28634 Federal Register / Vol. 66, No. 100 / Wednesday, May 23, 2001 / Rules and Regulations

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 870

RIN 1029–AB95

Abandoned Mine Land (AML) Fee

Collection and Coal Production

Reporting on the OSM–1 Form

AGENCY: Office of Surface Mining

Reclamation and Enforcement, Interior.

ACTION: Final rule.

SUMMARY: The Office of Surface Mining

Reclamation and Enforcement (we or

OSM) is revising its regulations

governing Abandoned Mine Land

(AML) reclamation fee reporting to

allow for the electronic filing of the

information required on the OSM–1

Form.

EFFECTIVE DATE: June 22, 2001.

FOR FURTHER INFORMATION CONTACT: Mr.

Sean Spillane, Office of Surface Mining

Reclamation and Enforcement, Denver

Federal Center, Building 20, Room B–

2005, Denver, Colorado 80225;

Telephone 303–236–0330, Ext 278. Email: sspillan@osmre.gov. Additional

information concerning OSM and

related documents may be found on

OSM’s Internet home page at

www.osmre.gov under Financial

Management.

SUPPLEMENTARY INFORMATION:

I. Background Information.

II. How Does This Final Rule Change

Reporting Requirements?

III. Procedural Matters and Certifications.

I. Background Information

Why Are We Publishing This Rule?

On October 21, 1998, the Government

Paperwork Elimination Act (GPEA),

Pub. L. 105–277, Title XVII, was signed

into law. GPEA requires agencies, by

October 21, 2003, to provide for (1) the

option of electronic maintenance,

submission, or disclosure of

information, when practicable as a

substitute for paper; and (2) the use and

acceptance of electronic signatures,

when practicable. GPEA § 1707 specifies

that ‘‘[e]lectronic records submitted or

maintained in accordance with

procedures developed under this title,

or electronic signatures or other forms of

electronic authentication used in

accordance with such procedures, shall

not be denied legal effect, validity, or

enforceability because such records are

in electronic form.’’

In compliance with GPEA, we

published a proposed rule on February

15, 2000 (65 FR 7706), which would

allow a coal operator (or the entity

reporting for the operator) the option of

electronically filing information

required by OSM’s Abandoned Mine

Land (AML) Reclamation Program.

What Is the AML Reclamation Program?

Title IV of the Surface Mining Control

and Reclamation Act of 1977 (SMCRA)

created the Abandoned Mine

Reclamation Fund (fund) in response to

concern over extensive environmental

damage caused by past coal mining

activities. Money from the fund is used

to reclaim abandoned and inadequately

reclaimed mining areas where there is

no continuing reclamation

responsibility by any person under state

or federal law. The fund is financed by

a reclamation fee assessed on every ton

of coal produced at the rate of 35 cents

per ton of surface mined coal, 15 cents

per ton of underground mined coal, and

10 cents per ton for lignite. The

reclamation fee must be paid to OSM

once every calendar quarter.

The authority to collect the

reclamation fee at the above rate is due

to expire in 2004. After that date, the fee

will be established and collected at a

rate sufficient to allow the Secretary to

transfer from the fund to the United

Mine Workers of America Combined

Benefit Fund the sum necessary to

fulfill the responsibilities under section

402(h) of SMCRA.

OSM administers the AML program

and fund. Reclamation is accomplished

through grants to approved state and

tribal AML reclamation programs. These

AML reclamation programs are

implemented through regulations in 30

CFR subchapter R and through

implementing guidelines published in

the Federal Register on March 6, 1980

(45 FR 27123), and revised on December

30, 1996 (45 FR 68777). Currently, 23

states and 3 Indian tribes have approved

AML reclamation programs.

How Is the AML Fee Reported Under the

Current Regulations?

Sections 402(a) and (b) of SMCRA, 30

U.S.C. 1232(a) and (b), require

companies to pay a reclamation fee on

coal production no later than 30 days

after the end of each calendar quarter.

SMCRA and the implementing

regulations also require all operators of

coal mining operations to submit a

statement identifying:

(1) The permittee;

(2) The operator in addition to the

permittee;

(3) The owner of the coal;

(4) The person purchasing the coal;

(5) The amount of coal sold, used, or

transferred during the calendar quarter;

(6) The type of coal;

(7) The method of coal removal;

(8) The preparation plant, tipple, or

loading point for the coal;

(9) The permit number required under

section 506 of SMCRA; and

(10) The Mine Safety and Health

Administration identification number.

