NOTICE of COAL FEE RATE EXTENSION
September 30, 2004

We recently notified you of the coal fee rate changes that were published in the Federal 
Register on September 17, 2004.  We are now notifying you that those rates will not 
apply until at least November 20, 2004.  On September 29, 2004, Congress passed a 
continuing resolution that extended the original fee rates until November 20, 2004.  As a 
result of this statutory extension, the new fee rates will not take legal effect until the 
November 20, 2004, expiration of this continuing resolution or any subsequent 
continuing resolution that extends the coal reclamation fee collection authority.  
Similarly, the new fee rates will not be needed if Congress reauthorizes or otherwise 
extends the expiration date of the current program.        

The coal reclamation fee rates for each ton of coal used, sold or transferred after 
September 30, 2004, are:  

o  Surface-mined coal (except lignite) - 35 cents per ton; 

o  Underground-mined coal (except lignite) - 15 cents per ton; and

o  Lignite - 10 cents per ton.

These rates are effective on October 1, 2004, for the 4th quarter filing due on 
January 30, 2005.   The rates apply through November 20, 2004.  Should these rates 
change or be extended further, we will notify you as soon as possible.  

If you have any questions, please call 1-800-799-4265, Ext 325.  We regret any 
inconvenience this situation may cause you.  

Sincerely,


Sean Spillane, Chief
Fee Accounting and Collection Branch