Remining Incentives, 24120-24129 [E8-9564]
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DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation
and Enforcement
30 CFR Parts 732, 785, 870 and 872
[Docket ID: OSM–2007–0016]
RIN 1029–AC57
Remining Incentives
Office of Surface Mining
Reclamation and Enforcement, Interior.
ACTION: Proposed rule.
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AGENCY:
SUMMARY: We, the Office of Surface
Mining Reclamation and Enforcement
(OSM), are proposing to amend our
existing regulations to provide
incentives to promote the remining and
reclamation of eligible abandoned coal
mine refuse piles. We are also
considering and seeking comment on
other remining incentives that were
authorized by recent amendments to the
Surface Mining Control and
Reclamation Act of 1977 made by the
Tax Relief and Health Care Act of 2006
(2006 Act).
DATES: Comments on the proposed rule
must be received on or before on June
30, 2008, to ensure our consideration.
Public hearings: Upon request, we
will hold a public hearing on the
proposed rule at a date, time, and
location to be announced in the Federal
Register before the hearing. We will
accept requests for a public hearing
until 4 p.m., Eastern Time, on May 22,
2008. If you wish to attend a hearing,
but not speak, you should contact the
person identified under FOR FURTHER
INFORMATION CONTACT before the hearing
date to verify that the hearing will be
held. If you wish to attend and speak at
a hearing, you should follow the
procedures under ‘‘III. Public Comment
Procedures’’ in the SUPPLEMENTARY
INFORMATION section of this document.
ADDRESSES: You may submit comments
by any of the following methods:
• Federal e-Rulemaking Portal:
www.regulations.gov. The notice is
listed under the agency name ‘‘Office of
Surface Mining Reclamation and
Enforcement.’’ The proposed rule has
been assigned Docket ID: OSM–2007–
0016.
If you would like to submit comments
through the Federal e-Rulemaking
Portal, go to www.regulations.gov and
do the following. Click on the
‘‘Advanced Docket Search’’ button on
the right side of the screen. Type in the
Docket ID OSM–2007–0016 and click
the ‘‘Submit’’ button at the bottom of the
page. The next screen will display the
Docket Search Results for the
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rulemaking. If you click on OSM–2007–
0016, you can view the proposed rule
and submit a comment. You can also
view supporting material and any
comments submitted by others.
• Mail, Hand-Delivery/Courier to:
Office of Surface Mining Reclamation
and Enforcement, Administrative
Record, Room 252–SIB, 1951
Constitution Avenue, NW., Washington,
DC 20240. Please include the Docket ID
(OSM–2007–0016) with your comment.
We cannot ensure that comments
received after the close of the comment
period (see DATES) will be included in
the docket for this rulemaking and
considered. Comments sent to an
address other than those listed above
will not be included in the docket for
this rulemaking.
For additional information on the
rulemaking process and the public
availability of comments, see ‘‘III. Public
Comment Procedures’’ in the
SUPPLEMENTARY INFORMATION section of
this document.
If you wish to comment on the
information collection aspects of this
proposed rule, submit your comments to
the Office of Management and Budget,
Office of Information and Regulatory
Affairs, Attention: Interior Desk Officer,
via electronic mail, to
OIRA_DOCKET@omb.eop.gov or via fax
at (202) 395–6566. Please refer to OMB
control number 1029–0040 in your
correspondence.
FOR FURTHER INFORMATION CONTACT:
James M. Taitt, Office of Surface Mining
Reclamation and Enforcement, Three
Parkway Center, Pittsburgh, PA 15220.
Telephone: 412–937–2106.
SUPPLEMENTARY INFORMATION:
I. Background
A. Remining
B. The 2006 Act
C. Outreach Summary
II. Description of the Proposed Amendment
III. Public Comment Procedures
IV. Procedural Determinations
I. Background
A. Remining
Remining is defined in 30 CFR 701.5
as ‘‘surface coal mining and reclamation
operations which affect previously
mined areas.’’ Many previously mined
areas, generally those mined prior to the
passage of SMCRA, were not adequately
reclaimed during the original mining
operation. These sites often include
environmental and safety problems
resulting from inadequate reclamation,
such as landslides, instability, erosion
and sedimentation of streams,
inadequate vegetation, and water quality
problems. In many cases, previously
mined lands may still include coal
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reserves that can be economically mined
using present technology. Often,
operators can economically remine and
reclaim these areas while at the same
time eliminating the environmental and
safety problems associated with the site.
