorized officer to be adequate. When 

the land involved in the exploration plan is under the surface management jurisdiction of an agency other than DOI, that 

other agency must concur with the approval terms of the exploration plan.

(2) Resource recovery and protection plans. No resource recovery and protection plan or modification thereto 

shall be approved which is not in conformance with the rules of this Part, any Federal lease or license terms and/or 

conditions, and is not found to achieve MER of the Federal coal within an LMU or Federal lease issued or readjusted 

after August 4, 1976. The determination of MER shall be made by the District Mining Supervisor based on review of the 

resource recovery and protection plan. No resource recovery and protection plan shall be approved prior to the filing of a 

complete permit application package and unless the Federal lease bond, executed pursuant to the provisions of 43 CFR 

3474 has been determined by the authorized officer to be adequate.

(3) Recoverable coal reserve estimates. For all Federal coal leases issued or readjusted after August 4, 1976, 

the recoverable coal reserves or LMU recoverable coal reserves shall be those estimated by the District Mining 

Supervisor as of the date of approval of the resource recovery and protection plan, or the date of approval of any existing 

mining plan as defined at 30 CFR 740.5 (1981). If an operator/lessee credits production toward diligent development in 

accordance with 30 CFR 211.24, such credits shall be included in the recoverable coal reserves or LMU recoverable coal 

reserves estimates. The estimate of recoverable coal reserves or LMU recoverable coal reserves may only be revised as 

new information becomes available. Estimates of recoverable coal reserves or LMU recoverable coal reserves shall not be 

reduced due to any production after the original estimate made by the District Mining Supervisor.

(b) Changes in plans by District Mining Supervisor. (1) Approved exploration plans may be required to be revised or 

supplemented at any time by the District Mining Supervisor, after consultation with the operator/lessee and the 

authorized officer as necessary, to adjust to changed conditions, to correct oversights, or to reflect changes in legal 

requirements.

(2) The District Mining Supervisor, pursuant to MLA, may require approved resource recovery and protection 

plans to be revised or supplemented reasonably for modifications, after consultation with the operator/lessee and the 

regulatory authority as necessary, to adjust to changed conditions, to correct oversights, or to reflect changes in legal 

requirements. Such revisions shall be made in writing, as appropriate, and the District Mining Supervisor shall submit a 

copy to the regulatory authority.

(c) Changes in plans by operator/lessee. (1) The operator/lessee may propose modifications to an approved exploration 

plan and shall submit a written statement of the proposed change and its justification to the District Mining Supervisor. 

The District Mining Supervisor shall promptly approve or disapprove in writing any such modifications, after 

consultation with the authorized officer and the regulatory authority as necessary, or specify conditions under which they 

would be acceptable.

(2) The operator/lessee may propose modifications to an approved resource recovery and protection plan for 

any requirements under MLA, and shall submit a written statement of the proposed change and its justification to the 

District Mining Supervisor. The District Mining Supervisor shall promptly approve or disapprove in writing any such 

modifications, after consultation with the regulatory authority as necessary, or specify conditions under which they would 

be acceptable. Upon approval of modifications, the District Mining Supervisor shall submit a copy to the regulatory 

authority.

SECTION 211.12 - MINING OPERATIONS MAPS.

(a) General requirements. Upon commencement of mining operations, the operator/lessee shall maintain accurate and 

up-to-date maps of the mine, drawn to scales acceptable to the District Mining Supervisor. Before a mine or section of a 

mine is abandoned, closed, or made inaccessible, a survey of the mine or section shall be made by the operator/lessee and 

recorded on such maps. All excavations in each separate coal bed shall be shown in such a manner that the production of 

coal for any royalty reporting period can be accurately ascertained. Additionally, the maps shall show the name of the 

mine; name of the operator/lessee; Federal lease or license serial number(s); permit number; Federal lease and permit 

boundary lines; surface buildings; dip of the coal bed(s); true north; map scale; map explanation; location, diameter, and 

depth of auger holes; improvements; topography, including subsidence resulting from mining; geologic conditions as 

determined from outcrops, drill holes, exploration, or mining; any unusual geologic or other occurrences such as dikes, 

faults, splits, unusual water occurrences, or other conditions that may influence MER; and other information that the

District Mining Supervisor may request. Copies of such maps shall be properly posted to date and furnished, in duplicate, 
to the District Mining Supervisor annually, or at such other times as the District Mining Supervisor requests. Copies of 

any maps, normally submitted to the regulatory authority, Mine Safety and Health Administration, or other State or 

Federal Agencies, that show all of the specific data required by this paragraph or 30 CFR 211.12 (b), (c), and (d) shall be 

acceptable in fulfilling these requirements.

(b) Underground mine maps. Underground mine maps, in addition to the general requirements of 30 CFR 211.12(a), 

shall show all mine workings; the date of extension of the mine workings; an illustrative coal section at the face of each 

working unit; location of all surface mine fans; ventilation stoppings, doors, overcasts, undercasts, permanent seals, and 

regulators; direction of the ventilating current in the various parts of the mine at the time of making the latest surveys; 

sealed areas; known bodies of standing water in other mine workings, either in, above, or below the active workings of 

the mine; areas affected by squeezes; elevations of surface and underground levels of all shafts, slopes, or drifts, and 

elevation of the floor, bottom of the mine workings, or mine survey stations in the roof at regular intervals in main 

entries, panels, or sections; and sump areas. Any maps submitted to the regulatory authority to be used to monitor 

subsidence shall also be submitted to the District Mining Supervisor.

(c) Surface mine maps. Surface mine maps, in addition to the general requirements of 30 CFR 211.12(a), shall include 

the date of extension of the mine workings and a detailed stratigraphic section at intervals specified in the approved 

resource recovery and protection plan. Such maps shall show areas from which coal has been removed; the highwall; 

fenders; uncovered, but unmined, coal beds; and elevation of the top of the coal beds.

(d) Vertical projections and cross sections of mine workings. When required by the District Mining Supervisor, vertical 

projections and cross sections shall accompany plan views.

(e) Accuracy of maps. The accuracy of maps furnished shall meet standards acceptable to the District Mining Supervisor 

and shall be certified by a professional engineer, professional land surveyor, or other such professionally qualified person.

(f) Liability of operator/lessee for expense of survey. If the operator/lessee fails to furnish a required or requested map 

within a reasonable time, the District Mining Supervisor, if necessary, shall employ a professionally qualified person to 

make the required survey and map, the cost of which shall be charged to, and promptly paid by, the operator/lessee.

(g) Incorrect maps. If any map submitted by an operator/lessee is believed to be incorrect, and the operator/lessee 

cannot verify the map or supply a corrected map, the District Mining Supervisor may employ a professionally qualified 

person to make a survey and any necessary maps. If the survey shows the maps submitted by the operator/lessee to be 

substantially incorrect, in whole or in part, the cost of making the survey and preparing the maps shall be charged to, and 

promptly paid by, the operator/lessee.

SECTIONS 211.13-211.19 [RESERVED]

SECTION 211.20 - DILIGENT DEVELOPMENT AND CONTINUED OPERATION REQUIREMENT.

