COALEX REPORT 196

	Coalex Report 196

This is the Office of Surface Mining's library of COALEX Research Reports. COALEX is a database of mining and reclamation information, including the Surface Mining Law and regulations, maintained in LEXIS-NEXIS -- a commercial, on-line research service. These reports have been compiled under a cooperative agreement between the Office of Surface Mining and the Interstate Mining Compact Commission, which represents most U.S. coal producing states. The following report includes an analysis of a specific issue requested by a state regulatory authority with responsibility for carrying out the Surface Mining Law. Copies of the research reports and attachments are available to the public, upon request. For additional information, or to obtain copies of the listed attachments, contact Ron Tarquinio by phone at (202) 208-2882 or by e-mail at rtarquin@osmre.gov.

                   

COALEX State Inquiry Report - 196
November, 1990

Jim Ellerhof
Division of Soil Conservation
Wallace State Office Building
Des Moines, Iowa 50319

TOPIC: TRANSFER OF A PERMIT

INQUIRY: Please locate administrative decisions which address problems a coal company may
have transferring a permit. What happens when one of the parties has outstanding violations? 

The fact situation in this case is as follows: Company "A", which owed outstanding fees, proposed
to transfer its permit to Company "B" but then A withdrew the transfer. B contested the
withdrawal of the transfer. Before this issued was adjudicated, A proposed to transfer its permit
to Company "C". The court ordered A to transfer its permit to B. As a result, A withdrew its
proposed transfer to C in order to resubmit the permit transfer to B. C contested the withdrawal
of the A's proposed transfer to it. 

SEARCH RESULTS: Research was conducted using the COALEX Library and other material
available in LEXIS. Few relevant materials were identified. The administrative decisions listed
below address some aspects of the fact situation described above. In addition to the Interior
opinions, preambles to two sets of final rules, an OSM directive and a prior COALEX Report on
ownership and control are attached to provide background information.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

CARBONEX COAL CO. v OSM, Docket Nos. TU 5-58-R et al. (1989).
   In this consent decision, Carbonex agreed to fulfill its reclamation requirements and pay its
assessed penalties. The decision included conditions for the transfer of Carbonex's permit
to another company.


CLARK COAL CO. v OSM, 102 IBLA 93, IBLA 86-627 & 87-348 (1988). Clark Coal Co. v OSM,
Docket No. NX 6-60-R (1987).
   Headnotes: "[A] permittee may not transfer, assign, or sell rights granted under any permit
without the written approval of the regulatory authority. Hence, a purported assignment
of the permittee's rights under the permit to a third party will not suffice to relieve the permittee
of liability for violations of the Act in the absence of an approved assignment."


Included for background information are these materials:

44 FR 14902 (MARCH 13, 1979). Excerpts from the permanent program final rules. Transfer, sale
and assignment of permit rights.

48 FR 44343 (SEPTEMBER 28, 1983). Final rule. Permitting.

OSM DIRECTIVE, Subject No. INE-33, Transmittal No. 636, "510(c) Permit review procedures for
federal permit applications" (Issued 9/18/90).

COALEX STATE INQUIRY REPORT - 148, "Contractor liability for violations; ownership and control
of operations" (1990).


ATACHMENTS
A.   CARBONEX COAL CO. v OSM, Docket Nos. TU 5-58-R et al. (1989).
B.   CLARK COAL CO. v OSM, 102 IBLA 93, IBLA 86-627 & 87-348 (1988).
C.   CLARK COAL CO. v OSM, Docket No. NX 6-60-R (1987).
D.   44 FR 14902 (MARCH 13, 1979). Excerpts from the permanent program final rules.
     Transfer, sale and assignment of permit rights.
E.   48 FR 44343 (SEPTEMBER 28, 1983). Final rule. Permitting.
F.   OSM DIRECTIVE, Subject No. INE-33, Transmittal No. 636, "510(c) Permit review
     procedures for federal permit applications" (Issued 9/18/90).
G.   COALEX STATE INQUIRY REPORT - 148, "Contractor liability for violations; ownership and
     control of operations" (1990).


Research conducted by: Joyce Zweben Scall

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