Rule2025-14623
Revision to Regulations Regarding Coal Management Provisions and Limitations; Fees, Rentals, and Royalties
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 1, 2025
Effective
September 30, 2025
Issuing agencies
Interior DepartmentLand Management Bureau
Abstract
This direct final rule (DFR) revises existing Bureau of Land Management (BLM) regulations pertaining to coal royalties to effectuate changes required by the One Big Beautiful Bill Act (OBBB) enacted on July 4, 2025.
Full Text
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<title>Federal Register, Volume 90 Issue 146 (Friday, August 1, 2025)</title>
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[Federal Register Volume 90, Number 146 (Friday, August 1, 2025)]
[Rules and Regulations]
[Pages 36122-36124]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14623]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3470
[Docket No. BLM-2025-0141; A2407-014-004-065516; #O2412-014-004-
047181.1]
RIN 1004-AF44
Revision to Regulations Regarding Coal Management Provisions and
Limitations; Fees, Rentals, and Royalties
AGENCY: Bureau of Land Management, Interior.
ACTION: Direct final rule; request for comments.
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SUMMARY: This direct final rule (DFR) revises existing Bureau of Land
Management (BLM) regulations pertaining to coal royalties to effectuate
changes required by the One Big Beautiful Bill Act (OBBB) enacted on
July 4, 2025.
DATES: This DFR is effective on September 30, 2025, unless significant
adverse comments are received by September 2, 2025. If significant
adverse comments are received, notice will be published in the Federal
Register before the effective date either withdrawing the rule or
issuing a new final rule that responds to any significant adverse
comments.
ADDRESSES: You may submit comments by one of the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
In the Search box, enter the Docket Number ``BLM-2025-0141'' and click
the ``Search'' button. Follow the instructions at this website.
<bullet> Mail, personal, or messenger delivery: U.S. Department of
the Interior, Director (630), Bureau of Land Management, 1849 C St. NW,
Room 5646, Washington, DC 20240, Attention: 1004-AF44.
FOR FURTHER INFORMATION CONTACT: Thomas Huebner, Geologist, email:
<a href="/cdn-cgi/l/email-protection#2b5f435e4e49454e596b494746054c445d"><span class="__cf_email__" data-cfemail="c4b0acb1a1a6aaa1b684a6a8a9eaa3abb2">[email protected]</span></a>, telephone: 307-775-6195. Individuals in the United
States who are deaf, deafblind, hard of hearing, or have a speech
disability may dial 711 (TTY, TDD, or TeleBraille) to access
telecommunications relay services. Individuals outside the United
States should use the relay services offered within their country to
make international calls to the point-of-contact in the United States.
For a summary of the final rule, please see the abstract
description of the document in Docket Number BLM-2025-0141 on
<a href="http://www.regulations.gov">www.regulations.gov</a>.
SUPPLEMENTARY INFORMATION: Coal leasing on Federal lands managed by the
BLM is governed by the Mineral Leasing Act of 1920 (MLA), 30 U.S.C. 181
et seq., and other pertinent statutes. See 43 CFR 3400.0-3. Section
7(a) of the MLA (30 U.S.C. 207(a)) sets out provisions governing the
conditions of coal leases issued on Federal lands, including the
royalty rates. Before passage of the OBBB on July 4, 2025, section 7(a)
of the MLA prescribed the royalty rate for coal leases to be set at not
less than 12\1/2\ per centum of the value of coal as defined by
regulation, except the Secretary may determine a lesser amount in the
case of coal recovered by underground mining operations. The BLM's
regulations implementing the royalty rate provisions of section 7(a)
are contained in 43 CFR subpart 3473--Fees, Rentals and Royalties. The
regulations at 43 CFR 3473.3-2 specify that a lease shall require
payment of a royalty of not less than 12\1/2\ percent of the value of
the coal removed from a surface mine, 43 CFR 3473.3-2(a)(1), and that a
lease shall require payment of a royalty of 8 percent of the value of
coal removed from an underground mine. 43 CFR 3473.3-2(a)(2). Lastly,
43 CFR 3473.3-2 specifies that the royalty rates in these provisions
shall be applied to new leases at the time of issuance and to
previously issued leases at the time of the next scheduled readjustment
of the lease. 43 CFR 3473.3-2(b).
Section 50202(a) of the OBBB amends the fourth sentence of section
7(a) of the MLA by striking ``12\1/2\ percentum'' and inserting ``12\1/
2\ percent, except such amount shall be not more than 7 percent during
the period that begins on the date of enactment of the Act entitled `An
Act to provide for reconciliation pursuant to title II of H. Con. Res.
14' (119th Congress) and ends September
[[Page 36123]]
30, 2034.'' Section 50202(b) of the OBBB makes these royalty rate
changes applicable to all existing Federal coal leases that are in
effect and that have not been terminated, as well as to all future
federal coal leases, until the provision sunsets on September 30, 2034.