(a) General requirements. (1) Except as provided at 30 CFR 211.20(b), each Federal coal lease and LMU is required to 

achieve diligent development.

(2) Once the operator/lessee of a Federal coal lease or LMU has achieved diligent development, the 

operator/lessee shall maintain continued operation on the Federal lease or LMU for every continued operation year 

thereafter, except as provided in 30 CFR 211.22.

(b) Federal coal leases issued prior to August 4, 1976, until the first readjustment of the lease after August 4, 1976, shall 

be subject to the Federal lease terms, including those that describe the minimum production requirement, except that:

(1) An operator/lessee holding such a lease may elect to be subject to the rules of this Part by notifying the 

District Mining Supervisor in writing within 1 year of the effective date of the rules of this Part.

(i) Such election shall consist of a written request, in triplicate, to the District Mining Supervisor that a 

Federal lease(s) be subject to the rules of this Part, and shall contain the following --

(A) Name and address of the operator/lessee of record.

(B) Federal lease number(s).

(C) Certified record of annual Federal coal production since August 4, 1976, for the Federal 

lease(s) that the operator/lessee requests to have credited toward diligent development in accordance with 30 CFR 

211.24.
(ii) Upon verification by the District Mining Supervisor of the reported annual Federal coal production, 

the District Mining Supervisor shall notify the operator/lessee by certified mail, return receipt requested, that the election 

has been approved. The effective date of the election shall be the most recent royalty reporting period prior to the 

submittal of the election to the District Mining Supervisor.

(2) Upon the effective date of the first lease readjustment after August 4, 1976, all such Federal leases shall be 

subject to the rules of this Part.

(c) Any Federal coal lease included in an LMU shall be subject to the diligent development and continued operation 

requirements imposed on the LMU in lieu of those diligent development and continued operation requirements that 

would apply to the Federal lease individually.

SECTION 211.21 - TERMINATION OR CANCELLATION FOR FAILURE TO MEET DILIGENT 

DEVELOPMENT AND MAINTAIN CONTINUED OPERATION.

(a) Any Federal coal lease or LMU which has not achieved diligent development shall be terminated by DOI.

(b) After an LMU has been terminated under the provision of 30 CFR 211.21(a), any Federal coal lease included in that 

LMU shall then be subject to the diligent development and continued operation requirements that would have been 

imposed on that Federal lease by the rules of this Part, as if the Federal lease had not been included in the LMU.

(c) Any Federal coal lease on which continued operation is not maintained shall be subject to cancellation.

(d) The DOI may cancel any Federal coal lease or LMU which fails to meet the requirement for submission of a resource 

recovery and protection plan.

SECTION 211.22 - EXTENSION OR SUSPENSION OF CONTINUED OPERATION, 3-YEAR RESOURCE 

RECOVERY AND PROTECTION PLAN SUBMISSION REQUIREMENT, AND OPERATIONS AND 

PRODUCTION.

(a) Applications for extensions or suspensions of continued operation or 3-year resource recovery and protection plan 

submittals shall be filed in triplicate in the office of the District Mining Supervisor. The District Mining Supervisor, if he 

determines the application to be in the public interest, is authorized to act on such applications, and to terminate 

extensions or suspensions which have been or may be granted.

(1) The requirement for continued operation shall be suspended and the date by which a resource recovery and 

protection plan must be submitted shall be extended by the period of time in which the District Mining Supervisor 

determines that operations under the Federal coal lease or LMU are interrupted by strikes, the elements, or casualties not 

attributable to the operator/lessee.

(2) The District Mining Supervisor may suspend the requirement for continued operation upon the payment of 

advance royalty in accordance with 30 CFR 211.23 for any operation. The District Mining Supervisor, upon notifying the 

operator/lessee 6 months in advance, may cease to accept advance royalty in lieu of the requirement for continued 

operation.

(b) In the interest of conservation, the District Mining Supervisor is authorized to act on applications for suspension of 

operations and production filed pursuant to 30 CFR 211.22(b) direct suspension of operations and production, and 

terminate such suspensions which have been or may be granted. Applications by an operator/lessee for relief from any 

operations and production requirements of a Federal lease shall contain justification for the suspension and shall be filed 

in triplicate in the office of the District Mining Supervisor.

(1) A suspension in accordance with 30 CFR 211.22(b) shall take effect as of the time specified by the District 

Mining Supervisor. Any such suspension of a Federal coal lease or LMU approved by the District Mining Supervisor also 

suspends all other terms and conditions of the Federal coal lease or LMU, except the diligent development period, for the 

entire period of such a suspension. Rental and royalty payments will be suspended during the period of such suspension 

of all operations and production, beginning with the first day of the Federal lease month on which the suspension of 

operations and production becomes effective. Rental and royalty payments shall resume on the first day of the Federal 

lease month in which operations or production is resumed. Where rentals are creditable against royalties and have been 

paid in advance, proper credit shall be allowed on the next rental or royalty on producing Federal leases due under the 

Federal lease.

(2) The minimum annual production requirements shall be proportionately reduced for that portion of a Federal 

lease year for which suspension of operations and production is directed or granted by the District Mining Supervisor, in 
the interest of conservation of recoverable coal reserves and other resources, in accordance with 30 CFR 211.22(b).

(3) The term of any Federal lease shall be extended by adding to it any period of suspension in accordance with 

30 CFR 211.22(b) of operations and production.

(4) A suspension in accordance with 30 CFR 211.22(b) does not suspend the permit and the operator/lessee's 

reclamation obligation under the permit.

SECTION 211.23 - PAYMENT OF ADVANCE ROYALTY IN LIEU OF CONTINUED OPERATION.

(a) Advance royalty may only be accepted in lieu of continued operation upon application to and approval by the District 

Mining Supervisor.

(b) However, any request by an operator/lessee for suspension of the continued operation requirement and payment of 

advance royalty in lieu thereof shall be made no later than 30 days after the beginning of the continued operation year. If 

an operator/lessee requests authorization to pay advance royalty in lieu of continued operation later than 30 days after the

beginning of any continued operation year, the District Mining Supervisor may condition acceptance of advance royalty 

on the payment of a late payment charge on the amount of the advance royalty due. The late payment charge will be 

calculated in accordance with 30 CFR 211.102.

(c) For advance royalty purposes, the value of the Federal coal will be calculated in accordance with 30 CFR 211.63 and 

this section. When advance royalty is accepted in lieu of continued operation, it shall be paid in an amount equivalent to 

the production royalty that would be owed on the production of 1 percent of the recoverable coal reserves or the Federal 

LMU recoverable coal reserves. The advance royalty rate for an LMU shall be deemed to be 8 percent where the Federal 

LMU recoverable coal reserves contained in the LMU would be recovered by only underground mining operations and 

12 1/2 percent where the Federal LMU recoverable coal reserves contained in the LMU would be recovered only by 

other mining operations. For LMU's that contain Federal LMU recoverable coal reserves that would be recovered by a 

combination of underground and other mining methods, the advance royalty rate shall be deemed to be 12 1/2 percent. 

