[Federal Register Volume 64, Number 187 (Tuesday, September 28, 1999)]
[Rules and Regulations]
[Pages 52239-52243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25181]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Parts 3400 and 3420

[WO-320-3420-24 1A]
RIN 1004-AD27


Public Participation in Coal Leasing

AGENCY: Bureau of Land Management, Interior.

ACTION: Final rule.

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SUMMARY: This final rule clarifies terms of a settlement agreement and 
a March 1995 law. In the settlement agreement, we agreed to establish 
procedures where the public may participate in the regional coal 
leasing process by regulations. In addition, this final rule amends the 
regulations to conform to statutory changes under the Unfunded Mandates 
Reform Act of 1995 exempting several types of meetings from Federal 
Advisory Committee Act requirements. This final rule exempts Regional 
Coal Team Meetings from the requirements of the Federal Advisory 
Committee Act in accordance with this law.

EFFECTIVE DATE: This rule is effective on October 28, 1999.

FOR FURTHER INFORMATION CONTACT: Philip Allard, Solid Minerals Group,

[[Page 52240]]

Bureau of Land Management, Mail Stop 401LS, 1849 ``C'' Street, NW, 
Washington, DC 20240; telephone (202) 452-5195. Individuals who use a 
telecommunication device for the deaf (TDD) may call the Federal 
Information Relay Service (FIRS) at 1-800-877-8339, 7 days a week, 24 
hours a day, except holidays, for assistance to reach the above 
contact.

SUPPLEMENTARY INFORMATION:

Contents

I. Background
II. Responses to Comments
III. Final Rule as Adopted
IV. Procedural Matters

I. Background

    This final rule satisfies terms of a settlement agreement 
negotiated in July 1997 and a March 1995 law. The Department of the 
Interior's coal leasing regulations were challenged in a lawsuit, 
Natural Resources Defense Council, Inc., et al. V. Jamison, et al., 
Civil No. 82-2763 (D.D.C.). In December 1992, the court decided that 
the Department had not complied with section 202(f) of the Federal Land 
Policy and Management Act, (43 U.S.C. 1712(f)).
    The court held that although the Bureau of Land Management's (BLM) 
competitive leasing handbook describes public participation procedures, 
the Department should establish these procedures by regulations. During 
the appeal process, the parties negotiated a settlement. In July 1997, 
the Department and the plaintiffs entered into a settlement agreement 
(Civil No. 82-2763 (D.C. Circuit No. 93-5029)).
    In the settlement, the Department agreed to identify in our 
regulations the points where the public may participate in regional 
coal leasing decisions. The BLM already provides this information in 
its competitive leasing handbook; therefore, public participation 
opportunities in competitive leasing are not substantially altered.
    On March 22, 1995, Congress passed the Unfunded Mandates Reform 
Act. Section 204(b) of this law (2 U.S.C. 1534) states that the 
requirements of the Federal Advisory Committee Act (FACA), 5 U.S.C. 
Appendix 1, do not apply to intergovernmental communications when:
     The meetings are exclusively between Federal officials and 
elected officers of State, local and tribal governments or their 
representatives; and
     The meetings are only to exchange views, information, or 
advice relating to Federal programs that share intergovernmental 
responsibilities.
    The Office of the Solicitor of the Department of the Interior 
determined that these provisions exempt Regional Coal Team (RCT) 
meetings from the requirements of FACA. The final rule amends the 
reference and clarifies which portion of the FACA regulations apply to 
RCTs because existing regulations at subpart 3400 incorporate FACA 
regulations at subpart 1784.
    The method BLM primarily uses to offer coal is to lease coal 
competitively. The two types of competitive leasing are ``regional coal 
leasing'' and ``leasing-on-application.'' The Department of the 
Interior initiates the regional coal leasing process based on the 
demand for Federal coal, national energy needs, and other factors. BLM 
must determine whether to offer Federal coal lands for lease and which 
coal to offer. Since issues surrounding coal leasing can vary greatly 
from region to region, Federal coal production regions assist BLM in 
this determination by grouping together areas with similar issues. The 
leasing-on-application process is initiated by individuals or 
companies, unlike the regional coal leasing process which is Government 
initiated.
    BLM must first begin the regional coal leasing process by creating 
a land use plan, in which BLM-managed lands are reviewed to determine, 
among other factors, the presence or absence of:
     Coal;
     Other resources that might preclude developing coal;
     Other uses for the land that might be preferable to coal 
development; and
     Any qualified surface owners who oppose or favor coal 
development.

