,,ii #aaeth ,,congress #ast ,session ,s4 #gcg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bg1 #bjag,mr4 ,markey 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 leasing1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,coal ,oversight and ,leasing ,reform ,act of #bjag or the ,,coal ,reform ,act of #bjag4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,deferred bonus payments4,sec4 #c4 ,confidentiality requirements for consultants4,sec4 #d4 ,exploration data4,sec4 #e4 ,fair market value4,sec4 #f4 ,public availability data4,sec4 #g4 ,lease modifications4,sec4 #h4 ,findings necessary for coal lease modifications4,sec4 #i4 ,size of coal leasing modifications4,sec4 #aj4 ,coal leasing program4,sec4 #aa4 ,rental rates4,sec4 #ab4 ,primary term of lease4,sec4 #ac4 ,minimum value4,sec4 #ad4 ,inspection and enforcement4,sec4 #ae4 ,civil penalties4,sec4 #af4 ,moratorium on new coal lease sales pending implementation4 #b4 ,deferred bonus payments ,section #b7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bja7;a77 is amended-- 7#a7 in paragraph 7#a71 by striking the second and third sentences2 and 7#b7 by striking paragraphs 7#d7 and 7#e74 #c4 ,confidentiality requirements for consultants ,section #b7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bja7;a77 7as amended by section #b7b77 is amended by adding at the end the following3-- 7#d7 ,confidentiality requirements for consultants ,if the ,secretary uses an independent consultant in evaluating a lease sale1 the independent consultant shall be subject to a nondisclosure agreement and any other confidentiality requirements the ,secretary determines necessary4 4 #d4 ,exploration data ,section #b7;b77#c7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bjb7;b77#c77 is amended by adding at the end the following3 ,subject to applicable penalties for submitting false data1 the licensee shall certify the accuracy of the data submitted under this paragraph4 ,the ,secretary shall consider whether to independently verify the data submitted under this paragraph4 ,the ,secretary shall conduct and document any inspections of exploration activities conducted under this section44 #e4 ,fair market value ,section #b of the ,mineral ,leasing ,act is amended by inserting after subsection 7d7 7#cj ,u4,s4,c4 #bjb;a7 the following3 7e7 ,fair market value 7#a7 ,in general ,a proposed lease sale shall not be held under this section until the date on which the ,secretary of the ,interior 7acting through the ,director of the ,bureau of ,land ,management7 7referred to in this subsection as the ,secretary71 in consultation with the applicable ,bureau of ,land ,management field office with jurisdiction over the leasing tract subject to the proposed lease sale and the ,office of ,valuation ,services of the ,department of the ,interior1 makes a determination with respect to the fair market value of the coal to be extracted under the proposed lease4 7#b7 ,considerations and requirements ,in making a determination of fair market value under paragraph 7#a71 the ,secretary-- 7,a7 7i7 shall account for the export potential of the coal to be extracted under the proposed lease1 including-- 7,i7 conducting an analysis of whether the coal extracted under the proposed lease would be exported1 the potential export markets for the coal1 and the price at which the coal could be sold in export markets2 and 7,,ii7 providing in the appraisal report under paragraph 7#d7 an assessment of export activity for coal extracted from other leases under this section2 and 7ii7 for purposes of the analysis under clause 7i77,i7 and the assessment under clause 7i77,,ii71 may consult with other agencies with relevant expertise relating to coal exports1 such as the ,energy ,information ,administration2 7,b7 shall use a comparable lease sale approach and income approach for purposes of calculating fair market value2 7,c7 shall not rely on any information from lease sales conducted more than #e years before the date of the proposed lease sale for purposes of calculating fair market value2 and 7,d7 shall consider domestic coal reserve estimates4 7#c7 ,appraisal report ,the ,secretary shall include a fair market value determination with respect to a lease under paragraph 7#a7 in a formal1 documented appraisal report that provides verification of the consultation required under that paragraph by including the