The unit value of the recoverable coal reserves for determining the advance royalty payment for a Federal lease or LMU 

shall be:

(1) The unit value for production royalty purposes of coal produced and sold under the Federal coal lease or 

LMU during the immediately preceding production royalty payment period; or

(2) Computed at the average unit price at which coal from other Federal leases in the same region was sold 

during such period, if no coal was produced and sold under the Federal coal lease or LMU during the immediately 

preceding royalty payment period, or if the District Mining Supervisor finds that there is an insufficient number of such 

sales to determine such value equitably; or

(3) Determined by the District Mining Supervisor, if there were no sales of Federal coal from such region during 

such period or if the District Mining Supervisor finds that there is an insufficient number of such sales to determine such 

value equitably.

(d) The aggregate number of years during the period of any Federal coal lease or LMU for which advance royalty may be 

accepted in lieu of the requirement of continued operation shall not exceed 10. For Federal leases issued prior to August 

4, 1976, advance royalty shall not be accepted in lieu of continued operation for more than a total of 10 years following 

the first lease readjustment after August 4, 1976.

 Any continued operation year in which any advance royalty is paid shall be deemed a year in which advance royalty is 

accepted in lieu of continued operation for the purposes of this paragraph. However, if an operator/lessee meets the 

requirement for continued operation in any continued operation year in which the operator/lessee has paid advance 

royalty, such year shall not be considered when calculating the maximum number of years for which advance royalty may 

be accepted for the Federal lease or LMU. The number of years for which advance royalty has been paid under any 

Federal coal lease prior to its inclusion in an LMU shall not be considered when calculating the maximum number of 

years for which advance royalty may be accepted for the LMU.

(e) The dollar amount of any production royalty for a Federal coal lease or LMU owed for any continued operation year 

during or subsequent to the continued operation year in which advance royalty is paid, shall be reduced (but not below 

zero) by the dollar amount of any advance royalty paid under that Federal lease or LMU to the extent that such advance 

royalty has not been used to reduce production royalty for a prior year.

(f) No advance royalty paid during the initial 20-year term of a Federal coal lease or LMU shall be used to reduce a 

production royalty pursuant to 30 CFR 211.23(e) after the 20th year of the Federal coal lease or LMU. For purposes of 
this paragraph, the initial 20-year term of a Federal lease shall commence on the effective date of the Federal lease for all 

Federal leases issued after August 4, 1976; on the effective date of the first lease readjustment after August 4, 1976, for 

all Federal leases issued prior to August 4, 1976; and on the effective date of LMU approval for all LMU's. Any advance 

royalty paid on a Federal lease prior to its inclusion in an LMU shall be credited to the LMU and shall be considered to 

have been paid on the date of LMU approval for the purposes of this paragraph, provided that the Federal lease has been 

included in an LMU within the initial 20-year term of the Federal lease as determined in this paragraph and to the extent 

that the advance royalty has not already been credited against production royalty on the Federal lease.

(g) If an operator/lessee fails to make an approved advance royalty payment in any continued operation year, the District 

Mining Supervisor shall inform the operator/lessee in writing that the operator/lessee is in violation of the continued 

operation requirement. If the operator/lessee then fails to comply with 30 CFR 211.102, the Federal lease or LMU shall 

be subject to cancellation pursuant to 30 CFR 211.21.

SECTION 211.24 - CREDITING OF PRODUCTION TOWARD DILIGENT DEVELOPMENT.

(a) For Federal coal leases issued after August 4, 1976, all production after the effective date of the Federal lease shall be 

credited toward diligent development.

(b) For Federal coal leases issued prior to August 4, 1976, all production after the effective date of the first lease 

readjustment after August 4, 1976, shall be credited toward diligent development.

(c) For Federal coal leases issued prior to August 4, 1976, that have not been readjusted after August 4, 1976, if the 

operator/lessee has elected under 30 CFR 211.20 to be subject to the diligent development and continued operation 

requirements of the rules of this Part, all production after the effective date of the operator/lessee's election shall be 

applied toward diligent development.

(d) For Federal coal leases issued prior to August 4, 1976, that have not been readjusted after August 4, 1976, if the 

operator/lessee has elected under 30 CFR 211.20 to be subject to the diligent development and continued operation 

requirements of the rules of this Part, all production after August 4, 1976, that occurred prior to the effective date of the 

operator/lessee's election shall be applied toward diligent development if the operator/lessee so requests.

(e) For Federal coal leases issued prior to August 4, 1976, that have been readjusted after August 4, 1976, all production 

after August 4, 1976, that occurred prior to the effective date of the first lease readjustment after August 4, 1976, shall 

be applied toward diligent development if the operator/lessee so requests. Such a request shall comply with the election 

application provisions at 30 CFR 211.20(b)(1). Any production after such readjustment shall be applied toward diligent 

development pursuant to 30 CFR 211.24(b).

(f) For Federal coal leases issued prior to August 4, 1976, that are governed by the Federal lease clauses which describe 

the minimum production requirements until the first lease readjustment after August 4, 1976, no production prior to the 

effective date of that first Federal lease readjustment shall be applied toward diligent development.

(g) For LMU's, any production credited under the rules of this Part to a Federal lease prior to its inclusion in the LMU 

shall be applied toward diligent development for the LMU.

SECTION 211.25 - SPECIAL LOGICAL MINING UNIT RULES.

(a) Production anywhere within the LMU, of either Federal or non-Federal recoverable coal reserves or a combination 

thereof, shall be applied toward satisfaction of the requirements of the rules of this Part for achievement of diligent 

development and continued operation for the LMU.

(b) The dates for submission of a resource recovery and protection plan and achievement of diligent development shall 

not be changed by any enlargement or diminution of the LMU.
SECTIONS 211.26- 211.39 [RESERVED]

SECTION 211.40 - PERFORMANCE STANDARDS FOR EXPLORATION AND SURFACE AND 

UNDERGROUND STANDARDS.

The following performance standards shall apply to exploration, development, production, resource recovery and 

protection, MER, and preparation and handling of coal under Federal leases and licenses, and LMU's.

(a) Performance standards for exploration. (1) The operator/lessee shall comply with the standards of the rules of this 

Part and with all applicable requirements of the surface management agency, 30 CFR 815.15, or an approved State 

program.

(2) The operator/lessee, if required by the District Mining Supervisor, shall set and cement casing in the hole 

and install suitable blowout prevention equipment when drilling on lands valuable or prospectively valuable for oil, gas, 

or geothermal resources.

(3) All exploration drill holes must be capped with at least 5 feet of cement and plugged with a permanent 

plugging material that is unaffected by water and hydrocarbon gases and will prevent the migration of gases and water in 

the drill hole under normal hole pressures. For exploration holes drilled deeper than stripping limits, the operator/lessee, 

using cement or other suitable plugging material approved by the District Mining Supervisor, shall plug the hole through 

the thickness of the coal bed(s) or mineral deposit(s) and through aquifers for a distance of at least 50 feet above and 

below the coal bed(s) or mineral deposit(s) and aquifers, or to the bottom of the drill hole. A lesser cap or plug may be 

approved by the District Mining Supervisor. Exploration activities shall be managed to prevent water pollution and 

mixing of ground and surface waters and ensure the safety of people, livestock, and wildlife.

