Statement by Jeff Jarrett, director, US Office of Surface Mining

"We are pleased that Congress has shown that it recognizes the importance of the AML program and the important work that remains to be completed by extending the deadline for the AML fee collection authority in the Continuing Resolution.

"We hope that this spotlight placed on the AML program will serve as a catalyst for more intense discussions on reasonable and equitable steps forward in addressing these problems and protecting the health and safety of those at risk by putting money where the problems are and finishing the job.

"OSM earlier this month took steps to establish new fee rates to insure that benefits were not cut off to retired miners and their families that are beneficiaries of the United Mine Workers of America Combined Benefits Fund (CBF) if Congress had allowed the AML fee authority to expire September 30. Now, those new rates will not go into effect -- at least as long the Continuing Resolution is in effect."

Background

The Administration's proposal for full reauthorization of the AML program, introduced in the Senate and the House in February of this year, is currently pending before Congress. In a September 17, 2004, Federal Register notice, OSM established new fee rates to become effective upon the scheduled September 30, 2004, expiration of the current reclamation based AML fees.

Under the Surface Mining Control and Reclamation Act, OSM's authority to levy a fee for reclamation ceased on September 30, 2004, leaving only the authority to establish a fee that would continue the transfer of funds to the CBF. Although the new fee rate was published in the form of a final rule to avoid any lapse in benefits, OSM also published a companion "proposed rule" to solicit comment from the public on the new fee structure. While the new fee rate will be held in abeyance pending further Congressional action on the AML program, the OSM will continue to take public comment on the proposed fee structure so that it may be put in place or modified in the event that formal action is not taken to reauthorize or extend AML fee collection authority.

Since the new fee rates recently published in the Federal Register would only take effect if the current AML fee collection authority is allowed to expire, the current AML fees will remain in effect until the November 20, 2004 expiration of this CR or any subsequent CR that extends the AML fee collection authority. If Congress reauthorizes the current program, or otherwise establishes new fee rates, then the fee rates established in OSM's regulations would not be needed at all.

In an effort to minimize confusion surrounding the fees, OSM is individually notifying operators that the current fee rates of 35 cents per ton of surface mined coal, 15 cents per ton of underground mined coal and 10 cents per ton of lignite coal continue to apply to coal mined in the U.S. pending further action by Congress on the reauthorization or extension of the AML program.