This review allows BLM to identify the land that is acceptable for 
further consideration for coal leasing. Second, the Secretary sets the 
leasing level for the region after considering the land use plan, the 
amount of leasing interest in the region, national energy needs, and 
other factors. Third, BLM initiates ``regional coal activity planning'' 
during which BLM prepares environmental documents that analyze one or 
more combinations of tracts that equal the leasing level and other 
alternatives. Finally, the Secretary determines the lease sale schedule 
based on the environmental analysis, public comments, comments from 
State Governors, tribal governments, and other Federal agencies. The 
schedule includes the number of tracts which will be offered for lease 
and the timing of the lease sales.
    Unlike the regional coal leasing process, the leasing-on-
application process begins when an individual or company applies for a 
particular coal deposit. There is no need to establish a leasing level 
because the amount of coal applied for provides the starting point for 
the amount of coal to be analyzed. There is also no leasing schedule 
because BLM usually offers coal tracts based on at most one or two 
applications in leasing-on-application lease sales. The RCT located in 
the applicable coal production region may review the applications and 
may make recommendations on the application. For a number of years, BLM 
has competitively leased Federal coal exclusively through the leasing-
on-application process.
    Regional coal teams are composed of BLM employees and State 
Governors or their designees in the States where the coal tracts are 
located. The RCTs recommend the leasing level for regional coal 
leasing, a target amount of coal that BLM may offer for sale, and the 
lease sale schedule to the BLM Director. The BLM Director makes 
recommendations to the Secretary of the Interior. The Secretary makes 
the final decision on leasing levels and a lease sale schedule, taking 
into account recommendations from the BLM Director, RCT, State 
Governors, and other interested and affected groups including members 
of the general public.
    BLM divided Federally owned coal deposits into broad blocks called 
``Federal coal production regions.'' There are six Federal coal 
production regions located principally in the western United States. 
The Federal coal production regions are:
     The Southern Appalachian Region in northwestern Alabama;
     The Fort Union Region of eastern Montana and western North 
Dakota;
     The Green River-Hams Fork Region of northwestern Colorado 
and southern Wyoming;
     The Powder River Region of northeastern Wyoming and 
southeastern Montana;
     The San Juan Region of northwestern New Mexico and 
southwestern Colorado; and
     The Uinta-Southwestern Utah Region of eastern Utah and 
western Colorado.
BLM decertified the Federal coal production regions because we do not 
believe the demand for new Federal coal leases is sufficient to justify 
regional coal leasing at this time. RCTs will continue to meet on an ad 
hoc basis to advise BLM on lease-on-application coal sales.

II. Responses to Comments

    On March 11, 1999, (64 FR 12142), BLM published the Public 
Participation

[[Page 52241]]

in Coal Leasing proposed rule in the Federal Register. The 60-day 
public comment period on the Public Participation in Coal Leasing 
proposed rule ended on May 10, 1999. We received no public comments on 
this proposed rule. However, BLM received four comment letters from its 
State Offices. One comment letter contained no substantive comments. We 
considered the other comments when finalizing this rule.
    Comment: The commenter stated that some of the information in the 
case files studied by Regional Coal Teams (RCTs) is proprietary to 
various individuals and corporations and, therefore, should be withheld 
from disclosure.
    Response: Proprietary information is protected from disclosure 
under the Freedom of Information Act (5 U.S.C. 552) and the regulations 
of the Department (43 CFR 2.13(c)). This rule makes no change to the 
way BLM handles proprietary data. Proprietary information submitted 
during the coal leasing process can still be protected from disclosure 
as described in 43 CFR 3420.1-2(b).
    Comment: The commenter expressed concerns over whether BLM 
considered the requirements of the Executive Order on Environmental 
Justice (E.O. 12898) in finalizing these regulations.
    Response: Environmental justice was one of the factors BLM 
considered when we evaluated the rule for compliance with the terms and 
conditions of the National Environmental Policy Act (42 U.S.C. 4321 et 
seq.). Environmental justice is also one of the factors we consider 
when we evaluate Federal lands for coal leasing. This rule makes no 
change to the standards BLM will use when evaluating potential coal 
leases. BLM complies with the Executive Order on Environmental Justice 
during the preparation of our environmental assessment or environmental 
impact statement for a proposed coal lease sale.
    Comment: One commenter proposed several changes to the text of the 
preamble which we did not consider to be substantive. However, the 
commenter also pointed out that the use of the phrase ``BLM will 
publish a notice * * * for two consecutive weeks in a newspaper * * *'' 
could be read to require us to publish such a notice 14 times if the 
newspaper happened to be a daily publication.
    Response: BLM's intent is to have the notices described in the rule 
published two times, one week apart. We have changed the final rule in 
three places to more precisely express our intent.

