81 FR 31880 - Petition To Initiate Rulemaking; Ensuring That Companies With a History of Financial Insolvency, and Their Subsidiary Companies, Are Not Allowed to Self-Bond Coal Mining Operations
DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation and Enforcement Federal Register Volume 81, Issue 98 (May 20, 2016)
Office of Surface Mining Reclamation and Enforcement
Federal Register Volume 81, Issue 98 (May 20, 2016)
| Page Range | 31880-31881 | |
| FR Document | 2016-11755 |
[Federal Register Volume 81, Number 98 (Friday, May 20, 2016)] [Proposed Rules] [Pages 31880-31881] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-11755] [[Page 31880]] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE INTERIOR Office of Surface Mining Reclamation and Enforcement 30 CFR Part 800 [Docket ID: OSM-2016-0006; S1D1S SS08011000 SX064A000 167S180110; S2D2S SS08011000 SX064A000 16XS501520] Petition To Initiate Rulemaking; Ensuring That Companies With a History of Financial Insolvency, and Their Subsidiary Companies, Are Not Allowed to Self-Bond Coal Mining Operations AGENCY: Office of Surface Mining Reclamation and Enforcement, Interior. ACTION: Notice of availability of petition to initiate rulemaking and request for comments on the petition. ----------------------------------------------------------------------- SUMMARY: We, the Office of Surface Mining Reclamation and Enforcement (OSMRE), seek comments concerning a petition, submitted pursuant to the Surface Mining Control and Reclamation Act (SMCRA or the Act), requesting that we amend our self-bonding regulations to ensure that companies with a history of financial insolvency, and their subsidiary companies, are not allowed to self-bond coal mining operations. We are requesting comments on the merits of the petition and the rule changes suggested in the petition. Comments received will assist the Director of OSMRE in making the decision whether to grant or deny the petition. DATES: Electronic or written comments: We will accept written comments on the petition on or before June 20, 2016. ADDRESSES: You may submit comments by any of the following methods: Federal eRulemaking Portal: http://www.regulations.gov. The petition has been assigned Docket ID: OSM-2016-0006. Please follow the online instructions for submitting comments. Mail/Hand-Delivery/Courier: Office of Surface Mining Reclamation and Enforcement, Administrative Record, Room 252 SIB, 1951 Constitution Avenue NW., Washington, DC 20240. Please include the Docket ID: OSM- 2016-0006. FOR FURTHER INFORMATION CONTACT: Michael Kuhns, Division of Regulatory Support, 1951 Constitution Ave. NW., Washington, DC 20240; Telephone: 202-208-2860; Email: [email protected]. SUPPLEMENTARY INFORMATION: Table of Contents I. How does the petition process operate? II. What action does the petition request that we take? III. How may I view the petition and exhibits? IV. How do I submit comments on the petition? V. Procedural Matters and Required Determinations I. How does the petition process operate? Section 201(g) of SMCRA, 30 U.S.C. 1201(g), provides that any person may petition the Director of OSMRE to initiate a proceeding for the issuance, amendment, or repeal of any regulation adopted under SMCRA. It also specifies that the Director shall either grant or deny the petition within 90 days after receipt. OSMRE's regulations at 30 CFR 700.12 further implement this statutory provision. Under 30 CFR 700.12(c), the Director is required to determine if the petition sets forth facts, technical justification and law which may provide a reasonable basis for issuance, amendment or repeal of a regulation. If the Director determines that the petition has a reasonable basis, a notice shall be published in the Federal Register seeking comments from the public on the proposed change specified in the petition. This Federal Register document is the notice required by the regulations. At the close of the comment period, the Director decides to either grant or deny the petition, in whole or in part. We will publish notice of that decision in the Federal Register. If the Director grants the petition, we will then initiate rulemaking proceedings in which we again seek public comment before adopting a final rule. If the Director denies a petition, we notify the petitioner of the reasons for the decision not to initiate any rulemaking action pursuant to the petition. In accordance with 30 CFR 700.12(d), the Director's decision on a petition is a final decision for the Department, which means that the petitioner is not entitled to review by the Office of Hearings and Appeals. II. What action does the petition request that we take? On March 3, 2016, we received from WildEarth Guardians a petition for rulemaking requesting that OSMRE amend its self-bonding regulations at 30 CFR 800.23 to ensure that companies with a history of financial insolvency, and their subsidiary companies, are not allowed to self- bond coal mining operations. The petition claims that current rules allow regulatory authorities to accept self-bond guarantees from subsidiary companies that are technically insolvent due to the financial status of their parent corporations, potentially shifting the financial burden for substantial mine reclamation costs to American taxpayers in the event the companies do not have the financial resources to complete their mine reclamation obligations. In its petition, WildEarth Guardians provides draft regulatory language that it alleges will ensure that any entity, including non- parent corporate guarantors, will be subject to appropriate financial scrutiny before being allowed to self-bond. Specifically, WildEarth Guardians requests that we revise our self-bonding regulations to define ultimate parent corporation, limit the total amount of present and proposed self-bonds to not exceed twenty-five (25) percent of the ultimate parent corporation's tangible net worth in the United States, and require that both the self-bonding applicant and its parent corporation meet any self-bonding financial conditions in 30 CFR 800.23, including the requirement that neither have filed for bankruptcy in the last five (5) years. III. How may I view the petition and exhibits? The petition and exhibits can be viewed and downloaded at http://www.regulations.gov. The petition has been assigned Docket ID: OSM- 2016-0006. The petition and exhibits also are available for inspection at the location listed under ADDRESSES. IV. How do I submit comments on the petition? General Guidance We are seeking comment on the merits of the petition and the requested rule changes. The energy industry is in the midst of a major transformation. Low domestic and global demand for coal, plentiful low- cost shale gas and fuel switching and coal power plant retirements by utilities, the highest coal stockpile inventories in 25 years, unsuccessful business decisions, and projections of declining coal demand have created significant challenges for the coal industry. SMCRA allows States to accept self-bonds, but requires that the bond be sufficient to assure the completion of the reclamation plan if the work had to be performed by the regulatory authority in the event of forfeiture. 30 U.S.C. 1259(a). Eighteen States allow self-bonding under their regulations and eleven states currently have self-bonded sites. According to the most recent data from the States, outstanding self-bond obligations total approximately $3.86 [[Page 31881]] billion, much of which involves non-parent guarantees. Several large coal companies have filed for bankruptcy protection. These companies provided, and several States elected to accept, over $2.4 billion in self-bonds to ensure that lands and waters impacted by coal mining were restored. Several large coal mining companies have recently filed for bankruptcy, raising concerns for State regulators, OSMRE, the Department of the Interior, Members of Congress, citizens and many other stakeholders. There is a concern about whether disturbed coal mines will be reclaimed by the bankrupt companies; whether the bankrupt companies will abandon their legal obligations to restore impacted lands and waters; whether the costs to restore the land and water will be shifted to taxpayers; and, whether the existing regulations are adequate to protect people, communities, and the environment as envisioned by Congress when it enacted SMCRA. OSMRE will evaluate whether the changes proposed in the rulemaking petition are necessary or adequate to address deficiencies in the current regulations and practices. We ask all States, stakeholders and the public to consider whether the changes proposed by petitioners, or other changes beyond what the petitioners have proposed, should be made. We also request you articulate what those changes should be and why they should be made. We will review and consider all comments submitted to the addresses listed above (see ADDRESSES) by the close of the comment period (see DATES). Please include the Docket ID ``OSM-2016-0006'' at the beginning of all written comments. We cannot ensure that comments received after the close of the comment period (see DATES) or at locations other than those listed above (see ADDRESSES) will be included in the docket or considered in the development of a proposed rule. Public Availability of Comments Before including your address, phone number, or other personal identifying information in your comment, you should be aware that your entire comment--including your personal identifying information--may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so. Public Hearing We will not hold a public hearing on the petition. The petitioner did not request a hearing and we have determined under 30 CFR 700.12(c) that no hearing is necessary. V. Procedural Matters and Required Determinations This notice of availability is not a proposed or final rule, policy, or guidance. Therefore, it is not subject to the Regulatory Flexibility Act, the Small Business Regulatory Enforcement Fairness Act, the Paperwork Reduction Act, the Unfunded Mandates Reform Act, or Executive Orders 12866, 13563, 12630, 13132, 12988, 13175, and 13211. We will conduct the analyses required by these laws and executive orders only if we decide to grant the petition and develop a proposed rule. In developing this notice of availability, we did not conduct or use a study, experiment, or survey requiring peer review under the Information Quality Act (Pub. L. 106-554, section 15). This notice of availability is not subject to the requirement to prepare an Environmental Assessment or Environmental Impact Statement under the National Environmental Policy Act (NEPA), 42 U.S.C. 4332(2)(C), because no proposed action, as described in 40 CFR 1508.18(a) and (b), yet exists. This notice of availability only seeks public comment on whether the Director should grant the petition and initiate rulemaking. If the Director ultimately grants the petition, we will prepare the appropriate NEPA compliance documents as part of the rulemaking process. List of Subjects in 30 CFR Part 800 Environmental protection, Bonding and Insurance requirements, Surface coal mining, Reclamation. Dated: May 9, 2016. Joseph G. Pizarchik, Director, Office of Surface Mining Reclamation and Enforcement. [FR Doc. 2016-11755 Filed 5-19-16; 8:45 am] BILLING CODE 4310-05-P
![31880 Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Proposed Rules
DEPARTMENT OF THE INTERIOR II. What action does the petition request that financial status of their parent
we take? corporations, potentially shifting the
Office of Surface Mining Reclamation III. How may I view the petition and financial burden for substantial mine
and Enforcement exhibits?