Each quarterly report must also

contain a notification of any changes in

the information required by section

402(c) of SMCRA since the date of the

preceding quarterly report. The

accuracy of the report must be sworn to

by the operator and notarized. The

operator is responsible for the

information provided and subject to the

sanctions provided for in section

402(d)(1) of SMCRA. See 30 U.S.C.

1232(c) and 30 CFR 870.15.

What Options Were Considered for

Electronic Filing?

The proposed rule published on

February 15, 2000, contained rule

language which would have revised our

regulations to allow a coal operator (or

the entity reporting for the operator) the

option of filing the OSM–1 Form

electronically. Because of the notary

requirement in section 402(c) of

SMCRA, the proposed rule also required

the operator to print out and maintain

on file, a properly notarized paper copy

of the OSM–1 Form for review by

OSM’s Fee Compliance auditors.

In order to further simplify the

process and to make it easier for the

operator to store records electronically,

we reopened the comment period on

January 22, 2001 (66 FR 6511) and

presented additional options for

consideration. In the reopening notice,

we asked for comments on an option

which would allow the operator to

electronically submit the OSM–1 Form

and include a statement made under

penalty of perjury that the information

contained in the form is true and

correct. The statement would not have

to be notarized but it would have to be

electronically signed, dated, and

transmitted to OSM as part of the OSM–

1 Form.

In the reopening notice, we also

solicited comments on whether we

should issue a final rule which would

provide the operator with two

alternative electronic filing methods in

addition to the existing paper process.

The electronic filing methods would be

the one contained in the proposed rule

which requires the operator to maintain

on file a properly notarized paper copy

of the OSM–1 Form submitted

electronically, or in the alternative, the

electronic filing method contained in

the reopening notice which requires the

operator to submit an electronically

Federal Register / Vol. 66, No. 100 / Wednesday, May 23, 2001 / Rules and Regulations 28635

signed and dated statement made under

penalty of perjury.

II. How Does This Final Rule Change

Reporting Requirements?

No comments were received on either

the proposed rule or on the reopening

notice. Therefore, based on the options

contained in the proposed rule and in

the reopening notice, we are adopting a

final rule which will allow the operator

to: (1) Submit a properly notarized

paper copy of the OSM–1 Form as is

currently authorized by regulation, (2)

submit the OSM–1 Form electronically

while maintaining a properly notarized

paper copy of the identical form, or (3)

submit the OSM–1 Form electronically

with an electronically signed and dated

statement made under penalty of

perjury that the information contained

in the form is true and correct.

How Will the Electronic Submission

Process Work?

Under current procedures, when the

OSM–1 Form is mailed to a respondent,

the majority of the information on the

OSM–1 Form (i.e., company name,

address, contact person, telephone

number, permit number, MSHA ID, etc.)

is already pre-printed on the OSM–1

before it is mailed to the respondent,

thus reducing the time to complete the

form. We have developed a computerbased electronic form that also contains

the same information.

The computer-based electronic form

may be accessed at the OSM website

www.osmre.gov/finance.htm.

Companies can log in and complete the

OSM–1 Form on-line. Access to the

website will be controlled by User ID

and password which will be used as the

method of electronic signature. When

initially accessing the website,

companies can down-load encryption

software which is free. The data which

is encrypted can be read only by the

company and OSM and the data

submitted by the company cannot be

changed by unauthorized persons. A file

transfer protocol (FTP) version of the

electronic OSM–1 Form allows

companies with a large number of

reporting permits to automate their

filing process by transferring their data

report files directly from their computer

to OSM. The FTP process uses a form

of electronic signature called a Public

Key Infrastructure (PKI). PKI is a system

for encrypting, decrypting, signing and

verifying the data transferred

electronically. With PKI, the company

(user) can obtain a free download of the

software for a private signing key. With

this key, the user creates a digital

signature on an electronic file or

encrypts the data. OSM, as the recipient

of the file, employs the public key to

validate the signature made with the

private key or decrypts the data. The

two keys are mathematically linked and

form a unique pair. Only the public key

can validate the signature made with the

associated private key(s). This process

also verifies that the file has not been

altered since its encryption. The

companies that use FTP will also need

a user identification and password

which can be obtained from the OSM

website at www.osmre.gov/finance.htm.

This will enable them to print their

OSM–1 report from the website after

their data is transferred.

Section 870.17(b)—Partial Electronic

Transmission

Under § 870.17(b), the operator (or

entity reporting for the operator) only

needs to access the electronic version of

the OSM–1 Form, update changes, add

missing information, and send it back to

OSM. However, because of the notary

requirement in section 402(c) of

SMCRA, this method of filing also

requires the operator to print out and

maintain on file, a properly notarized

paper copy of the identical OSM–1

Form for review by OSM’s Fee

Compliance auditors.