III. Final Rule as Adopted

    BLM adopts the amendments to 43 CFR Parts 3400 and 3420 in the 
proposed rule which was published in the Federal Register on March 11, 
1999, (64 FR 12142), as a final rule except for the changes described 
below for three sections.

Section 3420.3-4 Regional Tract Ranking, Selection, Environmental 
Analysis and Scheduling

    The language in the proposed rule for Sec. 3420.304(d) stated that 
we would publish a notice of the 60-day comment period and public 
hearing on a draft environmental impact statement for two consecutive 
weeks in a newspaper of general circulation in the area of the sale. 
One comment letter pointed out that this could be read to require the 
BLM to publish this notice for 14 days should the newspaper chosen for 
this publication be a daily paper. This is a change from our present 
practice of printing a notice of availability two times, one week 
apart, in a newspaper of general circulation in the area of the sale. 
We do not intend to change this practice. We have modified the language 
to more precisely state our intent. Instead of using the phrase ``for 
two consecutive weeks'' we now say ``at least once per week for two 
consecutive weeks.''

Section 3422.1 Fair Market Value and Maximum Economic Recovery

    The language in the proposed rule for Sec. 3422.1(a) stated that we 
would publish a solicitation for comments on fair market value and 
maximum economic recovery of coal tracts for two consecutive weeks in a 
newspaper of general circulation in the area of the sale. One comment 
letter pointed out that this could be read to require the BLM to 
publish this solicitation for 14 days should the newspaper chosen for 
this publication be a daily paper. This is a change from our present 
practice of printing a solicitation of availability two times, one week 
apart, in a newspaper of general circulation in the area of the sale. 
We do not intend to change this practice.
    We have modified the language to more precisely state our intent. 
Instead of using the phrase ``for two consecutive weeks'' we now say 
``at least once per week for two consecutive weeks.''

Section 3425.3 Environmental Analysis

    The language in the proposed rule for Sec. 3425.3(a) stated that we 
would publish a notice of the availability of and public hearing for 
the environmental assessment or draft environmental impact statement 
for two consecutive weeks in a newspaper of general circulation in the 
area of the sale. One comment letter pointed out that this could be 
read to require the BLM to publish this notice for 14 days should the 
newspaper chosen for this publication be a daily paper. This is a 
change from our present practice of printing a notice of availability 
two times, one week apart, in a newspaper of general circulation in the 
area of the sale. We do not intend to change this practice. We have 
modified the language to more precisely state our intent. Instead of 
using the phrase ``for two consecutive weeks'' we now say ``at least 
once per week for two consecutive weeks.''

IV. Procedural Matters

Executive Order 12866, Regulatory Planning and Review

    This final rule is not a significant rule and was not subject to 
review by the Office of Management and Budget under Executive Order 
12866. We have determined that this final rule does not have an annual 
economic impact of $100 million or more; have an adverse impact in a 
material way on the economy, environment, public health, safety, other 
units of government, or sectors of the economy; pose a serious 
inconsistency or interfere with an action taken or planned by another 
agency; have novel legal or policy implications; or have material 
effects on budgets or rights and obligations of recipients of 
entitlements, fees, grants, or loans. Therefore, we do not have to 
assess the potential costs and benefits of the rule under section 
6(a)(3) of this order and no OMB review under the order is required.

