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, 31880-31881 [2016-11755]

Download as PDF 31880 Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Proposed Rules 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 Office of Surface Mining Reclamation and Enforcement, Interior. ACTION: Notice of availability of petition to initiate rulemaking and request for comments on the petition. AGENCY: 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 selfbonding 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: https:// 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: mkuhns@ osmre.gov. SUPPLEMENTARY INFORMATION: mstockstill on DSK3G9T082PROD with PROPOSALS SUMMARY: Table of Contents I. How does the petition process operate? VerDate Sep<11>2014 17:17 May 19, 2016 Jkt 238001 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 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 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 selfbonding 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 https:// 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 selfbonds, 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 selfbonding 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 E:\FR\FM\20MYP1.SGM 20MYP1 Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Proposed Rules billion, much of which involves nonparent 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. mstockstill on DSK3G9T082PROD with PROPOSALS 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. VerDate Sep<11>2014 17:17 May 19, 2016 Jkt 238001 31881 Public Hearing DEPARTMENT OF THE INTERIOR 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. Office of Surface Mining Reclamation and Enforcement 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 PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 30 CFR Part 901 [SATS No. AL–079–FOR; Docket ID: OSM– 2016–0005; S1D1S SS08011000 SX064A000 166S180110; S2D2S SS08011000 SX064A000 16XS501520] Alabama Regulatory Program Office of Surface Mining Reclamation and Enforcement, Interior. ACTION: Proposed rule; public comment period and opportunity for public hearing on proposed amendment. AGENCY: We, the Office of Surface Mining Reclamation and Enforcement (OSMRE), are announcing receipt of a proposed amendment to the Alabama regulatory program (Alabama program) under the Surface Mining Control and Reclamation Act of 1977 (SMCRA or the Act). Alabama proposes revisions to its Program to closely follow the Federal regulations regarding awarding of appropriate costs and expenses including attorneys’ fees. This document gives the times and locations that the Alabama program and proposed amendment to that program are available for your inspection, the comment period during which you may submit written comments on the amendment, and the procedures that we will follow for the public hearing, if one is requested. DATES: We will accept written comments on this amendment until 4:00 p.m., c.t., June 20, 2016. If requested, we will hold a public hearing on the amendment on June 14, 2016. We will accept requests to speak at a hearing until 4:00 p.m., c.t. on June 6, 2016. ADDRESSES: You may submit comments, identified by SATS No. AL–079–FOR by any of the following methods: • Mail/Hand Delivery: Sherry Wilson, Director, Birmingham Field Office, Office of Surface Mining Reclamation and Enforcement, 135 Gemini Circle, Suite 215, Homewood, Alabama 35209 • Fax: (205) 290–7280 • Federal eRulemaking Portal: The amendment has been assigned Docket ID OSM–2016–0005. If you would like to submit comments go to https:// www.regulations.gov. Follow the instructions for submitting comments. Instructions: All submissions received must include the agency name and docket number for this rulemaking. For detailed instructions on submitting comments and additional information on the rulemaking process, see the ‘‘Public Comment Procedures’’ heading SUMMARY: E:\FR\FM\20MYP1.SGM 20MYP1

Agencies

[Federal Register Volume 81, Number 98 (Friday, May 20, 2016)]
[Proposed Rules]
[Pages 31880-31881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11755]



[[Page 31880]]

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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: https://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: mkuhns@osmre.gov.

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 https://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
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