IV. How do I submit comments on the
reclamation costs to American taxpayers
petition? in the event the companies do not have
30 CFR Part 800 V. Procedural Matters and Required the financial resources to complete their
[Docket ID: OSM–2016–0006; S1D1S Determinations mine reclamation obligations.
SS08011000 SX064A000 167S180110; I. How does the petition process In its petition, WildEarth Guardians
S2D2S SS08011000 SX064A000 provides draft regulatory language that
16XS501520]
operate?
it alleges will ensure that any entity,
Section 201(g) of SMCRA, 30 U.S.C. including non-parent corporate
Petition To Initiate Rulemaking; 1201(g), provides that any person may guarantors, will be subject to
Ensuring That Companies With a petition the Director of OSMRE to appropriate financial scrutiny before
History of Financial Insolvency, and initiate a proceeding for the issuance, being allowed to self-bond. Specifically,
Their Subsidiary Companies, Are Not amendment, or repeal of any regulation
Allowed to Self-Bond Coal Mining WildEarth Guardians requests that we
adopted under SMCRA. It also specifies revise our self-bonding regulations to
Operations that the Director shall either grant or define ultimate parent corporation,
AGENCY: Office of Surface Mining deny the petition within 90 days after limit the total amount of present and
Reclamation and Enforcement, Interior. receipt. OSMRE’s regulations at 30 CFR
proposed self-bonds to not exceed
700.12 further implement this statutory
ACTION: Notice of availability of petition twenty-five (25) percent of the ultimate
provision.
to initiate rulemaking and request for Under 30 CFR 700.12(c), the Director parent corporation’s tangible net worth
comments on the petition. is required to determine if the petition in the United States, and require that
sets forth facts, technical justification both the self-bonding applicant and its
SUMMARY: We, the Office of Surface parent corporation meet any self-
Mining Reclamation and Enforcement and law which may provide a
reasonable basis for issuance, bonding financial conditions in 30 CFR
(OSMRE), seek comments concerning a 800.23, including the requirement that
petition, submitted pursuant to the amendment or repeal of a regulation. If
the Director determines that the petition neither have filed for bankruptcy in the
Surface Mining Control and last five (5) years.
Reclamation Act (SMCRA or the Act), has a reasonable basis, a notice shall be
requesting that we amend our self- published in the Federal Register III. How may I view the petition and
bonding regulations to ensure that seeking comments from the public on exhibits?
companies with a history of financial the proposed change specified in the
petition. This Federal Register The petition and exhibits can be
insolvency, and their subsidiary
document is the notice required by the viewed and downloaded at http://
companies, are not allowed to self-bond
regulations. www.regulations.gov. The petition has
coal mining operations. We are
At the close of the comment period, been assigned Docket ID: OSM–2016–
requesting comments on the merits of
the Director decides to either grant or 0006. The petition and exhibits also are
the petition and the rule changes
deny the petition, in whole or in part. available for inspection at the location
suggested in the petition. Comments
We will publish notice of that decision listed under ADDRESSES.
received will assist the Director of
OSMRE in making the decision whether in the Federal Register. If the Director IV. How do I submit comments on the
to grant or deny the petition. grants the petition, we will then initiate
petition?
