On the recordJuly 7, 2015
I thank the gentleman from Montana for yielding. Mr. Chairman, current Federal coal valuation rules have provided stable and significant royalty revenue to State, tribal, and Federal governments. Despite this tract record, the Department of the Interior has carelessly proposed to modify the valuation of Federal and Indian coal by granting the Office of Natural Resources Revenue new authority to deem sales, potentially disallow costs, and use the default rule to assert arbitrary values for royalty purposes. These broad new authorities come without clear or transparent guidelines for regulators and regulated parties alike, setting the stage for inconsistent valuation and protracted litigation. Furthermore, the arbitrary regulatory environment created by this rule could jeopardize affordable and reliable energy production, American jobs, and crucial revenue for State, Federal, and tribal governments. For these reasons, I encourage my colleagues to support this amendment and to stop funding for this new rule until the Department of the Interior can demonstrate the need, if there is any--and I am skeptical--to radically alter the way royalties are accessed on Federal coal.