(4) The operator/lessee shall retain for 1 year, unless a shorter time period is authorized by the District Mining 

Supervisor, all drill and geophysical logs and shall make such logs available for inspection or analysis by the District 

Mining Supervisor, if requested. The District Mining Supervisor, at his discretion, may require the operator/lessee to 

retain representative samples of drill cores for 1 year. Confidentiality of such information will be accorded pursuant to the

provisions at 30 CFR 211.6.

(5) The operator/lessee may utilize exploration drill holes as surveillance wells for the purpose of monitoring the 

effects of subsequent operations on the quantity, quality, or pressure of ground water or mine gases only with the written 

approval of the District Mining Supervisor, in consultation with the regulatory authority. The operator/lessee may

convert exploration drill holes to water wells only after approval of the operator/lessee's written request by the District 

Mining Supervisor and the surface owner or authorized officer, in consultation with the regulatory authority. All such 

approvals shall be accompanied by a corresponding transfer of responsibility for any liability including eventual plugging, 

reclamation, and abandonment. Nothing in this paragraph shall supersede or affect the applicability of any State law 

requirements for such a transfer, conversion, or utilization as a supply for domestic consumption.

(b) General performance standards for surface and underground mining. -- (1) Maximum economic recovery (MER). 

Upon approval of a resource recovery and protection plan for an LMU, or for a Federal lease issued or readjustment 

after August 4, 1976, the operator/lessee shall conduct operations to achieve MER of the Federal coal. To determine that 

MER of the Federal coal will be achieved, the District Mining Supervisor shall consider the information submitted by the 

operator/lessee under 30 CFR 211.10(c) and/or 30 CFR 211.80(c). The District Mining Supervisor may request 

additional information from the operator/lessee to aid in the MER determination. The operator/lessee shall consider coal

preparation operations to avoid the wasting of coal and to encourage the achievement of MER. Federal leases issued 

prior to August 4, 1976, that have not yet been readjusted after August 4, 1976, shall comply with MLA regarding 

conservation of the recoverable coal reserves and other resources.

(2) Diligent development, continued operation, advance royalty, and 3-year resource recovery and protection 

plan submission requirements are addressed at 30 CFR 211.20 through 30 CFR 211.25.

(3) Unexpected wells. The operator/lessee shall notify the District Mining Supervisor promptly if operations 

encounter unexpected wells or drill holes which could adversely affect the recovery of coal during mining operations, and 

shall take no further action that would disturb such wells or drill holes without the approval of the District Mining 

Supervisor.

(4) Resource recovery and protection. The operator/lessee shall conduct efficient operations to recover the 

recoverable coal reserves; prevent wasting and conserve the recoverable coal reserves and other resources; prevent 

damage or degradation to coal-bearing or mineral-bearing formations; and ensure that other resources are protected upon 

abandonment.
(5) Release of lease bond. Subsequent to permanent abandonment of mining operations, the District Mining 

Supervisor will determine if the operator/lessee has met obligations required under the Federal lease for resource 

recovery and protection, and will determine if the operator/lessee has met the Federal lease requirements pertaining to 

rentals and royalties. The District Mining Supervisor will make appropriate recommendations to the authorized officer 

for reduction or termination of the Federal lease bond.

(c) Performance standards for underground mines -- (1) Underground resource recovery. Underground mining 

operations shall be conducted so as to prevent wasting of coal and to conserve recoverable coal reserves consistent with 

the protection and use of other resources. No entry, room, or panel workings in which the pillars have not been 

completely mined within safe limits shall be permanently abandoned or rendered inaccessible, except with the prior 

written approval of the District Mining Supervisor.

(2) Subsidence. The operator/lessee shall adopt mining methods which ensure proper recovery of recoverable 

coal reserves under MLA, as determined by the District Mining Supervisor. Operators/lessees of underground coal mines 

shall adopt measures consistent with known technology in order to prevent or, where the mining method used requires 

subsidence, control subsidence, maximize mine stability, and maintain the value and use of surface lands consistent with 

30 CFR 784.20 and 30 CFR 817.121, 817.122, 817.124, and 817.126, or applicable requirements of an approved State 

program. Where pillars are not removed and controlled subsidence is not part of the resource recovery and protection 

plan, pillars of adequate dimensions shall be left for surface stability, giving due consideration to the thickness and 

strength of the coal beds and the strata above and immediately below the coal beds.

(3) Top coal. Top coal may be left in underground mines only upon approval by the District Mining Supervisor. 

The determination of mining height in thick coal beds will take into consideration safety factors, available equipment, 

overall coal bed thickness, and MER. The bottom coal left, if determined by the District Mining Supervisor to be of a 

minable thickness, should be maintained at a uniform thickness to allow recovery in the future as new technology is 

developed and economics allow.

(4) Multiple coal bed mining. (i) In general, the recoverable coal reserves in the upper coal beds shall be mined 

before the lower coal beds; simultaneous workings in each upper coal bed shall be kept in advance of the workings in 

each lower coal bed. The District Mining Supervisor may authorize mining of any lower coal beds before mining the 

upper coal bed(s) only after a technical justification, submitted to the District Mining Supervisor by the operator/lessee, 

shows that recovery of all coal bed(s) will not be adversely affected.

(ii) In areas subject to multiple coal bed mining, the protective barrier pillars for all main and secondary 

development entries, main haulageways, primary aircourses, bleeder entries, and manways in each coal bed shall be 

superimposed regardless of vertical separation or rock competency; however, modifications and exceptions to, or 

variations from, this requirement may be approved in advance by the District Mining Supervisor.

(5) The District Mining Supervisor shall approve the conditions under which an underground mine, or portions 

thereof, will be temporarily abandoned, pursuant to the rules of this Part.

(6) Barrier pillars left for support. (i) The operator/lessee shall not, without prior consent of the District 

Mining Supervisor, mine any recoverable coal reserves or drive any underground workings within 50 feet of any of the 

outside boundary lines of the federally leased or licensed land, or within such greater distance of said boundary lines as 

the District Mining Supervisor may prescribe with consideration for State or Federal environmental or safety laws. The 

operator/lessee may be required to pay for unauthorized mining of barrier pillars. The District Mining Supervisor may 

require that payment shall be up to, and include, the full value of the recoverable coal reserves mined from the pillars. 

The drilling of any lateral holes within 50 feet of any outside boundary shall be done in consultation with the District 

Mining Supervisor.

(ii) If the coal in adjoining premises has been worked out, an agreement shall be made with the coal 

owner prior to the mining of the coal remaining in the Federal barrier pillars which otherwise may be lost. If the water 

level beyond the pillar is below the operator/lessee's adjacent operations, and all the safety factors have been considered, 

the operator/lessee, on the written order of the District Mining Supervisor, shall mine out and remove all available 

Federal recoverable coal reserves in such barrier if it can be mined without undue hardship to the operator/lessee; with 

due consideration for safety; and pursuant to existing mining, reclamation, and environmental laws and rules. Either the 

operator/lessee or the District Mining Supervisor may initiate the proposal to mine coal in a barrier pillar.

