Pub. 7 2017 Issue 3

17 MINING FOCUS industry as inconsistent with existing leasing program safeguards. Notably, the current leasing program requires an open and competitive bidding process. Under existing federal rules at 43 CFR Subpart 3420, a bid for coal reserves cannot be accepted at lease sale unless the bid meets or exceeds fair market value, as independently determined by the agency. Further, prior to lease issuance, the rules now require an antitrust investigation by the U.S. Department of Justice. Despite questions as to the need for Federal Coal Program reform, and objections of the coal industry, former Secretary Jewell pushed to prepare a scoping report on the PEIS, which was published days before the end of her term. Similarly, on January 1, 2017, the Office of Natural Resources Revenue (ONRR) finalized a controversial rule changing the valuation of production royalties for oil, gas and coal leases on federal and Indian lands. Also late in the game, the Office of Surface Mining Regulation and Enforcement (OSMRE) finalized its stream protection rule effective January 19, 2017, one day before the change in administration. In finalizing the rule, OSMRE did not engage state agencies with primary regulatory authority under the Surface Mining Control and Reclamation Act. Many believe the Utah Division of Oil, Gas and Mining was not allowed meaningful comment on these rules. Upon taking office, the newadministration and Congress responded with a series of actions to repeal several of the rules and policies that were adopted at the tail end of the prior administration. On February 16, 2017, the president signed into law House Joint Resolution 38, to revoke OSMRE’s stream protection rule. This action was taken under the REGULATORY RELIEF continued on page 18 On March 28, 2017, the president signed Executive Order 13783, titled, “Promoting Energy Independence and Economic Growth,” announcing that “my administration is putting an end to the war on coal.” The president stated that, “with today’s executive action, I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations.”