Legislative Changes Are Needed To Authorize Emergency Federal Coal Leasing
RCED-84-17
Published: Aug 02, 1984. Publicly Released: Aug 02, 1984.
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Highlights
Pursuant to a congressional request, GAO reviewed the Department of the Interior's administration of coal leases, focusing on: (1) Interior's emergency lease sale regulations; and (2) the need for legislative and administrative remedies to emergency leasing.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| To meet the emergency needs of existing mining operations, Congress should amend the Mineral Lands Leasing Act of 1920 to authorize the Secretary of the Interior to conduct emergency federal coal leasing using negotiated lease sale procedures for carrying it out. The legislation should provide for: (1) a statement of objectives to be achieved through emergency leasing; (2) opportunity for public comment and expressions of competitive leasing interest before conducting negotiated sales; (3) development of guidelines by the Secretary for negotiators to follow which, at a minimum, provide for access to economic and geological data, disclosure and protection of proprietary information, factors to consider in negotiating lease terms and reasonable value for the federal coal, and public disclosure of lease sale results; and (4) promulgation of regulations by the Secretary for designing and implementing an emergency coal leasing program consistent with its objectives and the above standards. |
Closed – Not Implemented
|
Diligent development of federal coal leases is a volatile issue on which the cognizant Senate and House legislative committees disagree. If lease negotiation is authorized, it will have to come on the coattails of diligence legislation. The latest bill does not provide authority for negotiated emergency coal lease sales. The Secretary of the Interior does not support the concept. |
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Coal leasesCompetitionFair market valueMining industryRegulationStatutory lawLease agreementsCoalMiningCompetitive bidding