Form OSM-1 Coal Reclamation Fee Report

Instructions for Completing the OSM-1 Form
General Information
The permittee/operator is required to pay a
reclamation fee on each ton of coal produced for
sale, transfer, or use including reclaimed coal
and the products of in situ mining. The fee shall
be determined by the weight and value of the
coal at the initial bona fide sale, transfer of
ownership or use by the permittee/operator.
A weight reduction may be taken for excess
moisture (the calculated difference between the
inherent moisture in the coal at the time of
production and the total moisture present in the
coal at the point of fee assessment). Standard
laboratory tests must be used to establish
inherent and total moisture.
If the permittee/operator combines surfacemined coal (including reclaimed coal) with
underground mined coal before the coal is
weighed for fee purposes, the higher
reclamation fee shall apply, unless the amount
of coal produced by each mining method can be
substantiated through acceptable engineering
calculations or other requirements from the
Director, OSM.

Preparation Instructions
Complete an OSM-1 form after every calendar
quarter. All permit numbers being reported can
be included on this OSM-1 form. Part 1 must be
signed and notarized after completion of all parts
of the OSM-1 form. If mining has not started or
production has temporarily ceased, you are
required to complete the OSM-1 form showing
“zero” production for the quarter.
If pre-printed information is incorrect or missing,
make corrections or additions in red above the
pre-printed line. If the permit has been

transferred, attach the bond release or transfer
approval document, indicating you are no longer
the permittee.
Submit the OSM-1 form(s) within 30 days after
the end of the quarter along with a check,
money order or electronic fund transfer ($25,000
or greater) for the appropriate amount to cover
all reclamation fees. Do not send cash. Make
your check or money order payable to the Office
of Surface mining Reclamation and
Enforcement. Use the enclosed envelope to
send the OSM-1 form (Parts 1, 2 and 3) and
reclamation fee to:
Office of Surface Mining
P. O. Box 97968
St. Louis, MO 63197-9000

OSM-1 Instructions (Part 1)
[1] Check the correct quarter and complete the
year. The inclusive permit numbers for this
report are displayed here. The OSM document
number is displayed on the top right corner of
Part 1.
[2] An authorized official must certify, sign and
date this box.
[3] A Notary Public must complete the
certification in this box.

electronic fund transfer for the attached permit
numbers.

OSM-2 Instructions (Part 2)
[6] Check the correct quarter and complete the
year.
[7] The permit number is assigned to the
producing mine by the State. If the Federal
Government issued the permit, the Federal
permit number will appear here.
a. The Mine Safety Health Administration
(MSHA) assigns this number.
b. Enter the county where the mine is
located. If the mine is located on Indian
land, enter the Tribe name.
c. Check this box if mining is complete and
attach the concurring State inspection
report.
d. Check this box if all stockpiles have been
sold, used or transferred and tons have
been reported.
e-j. Permittee and operator names, addresses
and Taxpayer Ids. The Taxpayer ID is your
Employer Identification Number (EIN). When an
EIN does not exist, your Social Security number
may be provided as a Taxpayer ID.

[4] Enter the name and phone number of
someone OSM can contact with questions about
this report. The Reporting Entity number is
supplied by OSM. Indicate if payment is being
made with a check or via electronic fund
transfer. Include the Reporting Entity Number
and the OSM Document Number on the check
or electronic fund transfer.

[8] Three fee computation blocks are provided
to record tonnage with one or all of the following:

[5] Enter the total amount of the check or

If the permit contains more than one coal seam,
calculate only one excess moisture block using

No moisture deduction,
Tonnage with an excess moisture
deduction and/or
Tonnage at a reduced rate

the weighted average method.
See excess moisture examples in your AML
Payer Handbook for more details.
a. Gross tons includes coal sold, used or
transferred during the calendar year.
b. Definition of Terms:
(1) Total Moisture (TM)- Moisture
determined as the loss in weight in an air
atmosphere under rigidly controlled
conditions of temperature, time and air flow.
(2) Inherent Moisture (IM) - Moisture that
exists as an integral part of the coal seam in
its natural state, including water in pores, but
not that present in macroscopically visible
fractures.
(3) Excess Moisture (EM)
Calculate excess moisture percentage using
one of these equations.

