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![handle is hein.gao/gaobaaxoh0001 and id is 1 raw text is:
DOCUMENT IPESUIIE
06490 - [B1946968 ]
Inaccurate Estimates of Western Coal Beserves Should Be
Corrected. E1D-78-32; B-169124. July 11, 1978. 33 pp. + 4
appendices (16 pp.).
Report to the Congress; ty Elmer E. Staats, Couptrcller General.
Issue Area: Energy: Role of Fozsil Fuels in Neetizg Eutuze Needs
11609); Data Collected -rom Ncn-Federal Sources: Reliabijity
and Accuracy of Informe:tion (3101).
Contact: Energy and Minerals Div.
Budqet Function: Natural Reeourc-s, Envircnment, and Energy:
Lnezqy (305).
Orqanization Concerned: Department of the Inte-ior; Eepartment
of Enerqy; Geoloqical Survey.
Conqressional Relevance: House Committee on Inter or and Insular
Affairs; Senatc Committee on Energy and Natural htusources;
Congress,
Authority: Clean Air Act (42 U.S.C. 1857). Mineral lands Leasing
Act (30 U.S.C. 181). Mineral Leasing Act fct Acquired Lands
(30 U.S.c. 351). Mining and Minerals Policy Act of IS7C (3Ci
!'.S.C. 21a). Federal Coal Leasing Amendments Act of 1975.
Department of Energy Organization Act. Mineral leasing Act
of 1920. P.L. 94-377. P.L. 95-91. 91 Stat. 567.
A significant portion of coai resources are under
Federal lands which are leased by the Department of the Interior
to pri.vate entrepreneurs for mining purposes. In a previous
report, GAO concluded that estimates of resources on existing
leases did not provide a sound basis for forecasting production
potential. indinqs/Conclusions: This conclusion has act
changed. Interiorls recoverable reserve estimates were based on
qeneral reccvery factors and not on detailed economic analyses.
Wide variations existed between Intericr and leaseholder
estimates, with leaseholder estimates generally better
supported. However, both the Geological Survey and leaseholders
omitted some underground coal in computing reccverable reserves.
The Survey does not have requirements for ncnprcducing
leaseholders to provide cost and Fricing irformation; producing
leasehclders submit seiling price information with productbon
royalty reports. No coal producticr occurred before 1977 on 87'
of the 219 leases reviewed. The Mineral Leasing Act cf 1920, as
amended, requires leaseholders to satisfy conditicns of diligent
development and continued operation, and coal production
requirements were fnrther defined in IS76 regulaticas izeued Do
Interior. Application of these requirements depends on accurate
reserve estimates. Reccmmendations: 7he Secretary of Interior
should: publish reserve estimate methodclogy regulaticns for
comment and hoid putlic hearings on them; as an interim measure,
require Survey to use the published estimating criteria
contained in its bulletin, and review and update all reserve
estimates on existing leases--when diligent development or](ViewImageLocal?handle=hein.gao/gaobaaxoh0001&div=1&collection=&method=preview&ext=.png&size=3)