National Environmental Policy Act

    BLM considers this final rule to be an administrative action to 
incorporate current BLM policy on public participation in the coal 
leasing process into the regulations. Therefore, it is categorically 
excluded from environmental review under section 102(2)(C) of the 
National Environmental Policy Act of 1969, pursuant to 516 Departmental 
Manual (DM), Chapter 2, Appendix 1, Item 1.10. In addition, this final 
rule does not meet any of the 10 criteria for exceptions to categorical 
exclusions listed in 516 DM, Chapter 2, Appendix 2. Pursuant to Council 
on Environmental Quality regulations (40 FR 1508.4) and the 
environmental policies and procedures of the Department of the 
Interior, the term ``categorical exclusions'' means a category of 
actions which individually and cumulatively do not have a

[[Page 52242]]

significant effect on the human environment and that has been found to 
have no such effect in procedures adopted by a Federal agency and for 
which neither an environmental assessment nor an environmental impact 
statement is required. This final rule does not directly affect the 
environment. Any coal tract considered for leasing will be subject to 
further NEPA analysis on a case-by-case basis.

Regulatory Flexibility Act

    This final rule does not require a regulatory flexibility analysis. 
Congress enacted the Regulatory Flexibility Act of 1980 (RFA), as 
amended, 5 U.S.C. 601-612, to ensure that Government regulations do not 
unnecessarily or disproportionately burden small entities. The RFA 
requires a regulatory flexibility analysis if a rule has a significant 
economic impact, either detrimental or beneficial, on a substantial 
number of small entities. This final rule would not have significant 
economic impacts on small entities under the RFA, 5 U.S.C. 601 et seq. 
Small entities would not be affected adversely or beneficially by these 
requirements but would be given the opportunity to participate in the 
coal leasing process by regulations, rather than by internal agency 
guidance.

Small Business Regulatory Enforcement Fairness Act

    This final rule is not a ``major rule'' as defined by the Small 
Business Regulatory Enforcement Fairness Act, 5 U.S.C. 804(2). This 
final rule will not have a significant impact on the economy or on 
small businesses in particular. This final rule would not substantially 
change BLM's existing policy.

Unfunded Mandates Reform Act

    This final rule does not impose an unfunded mandate on State, local 
or tribal governments or the private sector of more than $100 million 
per year. This final rule does not have a significant or unique effect 
on State, local, or tribal governments or the private sector. This 
final rule places current BLM policy on public participation in the 
coal leasing process in the regulations. Therefore, we are not required 
to prepare a statement containing the information required by the 
Unfunded Mandates Reform Act, (2 U.S.C. 1531 et seq.).

Executive Order 12630, Takings

    This final rule does not represent a government action capable of 
interfering with constitutionally protected property rights. Therefore, 
we have determined that this final rule would not cause a taking of 
private property.

Executive Order 12612, Federalism

    This final rule will not have a substantial direct effect 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. We designed the Federal Coal Management 
Program to allow the maximum participation of affected States in 
decisions about regional coal leasing and development through RCTs. 
RCTs make recommendations to the BLM Director for the Secretary on the 
regional coal leasing levels of coal to be analyzed for possible sale 
and on the amount of coal offered. If the Secretary does not accept 
their decisions, the Secretary must publicly state why. We have 
determined that this final rule does not have sufficient Federalism 
implications to warrant preparation of a Federalism assessment.

Executive Order 12988, Civil Justice Reform

    The Office of the Solicitor has determined that this final rule 
will not unduly burden the judicial system and that it meets the 
requirements of sections 3(a) and 3(b)(2) of Executive Order 12988.

Paperwork Reduction Act

    This final rule does not require an information collection from 10 
or more parties and a submission under the Paperwork Reduction Act is 
not required.

Authors

    The principal author of this final rule is Philip Allard, Solid 
Minerals Group, assisted by Shirlean Beshir, Regulatory Affairs Group.

List of Subjects in 43 CFR Part 3400

    Coal, Intergovernmental relations, Mines, Public lands-
classification, Public lands-mineral resources.