EM = TM – IM
or

100 − TM ⎞
⎛
EM = TM − ⎜ IM *
⎟
100 − IM ⎠
⎝
Moisture is limited to four decimal places, e.g.,
2.1234%.
c.

Reduced tons equals gross tons multiplied
by the excess moisture percentage
(a x b(3) = c).

d. Net tons equals gross tons minus reduced
tons (a - c = d).
e. Definition of “net value”. Total revenue from
coal sold divided by the net tons (d).
If the gross value of surface-mined anthracite,
bituminous or sub-bituminous coal (reported
after the 3rd quarter, 2007) is $3.15 per ton or
more, the fee is 31.5 cents per ton; if less, the
fee is 10 percent of the net value for each ton if
an excess moisture deduction is taken or 10

percent of the gross value for each ton if no
excess moisture deduction is taken.
If the gross value of underground-mined
anthracite, bituminous or sub-bituminous coal
(reported after the 3rd quarter, 2007) is $1.35 or
more, the fee is 13.5 cents per ton; if less, the
fee is 10 percent of the net value for each ton if
an excess moisture deduction is taken or 10
percent of the gross value for each ton if no
excess moisture deduction is taken.
If the value of lignite coal (reported after the 3rd
quarter, 2007) is $4.50 per ton or more, the fee
is 9 cents per ton; if the value is less, the fee is 2
percent of the net value of each ton if an excess
moisture deduction is taken or 10 percent of the
gross value for each ton if no excess moisture
deduction is taken.
Documentation listing the invoice number,
tonnage, and revenue must be maintained in
your records when a rate is claimed other than
the standard rates. Computation of the tonnage
rate must be by weighted average by quarter.
If reporting on or amending tonnages prior to
2007, quarter 4, use the rates in effect at that
time, i.e. surface $0.35; underground $0.15;
lignite $0.10.
f. The calculated fee equals rate multiplied by
net tons
(d x e = f).
[9] Enter the total fee for this permit number
(the sum of each fee computation in 8,f).

owners include those with legal ownership of the
coal. Also, mineral owners include those who
have the right to extract the coal and to receive
the economic benefits normally associated with
ownership of the coal, such as payment for the
value of the coal.
[13] Purchaser of coal is defined as those
persons or entities that purchased 10 percent or
more of the production from a given permit. If
no single purchaser meets the 10 percent rule,
report the largest single purchaser.
[14] Indicate the type of facility where the coal
is delivered: prep plant, tipple, loading point.
List the names and addresses of facilities where
10 percent or more of the coal was delivered. If
no single facility meets the 10 percent rule,
report the largest single delivery point.
Amended OSM-1
If you must make changes to the tonnage
calculation after the OSM-1 has been submitted,
complete an “Amended OSM-1" form, and send
it to the address shown on the form. To request
an “Amended OSM-1" form, please call the
hotline number at 1-800-799-4265 X325.
Paperwork Reduction Act Statement
This information is being collected to comply with the regulatory
requirements of 30 CFR 870.15(b) which requires each operator
to use mine report OSM-1 form to report the coal tonnage sold,
used or ownership transferred during the applicable calendar
quarter. Response to this request is mandatory in accordance
with Section 402(a) of the Surface Mining Control and
Reclamation Act of 1977, 30 USC 1232.
Burden Estimate

OSM-1 Instructions (Part 3)
[10] Indicate the applicable quarter and year for
this report.
[11] If the Permit, Mine Name, County or State
are incorrect, please change them.
[12] List the names and addresses of any
person or entity owning 10 percent or more of
the mineral estate for this permit. If no single
mineral owner meets the 10 percent rule, report
the largest single mineral owner. Mineral

Public reporting burden for this form is estimated to average 16
minutes to complete the hardcopy form, 5 minutes electronically,
or 45 minutes when taking the excess moisture deduction,
including the time for reviewing instructions, searching existing
data sources, gathering and maintaining the data needed, and
completing and reviewing the form. Submit comments regarding
this burden estimate or other aspects of this form to:
Information Collection Clearance Officer, Office of Surface
Mining, 1951 Constitution Avenue, N.W., Room 202,
Washington, D.C. 20240
You are not required to respond to this collection of information
unless it displays a current, valid OMB control number
Approved by OMB, No. 1029-0063 Expires 12/31/08