rulemaking proceedings in which we
DATES: Electronic or written comments:
again seek public comment before General Guidance
We will accept written comments on the
adopting a final rule. If the Director
petition on or before June 20, 2016. We are seeking comment on the
denies a petition, we notify the
ADDRESSES: You may submit comments petitioner of the reasons for the decision merits of the petition and the requested
by any of the following methods: not to initiate any rulemaking action rule changes. The energy industry is in
Federal eRulemaking Portal: http:// pursuant to the petition. In accordance the midst of a major transformation.
www.regulations.gov. The petition has with 30 CFR 700.12(d), the Director’s Low domestic and global demand for
been assigned Docket ID: OSM–2016– decision on a petition is a final decision coal, plentiful low-cost shale gas and
0006. Please follow the online for the Department, which means that fuel switching and coal power plant
instructions for submitting comments. the petitioner is not entitled to review retirements by utilities, the highest coal
Mail/Hand-Delivery/Courier: Office of stockpile inventories in 25 years,
by the Office of Hearings and Appeals.
Surface Mining Reclamation and unsuccessful business decisions, and
Enforcement, Administrative Record, II. What action does the petition request projections of declining coal demand
Room 252 SIB, 1951 Constitution that we take? have created significant challenges for
Avenue NW., Washington, DC 20240. On March 3, 2016, we received from the coal industry.
Please include the Docket ID: OSM– WildEarth Guardians a petition for SMCRA allows States to accept self-
2016–0006. rulemaking requesting that OSMRE bonds, but requires that the bond be
FOR FURTHER INFORMATION CONTACT: amend its self-bonding regulations at 30 sufficient to assure the completion of
Michael Kuhns, Division of Regulatory CFR 800.23 to ensure that companies the reclamation plan if the work had to
mstockstill on DSK3G9T082PROD with PROPOSALS
Support, 1951 Constitution Ave. NW., with a history of financial insolvency, be performed by the regulatory authority
Washington, DC 20240; Telephone: and their subsidiary companies, are not in the event of forfeiture. 30 U.S.C.
202–208–2860; Email: mkuhns@ allowed to self-bond coal mining 1259(a). Eighteen States allow self-
osmre.gov. operations. The petition claims that bonding under their regulations and
SUPPLEMENTARY INFORMATION: current rules allow regulatory eleven states currently have self-bonded
authorities to accept self-bond sites. According to the most recent data
Table of Contents guarantees from subsidiary companies from the States, outstanding self-bond
I. How does the petition process operate? that are technically insolvent due to the obligations total approximately $3.86
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![Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Proposed Rules 31881
billion, much of which involves non- Public Hearing DEPARTMENT OF THE INTERIOR
parent guarantees.
We will not hold a public hearing on Office of Surface Mining Reclamation
Several large coal companies have the petition. The petitioner did not
filed for bankruptcy protection. These and Enforcement
request a hearing and we have
companies provided, and several States
determined under 30 CFR 700.12(c) that 30 CFR Part 901
elected to accept, over $2.4 billion in
no hearing is necessary.
self-bonds to ensure that lands and [SATS No. AL–079–FOR; Docket ID: OSM–
waters impacted by coal mining were V. Procedural Matters and Required 2016–0005; S1D1S SS08011000 SX064A000
restored. Several large coal mining Determinations 166S180110; S2D2S SS08011000
companies have recently filed for SX064A000 16XS501520]
bankruptcy, raising concerns for State This notice of availability is not a
proposed or final rule, policy, or Alabama Regulatory Program
regulators, OSMRE, the Department of
the Interior, Members of Congress, guidance. Therefore, it is not subject to AGENCY: Office of Surface Mining
citizens and many other stakeholders. the Regulatory Flexibility Act, the Small Reclamation and Enforcement, Interior.
There is a concern about whether Business Regulatory Enforcement ACTION: Proposed rule; public comment
disturbed coal mines will be reclaimed Fairness Act, the Paperwork Reduction period and opportunity for public
by the bankrupt companies; whether the Act, the Unfunded Mandates Reform hearing on proposed amendment.
bankrupt companies will abandon their Act, or Executive Orders 12866, 13563,
12630, 13132, 12988, 13175, and 13211. SUMMARY: We, the Office of Surface
legal obligations to restore impacted Mining Reclamation and Enforcement
lands and waters; whether the costs to We will conduct the analyses required
by these laws and executive orders only (OSMRE), are announcing receipt of a
restore the land and water will be proposed amendment to the Alabama
shifted to taxpayers; and, whether the if we decide to grant the petition and
regulatory program (Alabama program)
existing regulations are adequate to develop a proposed rule.