Recognizing that remining can
eliminate environmental and safety
problems at previously mined sites
while recovering coal reserves,
Congress, in 1992, revised SMCRA to
encourage remining. In the Energy
Policy Act of 1992 (EPAct) (Pub. L. 102–
486), Congress amended section 404 of
SMCRA (30 U.S.C. 1234) to extend
eligibility for reclamation of lands and
water under that section to lands which
are reaffected by remining operations. In
the May 31, 1994, Federal Register (59
FR 28136) we published a final rule
implementing changes to SMCRA made
by the EPAct. We promulgated 30 CFR
874.12(h) which provides in relevant
part that ‘‘[s]urface coal mining
operations on lands eligible for
remining pursuant to section 404 of the
Act shall not affect the eligibility of
such lands for reclamation activities
after the release of the bonds or deposits
posted by any such operation as
provided by § 800.40 of this chapter.’’
We made further changes in our rules
regarding remining in response to
revisions to SMCRA made by the EPAct.
In the November 27, 1995, Federal
Register (60 FR 58479) we published
amendments to our rules at 30 CFR
701.5, 773.15(b)(4)(i), 785.25, and 816/
817.116(c)(2) that were designed to
encourage remining of lands eligible for
expenditures under sections 402(g)(4)
and 404 of SMCRA.
In the February 12, 1999, Federal
Register (64 FR 7470) we published a
rule concerning the financing of
abandoned mine land reclamation
(AML) projects that involve the
incidental extraction of coal. The rule
(known as the enhancing AML
reclamation rule) amends the definition
of ‘‘government-financed construction’’
at 30 CFR 707.5.
We have also published a proposed
rule that provides environmental
performance and reclamation standards
for remining abandoned coal refuse
remining operations. That proposed rule
was published in the Federal Register
on January 17, 2007 (72 FR 2136). A
provision of the January 17th proposed
rule proposes a definition of the term
‘‘abandoned coal refuse remining
operations’’ at 30 CFR 701.5. That
proposed definition states:
Abandoned coal refuse remining
operations means those surface mining
activities for the on-site reprocessing of
abandoned coal refuse and for the removal of
abandoned coal refuse on lands that would
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otherwise be eligible for expenditure under
section 404 and section 402(g)(4) of the Act.
Reprocessing operations include on-site
activities that separate the coal from waste
material using specific gravity or floatation
methods, as well as activities that use
mechanical means to sort and size the refuse
material prior to separation. Removal
operations include on-site activities that
remove refuse from the site as well as those
activities that use mechanical means to sort
and size the refuse material prior to its
removal. The term ‘‘abandoned coal refuse
remining operations’’ does not encompass
the removal of refuse for non-fuel uses.
A final rule regarding this definition
has not yet been promulgated, but the
term has been used throughout this
preamble and in our proposed rule
language. Therefore, for purposes of the
rulemaking, we will review any
comments on the definition submitted
in response to the January 17th
proposed rule and we will accept any
additional comments with regard to the
definition that are submitted concerning
this proposed rule.
B. The 2006 Act
Remining Incentives
On December 20, 2006, Congress
enacted the 2006 Act, which included
amendments to SMCRA. These
amendments, among other things, added
section 415, titled ‘‘Remining
Incentives’’ to SMCRA. Section 415
gives the Secretary of the Interior the
option to promulgate rules, subject to
certain requirements, to provide
incentives to promote remining of
eligible lands. Section 415(a) provides
that rules promulgated under this
section must:
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* * * describe conditions under which
amounts in the fund may be used to provide
incentives to promote remining of eligible
land under section 404 in a manner that
leverages the use of amounts from the fund
to achieve more reclamation with respect to
the eligible land than would be achieved
without the incentives.