(7) The abandonment of a mining area shall require the approval of the District Mining Supervisor.

(d) Performance standards for surface mines. (1) Pit widths for each coal bed shall be engineered and designed so as to 

eliminate or minimize the amount of coal fender to be left as a permanent pillar on the spoil side of the pit.

(2) The amount of bottom or rider coal beds wasted in each pit will be minimized consistent with individual 

mine economics and the coal quality standards that must be maintained by the operation.
(3) The abandonment of a mining area shall require the approval of the District Mining Supervisor.

(4) If a coal bed exposed by surface mining or an accumulation of slack coal or combustible waste becomes 

ignited, the operator/lessee shall immediately take all necessary steps to extinguish the fire and protect the remaining coal.

(5) The District Mining Supervisor shall approve the conditions under which a surface mine, or portions thereof, 

will be temporarily abandoned, pursuant to the rules of this Part.

(6) Barrier or boundary coal. The operator/lessee shall be encouraged by the District Mining Supervisor, in the 

interest of conservation of recoverable coal reserves and other resources, to mine coal up to the Federal lease or license 

boundary line; provided that, the mining is in compliance with existing State and Federal mining, environmental and 

reclamation laws and rules, the mining does not conflict with existing surface rights, and the mining is carried out without 

undue hardship to the operator/lessee and with due consideration for safety.

(e) Performance standards for auger mines. (1) If auger mining is proposed, the District Mining Supervisor shall take 

into account the percentage of recovery, which in general shall exceed 30 percent, and the probable effect on recovering 

the remaining adjacent recoverable coal reserves by underground mining. If underground mining from the highwall or 

outcrop is contemplated in the foreseeable future, auger mining may not be approved if underground mining would 

ensure greater recovery of the unmined recoverable coal reserves. Where auger mining is authorized, the District Mining 

Supervisor will require a sufficient number and size of pillars at regular intervals along the highwall or outcrop to ensure 

access to the unmined recoverable coal reserves.

(2) A plan for recovery of recoverable coal reserves by auger methods shall be designed to achieve MER.

(3) Auger mining must comply with the rules of this Part, and 30 CFR Chapter VII or applicable requirements 

of an approved State program.

SECTION 211.41 - COMPLETION OF OPERATIONS AND PERMANENT ABANDONMENT.

(a) Before permanent abandonment of exploration operations, all openings and excavations shall be closed, backfilled, or 

otherwise permanently dealt with in accordance with sound engineering practices and according to the approved 

exploration plan. Drill holes, trenches, and other excavations for exploration shall be abandoned in such a manner as to 

protect the surface and not endanger any present or future underground operation, or any deposit of coal, oil, gas, 

mineral resources, or ground water. Areas disturbed by exploration operations will be graded, drained, and revegetated.

(b) Upon permanent abandonment of mining operations, the District Mining Supervisor will require that the unmined 

recoverable coal reserves and other resources be adequately protected. Upon completion of abandonment, the District 

Mining Supervisor will inform the authorized officer and regulatory authority as to whether the abandonment has been 

completed in compliance with the rules of this Part.

SECTIONS 211.42- 211.61 [RESERVED]

SECTION 211.62 - REPORTS.

(a) Exploration reports. The operator/lessee shall file with the District Mining Supervisor the information required in 30 

CFR 211.62(b). Such filing shall be within 30 days after the end of each calendar year and promptly upon completion or 

suspension of exploration operations, unless otherwise provided in the exploration license or Federal lease, and at such 

other times as the District Mining Supervisor may request.

(b) Exploration report content. The exploration report shall contain the following information:

(1) Location(s) and serial number(s) of the federally leased or licensed lands.

(2) Nature of exploration operations.

(3) Number of holes drilled and/or other work performed during the year or report period.

(4) Total footage drilled during the year or other period as determined by the District Mining Supervisor.

(5) Map showing all holes drilled, other excavations, and the coal outcrop lines.

(6) Analyses of coal and other pertinent tests obtained from exploration operations during the year.

(7) Copies of all in-hole mechanical or geophysical stratigraphic surveys or logs, such as electric logs, gamma 

ray-neutron logs, sonic logs, or any other logs. The records shall include a log of all strata penetrated and conditions 

encountered such as water, quicksand, gas, or any unusual conditions.

(8) Status of reclamation of the disturbed areas.
(9) A statement on availability and location of all drill hole logs and representative drill cores retained by the 

operator/lessee pursuant to 30 CFR 211.40(a).

(10) Any other information requested by the District Mining Supervisor.

(c) Any coal reserve base, minable reserve base or recoverable coal reserves estimates generated from an exploration 

license shall be submitted to the District Mining Supervisor within 1 year after completion of drilling operations.

(d) Production reports and payments. (1) Operators/lessees shall report on USGS Form 9-373A, within 30 days after 

expiration of the period covered by the report, all coal mined, the basis for computing Federal royalty and any other form 

requirements, and shall make all payments due. Acceptance of the report and payment shall not be construed as an accord 

and satisfaction on the operator/lessee's Federal royalty obligation.

(2) Licensees shall report all coal mined on a semiannual basis on the report form provided.

(3) Non-Federal LMU production shall be reported in accordance with 30 CFR 211.80(h)(1).

(e) Penalty. If an operator/lessee knowingly records or reports less than the true weight or value of coal mined, the 

District Mining Supervisor shall impose a penalty equal to either double the amount of Federal royalty due on the 

shortage or the full value, as determined in 30 CFR 211.63, of the shortage. If, after notice, an operator/lessee or licensee

maintains false records or files false reports, the District Mining Supervisor may recommend to the authorized officer that 

action be initiated to cancel the Federal lease or license, in addition to the imposition of any penalties.

(f) Confidentiality. Confidentiality of any information required under this section shall be determined in accordance with 

30 CFR 211.6.

SECTION 211.63 - ROYALTIES.

(a) Provisions for the payment of advance royalty in lieu of continued operation are contained at 30 CFR 211.23.

(b) An overriding royalty interest, production payment, or similar interest that exceeds 50 percent of royalty first payable 

to the United States under the Federal lease, or when added to any other overriding royalty interest exceeds that 

percentage, except those created in order to finance a mine, shall not be created by a Federal lease transfer or surface 

owner consent. However, when an interest in the Federal lease or operating agreement is transferred, the transferor may 

retain an overriding royalty in excess of the above limitation if he shows that he has made substantial investments for 

improvements directly related to exploration, development, and mining on the land covered by the transfer that would 

justify a higher payment.

(c)(1) The District Mining Supervisor may waive, suspend, or reduce the rental on a Federal lease, or reduce the Federal 

royalty, but not advance royalty, on a Federal lease or portion thereof. The District Mining Supervisor shall take such 

action for the purpose of encouraging the greatest ultimate recovery of Federal coal, and in the interest of conservation 

of Federal coal and other resources, whenever in his judgment it is necessary to promote development, or if he finds that 

the Federal lease cannot be successfully operated under its terms. In no case shall the District Mining Supervisor reduce 

to zero any royalty on a producing Federal lease.