under the Surface Mining Control and
protect people, communities, and the In developing this notice of Reclamation Act of 1977 (SMCRA or the
environment as envisioned by Congress availability, we did not conduct or use Act). Alabama proposes revisions to its
when it enacted SMCRA. a study, experiment, or survey requiring Program to closely follow the Federal
OSMRE will evaluate whether the peer review under the Information regulations regarding awarding of
changes proposed in the rulemaking Quality Act (Pub. L. 106–554, section appropriate costs and expenses
petition are necessary or adequate to 15). including attorneys’ fees.
address deficiencies in the current This notice of availability is not This document gives the times and
regulations and practices. We ask all locations that the Alabama program and
subject to the requirement to prepare an
States, stakeholders and the public to proposed amendment to that program
Environmental Assessment or
consider whether the changes proposed are available for your inspection, the
Environmental Impact Statement under
by petitioners, or other changes beyond comment period during which you may
the National Environmental Policy Act submit written comments on the
what the petitioners have proposed,
(NEPA), 42 U.S.C. 4332(2)(C), because amendment, and the procedures that we
should be made. We also request you
no proposed action, as described in 40 will follow for the public hearing, if one
articulate what those changes should be
and why they should be made. CFR 1508.18(a) and (b), yet exists. This is requested.
notice of availability only seeks public DATES: We will accept written
We will review and consider all comment on whether the Director
comments submitted to the addresses comments on this amendment until 4:00
should grant the petition and initiate p.m., c.t., June 20, 2016. If requested, we
listed above (see ADDRESSES) by the rulemaking. If the Director ultimately
close of the comment period (see will hold a public hearing on the
grants the petition, we will prepare the amendment on June 14, 2016. We will
DATES).
appropriate NEPA compliance accept requests to speak at a hearing
Please include the Docket ID ‘‘OSM– documents as part of the rulemaking until 4:00 p.m., c.t. on June 6, 2016.
2016–0006’’ at the beginning of all process. ADDRESSES: You may submit comments,
written comments. We cannot ensure
List of Subjects in 30 CFR Part 800 identified by SATS No. AL–079–FOR by
that comments received after the close
any of the following methods:
of the comment period (see DATES) or at • Mail/Hand Delivery: Sherry Wilson,
locations other than those listed above Environmental protection, Bonding
and Insurance requirements, Surface Director, Birmingham Field Office,
(see ADDRESSES) will be included in the Office of Surface Mining Reclamation
docket or considered in the coal mining, Reclamation.
and Enforcement, 135 Gemini Circle,
development of a proposed rule. Dated: May 9, 2016.
Suite 215, Homewood, Alabama 35209
Public Availability of Comments Joseph G. Pizarchik, • Fax: (205) 290–7280
Director, Office of Surface Mining • Federal eRulemaking Portal: The
Before including your address, phone Reclamation and Enforcement. amendment has been assigned Docket
number, or other personal identifying [FR Doc. 2016–11755 Filed 5–19–16; 8:45 am] ID OSM–2016–0005. If you would like
information in your comment, you BILLING CODE 4310–05–P to submit comments go to http://
should be aware that your entire www.regulations.gov. Follow the
mstockstill on DSK3G9T082PROD with PROPOSALS
comment—including your personal instructions for submitting comments.
identifying information—may be made Instructions: All submissions received
publicly available at any time. While must include the agency name and
you can ask us in your comment to docket number for this rulemaking. For
withhold your personal identifying detailed instructions on submitting
information from public review, we comments and additional information
cannot guarantee that we will be able to on the rulemaking process, see the
do so. ‘‘Public Comment Procedures’’ heading
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Document Created: 2016-05-20 01:59:40
Document Modified: 2016-05-20 01:59:40
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Notice of availability of petition to initiate rulemaking and request for comments on the petition. | |
| Dates | Electronic or written comments: We will accept written comments on the petition on or before June 20, 2016. | |
| Contact | Michael Kuhns, Division of Regulatory Support, 1951 Constitution Ave. NW., Washington, DC 20240; Telephone: 202-208-2860; Email: [email protected]e.gov. | |
| FR Citation | 81 FR 31880 | |
| CFR Associated | Environmental Protection; Bonding and Insurance Requirements; Surface Coal Mining and Reclamation |
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