The fund referred to in that provision
is defined in SMCRA section 701(7) as
‘‘the Abandoned Mine Reclamation
Fund established pursuant to section
401.’’ In this proposed rule we refer to
the Abandoned Mine Reclamation Fund
as ‘‘the Fund.’’
Section 415(b) provides that ‘‘Any
regulations promulgated under
subsection (a) shall specify that the
incentives shall apply only if the
Secretary determines, with the
concurrence of the State regulatory
authority referred to in title V, that,
without the incentives, the eligible land
would not be likely to be remined and
reclaimed.’’
In essence, section 415 establishes
that the Secretary has discretion to
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promulgate rules authorizing remining
incentives that use amounts from the
Fund, so long as the incentives meet
certain requirements. Section 415(c)
specifies two types of incentives that the
Secretary may consider.
(1) IN GENERAL.—Incentives that may be
considered for inclusion in the regulations
promulgated under subsection (a) include,
but are not limited to—
(A) A rebate or waiver of the reclamation
fees required under section 402(a); and
(B) The use of amounts in the fund to
provide financial assurance for remining
operations in lieu of all or a portion of the
performance bonds required under section
509.
Section 415(c)(1)(A) specifies that the
Secretary may consider a rebate or
waiver of the reclamation fees that
operators must pay for coal produced.
Reclamation fees are authorized by
SMCRA section 402 (30 U.S.C. 1232)
which is implemented in large part at 30
CFR part 870. These fees are collected
from coal companies and deposited into
the Fund account in the United States
Treasury. The Fund is then allocated
according to SMCRA. Section 415
authorizes the Secretary to consider
whether rebate or waiver of these
reclamation fees as an incentive for
remining operations would achieve
more reclamation of eligible lands than
would otherwise be achieved. Only
moneys from the Fund can be used for
incentives authorized under section
415. As a result, States cannot use prior
balance money they receive under
SMCRA section 411(h)(1) to pay for
remining incentives because the prior
balance money is appropriated from the
general Treasury and not the Fund.
Section 415(c)(1)(B) specifies the
second incentive that the Secretary may
consider: ‘‘The use of amounts in the
fund to provide financial assurance for
remining operations in lieu of all or a
portion of the performance bonds
required under section 509.’’ The
performance bonds required by section
509 must be posted by permittees
wishing to conduct coal mining and
reclamation operations including
remining operations. Section 509(a)
provides that, ‘‘[t]he amount of the bond
shall be sufficient to assure the
completion of the reclamation plan if
the work had to be performed by the
regulatory authority in the event of
forfeiture * * *. .’’ A permittee may
have difficulty obtaining a bond for
remining previously mined sites
because of the environmental and safety
problems often associated with these
sites. Therefore, Congress authorized the
Secretary to offer as a remining
incentive, the use of amounts in the
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Fund in lieu of all or a portion of the
performance bond.
Limitations on Remining Incentives
As discussed above, general
requirements for remining incentives
are set out in sections 415(a) and (b).
Section 415 sets no additional
limitations on the use of amounts in the
Fund as financial assurance in lieu of
performance bonds for remining
operations. However, under section
415(c), only two types of remining
operations could be eligible for a rebate
or waiver of reclamation fees: Those that
remove or reprocess abandoned coal
mine waste; and remining activities that
meet the priorities specified in
paragraph (1) or (2) of section 403(a).
Section 415(c)(2) establishes
limitations on the use of a rebate or
waiver of reclamation fees. Subsection
415(c)(2)(A) provides that:
A rebate or waiver under paragraph (1)(A)
shall be used only for operations that—
(i) Remove or reprocess abandoned coal
mine waste; or
(ii) Conduct remining activities that meet
the priorities specified in paragraph (1) or (2)
of section 403(a).
Under subsection 415(c)(2)(B), ‘‘[t]he
amount of a rebate or waiver provided
as an incentive under paragraph (1)(A)
to remine or reclaim eligible land shall
not exceed the estimated cost of
reclaiming the eligible land under this
section.’’