(2) An application for any of the above benefits shall be filed in triplicate in the office of the District Mining 

Supervisor. The application shall contain the serial number of the Federal lease, the Bureau of Land Management State 

Office, the name and address of the record title holder and any operator/lessee, and the description of the lands in the 

manner provided by 43 CFR 3471.1.

(i) Each application shall include the name and location of the mine; a map showing the extent of the 

existing, proposed or adjoining mining operations; a tabulated statement of the Federal coal mined, if any, and subject to 

Federal royalty for the existing or adjoining operation covering a period of not less than 12 months before the date of

filing of the application; and existing Federal rental and royalty rates on Federal leases covered by the application.

(ii) Each application shall contain a detailed statement of expenses and costs of operating the entire 

mine, the income from the sale of coal, and all facts indicating whether the mine can be successfully operated under the 

Federal rental and royalty provisions fixed in the Federal lease or why the reduction is necessary to promote 

development. Where the application is for a reduction in Federal royalty, full information shall be furnished as to whether 

royalties or payments out of production are paid to parties other than the United States, the amounts so paid, and efforts 

made to reduce them, if any. If the Federal lease included in the application is not part of nor adjoining an operating mine, 

these detailed financial data may be obtained from another operating mine which is in close proximity and for which the 

District Mining Supervisor has deemed to have similar operating characteristics.
(iii) The applicant shall also file a copy of agreements, between the operator/lessee and the holders of 

any royalty interests or production payments other than those created in order to finance a mine, to a reduction of all 

other royalties from the Federal lease so that the total royalties and production payments owed the holders of these 

interests will not be in excess of one-half of the Federal royalties, should the Federal royalty reduction be granted.

(3) If the applicant does not meet the criteria of the rules of this Part, the District Mining Supervisor shall reject 

such application or request more data from the operator/lessee.

(4) If the applicant meets the criteria of the rules of this Part, the District Mining Supervisor shall act on the 

application.

(d) Operators/lessees shall submit Federal royalty payments as provided for in the Federal lease. The payment shall be 

made within 30 days after the end of the royalty reporting period for which the royalty accrued.

(e) Where Federal royalty is calculated on a cents-per-ton basis, it shall be based on the actual weight of coal and shall 

accrue on the sale or use of the coal. In addition, where coal placed in inventory exceeds that which the District Mining 

Supervisor determines to be required for normal mining and processing operations, the Federal royalty shall also be paid 

on that excess estimated tonnage in inventory.

(f) Where Federal royalty is calculated on a percentage basis, the value of coal for Federal royalty purposes shall be the 

gross value at the point of sale, normally the mine, except as provided at 30 CFR 211.63(h). For captive operations or 

other than arms-length transactions, the District Mining Supervisor shall determine gross value and the point of sale.

(g) The gross value shall be the unit sale or contract price times the number of units sold, unless MMS determines that:

(1) A contract of sale or other business arrangement between the operator/lessee and a purchaser of some or all 

of the coal produced from the Federal lease is not a bona fide transaction between independent parties because it is based 

in whole or in part upon considerations other than the value of the coal; or,

(2) No consideration is received from some or all of such coal because the operator/lessee is consuming such 

coal or adding it to inventories, and for which Federal royalty is due and payable.

In either case, MMS shall determine the gross value of such coal taking into account:

(i) Any consideration received or paid by the operator/lessee in other related transactions.

(ii) The average price paid for coal of like quality produced from the same general area during the 

Federal lease month.

(iii) Contracts or other business arrangements, between coal producers and purchasers for the sale of 

coal other than coal produced under such Federal lease, which are comparable in terms, volume, time of execution, area 

of supply, and other circumstances.

(iv) Mining cost plus reasonable profit margin.

(v) Prices reported to a public utility commission and/or the Federal Energy Regulatory Commission.

(vi) Such other relevant factors as the District Mining Supervisor may deem appropriate.

(h) If additional preparation of the coal is performed prior to sale, such costs shall be deducted from the gross value in 

determining value for Federal royalty purposes. The District Mining Supervisor will allow such deductions only when, in 

his judgment and subject to his audit, the operator/lessee provides an accurate account of the costs incurred. However, 

the following shall not be deducted from the gross value in determining value for Federal royalty purposes: costs of 

primary crushing, storing, and loading; treatment with chemicals to prevent freezing; treatment with oil to suppress dust 

in transit; and, other preparation of the coal which in the judgment of the District Mining Supervisor does not enhance 

the quality of the coal.

(i) If a Federal coal lease that provides for a percentage Federal royalty is developed by in situ technology, the gross 

value of production for the purpose of computing royalty shall be determined by MMS.

(j) If a Federal coal lease that provides for a cents-per-ton Federal royalty is developed by in situ technology, MMS will 

establish a procedure for estimating tonnage for royalty purposes.

(k) In the event waste piles or slurry ponds are reworked to recover coal, or if a market becomes available to sell the 

waste products containing coal, the operator/lessee shall pay Federal royalty at a rate specified in the Federal lease at the

time of recovery. The operator/lessee shall make payment based on the Federal share of the coal when the coal is 
recovered regardless of whether it is stored on Federal lands. Where such waste containing coal from a Federal lease is 

mixed with similar waste from private lands, the operator/lessee shall maintain accurate records from which Federal 

ownership of coal in the waste may be determined. However, nothing in this section requires payment of a Federal 

royalty on Federal coal for which a Federal royalty has already been paid.

SECTIONS 211.64- 211.65 [RESERVED]

SECTION 211.66 - MAINTENANCE OF AND ACCESS TO RECORDS.

(a) Operators/lessees shall maintain current and accurate records for the Federal lease or LMU showing:

(1) The type, quality, and weight of all coal mined, sold, used on the premises, or otherwise disposed of, and all 

coal in storage (remaining in inventory).

(2) The prices received for all coal sold and to whom and when sold.

(b) The District Mining Supervisor and the Associate Director for Royalty Management shall have access to all records 

of the operator/lessee pertaining to compliance with Federal lease terms relating to Federal royalties, including, but not 

limited to:

(1) Qualities and quantities of all coal mined, processed, sold, delivered, or used by the operator/lessee.

(2) Prices received for mined or processed products, prices paid for like or similar products, and internal transfer 

prices.

(3) Costs of mining, processing, handling, and transportation.

(c) Licensees must maintain a current record of all coal mined and/or removed.

(d) Operators/lessees will retain these records for a period of time as determined by the District Mining Supervisor and 

the Associate Director for Royalty Management in accordance with current MMS rules and procedures.

SECTIONS 211.67- 211.69 [RESERVED]

SECTION 211.70 - INSPECTIONS.

(a) The operator/lessee shall provide access, at all reasonable times, to the District Mining Supervisor for inspection or 

investigation of operations in order to determine whether the operations are in compliance with all applicable laws, rules, 

and orders; the terms and conditions of the Federal lease or license; and requirements of any approved exploration plan 

for:

(1) Abandonment.

(2) Environmental protection and reclamation practices.

