Mineral Lands Leasing Act Amendments of 1986

(Reported to House from the Committee on Interior and Insular Affairs with amendment, H. Rept. 99-628)

Mineral Lands Leasing Act Amendments of 1986 - Amends the Mineral Lands Leasing Act of 1920 to prohibit the Secretary of the Interior from either issuing new competitive coal leases or permitting the assignment of such leases to persons who: (1) held a Federal coal lease issued prior to August 4, 1976; and (2) neither produced coal in commercial quantities from such lease, nor paid advance royalties in lieu of continued operation for such lease. Specifies exceptions to such prohibition.

Permits ineligible lessees to qualify for a future new competitive coal lease if such lessees make: (1) specified qualifying payments; and (2) certain significant expenditures for coal mining exploration, planning, or development. Prescribes guidelines for qualifying payments and significant expenditures.

Revises the definition of a "logical mining unit" to include noncontiguous areas within reasonable proximity of each other which are determined by the Secretary to be incorporated into a single operation under the effective control of a single operator.

Repeals the requirement that an approved logical mining unit plan must provide for the mining of the entire unit's reserves within 40 years. Modifies the acreage requirement of logical mining units to take into account only the Federal coal lease acreage when computing the maximum permissible acreage. (Currently, non-Federal coal lease acreage is also taken into account.)

Modifies coal lease terms to authorize the Secretary to reduce royalties below 12.5 percent for coal recovered by underground mining operations or from special bituminous coal mines which meet the requirements of the Surface Mining Control and Reclamation Act of 1977. Terminates coal leases at the end of ten years if the lessee fails to: (1) meet the diligent development requirement; or (2) make certain payments in lieu of diligent development.

Repeals the requirement that an operational reclamation plan must be submitted three years after lease issuance. Requires instead that such a plan must be submitted within a reasonable period prior to taking action which would cause a significant environmental disturbance. Sets certain production royalty effective dates for specified classes of leases. Sets guidelines for the phase-in of such royalty dates.

Directs the Secretary, before issuing any coal lease, to consider any adverse effects on coal produced from private lands due to the potential displacement of such coal from historical markets as a result of the lease issuance.

Requires the Secretary, upon the request of a coal State Governor, to establish a joint Federal-State Regional Coal Team to: (1) guide competitive coal leasing procedures; and (2) serve as a forum for resolving regional coal leasing conflicts. Limits such teams to regions containing significant deposits of federally-owned coal. Requires the Secretary to publish in the Federal Register any reasons for not accepting the recommendations of such Regional Coal Team.