Energy Law Update: OSM Gives Interim Approval to Proposed Increase & Extension of the West Virginia Special Reclamation Tax
The Office of Surface Mining Reclamation and Enforcement ("OSM") has given interim approval to proposed amendments to the West Virginia Surface Coal Mining and Reclamation Act, found at W. Va. Code §22-3-1, et seq. ("WVSCMRA"), which essentially consolidate the existing special reclamation tax of $0.074/ton and the additional tax of $0.07/ton of clean coal mined under WVSCMRA.
For tax periods beginning on or after July 1, 2009, the special reclamation tax will increase from $0.074/ton to $0.144/ton of clean coal mined, subject to biennial review by the West Virginia Legislature. The amendment will then eliminate the "additional" tax of $0.07/ton of clean coal mined, which was levied in addition to the special reclamation tax under former provisions of §22-3-11.
Revenues generated by the special reclamation tax provisions of WVSCMRA fund the State's Special Reclamation Fund and the Special Reclamation Water Trust Fund - funds that are used to reclaim bond forfeiture sites and to treat water discharged from those sites. The approved amendments will not change the level of funding for these reclamation obligations.
Final approval of the amendments will follow a public comment period ending August 21, 2009. If requested, OSM will hold a public hearing on the amendments on August 17, 2009. OSM's interim approval was published in the Federal Register on July 22, 2009. See 74 Fed. Reg. 36,113 (July 22, 2009).
J. Kevin Ellis
United Center
1085 Van Voorhis Rd.
Suite 400
Morgantown, WV 26507
kevin.ellis@steptoe-johnson.com
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