(b) The operator/lessee shall provide access, at all reasonable times, to the District Mining Supervisor or the Associate 

Director for Royalty Management for inspection or investigation of operations in order to determine whether the 

operations are in compliance with all applicable laws, rules, and orders; the terms and conditions of the Federal lease or 

license; and requirements of any approved resource recovery and protection plan for:

(1) Production practices.

(2) Development.

(3) Resource recovery and protection.

(4) Diligent development and continued operation.

(5) Audits of Federal rental and royalty payments on producing Federal leases.

(6) Abandonment.

(7) MER determinations.

SECTION 211.71 - NOTICES AND ORDERS.

(a) Address of responsible party. Before beginning operations, the operator/lessee shall inform the District Mining 

Supervisor in writing of the operator/lessee's post office address and the name and post office address of the 
superintendent or designated agent who will be in charge of the operations and who will act as the local representative of 

the operator/lessee. Thereafter, the District Mining Supervisor shall be informed of any changes.

(b) Receipt of notices and orders. The operator/lessee shall be construed to have received all notices and orders that are 

mailed by certified mail, return receipt requested, to the mine office or handed to a responsible official connected with the

mine or exploration site for transmittal to the operator/lessee or his local representative.

SECTION 211.72 - ENFORCEMENT.

(a) If the District Mining Supervisor determines that an operator/lessee has failed to comply with the rules of this Part, 

the terms and conditions of the Federal lease or license, the requirements of approved exploration or resource recovery 

and protection plans, or orders of the District Mining Supervisor, and such noncompliance does not threaten immediate 

and serious damage to the mine, the deposit being mined, valuable ore-bearing mineral deposits or other resources, or 

affect the royalty provisions of the rules of this Part, the District Mining Supervisor shall serve a notice of noncompliance 

upon the operator/lessee by delivery in person to him or his agent, or by certified mail, return receipt requested, 

addressed to the operator/lessee at his last known address. Failure of the operator/lessee to take action in accordance 

with the notice of noncompliance within the time limits specified by the District Mining Supervisor shall be grounds for 

cessation of operations upon notice by the District Mining Supervisor. The District Mining Supervisor may also 

recommend to the authorized officer the initiation of action for cancellation of the Federal lease or license and forfeiture 

of any Federal lease bonds.

(b) The notice of noncompliance shall specify in what respect(s) the operator/lessee has failed to comply with the rules of 

this Part, the terms and conditions of the Federal lease or license, the requirements of approved exploration or resource 

recovery and protection plans, or orders of the District Mining Supervisor, and shall specify the action that must be taken 

to correct such noncompliance and the time limits within which such action must be taken.

(c) If, in the judgment of the District Mining Supervisor, an operator/lessee is conducting activities which fail to comply 

with the rules of this Part, the terms and conditions of the Federal lease or license, the requirements of approved

exploration or resource recovery and protection plans, or orders of the District Mining Supervisor, and/or which threaten 

immediate and serious damage to the mine, the deposit being mined, valuable ore-bearing mineral deposits, or, regarding 

exploration, the environment, the District Mining Supervisor shall order the immediate cessation of such activities 

without prior notice of noncompliance.

(d) A written report shall be submitted by the operator/lessee to the District Mining Supervisor when such 

noncompliance has been corrected. Upon concurrence by the District Mining Supervisor that the conditions which 

warranted the issuance of a notice or order of noncompliance have been corrected, the District Mining Supervisor shall 

so notify the operator/lessee in writing.

(e) The District Mining Supervisor shall enforce requirements of SMCRA only if he finds a violation, condition, or 

practice that he determines to be an emergency situation for which an authorized representative of the Secretary is 

required to act pursuant to 30 CFR 843.11 and 30 CFR 843.12.

SECTION 211.73 - APPEALS.

Decisions or orders issued by MMS under 30 CFR 211 may be appealed pursuant to 30 CFR Part 290, except that 

decisions or orders issued by the District Mining Supervisor under 30 CFR 211.72(e) are subject to appeal pursuant to 

43 CFR Part 4.

SECTIONS 211.74- 211.79 [RESERVED]

SECTION 211.80 - LOGICAL MINING UNITS.

(a) General. An LMU shall become effective only upon approval by the District Mining Supervisor. An LMU may be 

enlarged by the addition of other Federal coal leases or with interests in non-Federal coal deposits, or both, in accordance 

with 30 CFR 211.80(g). An LMU may be diminished by creation of other separate Federal leases or LMU's, in 

accordance with 30 CFR 211.80(g).
(b) The District Mining Supervisor may direct, or an operator/lessee may initiate, the establishment of an LMU 

containing only Federal coal leases issued after August 4, 1976. The District Mining Supervisor may direct, or an 

operator/lessee may initiate, the establishment of an LMU containing Federal coal leases issued prior to August 4, 1976, 

provided that the operators/lessees consent to making all such Federal leases within the LMU subject to the uniform 

requirements for submittal of a resource recovery and protection plan, LMU recoverable coal reserves exhaustion, 

diligent development, continued operation, MER, advance royalty, and royalty reporting periods (but not royalty rates) 

made applicable by the LMU stipulations and the rules of this Part. Any Federal lease included in an LMU shall have its 

terms amended as necessary so that its terms and conditions are consistent with the stipulations required for the approval 

of the LMU pursuant to 30 CFR 211.80(e).

(c) Contents of an LMU application. An operator/lessee must submit five copies of an LMU application to the District 

Mining Supervisor if the operator/lessee is applying on his own initiative to combine lands into an LMU, or if directed to 

establish an LMU by the District Mining Supervisor in accordance with 30 CFR 211.80(b). Such application shall include 

the following:

(1) Name and address of the designated operator/lessee of the LMU.

(2) Federal lease serial numbers and description of the land and all coal beds considered to be of minable 

thickness within the boundary of the LMU. Identification of those coal beds proposed to be excluded from any Federal 

lease which would be a part of the LMU.

(3) Documents and related information supporting a finding of effective control of the lands to be included in 

the LMU.

(4) Sufficient data to enable the District Mining Supervisor to determine that MER of the Federal recoverable 

coal reserves will be achieved by establishment of the LMU. If a coal bed, or portion thereof, is proposed not to be mined 

or to be rendered unmineable by the operation, the operator/lessee shall submit appropriate justification to the District 

Mining Supervisor for approval.

(5) Any other information required by the District Mining Supervisor.

(6) If any confidential information is included in the submittal and is identified as such by the operator/lessee, it 

shall be treated in accordance with 30 CFR 211.6.

(d) Consultation. (1) Prior to approval, the District Mining Supervisor shall consult with the operator/lessee about any 

Federal recoverable coal reserves within the LMU that the operator/lessee does not intend to mine and any Federal 

recoverable coal reserves that the operator/lessee intends to relinquish. The District Mining Supervisor shall also consult 

with the operator/lessee about Federal lease revisions to make the time periods for resource recovery and protection plan 

submittals, the 40-year LMU recoverable coal reserves exhaustion requirement, and diligent development, continued 

operation, advance royalty and Federal rental and royalty collection requirements applicable to each producing Federal 

lease consistent with the LMU stipulations.

(2) The public participation procedures of 30 CFR 211.5 shall be completed prior to approval of an LMU.