List of Subjects in 43 CFR Part 3420

    Administrative practice and procedure, Coal, Environmental 
protection, Intergovernmental relations, Mines, Public lands-mineral 
resources.

    Dated: September 17, 1999.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.

    Accordingly, under the authority of the Mineral Leasing Act of 
February 25, 1920, as amended (30 U.S.C. 181 et seq.), the Mineral 
Leasing Act for Acquired Lands, as amended (30 U.S.C. 351-359), the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1740), and 
the Secretary's enforcement powers, BLM adopts as final the amendments 
to 43 CFR Parts 3400 and 3420, as set forth below:

PART 3400--COAL MANAGEMENT: GENERAL

    1. The authority citation for part 3400 continues to read as 
follows:

    Authority: 30 U.S.C. 189, 359, 1211, 1251, 1266, and 1273; 43 
U.S.C. 1461, 1733, and 1740.

    2. Amend Sec. 3400.4 by revising paragraph (g) to read:


Sec. 3400.4  Federal/state government cooperation.

* * * * *
    (g) The regional coal team will function under the public 
participation procedures at Secs. 1784.4-2, 1784.4-3, and 1784.5 of 
this chapter.
    3. The authority citation for part 3420 continues to read as 
follows:

    Authority: The Mineral Leasing Act of 1920, as amended and 
supplemented (30 U.S.C. 181 et seq.), the Mineral Leasing Act for 
Acquired Lands of 1947, as amended (30 U.S.C. 351-359), the Multiple 
Mineral Development Act of 1954 (30 U.S.C. 521-531 et seq.), the 
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1201 
et seq.), the Department of Energy Organization Act of 1977 (42 
U.S.C. 7101 et seq.), the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1701 et seq.), and the Small Business Act of 1953, 
as mended (15 U.S.C. 631 et seq.).

PART 3420--COMPETITIVE LEASING

    4. Amend Sec. 3420.1-4 by revising paragraph (a) to read:


Sec. 3420.1-4  General requirements for land use planning.

    (a) The Secretary may not hold a lease sale under this part unless 
the lands containing the coal deposits are included in a comprehensive 
land use plan or land use analysis. The land use plan or land use 
analysis will be conducted with public notice and opportunity for 
participation at the points specified in Sec. 1610.2(f) of this title. 
The sale must be compatible with, and subject to, any relevant 
stipulations, guidelines, and standards set out in that plan or 
analysis.
* * * * *
    5. Amend Sec. 3420.2 by removing the last sentence of paragraph 
(a)(1), and adding in its place two sentences as set forth below, 
revising the last sentence of paragraph (a)(4), removing ``and'' from 
the end of paragraph (c)(8), redesignating current paragraph (c)(9) as

[[Page 52243]]

paragraph (c)(10), and adding a new (c)(9) to read:


Sec. 3420.2  Regional leasing levels.

    (a)(1) * * * This range of initial leasing levels must be based on 
information available to the State Director including: land use 
planning data; the results of the call for coal resource information 
held under Sec. 3420.1-2 of this subpart; the results of the call for 
expressions of leasing interest held under Sec. 3420.3-2 of this 
subpart; and other considerations. The State Director will consider 
comments received from the public in writing and at hearings, and input 
and advice from the Governors of the affected States regarding 
assumptions, data, and other factors pertinent to the region;
* * * * *
    (a)(4) * * * The team also must transmit to the Secretary, without 
change, all comments and recommendations of the Governor and the 
public.
* * * * *
    (c) * * *
    (9) Comments received from the public in writing and at public 
hearings; and
* * * * *
    6. Amend Sec. 3420.3-1 by adding a new paragraph (d) to read:


Sec. 3420.3-1  Area identification process.