signatures of the individuals representing the offices consulted under that paragraph in the completed appraisal report4 7#d7 ,,gao report ,not later than #b years after the date of enactment of this subsection1 the ,comptroller ,general of the ,united ,states shall submit to the appropriate committees of ,congress a report that describes whether the ,secretary has complied with the requirements of paragraph 7#b77;,a7 in making fair market value determinations of leases under this subsection4 7#e7 ,minimum bids ,notwithstanding any other provision of this ,act1 the ,secretary may not accept a bid for a lease to extract coal under this ,act that is less than the fair market value of the coal to be extracted under the lease1 even if a bid is above the minimum bid requirement4 4 #f4 ,public availability of data ,section #b of the ,mineral ,leasing ,act 7as amended by section #e7 is amended by adding at the end the following3 7f7 ,public availability of appraisal reports ,any appraisal report conducted under this section shall be made publicly available on the website of the ,bureau of ,land ,management1 with appropriate redactions of or protections for confidential material or information4 7g7 ,public availability of lease sales1 high bids1 royalty payments1 and revenue ,the ,secretary shall track and make publicly available on the website of the ,bureau of ,land ,management information on individual and total lease sales1 high bids1 royalty payments1 and revenue relating to activities conducted under this section4 4 #g4 ,lease modifications ,section #c7;a77#a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bjc7;a77#a77 is amended by inserting and on completion of a fair market value determination under subsection 7e77#a7 with respect to the modifications after under paragraph 7#b74 #h4 ,findings necessary for coal lease modifications ,section #c7;a77#b7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bjc7;a77#b77 is amended-- 7#a7 in subparagraph 7,b71 by striking and after the semicolon at the end2 7#b7 in subparagraph 7,c71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7,d7 would not result in a reduction of revenue4 4 #i4 ,size of coal leasing modifications ,section #c7;a77#c77;,a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bjc7;a77#c77;,a77 is amended by striking #ifj acres and inserting #afj acres4 #aj4 ,coal leasing program ,the ,mineral ,leasing ,act is amended by inserting after section #c 7#cj ,u4,s4,c4 #bjc7 the following3 #d4 ,coal leasing program 7a7 ,in general ,the ,secretary shall prepare1 periodically revise1 and maintain a coal leasing program to implement this ,act4 7b7 ,content ,the leasing program shall consist of a schedule of proposed lease sales indicating1 as precisely as practicable1 the size1 timing1 and location of leasing activity that the ,secretary determines will best meet national needs for the #e-year period following the approval or reapproval of the program4 7c7 ,principles ,the leasing program shall be prepared and maintained in a manner consistent with the following principles3 7#a7 ,leasing activities for coal subject to this ,act shall be conducted-- 7,a7 to ensure receipt of fair market value for the land leased and the rights conveyed by the ,federal ,government2 7,b7 to maximize competition for ,federal coal leases2 and 7,c7 to maximize the financial return per ton of coal leased for taxpayers of the ,united ,states4 7#b7 ,management of coal subject to this ,act shall be conducted in a manner that considers-- 7,a7 the economic1 social1 and environmental values of ,federal land and the coal resource2 and 7,b7 the potential impact of coal leasing on other resource values and the natural and human environments4 7#c7 ,timing and location of exploration1 development1 and production of coal among or within the coal-bearing physiographic regions shall be based on a consideration of-- 7,a7 existing information concerning the geographical1 geological1 and ecological characteristics of the regions2 7,b7 an equitable sharing of developmental benefits and environmental risks among or within the various regions2 7,c7 the location of the regions with respect to1 and the relative needs of1 regional and national energy markets2 7,d7 the location of the regions with respect to other anticipated uses of the resources and space of the regions2 7,e7 the interest of potential