We had hoped to implement a system

by which the operator could

electronically transmit the OSM–1 Form

as described above, and also

electronically sign and notarize it prior

to sending it to OSM. This would have

eliminated the need to print out and

maintain a properly notarized paper

copy of the form. We determined,

however, that while electronic

notarization is legal, the majority of

states have not enacted laws governing

its use, and the infrastructure required

to electronically notarize and transmit a

document is not readily available

nationwide. As the means to

electronically notarize a document

become readily available, we will

review our regulations and process to

determine whether there is a need to

modify our system to accept electronic

notarization.

Section 870.17(c)—Complete Electronic

Transmission

Under § 870.17(c), the operator (or

entity reporting for the operator) can

electronically submit the OSM–1 Form

and include a statement made under

penalty of perjury that the information

contained in the OSM–1 Form is true

and correct. The statement does not

have to be notarized but it does have to

be electronically signed, dated, and

transmitted to OSM as part of the OSM–

1 Form.

The authority for filing the form

without notarization is found in 28

U.S.C. 1746. Section 1746 provides in

part:

Wherever, under any law of the United

States or under any rule, regulation, order, or

requirement made pursuant to law, any

matter is required or permitted to be

supported, evidenced, established, or proved

by the sworn declaration, verification,

certificate, statement, oath, or affidavit, in

writing of the person making the same (other

than a deposition, or an oath of office, or an

oath required to be taken before a specified

official other than a notary public), such

matter may, with like force and effect, be

supported, evidenced, established, or proved

by the unsworn declaration, certificate,

verification, or statement, in writing of such

person which is subscribed by him, as true

under penalty of perjury, and dated, in

substantially the following form:

* * * * *

(2) If executed within the United States, its

territories, possessions, or commonwealths:

‘‘I declare (or certify, verify, or state) under

penalty of perjury that the foregoing is true

and correct. Executed on (date). (Signature)’’.

It was the intent of Congress in

enacting the provisions of 28 U.S.C.

1746 to spare people the cost and

inconvenience of notarizing a

document. Its use in conjunction with

the electronic filing of the OSM–1 Form

allows us to further simplify the filing

process for the operator. It also makes it

possible for the operator to store records

electronically since it is no longer

necessary, as in the other two methods,

to maintain on file, a properly notarized

paper copy of the OSM–1 Form. Under

GPEA § 1707, an electronic record of the

OSM–1 Form with the unsworn

statement made under penalty of

perjury is sufficient.

When Can I Start To File the OSM–1

Form Electronically?

This rule is effective on June 22, 2001.

We will accept electronic filings of the

OSM–1 form after that date.

III. Procedural Matters and

Certifications

1. Executive Order 12866—Regulatory

Planning and Review

This document is not a significant

rule and is not subject to review by the

Office of Management and Budget under

Executive Order 12866.

a. This rule will not have an effect of

$100 million or more on the economy.

It will not adversely affect in a material

way the economy, productivity,

competition, jobs, the environment,

public health or safety, or state, local, or

tribal governments or communities.

Approximately 1,021 respondents

submit the OSM–1 Form covering more

than 3,900 permits 4 times a year. The

28636 Federal Register / Vol. 66, No. 100 / Wednesday, May 23, 2001 / Rules and Regulations

proposed rule will give respondents the

option of submitting the reports

electronically. Because electronic filing

under the proposed rule is optional and

because the requirement to file the

information already exists, any increase

in costs that may result is expected to

be negligible.

b. This rule will not create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency. The rule merely

provides the option of transmitting the

required information electronically.

c. This rule does not alter the

budgetary effects of entitlements, grants,

user fees, or loan programs or the rights

or obligations of their recipients.

d. This rule does not raise novel legal

or policy issues.

2. Regulatory Flexibility Act

The Department of the Interior

certifies that this rule will not have a

significant economic impact on a

substantial number of small entities

under the Regulatory Flexibility Act (5

U.S.C. 601 et seq.). This determination

is based on the findings that the

additions to the rule will not

significantly change costs to industry

and will not affect state or local

governments. Furthermore, the rule

produces no adverse effects on

competition, employment, investment,

productivity, innovation, or the ability

of United States enterprises to compete

with foreign-based enterprises in

domestic or export markets. Use of the

electronic filing method for the OSM–1

Form is an option available to industry

and it may reduce the cost of reporting.

3. Small Business Regulatory

Enforcement Fairness Act

This rule is not a major rule under 5

U.S.C. 804(2), the Small Business

Regulatory Enforcement Fairness Act.