* * * * *
    (d) Public notice and opportunity for participation in activity 
planning must be appropriate to the area and the people involved. The 
Bureau of Land Management will make available a calendar listing of the 
points in the planning process at which the public may participate, 
including:
    (1) The regional coal team meeting to recommend initial leasing 
levels (see Sec. 3420.2(a)(4));
    (2) The regional coal team meeting for tract ranking (see 
Sec. 3420.3-4(a));
    (3) Publication of the regional coal lease sale environmental 
impact statement (see Sec. 3420.3-4(c)); and
    (4) The regional coal team meeting to recommend specific tracts for 
a lease sale and a lease sale schedule (see Sec. 3420.3-4(g)).
    7. Amend Sec. 3420.3-4 by removing the third sentence in paragraph 
(a)(1), and adding in its place four sentences as set forth below, 
adding two sentences after the first sentence in paragraph (a)(5), 
adding a new sentence at the end of paragraph (d), revising paragraph 
(f), and removing the first sentence in paragraph (g) and adding in its 
place two new sentences as set forth below:


Sec. 3420.3-4  Regional tract ranking, selection, environmental 
analysis and scheduling.

    (a)(1) * * * The subfactors the regional coal team will consider 
under each category are those the regional coal team determines are 
appropriate for that region. The regional coal team will make its 
determination after publishing notice in the Federal Register that the 
public has 30 days to comment on the subfactors. The regional coal team 
will then consider any comments it receives in determining the 
subfactors. BLM will publish the subfactors in the regional lease sale 
environmental impact statement required by this section.* * *
* * * * *
    (5) * * * BLM will publish the notice no later than 45 days before 
the meeting. The notice will list potential topics for discussion.***
* * * * *
    (d) * * * BLM will publish a notice in the Federal Register of the 
60-day comment period and the public hearing on the draft environmental 
impact statement. BLM also will publish the notice at least once per 
week for two consecutive weeks in a newspaper of general circulation in 
the area of the sale.
* * * * *
    (f) When the comment period on the draft environmental impact 
statement closes, the regional coal team will analyze the comments and 
make any appropriate revisions in the tract ranking and selection. The 
final regional lease sale environmental impact statement will reflect 
such revisions and will include all comments received.
    (g) When BLM completes and releases the final regional lease sale 
environmental impact statement, the regional coal team will meet and 
recommend specific tracts for lease sale and a lease sale schedule. The 
regional coal team will provide notice in the Federal Register of the 
date and location at least 45 days before its meeting.* * *
* * * * *
    8. Amend Sec. 3420.5-2 by adding two sentences at the end of 
paragraph (a) to read:


Sec. 3420.5-2  Revision.

    (a) * * * BLM will publish a notice in the Federal Register and 
provide a 30-day comment period before it makes any revision increasing 
the number or frequency of sales, or the amount of coal offered. BLM 
will publish any revision in the Federal Register.
* * * * *
    9. Amend Sec. 3422.1 by adding a sentence after the first sentence 
in paragraph (a) to read:


Sec. 3422.1  Fair market value and maximum economic recovery.

    (a) * * * BLM will publish the solicitation in the Federal Register 
and at least once per week for two consecutive weeks in a newspaper of 
general circulation in the area of the sale.* * *
* * * * *
    10. Amend Sec. 3422.2 by removing the third sentence in paragraph 
(a) and adding in its place two sentences to read as follows:


Sec. 3422.2  Notice of sale and detailed statement.

    (a) * * * BLM will post notice of the sale in BLM State Office 
where the coal lands are managed. BLM will also mail notice to any 
surface owner of lands noticed for sale and to any other person who has 
requested notice of sales in the area.* * *
* * * * *
    11. Amend Sec. 3425.1-9 by adding a sentence at the end of this 
section to read:


Sec. 3425.1-9  Modification of application area.

    * * * If an environmental assessment of the modification is 
required, BLM will solicit and consider public comments on the modified 
application.
    12. Amend Sec. 3425.3(a) by adding two sentences at the end of 
paragraph (a) to read:


Sec. 3425.3  Environmental analysis.

    (a) * * * BLM will publish a notice in the Federal Register, and at 
least once per week for two consecutive weeks in a newspaper of general 
circulation in the area of the sale, announcing the availability of the 
environmental assessment or draft environmental impact statement and 
the hearing required by Sec. 3425.4(a)(1). BLM also will mail to the 
surface owner a notice of any lands to be offered for sale and to any 
person who has requested notice of sales in the area.
* * * * *
[FR Doc. 99-25181 Filed 9-27-99; 8:45 am]
BILLING CODE 4310-84-P