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OSM seeking to update subsidy plan

THE US Office of Surface Mining Reclamation and Enforcement has unveiled a proposal to amend and ...

Donna Schmidt

The agency said the revisions would put its practices in line with other sectors and at the same time shift a larger portion of the costs for reviewing, administering and inspecting permits it issues to the industry.

In the proposed rule, which has been published in the Federal Register, the OSM has instituted a processing fee for provided services relating to reviewing permit applications.

It also outlined an annual fee to recover permit administration and inspection services, charging applicants only for incurred services.

“This proposal is one of the administration’s efforts to reduce federal spending and ensure that the American taxpayer receives a fair return for providing services that benefit mine operators,” OSM director Joe Pizarchik said.

“In these tight fiscal times, it makes sense that coal companies that directly benefit from these permits pay for the services they receive from the government and that we reduce the burden on the American taxpayer.”

Existing fees for these aspects of mining are part of the outlines of the Surface Mining Control and Reclamation Act of 1977 and the Independent Offices Appropriations Act of 1952.

The agency collects 2% of mining permit handling costs, leaving taxpayers to subsidize the balance.

It said it wanted to revise regulations to establish equitable fees for administering and handling permits, charge fees that did not exceed actual costs and minimize administrative burdens of billing and collecting the fees.

The OSM said the proposal, if it came to pass, would apply only to permits on lands where OSM was the regulatory authority for coal mine operations, including Tennessee, Washington and Indian lands.

States administering their own surface coal mining regulatory programs will not be affected.

The public can comment on the plan until May 28 at www.regulations.gov or by mailing input to the agency.

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