This rule:

a. Does not have an annual effect on

the economy of $100 million or more for

the reasons stated above.

b. Will not cause a major increase in

costs or prices for consumers,

individual industries, federal, state, or

local government agencies, or

geographic regions because the rule

does not impose new requirements on

the coal mining industry or consumers.

c. Does not have significant adverse

effects on competition, employment,

investment, productivity, innovation, or

the ability of U.S. based enterprises to

compete with foreign-based enterprises

for the reason stated above.

4. Unfunded Mandates

This rule does not impose an

unfunded mandate on state, local, or

tribal governments or the private sector

of more than $100 million per year. The

rule does not have a significant or

unique effect on state, local, or tribal

governments or the private sector. A

statement containing the information

required by the Unfunded Mandates

Reform Act (2 U.S.C. 1531, et seq.) is not

required.

5. Executive Order 12630—Takings

In accordance with Executive Order

12630, the rule does not have takings

implications. This determination is

based on the fact that the rule will not

have an impact on the use or value of

private property and so, does not result

in significant costs to the government.

6. Executive Order 13132—Federalism

This rule does not have Federalism

implications. It will not have

‘‘substantial direct effects on the states,

on the relationship between the national

government and the states, or on the

distribution of power and

responsibilities among the various

levels of government.’’ As previously

stated, the rule will provide coal

operators with the option of

electronically filing reports which they

are currently required to file in paper

form with OSM. States are not involved

in the process.

7. Executive Order 12988—Civil Justice

Reform

In accordance with Executive Order

12988, the Office of the Solicitor has

determined that this rule does not

unduly burden the judicial system and

meets the requirements of sections 3(a)

and 3(b)(2) of the Order.

8. Paperwork Reduction Act

The information collection authority

for this rulemaking has been approved

by the Office of Management and

Budget under 44 U.S.C. 3501 et seq. and

assigned clearance number 1029–0063.

9. National Environmental Policy Act

OSM has reviewed this rule and

determined that it is categorically

excluded from the National

Environmental Policy Act process in

accordance with the Departmental

Manual 516 DM 2, Appendix 1.10.

List of Subjects in 30 CFR Part 870

Incorporation by reference, Reporting

and record keeping requirements,

Surface mining, Underground mining.

Dated: May 16, 2001.

Piet de Witt,

Acting Assistant Secretary for Land and

Minerals Management.

For the reasons set forth in the

preamble, 30 CFR Part 870 is amended

as set forth below.

PART 870—ABANDONED MINE

RECLAMATION FUND—FEE

COLLECTION AND COAL

PRODUCTION REPORTING.

1. The authority citation for Part 870

is revised to read as follows:

Authority: 28 U.S.C. 1746, 30 U.S.C. 1201

et seq., and Pub. L. 105–277.

2. Section 870.15 is amended as

follows:

a. In paragraph (b), remove the first

sentence and add three new sentences

in its place; and

b. Revise paragraph (d)(1)(iv) to read

as follows:

§ 870.15 Reclamation fee payments.

* * * * *

Each operator must use mine report

Form OSM–1 (or any approved

successor form) to report the tonnage of

coal sold, used, or transferred. The

report must also include the name and

address of any person or entity who, in

a given quarter, is the owner of 10

percent or more of the mineral estate for

a given permit, and any entity or

individual who, in a given quarter,

purchases ten percent or more of the

production from a given permit during

the applicable quarter. The operator can

file a report under this section either in

paper format or in electronic format as

specified in § 870.17. * * *

* * * * *

(d) * * *

(1) * * *

(iv) Use OSM’s approved form or

approved electronic form to report coal

tonnage sold, used, or for which

ownership was transferred, to the

address indicated in the Instructions for

Completing the OSM–1 Form.

* * * * *

3. Section 870.17 is added to read as

follows:

§ 870.17 Filing the OSM–1 Form

electronically.

You, the operator, may submit a

quarterly electronic OSM–1 Form in

place of a quarterly paper OSM–1 Form.

Submitting the OSM–1 Form

electronically is optional. If you submit

your form electronically, you must use

a methodology and medium approved

by OSM, and do one of the following:

(a) Maintain a properly notarized

paper copy of the identical OSM–1

Federal Register / Vol. 66, No. 100 / Wednesday, May 23, 2001 / Rules and Regulations 28637

Form for review and approval by OSM’s

Fee Compliance auditors. (This is

needed to comply with the notary

requirement in the Act.); or

(b) Submit an electronically signed

and dated statement made under

penalty of perjury that the information

contained in the OSM–1 Form is true

and correct.

[FR Doc. 01–13057 Filed 5–22–01; 8:45 am]

BILLING CODE 4310–05–P