COAL DEVELOPMENT ACT OF What are the obligations under a

1976 coal operating contract?

What is a Coal Operating OPERATOR – undertakes, manages,

Contract? and executes the coal operations
which shall include:
It is one of the authorized ways of
active Exploration, Development, and a. the EXAMINATION and
Production of coal resources in a INVESTIGATION of lands supposed
Specified Contract Area. to contain coal, by:

Each Coal Operating Contract a.1. detailed SURFACE GEOLOGIC

SHALL BE executed on BEHALF of MAPPING;
the government, REPRESENTED by
the DOE Secretary. a.2. Core DRILLING, TRENCHING,
TEST PITTING; and
How does a Coal Operating
Contract operate? a.3. other appropriate means for the
purpose of probing the presence of coal
In a COC, the SERVICE, deposits and the existent thereof;
TECHNOLOY and FINANCING are
furnished by the OPERATOR for b. steps necessary to reach the coal
which it shall be entitled to the deposits so that they can be MINED,
stipulated fee and reimbursement of included BUT NOT LIMITED TO
operating expenses. SHAFT SINKING and
TUNNELLING; and
The operator must be
TECHNICALLY COMPETENT and c. the EXTRACTION and
FINANCIALLY CAPABLE to UTILIZATION of coal deposits.
undertake the coal operations as
required in the contract.