coal producers in the development of coal resources as indicated by exploration or nomination2 7,f7 laws1 goals1 and policies of affected ,states that have been specifically identified by the ,governors of the ,states as relevant matters for the consideration of the ,secretary2 7,g7 the relative environmental sensitivity and natural productivity of different areas containing the coal2 and 7,h7 relevant environmental and predictive information for the different areas4 7#d7 ,the ,secretary shall select the timing and location of leasing1 to the maximum extent practicable1 so as to obtain a proper balance between-- 7,a7 the potential for environmental damage2 7,b7 the potential for the discovery of coal2 and 7,c7 the potential for adverse impact on areas containing the coal4 7#e7 ,the ,secretary shall develop the plan and manage coal leasing and development in a manner that considers the impact of coal leasing and development on climate change4 7d7 ,estimated appropriations and staff ,the leasing program shall include estimates of the appropriations and staff required-- 7#a7 to obtain resource information and any other information needed to prepare the leasing program required by this section2 7#b7 to analyze and interpret the exploratory data and any other information that may be compiled under this ,act2 7#c7 to conduct environmental studies and prepare any environmental impact statement required in accordance with this ,act and section #ajb7b77;,c7 of the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dccb7b77;,c772 and 7#d7 to supervise operations conducted pursuant to each lease in the manner necessary to ensure due diligence in the exploration and development of the lease area and compliance with the requirement of applicable laws 7including regulations7 and with the terms of the lease4 7e7 ,proposed leasing program 7#a7 ,in general ,during the preparation of any proposed leasing program under this section1 the ,secretary-- 7,a7 shall invite and consider suggestions for the program from-- 7i7 any interested ,federal agency1 including the ,department of ,justice1 in consultation with the ,federal ,trade ,commission2 and 7ii7 the ,governor of any ,state that may become an affected ,state under the proposed program2 and 7,b7 may invite or consider any suggestions from-- 7i7 the executive of any affected local government in an affected ,state1 which have been previously submitted to the ,governor of the ,state2 and 7ii7 any other person4 7#b7 ,review and comments by affected ,states 7,a7 ,in general ,after preparation and at least #fj days before publication of a proposed leasing program in the ,federal ,register pursuant to paragraph 7#c71 the ,secretary shall submit a copy of the proposed program to the ,governor of each affected ,state for review and comment4 7,b7 ,local governments ,the ,governor of a ,state may solicit comments from the executives of local governments in the ,state that the ,governor1 at the discretion of the ,governor1 determines will be affected by the proposed program4 7,c7 ,reply by ,secretary ,if any comment by a ,governor is received by the ,secretary at least #ae days before submission to ,congress pursuant to such paragraph 7#c7 and includes a request for any modification of the proposed program1 the ,secretary shall reply in writing-- 7i7 7,i7 granting or denying the request in whole or in part2 or 7,,ii7 granting the request in such modified form as the ,secretary considers appropriate2 and 7ii7 stating the reasons for the actions of the ,secretary4 7,d7 ,correspondence ,all correspondence between the ,secretary and ,governor of any affected ,state under this paragraph1 together with any additional information and data relating to the correspondence1 shall accompany the proposed program when the proposed program is submitted to ,congress4 7#c7 ,submission and publication 7,a7 ,in general ,not later than #bgj days after the date of enactment of the ,,coal ,reform ,act of #bjag1 the ,secretary shall-- 7i7 submit a proposed leasing program to ,congress1 the ,attorney ,general1 and the ,governors of affected ,states2 and 7ii7 publish the proposed program in the ,federal ,register4 7,b7 ,local governments ,a ,governor shall1 on request1 submit a copy of the proposed leasing program to the executive of any local government affected by the proposed program4 7f7 ,administration 7#a7 ,in