Remining Operations
Under subsection 415(c)(2)(A)(i), the
Secretary may authorize a rebate or
waiver of reclamation fees for
operations that remove or reprocess
abandoned coal mine waste. Abandoned
coal mine waste (referred to in this
rulemaking as abandoned coal refuse) is
the refuse resulting from the cleaning of
mined coal. Abandoned coal refuse sites
are lands on which refuse was placed
prior to the passage of SMCRA and that
were not adequately reclaimed when
mining was completed. The refuse
material was often dumped or piled on
lands without sufficient environmental
protection controls or without ensuring
stability of the piles. These piles can
cause numerous environmental
problems including acid drainage and
pollution of adjacent streams,
uncontrolled erosion resulting in stream
siltation and downstream flooding, and
diminished aesthetic qualities.
Additionally, the coal refuse piles
present serious health and safety risks
including landslides, uncontrolled
burning of the refuse material, and
injuries to site visitors because of pile
instability.
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In many cases, the technology for
separating coal from refuse material
when these sites were created left a
significant amount of coal in the piles.
Operators may remine refuse material to
recover coal by either reprocessing it
(separating the coal from refuse
material) in place or by hauling the
refuse material to an offsite location for
processing or burning. Remining and
subsequent reclamation of refuse piles
can eliminate safety and environmental
problems while recovering coal
reserves.
Under subsection 415(c)(2)(A)(ii), the
Secretary may authorize a waiver or
rebate of reclamation fees for remining
activities that meet the priorities
specified in paragraph (1) or (2) of
SMCRA section 403(a) (known as
priority 1 or priority 2 sites). Section
403(a) was also amended by the SMCRA
Amendments of 2006. As amended,
subsection 403(a)(1) is subdivided into
subparagraphs (1)(A) and (1)(B).
Similarly, amended subsection 403(a)(2)
is subdivided into subparagraphs (2)(A)
and (2)(B). The priority referred to in
subparagraph (1)(A) is protection of
public health, safety, and property from
extreme danger of adverse effects of coal
mining practices; and the priority
referred to in subparagraph (1)(B) is
restoration of land and water resources
and the environment that have been
degraded by the adverse effects of coal
mining practices; and are adjacent to a
site that has been or will be remediated
under subparagraph (1)(A). The priority
referred to in subparagraph (2)(A) is
protection of public health and safety
from adverse effects of coal mining
practices; and the priority referred to in
subparagraph (2)(B) is restoration of
land and water resources and the
environment that have been degraded
by the adverse effects of coal mining
practices, and are adjacent to a site that
has been or will be remediated under
subparagraph (2)(A). OSM refers to the
priorities in subparagraphs (1)(A) and
(B) collectively as ‘‘priority 1,’’ and to
the priorities in subparagraphs (2)(A)
and (B) collectively as ‘‘priority 2.’’
Priority 1 and priority 2 sites can
include, among other things, abandoned
surface mine areas and abandoned deep
mine entries and voids, as well as
abandoned coal refuse sites. As with
coal refuse sites, remining of priority 1
and priority 2 sites can eliminate many
safety and environmental hazards while
recovering coal reserves.
The 2006 Act made numerous other
changes to SMCRA. This rule proposes
regulations to implement only new
SMCRA section 415. Other amendments
of SMCRA in the 2006 Act will be
addressed in separate rulemakings.
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C. Outreach Summary
Because Congress gave the Secretary
the option to promulgate rules to use the
Fund to implement section 415, we
decided to ask stakeholders whether
rules to encourage remining were
necessary and, if so, what those rules
should encompass. On February 23 and
February 26, 2007, we conducted an
outreach program to solicit comments,
concerns and ideas for regulatory
changes to implement section 415. We
provided, via e-mail, a series of
discussion points for stakeholders to
consider when thinking of possible
regulatory changes. We asked the
stakeholders whether incentives were
necessary to encourage remining
operations and if so, what form the
incentives should take. We also were
concerned about any impacts incentives
for remining operations may have on the
amount of money in the Fund that
would be used to reclaim abandoned
mine land projects.