As provided in section 50202 of the OBBB, the applicable coal
royalty provision in the MLA is now set at 12\1/2\ percent, except such
amount shall be not more than 7 percent during the period that begins
on July 4, 2025, and ends September 30, 2034. To effectuate this
revision, the BLM is issuing this DFR to amend the royalty rate
regulations in 43 CFR 3473.3-2 to reflect this change. This DFR sets
the royalty rate for coal removed from surface mines at not less than
12\1/2\ percent of the value of the coal removed from a surface mine,
except that such royalty shall be not more than 7 percent during the
period beginning on July 4, 2025, and ending on September 30, 2034. It
also sets the royalty rate for coal removed from underground mines at 8
percent of the value of the coal removed from an underground mine,
except that such royalty shall be not more than 7 percent during the
period beginning on July 4, 2025, and ending on September 30, 2034.
Issuance of this DFR will avoid any confusion on the part of the
regulated community as to the royalty rate for production from Federal
coal leases beginning on July 4, 2025, and ending on September 30,
2034.
The BLM has determined that 43 CFR 3473.3-2(a)(1) and (2) must be
revised to reflect the temporary ``not less than 7 percent'' royalty
rate applicable to all coal leases until the statutory sunset date,
such that these sections will now include a statement that the royalty
rate is not more than 7 percent beginning on July 4, 2025, and ending
on September 30, 2034. The pre-existing regulations at 43 CFR 3473.3-
2(b) are revised to remove the current language in its entirety, as
this provision allowed for a phase in of the prior royalty rates that
has now concluded. The revised Sec. 3473.3-2(b) states that the
temporary ``not less than 7 percent'' royalty rate is immediately
applicable to all existing and future leases beginning on July 4, 2025,
and ending on September 30, 2034, as section 50202(b) of the OBBB
directs. With these changes, the BLM's coal leasing regulations will
conform to the requirements of section 50202 of the OBBB regarding the
royalty rate for Federal coal leases.
The BLM has determined that it must conform its regulations to
newly enacted legislation and that legislation, independently and
alone, justifies the revisions to 43 CFR 3473.3-2. The BLM has no
interest in maintaining a regulation that is obsolete, inconsistent
with more recent controlling legislation, and could cause confusion.
The BLM is issuing this rule as a DFR. Although the Administrative
Procedure Act (APA, 5 U.S.C. 551 through 559) generally requires
agencies to engage in notice and comment rulemaking, section 553 of the
APA provides an exception when the agency ``for good cause finds'' that
notice and comment are ``impracticable, unnecessary, or contrary to the
public interest.'' Id. 553(b)(B). The BLM has determined that notice
and comment are unnecessary because this rule is noncontroversial and
involves no agency discretion to conform with a recent statute; and is
unlikely to receive any significant adverse comments. Significant
adverse comments are those that oppose the revision of the rule and
raise, alone or in combination, (1) Reasons why the revision of the
rule is inappropriate, including challenges to the revision's
underlying premise; or (2) Serious unintended consequences of the
revision. A comment recommending an addition to the rule will not be
considered significant and adverse unless the comment explains how this
direct final rule would be ineffective without the addition.
Procedural Matters
Executive Order (E.O.) 12630--Governmental Actions and Interference
With Constitutionally Protected Property Rights
This rule does not result in a taking of private property or
otherwise have regulatory takings implications under E.O. 12630. The
rule revises provisions that no longer reflect existing statutory
authority and removes and replaces and obsolete regulatory provisions,
as required by the OBBB. The rule will not result in private property
being taken for public use without just compensation. A takings
implication assessment is not required.
E.O. 12866--Regulatory Planning and Review and Executive Order 13563--
Improving Regulation and Regulatory Review
E.O. 12866 provides that the Office of Information and Regulatory
Affairs (OIRA) in the Office of Management and Budget (OMB) will review
all significant rules. OIRA has determined that this rule is not
significant.
E.O. 13563 reaffirms the principles of E.O. 12866, while calling
for improvements in the Nation's regulatory system to promote
predictability, reduce uncertainty, and use the best, most innovative,
and least burdensome tools for achieving regulatory ends. E.O. 13563
directs agencies to consider regulatory approaches that reduce burdens
and maintain flexibility and freedom of choice for the public where
these approaches are relevant, feasible, and consistent with regulatory
objectives. E.O. 13563 emphasizes further that agencies must base
regulations on the best available science and that the rulemaking
process must allow for public participation and an open exchange of
ideas. The BLM developed this rule in a manner consistent with these
requirements.