general ,not later than #ij days after the date of publication of a proposed leasing program1 the ,attorney ,general may1 after consultation with the ,federal ,trade ,commission1 submit comments on the anticipated effects of the proposed program on competition4 7#b7 ,other comments ,any ,state1 local government1 or other person may submit comments and recommendations as to any aspect of the proposed program4 7#c7 ,response by ,secretary 7,a7 ,in general ,at least #fj days before approving a proposed leasing program1 the ,secretary shall submit the proposed program to the ,president and ,congress1 together with any comments received4 7,b7 ,recommendations ,the submission shall indicate why any specific recommendation of the ,attorney ,general or a ,state or local government was not accepted4 7#d7 ,new leases 7,a7 ,in general ,except as provided in subparagraph 7,b71 after the leasing program has been approved by the ,secretary or the date that is #ah months after the date of enactment of the ,,coal ,reform ,act of #bjag 7whichever first occurs71 no lease shall be issued under this ,act unless the lease-- 7i7 is for an area included in the approved leasing program2 and 7ii7 contains provisions that are consistent with the approved leasing program4 7,b7 ,continued leasing ,leasing shall be permitted to continue until the program is approved and while the program is under judicial or administrative review pursuant to this ,act4 7g7 ,review and revision 7#a7 ,review ,the ,secretary shall review the leasing program approved under this section at least once each year4 7#b7 ,revisions 7,a7 ,in general ,the ,secretary may revise and reapprove the leasing program at any time4 7,b7 ,procedure ,the ,secretary shall revise and reapprove the leasing program in the same manner at the original plan unless the revision is not significant1 as determined by the ,secretary4 7h7 ,procedures 7#a7 ,in general ,the ,secretary shall1 by regulation1 establish procedures for-- 7,a7 receipt and consideration of nominations for any area to be offered for lease or to be excluded from leasing2 7,b7 public notice of and participation in development of the leasing program2 7,c7 review by ,state and local governments that may be impacted by the proposed leasing2 and 7,d7 periodic consultation with ,state and local governments1 coal lessees and permittees1 and representatives of other individuals or organizations engaged in activity in areas covered by leases4 7#b7 ,revisions ,the procedures shall be applicable to any significant revision or reapproval of the leasing program4 7i7 ,information requested by ,secretary 7#a7 ,in general ,the ,secretary may obtain from public sources1 or purchase from private sources1 any survey1 data1 report1 or other information 7including interpretations of such data1 survey1 report1 or other information7 that may be necessary to assist the ,secretary in preparing any environmental impact statement and in making other evaluations required by this ,act4 7#b7 ,confidential information 7,a7 ,in general ,data of a classified nature provided to the ,secretary under this subsection shall remain confidential for such period of time as agreed to by the head of the department or agency from whom the information is requested4 7,b7 ,period ,the ,secretary shall maintain the confidentiality of all privileged or proprietary data or information for such period of time as is provided for in this ,act1 established by regulation1 or agreed to by the parties4 7j7 ,information provided by other ,federal agencies 7#a7 ,in general ,the head of a ,federal department or agency-- 7,a7 shall provide the ,secretary with any nonprivileged or nonproprietary information the ,secretary requests to assist the ,secretary in preparing the leasing program2 and 7,b7 may provide the ,secretary with any privileged or proprietary information the ,secretary requests to assist the ,secretary in preparing the leasing program4 7#b7 ,confidential information ,privileged or proprietary information provided to the ,secretary under this subsection shall remain confidential for such period of time as agreed to by the head of the department or agency from whom the information is requested4 7#c7 ,existing resources ,in carrying out this subsection1 the ,secretary may use the existing capabilities and resources of a ,federal department or agency by appropriate agreement4 