1 Aug 2025

💰Changes to Federal Coal Royalty Rates Effective 2025

Revision to Regulations Regarding Coal Management Provisions and Limitations; Fees, Rentals, and Royalties

Summary

This direct final rule (DFR) revises existing Bureau of Land Management (BLM) regulations pertaining to coal royalties to effectuate changes required by the One Big Beautiful Bill Act (OBBB) enacted on July 4, 2025.

Agencies

  • Interior Department
  • Land Management Bureau

Business Impact ?

$$$ - High

The regulation revises coal royalty rates, temporarily lowering them from 12.5% to a maximum of 7% until 2034. This impacts financial planning for coal operators considering leases, influencing profitability and cost management. Compliance with the new rates is mandatory, necessitating adjustments in financial forecasting and reporting.

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