E.O. 12988--Civil Justice Reform
This DFR complies with the requirements of E.O. 12988. Among other
things, this rule:
(a) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation;
(b) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
E.O. 13132--Federalism
Under the criteria of section 1 of E.O. 13132, this rule does not
have sufficient federalism implications to warrant the preparation of a
federalism summary impact statement. This rule will not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government. A
federalism summary impact statement is not required.
E.O. 13175--Consultation and Coordination With Indian Tribal
Governments
The Department of the Interior strives to strengthen its
government-to-government relationship with Indian tribes through a
commitment to consultation with Tribes and recognition of their right
to self-governance and Tribal sovereignty. The BLM evaluated this DFR
under E.O. 13175 and the Department's consultation policies and
determined that it has no substantial direct effects on federally
recognized Indian tribes and that consultation under the Department's
Tribal consultation policies is not required. The rule merely revises
the Federal regulations as required by the OBBB and removes obsolete
regulatory language.
[[Page 36124]]
E.O. 13211--Actions Concerning Regulations That Significantly Affect
Energy Supply, Distribution, or Use
This DFR is not a significant energy action as defined in E.O.
13211. Therefore, a Statement of Energy Effects is not required.
National Environmental Policy Act (NEPA)
This DFR does not constitute a major Federal action significantly
affecting the quality of the human environment. A detailed statement
under NEPA (42 U.S.C. 4321 et seq.) is not required because this rule
is covered by a categorical exclusion applicable to regulatory
functions ``that are of an administrative, financial, legal, technical,
or procedural nature.'' 43 CFR 46.210(i). In addition, the BLM has
determined that this rule does not involve any of the extraordinary
circumstances listed in 43 CFR 46.215 that would require further
analysis under NEPA.
Paperwork Reduction Act
This rule does not impose any new information collection burden
under the Paperwork Reduction Act. OMB previously approved the
information collection activities contained in the existing regulations
and assigned OMB control number ####-####. This rule does not impose an
information collection burden because the Department is not making any
changes to the information collection requirements.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA, 5 U.S.C. 601-612) requires an
agency to prepare a regulatory flexibility analysis for all rules
unless the agency certifies that the rule will not have a significant
economic impact on a substantial number of small entities. The RFA
applies only to rules for which an agency is required to first publish
a proposed rule. See 5 U.S.C. 603(a) and 604(a). As the BLM is not
required to publish a notice of proposed rulemaking for this direct
final rule, the RFA does not apply.
Congressional Review Act
This rule is not a major rule under the Congressional Review Act, 5
U.S.C. 804(2). Specifically, the DFR: (a) Will not have an annual
effect on the economy of $100 million or more; (b) Will not cause a
major increase in costs or prices for consumers, individual industries,
Federal, State, or local government agencies, or geographic regions;
and (c) Will not have significant adverse effects on competition,
employment, investment, productivity, innovation, or on the ability of
United States-based enterprises to compete with foreign-based
enterprises in domestic and export markets.
Unfunded Mandates Reform Act
This rule does not impose an unfunded mandate on State, local, or
Tribal governments, or the private sector, of more than $100 million
per year. The rule does not have a significant or unique effect on
State, local, or Tribal governments, or the private sector. The rule
merely revises the Federal regulations in compliance with the OBBB and
to remove an obsolete provision. Therefore, a statement containing the
information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531
et seq.) is not required.
List of Subjects in 43 CFR Part 3470
Coal, Government contracts, Mineral royalties, Mines, Public
lands--mineral resources, Reporting and recordkeeping requirements,
Surety bonds
Adam G. Suess,
Acting Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, the Bureau of Land
Management amends 43 CFR part 3470 as follows:
PART 3470--COAL MANAGEMENT PROVISIONS AND LIMITATIONS
0
1. The authority citation for part 3470 continues to read as follows:
Authority: 30 U.S.C. 189 and 359; and 43 U.S.C. 1701 et seq.
0
2. Amend Sec. 3473.3-2 by revising paragraphs (a) and (b) to read as
follows:
(a)(1) A lease shall require payment of a royalty of not less than
12\1/2\ percent of the value of the coal removed from a surface mine,
except that such royalty rate shall be not more than 7 percent during
the period beginning on July 4, 2025, and ending on September 30, 2034.
(2) A lease shall require payment of a royalty of 8 percent of the
value of the coal removed from an underground mine, except that such
royalty rate shall be not more than 7 percent during the period
beginning on July 4, 2025, and ending on September 30, 2034.
(3) The value of coal removed from a mine is defined for royalty
purposes in Sec. 3483.4 of this title.
(b) The temporary royalty rate of not more than 7 percent during
the period beginning on July 4, 2025, and ending on September 30, 2034,
is applicable to all existing Federal coal leases that have not been
terminated.
* * * * *
[FR Doc. 2025-14623 Filed 7-31-25; 8:45 am]
BILLING CODE 4331-29-P
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