7k7 ,regulations ,not later than #ahj days after the date of enactment of the ,,coal ,reform ,act of #bjag1 the ,secretary shall issue such regulations as are necessary to carry out this section1 including regulations that 7to the maximum extent practicable7-- 7#a7 minimize discretion by ,state offices of the ,department of the ,interior in conducting lease sales2 and 7#b7 maximize the financial return for taxpayers of the ,united ,states4 4 #aa4 ,rental rates ,section #g7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bjg7 is amended in the third sentence by inserting at a rental rate of not less than #ajj per acre 7as reviewed and1 if appropriate1 adjusted by the ,secretary every #e years7 before the period at the end4 #ab4 ,primary term of lease ,section #g of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bjg7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the first sentence1 by striking twenty and inserting #aj2 7,b7 in the second sentence1 by striking ten and inserting #e2 and 7,c7 in the sixth sentence-- 7i7 by striking twenty and inserting #aj2 and 7ii7 by striking ten and inserting #e2 and 7#b7 in subsection 7b77#e71 by striking #bj and inserting #aj4 #ac4 ,minimum value ,the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 is amended-- 7#a7 in sections #g7;a7 and #ad 7#cj ,u4,s4,c4 #bjg7;a71 #bbc71 by striking #ab per centum each place it appears and inserting #ah4ge percent2 7#b7 in section #ag 7#cj ,u4,s4,c4 #bbf7-- 7,a7 in subsection 7b7-- 7i7 in paragraph 7#a77;,a71 in the fifth sentence1 by striking #ab4e percent and inserting #ah4ge percent2 and 7ii7 in paragraph 7#b77;,a77ii7-- 7,i7 by striking #ab per centum and inserting #ah4ge percent2 and 7,,ii7 by striking 7k77#a77;c7 and inserting 7k77#a77;,c72 7,b7 in subsection 7c77#a71 in the second sentence1 by striking #ab4e percent and inserting #ah4ge percent2 and 7,c7 in subsections 7l7 and 7n77#a77;,c71 by striking #ab per centum each place it appears and inserting #ah4ge percent2 7#c7 in section #ah 7#da ,stat4 #ddc71 by striking #ab per centum and inserting #ah4ge percent2 and 7#d7 in sections #ai1 #bj1 and #ca7;f77#d7 7#cj ,u4,s4,c4 #bbh1 #bbi1 #ahh7;f77#d771 by striking #ab per centum each place it appears and inserting #ah4ge percent4 #ad4 ,inspection and enforcement ,section #da of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aie7 is amended by adding at the end the following3 7g7 ,inspection and enforcement 7#a7 ,in general ,the ,director of the ,bureau of ,land ,management shall promulgate regulations for inspections and enforcement of coal operations carried out under this ,act to ensure consistent and effective inspections and enforcement4 7#b7 ,inclusions ,the regulations promulgated pursuant to paragraph 7#a7 shall-- 7,a7 provide for oversight of ,state inspection and enforcement programs for coal operations by the ,washington1 ,district of ,columbia office of the ,bureau of ,land ,management2 7,b7 standardize inspection and enforcement practices for all ,state offices of the ,bureau of ,land ,management2 7,c7 require documentation of inspection and enforcement activities and the recordation of all inspection results in a central database2 and 7,d7 require periodic unannounced inspections4 4 #ae4 ,civil penalties ,section #da of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aie7 7as amended by section #ad7 is amended by adding at the end the following3 7h7 ,,blm ,authority ,to ,assess ,civil ,penalties 7#a7 ,in general ,the ,director of the ,bureau of ,land ,management may include in a notice of noncompliance issued to a person subject to the requirements of this ,act an assessment of a civil penalty in accordance with paragraph 7#b74 7#b7 ,maximum amount ,subject to paragraph 7#c71 a penalty assessed pursuant to paragraph 7#a7 shall not exceed #ajj1jjj per incident per day4 7#c7 ,adjustment ,the ,secretary may increase the maximum amount described in paragraph 7#b7 after notice and opportunity for public comment4 4 #af4 ,moratorium on new coal lease sales pending implementation ,notwithstanding any other provision of law1 the ,secretary of the ,interior shall not conduct a new lease sale1 or enter into a new lease1 for coal subject to the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 until the ,secretary certifies to ,congress that this ,act and the amendments made by this ,act have been implemented4