Federal Coal Leasing and Utilization Act of 1986

(Reported to Senate from the Committee on Energy and Natural Resources with amendment, S. Rept. 99-436)

Federal Coal Leasing and Utilization Act of 1986 - Title I: Administration of the Federal Coal Leasing Program - Amends the Mineral Lands Leasing Act to prohibit the issuance (or assignment) of competitive coal deposit leases if the applicant holds coal deposit leases issued prior to August 4, 1976, which have not been producing coal in commercial quantities for a period of ten years, or if the applicant is not complying with the diligent development requirements set forth in this Act. Exempts from such prohibition leaseholders who: (1) agree to relinquish such non-productive coal leases; (2) pay an additional rental on non-productive coal leases issued before August 4, 1976; or (3) have made a substantial investment in such leases. States that in order to be exempt from such prohibition a leaseholder must agree within six months after enactment of this Act to the readjustment of all noncompliance leases not readjusted after August 4, 1976. Makes such prohibition inapplicable to coal deposit leases which have been determined by the Secretary of the Interior to have had all recoverable reserves mined out, and which are being held in order to comply with reclamation requirements.

Prohibits the disclosure of coal-tract value data by Department of the Interior personnel to anyone not associated with the Department. Establishes criminal penalties for disclosure violations.

Repeals the requirement that an approved mining plan must include production and operation standards which assure that the entire unit reserves will be mined within 40 years.

Provides for automatic royalty readjustments at specified percentages for surface-mined coal and for coal recovered by underground mining operations under leases issued before August 4, 1976, or in the case of special bituminous coal mines meeting certain requirements. Provides for royalty readjustments on a reasonable basis, taking into consideration specified factors, for that portion of any pre-August 4, 1976, lease from which income is derived from a supply agreement with any nonprofit rural electric cooperative association.

Terminates at the end of ten years and 15 years, 20-year leases that are not producing coal in commercial quantities unless the tenth or fifteenth lease year is extended through annual payment of advance royalties. Sets guidelines for the assessment of such royalties. Authorizes the Secretary to suspend the condition of continued operation upon the payment of continued operation advance royalties. Sets guidelines under which such royalties may be accepted in lieu of continued operation.

Requires the Comptroller General to: (1) monitor coal leasing and production on lands subject to this Act for five years after the date of enactment of this Act; and (2) submit a semiannual report to the Congress regarding the findings of such monitoring.

Directs the Secretary of the Interior to promulgate regulations that require a coal lease transferor to submit financial documentation describing the value paid or promised for a coal lease transfer. Prohibits the Secretary from consenting to the assignment of any coal lease issued prior to August 4, 1976, unless such lease is in compliance with this Act. Proscribes the issuance or assignment of a competitive coal lease to any entity controlled by a person who has: (1) acquired a coal lease after the enactment of this Act; and (2) failed to comply with the diligent development requirements of this Act, or has not produced coal in commercial quantities from such lease.

Prohibits lease issuance or assignment to a lessee whose eligible leaseholds have not been readjusted in accordance with this Act.

Prohibits the issuance of competitive coal leases to any person controlled by an entity engaged in coal production in a foreign country, and engaged in the importation of such reserves into the United States.