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Interior announces repeal to federal energy valuation rule

The U.S. Department of the Interior announced a proposal to repeal recent amendments to federal energy valuation rule.

The agency announced April 3 a proposal to repeal the entirety of the Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Reform Rule and a request for comments on whether revisions to the pre-existing regulations that governed royalty values are appropriate or needed.

"The repeal would provide certainty and clarity to the regulated community by continuing to require compliance with lawful, longstanding, and well-known procedures," a DOI release said. "The department intends to further evaluate changes that may be warranted to the long-established regulations, ensuring that valuation and revenue collection for the nation's mineral resources remain free from loopholes and that Americans receive every dollar due for production of those resources on public lands and waters."

The DOI put a pause in February on the implementation of the rule. Since then, Secretary Ryan Zinke has said that taxpayers should get a fair value for federal coal, but has also taken steps echoing President Donald Trump's executive order to remove the federal coal lease moratorium.

Zinke has also announced the creation of a Royalty Policy Committee that will look at the value of resources on federal land, among other things.