,,ii  #aad? ,,congress  #a/ ,session    
,s4 #ahia  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bi1 #bjae ,mr4  
,wyd5 7= himself & ,mr4 ,udall7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on ,en]gy
 & ,natural ,res\rces  ,a ,,bill  ,to   
am5d ! ,m9]al ,leas+ ,act to improve    
coal royalties1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,coal ,royalty ,fairness ,act ( #bjae4  
#b4 ,valuation ( coal royalties ,section
 #g ( ! ,m9]al ,leas+ ,act 7#cj         
,u4,s4,c4 #bjg7 is am5d$--  7#a7 9      
subsection 7a71 by /rik+ ! f\r? s5t5ce2 
&  7#b7 by add+ at ! end ! foll[+3  7d7 
,royalties  7#a7 ,def9itions ,9 ?is     
subsection3 7,a7 ,assessm5t value  7i7  
,9 g5]al ,! t]m assessm5t value1 )      
respect to ,f$]al coal1 means--  7,i7 ! 
price ( ,f$]al coal paid by ! pur*as] at
 f9al sale2 or  7,,ii7 a price imput$ by
 ! ,secret>y bas$ on ! coal price index4
  7ii7 ,exclusions ,! t]m assessm5t     
value does n include1 z det]m9$ & to !  

ext5t det]m9$ to be appropriate by !    
,secret>y--  7,i7 transportation co/s1 z
 det]m9$ 9 accordance ) ! transportation
 co/ index2 or  7,,ii7 ! co/ ( coal     
wa%+4  7,b7 ,brok] ,! t]m brok] means a 
p]son t resells ,f$]al coal4  7,c7 ,coal
 price index ,! t]m coal price index    
means ! s*$ule ( av]age m>ket prices (  
,f$]al coal 79 ,unit$ ,/ates doll>s7    
paid by ! pur*as] at f9al sale1 bas$ on 
! quality & type ( ! ,f$]al coal1 z     
det]m9$ by ! ,secret>y1 9 consultation )
 ! ,adm9i/rator ( ! ,en]gy ,in=mation   
,adm9i/ration4  7,d7 ,pur*as]  7i7 ,9   
g5]al ,! t]m pur*as] means a p]son t--  
7,i7 pur*ases or contracts to pur*ase   
,f$]al coal--  7aa7 directly f a coal   
m9e op]ator2 or  7bb7 indirectly f a    
brok]2 &  7,,ii7 uses t ,f$]al coal 9   
any indu/rial or en]gy conv]sion        
process4  7ii7 ,exclusion ,! t]m pur*as]
 does n include--  7,i7 a coal brok]2 or
  7,,ii7 any o!r ?ird-p>ty int]m$i>y4   
7,e7 ,quality ,! t]m quality1 ) respect 
to ,f$]al coal1 means ! quality ( ,f$]al

 coal measur$ 9 ,briti% !rmal units1    
sulfur1 moi/ure1 & o!r crit]ia det]m9$  
to be appropriate by ! ,secret>y4  7,f7 
,secret>y ,! t]m ,secret>y means !      
,secret>y ( ! ,int]ior4  7,g7           
,transportation co/ index ,! t]m        
transportation co/ index means !        
transportation co/ index e/abli%$ "u    
p>agraph 7#g74  7,h7 ,type ,! t]m type1 
) respect to ,f$]al coal1 means a g5]al 
category ( coal1 su* z metallurgical    
coal or /eam coal1 z det]m9$ by !       
,secret>y4  7#b7 ,paym5t rate  7,a7 ,9  
g5]al ,except z provid$ 9 subp>agraph   
7,b71 a lease %all require paym5t ( a   
royalty 9 su* am\nt z ! ,secret>y %all  
det]m9e ( n less ?an #ab4e p]c5t ( !    
assessm5t value ( ,f$]al coal1 z det]m9$
 "u p>agraph 7#c74  7,b7 ,exception ,9  
lieu ( ! royalty paym5t rate describ$ 9 
subp>agraph 7,a71 ! ,secret>y may       
e/abli% su* l[] royalty paym5t rate z ! 
,secret>y det]m9es to be appropriate 9 !
 case ( ,f$]al coal recov]$ by an       
und]gr\nd m9+ op]ation4  7#c7 ,valuation

