The OSM was empowered to promulgate Federal regulations for surface coal mining and to assist States in developing regulatory programs compatible with the Federal act. During its first 2 years of operation, OSM's regulatory program was influenced by the nature of the agency's enabling statute, the political environment, agency ideological premises, and scarcity of resources. One of the agency's five regional offices developed an enforcement style more akin to 'negotiated compliance' probably because of local conditions. Despite the agency's enforced compliance style, the program imposed small civil fines on coal operators and collected only 20 percent of the total dollar amount of its fines. The agency's gradual softening of its regulatory stance after its first 2 years is noted, and the changes wrought in the agency by the new administration are examined. About 200 references along with maps and a few other illustrations are included. (Author abstract modified)