• home
  • >
  • blog
  • >
  • OSMRE Rescinds Obsolete Coal Fee Rates in Federal Regulations

OSMRE Rescinds Obsolete Coal Fee Rates in Federal Regulations

  • By: Learn Laws®
  • Published: 11/28/2025
  • Updated: 11/28/2025

Introduction

The Office of Surface Mining Reclamation and Enforcement, part of the Department of the Interior, has published a direct final rule in the Federal Register to rescind outdated fee rates for coal produced for sale, transfer, or use. Effective January 27, 2026, unless significant adverse comments prompt withdrawal, this rule removes provisions from 30 CFR 870.13(a) that governed fees from October 1, 2012, through September 30, 2021. These rates expired following amendments to the Surface Mining Control and Reclamation Act by Public Law 117-58 in 2021, which extended and adjusted fees through September 30, 2034. Announced on November 28, 2025, this administrative action addresses regulatory obsolescence, ensuring federal rules reflect current statutory requirements without introducing new policies or costs. The significance lies in maintaining clear, up-to-date regulations for the coal industry and reclamation efforts, funded by these fees to address abandoned mine lands.

Background and Legislative Context

The fees in question stem from the Surface Mining Control and Reclamation Act of 1977, or SMCRA, which created the Abandoned Mine Reclamation Fund to restore lands affected by past coal mining. Under SMCRA, specifically 30 U.S.C. 1232(a), operators pay fees based on coal tonnage and type—surface-mined, underground-mined, or lignite—with rates tied to coal value or a fixed amount per ton. These funds support grants to states and tribes for mine reclamation, health benefits for retired miners, and related programs.

The now-rescinded rates in 30 CFR 870.13(a) were established following a 2006 amendment that reduced fees and extended them through 2021. However, the Infrastructure Investment and Jobs Act—Public Law 117-58, enacted in November 2021—further amended SMCRA to lower fees by 20 percent and extend the program to 2034. This legislative change rendered the prior rates obsolete, as new rates took effect on October 1, 2021. The Department of the Interior identified this discrepancy during a regulatory review, leading to the current rule. As stated in the Federal Register entry, 'Upon reviewing these regulations, the Department of the Interior and the Office of Surface Mining Reclamation and Enforcement have determined that this provision should be rescinded due to obsolescence resulting from the passage of time.'

This action aligns with broader federal efforts to streamline regulations, as seen in prior updates to SMCRA fee structures. For instance, the original 1977 rates were higher and not value-based, evolving over time to balance industry burdens with reclamation needs.

Key Players and Procedural Aspects

The primary agency involved is the Office of Surface Mining Reclamation and Enforcement, or OSMRE, which oversees SMCRA implementation. James Tyree, Chief of the Division of Regulatory Support at OSMRE, serves as the contact for further information, highlighting the agency's role in technical rulemaking. The rule was authorized by Leslie Shockley Beyer, Assistant Secretary for Land and Minerals Management at the Department of the Interior.

Procedurally, this is a direct final rule, bypassing traditional notice-and-comment under the Administrative Procedure Act's good cause exception in 5 U.S.C. 553(b)(B). The entry explains that notice and comment are 'unnecessary because this rule is noncontroversial, of a minor, technical nature, involves little agency discretion, and is unlikely to receive any significant adverse comments.' Comments are accepted until December 29, 2025, via regulations.gov or mail, with potential withdrawal if significant opposition arises. Significant adverse comments are defined as those opposing rescission based on inappropriateness or unintended consequences.

This approach reflects precedents in administrative law, such as similar housekeeping rules by agencies like the Environmental Protection Agency, where obsolete provisions are removed without full rulemaking to reduce regulatory clutter.

Details of the Regulatory Change

The rule specifically rescinds 30 CFR 870.13(a), which detailed fees for the 2012-2021 period, and redesignates the existing paragraph (b) as the sole content of section 870.13. No substantive changes are made to the current fees, which are now outlined in the revised section. For example, surface mining fees for anthracite, bituminous, and subbituminous coal are 22.4 cents per ton if the value is $2.24 or more per ton, or 10 percent of the value if less. Underground mining fees are 9.6 cents per ton or 10 percent of value, and lignite fees are 6.4 cents per ton or 2 percent of value. In situ mining has equivalent rates based on British thermal units.

These rates, effective from October 1, 2021, to September 30, 2034, represent a 20 percent reduction from prior levels, as mandated by Public Law 117-58. The Federal Register entry emphasizes that 'the content of existing paragraph (b) of 30 CFR 870.13 will become the entire remaining section. No changes were made to the content of existing paragraph (b).'

Implications and Perspectives

In the short term, this rescission simplifies compliance for coal operators by eliminating confusing, outdated text from the Code of Federal Regulations. It avoids potential misinterpretation of expired rates, ensuring stakeholders reference only applicable provisions. Long-term, it supports the sustainability of the Abandoned Mine Reclamation Fund, which has distributed billions for environmental restoration, by maintaining a clean regulatory framework.

From an industry perspective, groups like the National Mining Association may view this as a positive step toward regulatory efficiency, reducing administrative burdens without increasing fees. Environmental advocates, such as those from the Sierra Club, might appreciate the continued funding for reclamation but could argue for stronger enforcement or higher fees to address climate impacts. State governments, which receive fund distributions, benefit from clarity in federal rules, though some may push for further extensions beyond 2034 to tackle remaining abandoned sites.

The rule's procedural determinations confirm no significant impacts under executive orders, including no takings under Executive Order 12630, no federalism implications under Executive Order 13132, and no environmental effects requiring NEPA analysis, as it is a categorical exclusion for administrative actions.

Conclusion

This direct final rule by OSMRE effectively tidies federal regulations by removing obsolete coal fee rates, aligning them with current law. Key takeaways include the noncontroversial nature of the change and its focus on regulatory housekeeping. Looking ahead, potential next steps involve monitoring for comments by December 29, 2025, which could lead to rule withdrawal or revisions. Ongoing debates may center on the future of SMCRA fees post-2034, with challenges including balancing reclamation needs against declining coal production and transitioning to cleaner energy sources.

Learn More

We are an education company, not a law firm. The information and content we provide is for general informational purposes only and does not constitute legal advice. We make no representations, warranties, or guarantees regarding the accuracy, completeness, or applicability of the content. It is important to always consult with a qualified attorney for specific legal counsel pertaining to your individual circumstances.

people ask

Need more help? Schedule a Call.

We love our system, and we know you will, too! We’d be happy to explain how our system works, which options you have available, and which of those options would be the most effective and affordable for your budget. We know your time is valuable, so feel free to use the link below to select a time that works best for you or your team to meet with one of our experts.

Book Now Subscribe Now Search Courses