 = royalties  ,n lat] ?an #a ye> aft] ! 
date ( enactm5t ( ?is subsection1 !     
,secret>y %all e/abli%1 z ! valuation = 
,f$]al coal royalties1 ! assessm5t value
 ( ,f$]al coal4  7#d7 ,adm9i/ration     
7,a7 ,report+ ,! pur*as] ( ,f$]al coal  
%all annually submit to ! ,secret>y a   
report conta9+ su* in=mation z !        
,secret>y det]m9es to be necess>y to    
c>ry out ?is subsection4  7,b7 ,audits  
,to c>ry out ?is subsection1 ! ,secret>y
 may exam9e ! records ( any p]son engag$
 9 ! pur*ase1 sale1 transportation1 or  
m>ket+ ( ,f$]al coal4  7#e7 ,coal price 
index  7,a7 ,9 g5]al ,! ,secret>y %all  
compile ! assessm5t values ( coal by    
type & quality ( coal 9 a coal price    
index4  7,b7 ,publication ,n less       
frequ5tly ?an qu>t]ly1 ! ,secret>y %all 
publi% ! coal price index1 along ) a    
me?odological description1 includ+--    
7i7 ! me?od ( calculation2  7ii7 ! data 
us$ to calculate ! coal price index 9 an
 aggregate mann] t does n reveal        
propriet>y in=mation2 &  7iii7 any o!r  

in=mation ! ,secret>y consid]s          
appropriate to ensure transp>5cy4  7,c7 
,o!r in=mation ,if a p]son believes t ! 
coal price index significantly deviates 
f ! assessm5t value ( ! coal produc$ by 
! p]son1 ! p]son may petition !         
,secret>y to use in=mation suppli$ by ! 
p]son 9 lieu ( ! coal price index1      
includ+ all in=mation ! ,secret>y       
requires to accurately det]m9e !        
assessm5t value & audit ! records ( !   
p]son4  7#f7 ,exports  7,a7 ,9 g5]al ,9 
assess+ royalties = ! export ( ,f$]al   
coal "u ?is subsection1 ! ,secret>y may 
obta9 f ! export] ( ! ,f$]al coal su*   
in=mation z ! ,secret>y det]m9es to be  
necess>y to c>ry out ?is subsection4    
7,b7 ,assessm5t value ( export$ coal    
,subject to subp>agraph 7,c71 9 det]m9+ 
! assessm5t value ( ,f$]al coal t is    
export$1 ! ,secret>y %all--  7i7 use !  
price ( coal free on bo>d ! m>9e vessel 
us$ to transport ! coal ov]seas at !    
port ( orig92 &  7ii7 limit any         
d$uctions t apply to ! assessm5t value (

 ! ,f$]al coal to co/s incurr$ prior to 
be+ free onbo>d ! vessel4  7,c7 ,unc]ta9
 export price ,if ! ,secret>y _c det]m9e
 ! value ( export$ coal 9 accordance )  
subp>agraph 7,b71 ! ,secret>y %all--    
7i7 assess royalties "u ?is subsection  
bas$ on ! coal price index = coal ( a   
simil> quantity & type2 &  7ii7 limit   
any d$uctions t apply to ! assessm5t    
value ( ! ,f$]al coal to co/s incurr$ )9
 ! contigu\s ,unit$ ,/ates4  7#g7       
,transportation co/ index  7,a7 ,9 g5]al
 ,subject to ! o!r provisions ( ?is     
p>agraph1 ! ,secret>y1 9 consultation ) 
! ,secret>y ( ,en]gy & ! ,secret>y (    
,transportation 79 consultation ) !     
,surface ,transportation ,bo>d & o!rs71 
%all--  7i7 compile 9 a transportation  
co/ index ! av]age co/s ( transport+    
coal2 &  7ii7 det]m9e ! am\nt ( any     
transportation co/ d$uction "u ?is      
subsection1 on ! basis ( !              
transportation co/ index4  7,b7 ,unit ( 
measurem5t ,! transportation co/ index  
%all be bas$ on ! av]age transportation 

