Mineral Resources
Interior's Actions on Three Coal Leases Gao ID: RCED-87-193 September 30, 1987In response to a congressional request, GAO reviewed the Bureau of Land Management's (BLM) proposal to suspend a portion of a firm's coal leases to encourage the firm's compliance with a law prohibiting a firm and its affiliates from obtaining additional onshore federal mineral leases if the firm is not producing coal from a lease within a certain time frame.
GAO found that: (1) BLM and the firm disagreed over the amount of recoverable reserves BLM should count to establish the leases' coal production requirements; (2) the firm and its parent company appealed the BLM determination, hoping to reduce it to a level that would ensure compliance; (3) the BLM proposal contained an alternative to improve the likelihood of compliance; (4) since the firm did not request that BLM act on its proposal, BLM took no action; and (5) the firm and its parent company have appealed the determination.