,,ii #aadth ,,congress #ast ,session ,s4 #ahia ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bi1 #bjae ,mr4 ,wyden 7for himself and ,mr4 ,udall7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to amend the ,mineral ,leasing ,act to improve coal royalties1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,coal ,royalty ,fairness ,act of #bjae4 #b4 ,valuation of coal royalties ,section #g of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bjg7 is amended-- 7#a7 in subsection 7a71 by striking the fourth sentence2 and 7#b7 by adding at the end the following3 7d7 ,royalties 7#a7 ,definitions ,in this subsection3 7,a7 ,assessment value 7i7 ,in general ,the term assessment value1 with respect to ,federal coal1 means-- 7,i7 the price of ,federal coal paid by the purchaser at final sale2 or 7,,ii7 a price imputed by the ,secretary based on the coal price index4 7ii7 ,exclusions ,the term assessment value does not include1 as determined and to the extent determined to be appropriate by the ,secretary-- 7,i7 transportation costs1 as determined in accordance with the transportation cost index2 or 7,,ii7 the cost of coal washing4 7,b7 ,broker ,the term broker means a person that resells ,federal coal4 7,c7 ,coal price index ,the term coal price index means the schedule of average market prices of ,federal coal 7in ,united ,states dollars7 paid by the purchaser at final sale1 based on the quality and type of the ,federal coal1 as determined by the ,secretary1 in consultation with the ,administrator of the ,energy ,information ,administration4 7,d7 ,purchaser 7i7 ,in general ,the term purchaser means a person that-- 7,i7 purchases or contracts to purchase ,federal coal-- 7aa7 directly from a coal mine operator2 or 7bb7 indirectly from a broker2 and 7,,ii7 uses that ,federal coal in any industrial or energy conversion process4 7ii7 ,exclusion ,the term purchaser does not include-- 7,i7 a coal broker2 or 7,,ii7 any other third-party intermediary4 7,e7 ,quality ,the term quality1 with respect to ,federal coal1 means the quality of ,federal coal measured in ,british thermal units1 sulfur1 moisture1 and other criteria determined to be appropriate by the ,secretary4 7,f7 ,secretary ,the term ,secretary means the ,secretary of the ,interior4 7,g7 ,transportation cost index ,the term transportation cost index means the transportation cost index established under paragraph 7#g74 7,h7 ,type ,the term type1 with respect to ,federal coal1 means a general category of coal1 such as metallurgical coal or steam coal1 as determined by the ,secretary4 7#b7 ,payment rate 7,a7 ,in general ,except as provided in subparagraph 7,b71 a lease shall require payment of a royalty in such amount as the ,secretary shall determine of not less than #ab4e percent of the assessment value of ,federal coal1 as determined under paragraph 7#c74 7,b7 ,exception ,in lieu of the royalty payment rate described in subparagraph 7,a71 the ,secretary may establish such lower royalty payment rate as the ,secretary determines to be appropriate in the case of ,federal coal recovered by an underground mining operation4 7#c7 ,valuation for royalties ,not later than #a year after the date of enactment of this subsection1 the ,secretary shall establish1 as the valuation for ,federal coal royalties1 the assessment value of ,federal coal4 7#d7 ,administration 7,a7 ,reporting ,the purchaser of ,federal coal shall annually submit to the ,secretary a report containing such information as the ,secretary determines to be necessary to carry out this subsection4 7,b7 ,audits ,to carry out this subsection1 the ,secretary may examine the records of any person engaged in the purchase1 sale1 transportation1 or marketing of ,federal coal4 7#e7 ,coal price index 7,a7 ,in general ,the ,secretary shall compile the assessment values of coal by type and quality of coal in a coal price index4 7,b7 ,publication ,not less frequently than quarterly1 the ,secretary shall publish the coal price index1 along with a methodological description1 including-- 7i7 the method of calculation2 7ii7 the data used to calculate the coal price index in an aggregate manner that does not reveal proprietary information2 and 7iii7 any other information the ,secretary considers appropriate to ensure transparency4 7,c7 ,other information ,if a person believes that the coal price index significantly deviates from the assessment value of the coal produced by the person1 the person may petition the ,secretary to use information supplied by the person in lieu of the coal price index1 including all information the ,secretary requires to accurately determine the assessment value and audit the records of the person4 7#f7 ,exports 7,a7 ,in general ,in assessing royalties for the export of ,federal coal under this subsection1 the ,secretary may obtain from the exporter of the ,federal coal such information as the ,secretary determines to be necessary