(e) Stipulations. Prior to the approval of an LMU, the District Mining Supervisor shall notify the operator/lessee and 

authorized officer of stipulations required for the approval of the proposed LMU. The LMU stipulations shall provide 

for:

(1) The submittal, within 3 years from the effective date of LMU approval, of a resource recovery and 

protection plan that contains the information required by 30 CFR 211.10(c) for all Federal and non-Federal lands within 

the LMU.

(2) A schedule for the achievement of diligent development and continued operation for the LMU. The schedule 

shall reflect the date for achieving diligent development and maintaining continued operation of the individual Federal 

leases included in the LMU, consistent with the rules of this Part. An operator/lessee may request to pay advance royalty 

in lieu of continued operation in accordance with 30 CFR 211.23.

(3) Uniform reporting periods for Federal rental and royalty on Federal leases.

(4) The revision, if necessary, of terms and conditions of the individual Federal leases included in the LMU. The 

terms and conditions of the Federal leases, except for Federal royalty rates, shall be amended so that they are consistent 

with the stipulations of the LMU.

(5) Estimates of the Federal LMU recoverable coal reserves, and non-Federal LMU recoverable coal reserves, 

using data acquired by generally acceptable exploration methods.

(6) Beginning the 40-year LMU recoverable coal reserves exhaustion requirement on the date that coal is first 

produced from the LMU, after LMU approval, as determined during the first royalty reporting period following such 

date.
(7) Any other condition that the District Mining Supervisor determines to be necessary for the efficient and 

orderly operation of the LMU.

(f) Criteria for approving the establishment of an LMU. The District Mining Supervisor shall, except for good cause 

stated in a decision disapproving the application, approve an LMU if it meets the following criteria:

(1) The LMU fully meets the LMU definition.

(2) Mining operations on the LMU will achieve MER of Federal recoverable coal reserves within the LMU. A 

single operation may include a series of excavations.

(3) All single Federal leases that are included in more than one LMU shall be segregated into two or more 

Federal leases. If only a portion of a Federal lease is included in an LMU, the remaining land shall be segregated into 

another Federal lease. The District Mining Supervisor will consult with the authorized officer about the segregation of 

such Federal leases. The operator/lessee may apply to relinquish any such portion of a Federal lease under 43 CFR 

3452.1.

(4) The operator/lessee has agreed to the LMU stipulations required by the District Mining Supervisor for 

approval of the LMU.

(5) The LMU does not exceed 25,000 acres, including both Federal and non-Federal lands.

(g) Modification of an LMU. (1) The boundaries of an LMU may be modified either upon application by the 

operator/lessee and approval of the District Mining Supervisor after consultation with the authorized officer, or by 

direction of the District Mining Supervisor after consultation with the authorized officer. In accordance with 30 CFR 

211.11(a)(3), the District Mining Supervisor may adjust only the estimate of LMU recoverable coal reserves pursuant to 

departmental actions or orders that modify the LMU boundaries, or upon approval of an operator/lessee application.

(2) Upon application by the operator/lessee, an LMU may be enlarged by the addition of other Federal coal 

leases or with interests in non-Federal coal deposits, or both. The LMU boundaries may also be enlarged as the result of 

the enlargement of a Federal lease in the LMU, pursuant to 43 CFR 3432. An LMU may be diminished by creation of 

other separate Federal leases or LMU's or by the relinquishment of a Federal lease or portion thereof, pursuant to 43 

CFR 3452.

(3) In considering an application for the modification of an LMU, the District Mining Supervisor shall consider 

modifying the LMU stipulations, including the production requirement for commercial quantities.

(4) Pursuant to 30 CFR 211.80(e), the 40-year mine-out period for an LMU shall not be extended as the result 

of the enlargement of an LMU or as the result of the revision or amendment of a resource recovery and protection plan.

(h) Administration of LMU operations. An LMU shall be administered in accordance with the following criteria:

(1) Where production from non-Federal lands in the LMU is the basis, in whole or in part, for satisfaction of the 

requirements for diligent development or continued operation, the operator/lessee shall provide a certified report of such 

production, as determined by the District Mining Supervisor. The certified report shall include a map showing the area 

mined and the amount of coal mined.

(2) Diligent development, continued operation and advance royalty. Operators/lessees must comply with the 

diligent development, continued operation, and advance royalty requirements contained at 30 CFR 211.20 through 30 

CFR 211.25.

(3) Operators/lessees must comply with the LMU stipulations.

SECTIONS 211.81- 211.99 [RESERVED]

SECTION 211.100 [RESERVED]

SECTION 211.101 - AUDITS.

An audit of the accounts and books of operators/lessees for the purpose of determining compliance with Federal lease 

terms relating to Federal royalties may be required annually or at other times as directed by the Associate Director for 

Royalty Management. The audit shall be performed by a qualified independent certified public accountant or by an 

independent public accountant licensed by a State, territory, or insular possession of the United States or the District of 

Columbia, and at the expense of the operator/lessee. The operator/lessee shall furnish, free of charge, duplicate copies of 

audit reports that express opinions on such compliance to the Associate Director for Royalty Management within 30 days 

after the completion of each audit. Where such audits are required, the Associate Director for Royalty Management will 

specify the purpose and scope of the audit and the information which is to be verified or obtained.
SECTION 211.102 - LATE PAYMENT OR UNDERPAYMENT CHARGES.

(a) The failure to make timely or proper payment of any monies due pursuant to leases and contracts subject to these 

regulations will result in the collection by the Minerals Management Service (MMS) of the full amount past due plus a 

late payment charge. Exceptions to this late payment charge may be granted when estimated payments on minerals 

production have already been made timely and otherwise in accordance with instructions provided by MMS to the payor. 

However, late payment charges assessed with respect to any Indian lease, permit, or contract shall be collected and paid 

to the Indian or tribe to which the amount overdue is owed.

(b) Late payment charges are assessed on any late payment or underpayment from the date that the payment was due 

until the date on which the payment is received in the appropriate MMS accounting office. Payments received after 4 

p.m. local time on the date due will be acknowledged as received on the following workday.

(c) Late payment charges are calculated on the basis of a percentage assessment rate. In the absence of a specific lease, 

permit, license, or contract provision prescribing a different rate, this percentage assessment rate is prescribed by the 

Department of the Treasury as the "Treasury Current Value of Funds Rate."

(d) This rate is available in the Treasury Fiscal Requirements Manual Bulletins that are published prior to the first day of 

each calendar quarter for application to overdue payments or underpayments in the new calendar quarter. The rate is also 

published in the Notices section of the Federal Register and indexed under "Fiscal Service/Notices/Funds Rate; Treasury 

Current Value."

(e) Late payment charges apply to all underpayments and payments received after the date due. These charges include 

production, minimum, or advance royalties; assessments for liquidated damages; or any other payments, fees, or 

assessments that a lessee/operator/payor is required to pay by a specified date. The failure to pay past due payments, 

including late payment charges, will result in the initiation of other enforcement proceedings.

SECTIONS 211.103- 211.999 [RESERVED]

[FR Doc. 82-20682 Filed 7-29-82; 8:45 am]

BILLING CODE 4310-MR-M