OSM-1 Form - Coal Moisture Deduction

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 surface-mined
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 certified
and either notarized or sign the unsworn statement
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 preprinted 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 reclamation fee payment along with the
OSM-1 form (Parts 1, 2 and 3) and AML Fee
Payment Deposit Coupon to:
Office of Surface Mining
P. O. Box 979068
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. Enter the contact name, telephone, and email of
someone OSM can contact with questions about this
report. The Reporting Entity number is supplied by
OSM.
4. Enter the total amount of the check or electronic
fund transfer for the attached permit numbers.
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.
5. Either a Notary Public must complete the
certification in this box or an authorized official must
sign the unsworn statement.

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 to stop reporting on this permit if
coal production is complete on this permit and all
tonnage has been reported. Effective next quarter,
this permit will no longer appear on my OSM-1
forms.
d-i. 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.
8. Three fee computation blocks are provided to
record tonnage with one or all of the following:

and/or

If the permit contains more than one coal seam,
calculate only one excess moisture block using the
weighted average method.
See excess moisture examples in your AML Payer
Handbook for more details.

...continued from Part 2 section 8 Fee Computation
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)
1. Calculate excess moisture percentage using one
of these equations. Moisture is limited to four
decimal places, that is, 2.1234%.
EM = TM - IM
or

100  TM 

EM  TM   IM *

100  IM 

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, 2012) is $2.80 per ton or more, the fee is
28.0 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, 2012) is $1.20 or more, the fee is 12.0
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, 2012) is $4.50 per ton or more, the fee is 8
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 2012,
quarter 4, use the rates in effect at that time. Before
2007, quarter 4, use: surface $0.35; underground
$0.15; lignite $0.10. Between 2007, quarter 4 &
2012, quarter 3, use: surface $0.315; underground
$0.135; lignite $0.09.
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).
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 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.

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 OSM1” form, please call the hotline number at 1-800-7994265 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 (and Amended OSM-1 form as needed) 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
Public reporting burden for the OSM-1 form based
on one permit is 2 minutes to complete the electronic
form and 6 minutes to complete the paper form.
These estimates include 1 minute when taking the
excess moisture deduction in either format.
Public reporting burden for the Amended OSM-1
form based on one permit is 5 minutes to complete
the electronic form and 15 minutes to complete the
paper form. The burden estimates include 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
12/31/2017