to carry out this subsection4 7,b7 ,assessment value of exported coal ,subject to subparagraph 7,c71 in determining the assessment value of ,federal coal that is exported1 the ,secretary shall-- 7i7 use the price of coal free on board the marine vessel used to transport the coal overseas at the port of origin2 and 7ii7 limit any deductions that apply to the assessment value of the ,federal coal to costs incurred prior to being free onboard the vessel4 7,c7 ,uncertain export price ,if the ,secretary cannot determine the value of exported coal in accordance with subparagraph 7,b71 the ,secretary shall-- 7i7 assess royalties under this subsection based on the coal price index for coal of a similar quantity and type2 and 7ii7 limit any deductions that apply to the assessment value of the ,federal coal to costs incurred within the contiguous ,united ,states4 7#g7 ,transportation cost index 7,a7 ,in general ,subject to the other provisions of this paragraph1 the ,secretary1 in consultation with the ,secretary of ,energy and the ,secretary of ,transportation 7in consultation with the ,surface ,transportation ,board and others71 shall-- 7i7 compile in a transportation cost index the average costs of transporting coal2 and 7ii7 determine the amount of any transportation cost deduction under this subsection1 on the basis of the transportation cost index4 7,b7 ,unit of measurement ,the transportation cost index shall be based on the average transportation costs per ton of coal or another unit of measurement determined by the ,secretary4 7,c7 ,differences in transportation costs ,the transportation cost index shall take into consideration differences in the costs of transportation1 as determined by the ,secretary1 based on-- 7i7 the mode of transportation2 7ii7 the geographic region1 and 7iii7 other characteristics of the transportation industry that the ,secretary considers to be necessary to calculate a fair1 transparent1 and accurate transportation cost index4 7,d7 ,exclusions ,the transportation cost index shall not include costs associated with1 as determined by the ,secretary-- 7i7 take-or-pay contract penalties2 7ii7 liquidated damages2 7iii7 the speculative aspects of transportation transactions2 or 7iv7 any other costs that are not directly associated with moving ,federal coal from #a location to another location4 7,e7 ,publication ,not less than twice annually1 the ,secretary shall publish the transportation cost index1 along with a methodological description1 including-- 7i7 the method of calculation2 7ii7 the data used to calculate the transportation cost index1 in an aggregate manner that does not reveal proprietary information2 and 7iii7 any other information the ,secretary considers to be appropriate to ensure transparency4 7,f7 ,other information ,if a person believes that the transportation cost index significantly deviates from the transportation costs of the person1 the person may petition the ,secretary to use information supplied by the person 7other than costs descried in subparagraph 7,d77 in lieu of the transportation cost index1 including all information the ,secretary requires to accurately determine cost and audit the records of the person4 7#h7 ,reviews 7,a7 ,in general ,to ensure a transparent1 fair1 and efficient administration of the ,federal coal program1 and to ensure that citizens of the ,united ,states receive a fair return on ,federal coal1 not later than #c years after the date of enactment of this subsection and every #c years thereafter during the #ae-year period beginning on that date of enactment1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report that describes a review of the ,federal coal program1 including the administration of this subsection4 7,b7 ,consultation ,in conducting a review under this paragraph1 the ,comptroller ,general shall consult with-- 7i7 the ,secretary2 7ii7 the ,director of the ,bureau of ,land ,management2 7iii7 the ,secretary of ,transportation2 and 7iv7 the ,secretary of ,energy4 7,c7 ,inclusions ,a review under this paragraph shall include a review of-- 7i7 the total volume of coal production from ,federal land2 7ii7 the total volume of remaining coal reserves on ,federal land2 7iii7 the total revenues generated from the ,federal coal program1 itemized by type of revenue1 including lease bonus payments and royalties2 7iv7 market prices for coal2 7v7 market prices for transportation costs and any other deductible costs2 and 7vi7 the appropriateness of royalty rates4 7,d7 ,format ,the ,comptroller ,general shall report information in a review under this paragraph-- 7i7 in the aggregate for the ,united ,states2 and 7ii7 categorized by ,state for at least the top #aj ,federal coal-producing ,states1 as determined by the ,comptroller ,general4 7#i7 ,application ,this subsection-- 7,a7 applies to coal mined from ,federal land2 and 7,b7 does not apply to coal mined from tribal land4 4