SANTA FE, N.M. - The Bureau of Land Management (BLM) New Mexico State Office has announced the extension of reduced Federal coal royalty rates for nine counties in Oklahoma. The counties are Atoka, Coal, Haskell, Latimer, LeFlore, McIntosh, Muskogee, Pittsburgh, and Sequoyah. The Category 5 royalty rate reduction, which has been in place since 1990, will now be in effect until at least Dec. 17, 2019.
Coal operators will continue paying the reduced royalty rate of 2 percent for underground mines and 4 percent for surface mines, rather than the full Federal rate of 8 percent and 12.5 percent, respectively. This extension supports the area’s continued economic viability and encourages the greatest recovery of the Federal coal resources. This royalty rate reduction will help ensure that coal continues to be produced in this region, fostering continued development on America’s public lands, and helping to secure America’s energy independence.
BLM New Mexico has determined that the nine counties meet all of the criteria required for the royalty rate reduction under authority of 43 CFR 3473.3-2 (e) and 43 CFR 3485.2 (c). These royalty rates are only granted if the Federal coal lessee applies to the BLM in writing for a Category 5 royalty rate reduction and the BLM approves the application.
The BLM recognizes that Federal coal resources play an important role in the Nation’s energy portfolio. In FY 2016, more than 300 million tons of coal, with a total value of $4.9 billion, were produced from Federal leases. Over the past decade, Federal leases have produced 4.2 billion tons of coal, with a total value of $63.7 billion.
For more information, please contact BLM New Mexico Land Law Examiner Ida Viarreal at 505-954-2163.
Source: U.S. Department of the Interior, Bureau of Land Management