co/s p] ton ( coal or ano!r unit (      
measurem5t det]m9$ by ! ,secret>y4  7,c7
 ,diff]5ces 9 transportation co/s ,!    
transportation co/ index %all take into 
consid]ation diff]5ces 9 ! co/s (       
transportation1 z det]m9$ by !          
,secret>y1 bas$ on--  7i7 ! mode (      
transportation2  7ii7 ! geographic      
region1 &  7iii7 o!r *>act]i/ics ( !    
transportation indu/ry t ! ,secret>y    
consid]s to be necess>y to calculate a  
fair1 transp>5t1 & accurate             
transportation co/ index4  7,d7         
,exclusions ,! transportation co/ index 
%all n include co/s associat$ )1 z      
det]m9$ by ! ,secret>y--  7i7           
take-or-pay contract p5alties2  7ii7    
liquidat$ damages2  7iii7 ! speculative 
aspects ( transportation transactions2  
or  7iv7 any o!r co/s t are n directly  
associat$ ) mov+ ,f$]al coal f #a       
location to ano!r location4  7,e7       
,publication ,n less ?an twice annually1
 ! ,secret>y %all publi% !              
transportation co/ index1 along ) a     

me?odological description1 includ+--    
7i7 ! me?od ( calculation2  7ii7 ! data 
us$ to calculate ! transportation co/   
index1 9 an aggregate mann] t does n    
reveal propriet>y in=mation2 &  7iii7   
any o!r in=mation ! ,secret>y consid]s  
to be appropriate to ensure transp>5cy4 
7,f7 ,o!r in=mation ,if a p]son believes
 t ! transportation co/ index           
significantly deviates f !              
transportation co/s ( ! p]son1 ! p]son  
may petition ! ,secret>y to use         
in=mation suppli$ by ! p]son 7o!r ?an   
co/s descri$ 9 subp>agraph 7,d77 9 lieu 
( ! transportation co/ index1 includ+   
all in=mation ! ,secret>y requires to   
accurately det]m9e co/ & audit ! records
 ( ! p]son4  7#h7 ,reviews  7,a7 ,9     
g5]al ,to ensure a transp>5t1 fair1 &   
effici5t adm9i/ration ( ! ,f$]al coal   
program1 & to ensure t citiz5s ( !      
,unit$ ,/ates receive a fair return on  
,f$]al coal1 n lat] ?an #c ye>s aft] !  
date ( enactm5t ( ?is subsection & e #c 
ye>s !reaft] dur+ ! #ae-ye> p]iod beg9n+

 on t date ( enactm5t1 ! ,comptroll]    
,g5]al ( ! ,unit$ ,/ates %all submit to 
,congress a report t describes a review 
( ! ,f$]al coal program1 includ+ !      
adm9i/ration ( ?is subsection4  7,b7    
,consultation ,9 conduct+ a review "u   
?is p>agraph1 ! ,comptroll] ,g5]al %all 
consult )-- 7i7 ! ,secret>y2  7ii7 !    
,director ( ! ,bureau ( ,l& ,managem5t2 
7iii7 ! ,secret>y ( ,transportation2 &  
7iv7 ! ,secret>y ( ,en]gy4  7,c7        
,inclusions ,a review "u ?is p>agraph   
%all include a review (--  7i7 ! total  
volume ( coal production f ,f$]al l&2   
7ii7 ! total volume ( rema9+ coal       
res]ves on ,f$]al l&2  7iii7 ! total    
rev5ues g5]at$ f ! ,f$]al coal program1 
itemiz$ by type ( rev5ue1 includ+ lease 
bonus paym5ts & royalties2  7iv7 m>ket  
prices = coal2  7v7 m>ket prices =      
transportation co/s & any o!r d$uctible 
co/s2 &  7vi7 ! appropriat5ess ( royalty
 rates4  7,d7 ,=mat ,! ,comptroll]      
,g5]al %all report in=mation 9 a review 
"u ?is p>agraph--  7i7 9 ! aggregate = !

 ,unit$ ,/ates2 &  7ii7 categoriz$ by   
,/ate = at lea/ ! top #aj ,f$]al        
coal-produc+ ,/ates1 z det]m9$ by !     
,comptroll] ,g5]al4  7#i7 ,application  
,?is subsection-- 7,a7 applies to coal  
m9$ f ,f$]al l&2 &  7,b7 does n apply to
 coal m9$ f tribal l&4  4