We sent the outreach discussion
points to representatives of industry, the
States, environmental, citizen and
conservation organizations and groups.
Information we received from the
outreach was considered in the drafting
of this proposed rule.
We received a limited response to our
outreach effort. For the most part,
organizations that responded supported
efforts to encourage the remining of
abandoned coal mines and indicated
that remining incentives could
complement existing programs to
encourage remining.
In addition to the general comments
supporting the concept of additional
remining incentives, we also received
some specific suggestions about
incentives. One outreach respondent
indicated that we should make a
determination in the regulations that the
incentives proposed will encourage
remining that would not likely
otherwise occur. The respondent
believes that an individual finding by
the Secretary for each remining permit
would delay permit issuance and that
the State regulatory authority should
make the determination that remining
permits are justified on a case by case
basis. We have proposed a regulation at
30 CFR 732.18(c) that would implement
this suggestion. We would interpret the
requirement for the Secretary’s
determination in section 415(b) as a
requirement applicable to changes in
State AML or regulatory programs that
implement these incentives. We do not
propose to interpret section 415(b) as
requiring a Secretarial determination for
every proposed remining operation to
which these incentives could apply.
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However, we recognize that
delegating this responsibility to the
State regulatory authority may not be
feasible or wanted by States. In the
alternative, a potential process could be
developed where the OSM Field Office
Directors would be responsible for
making the determination that remining
and reclamation would not likely occur,
save for the remining incentives, on a
case-by-case basis. Operators seeking
incentives would propose the projects to
the State regulatory authority who, in
turn, would notify the OSM Field Office
Director with oversight authority in
their State. The Field Office Director
would examine the permit application
and would forward his or her
determination of eligibility for remining
incentives to the State regulatory
authority. We are seeking comments on
whether such a system would be
practical and advantageous; and on
whether some other method of making
the finding required in section 415(b)
could be more practical or more helpful.
An outreach respondent indicated
that waiver of reclamation fees was
preferred over rebate of the fees. This
respondent indicated that a rebate of
fees would inject an element of
uncertainty into the remining process
when the purpose of the incentives
should be to eliminate or reduce
uncertainty. We have proposed rules at
30 CFR 785.26 and 30 CFR 870.13(d) to
provide for waivers of reclamation fees
for abandoned coal refuse remining
operations that remove all refuse
material for reprocessing off site.
However, we are seeking comments on
whether rebates of reclamation fees for
abandoned coal refuse remining
operations would be more practical than
waivers and would increase the number
of remining operations and their
subsequent reclamation.
Another respondent to our outreach
efforts supported the use of the Fund to
provide financial assurance in lieu of
some or all of the performance bonds.
The respondent suggested that we
establish a bond pool for remining
operations. Since each State’s bonding
process is unique, we decided not to
propose a national rule requiring a
specific bonding system for remining
operations such as a bond pool.
One respondent proposed that we
create a bond pool for remining projects
in the anthracite and bituminous
regions of Pennsylvania. A Statespecific bonding program would be
beyond the scope of a national
rulemaking. We chose not to propose a
rule to use monies from the Fund to
provide financial assurances in lieu of
all or part of required performance
bonds. A nationwide rule that adds to,
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or modifies, existing bonding
regulations would not fit well with the
diversity of bonding systems employed
in the States. Additionally, one State
indicated that it employed one agency
to administer Title IV projects and a
separate agency to administer Title V
projects. That State was concerned that
its laws may not allow the use of Title
IV funds to provide bonds to guarantee
reclamation of Title V projects or may
not allow transfer of funds from its Title
IV agency to its Title V agency.
One respondent suggested that we
develop a remining operator’s assistance
program to provide financial assistance
to operators for preparing permit
materials for remining sites. We are
seeking comment from the public on the
feasibility and utility of such a program.
One respondent also indicated
support of the concept of a special
nationwide permit for remining, but
disagrees with the way it was limited by
the Army Corps of Engineers (COE). The
respondent indicated that we should not
follow the COE practice of defining a
remining site by a ratio of 60% remining
acreage to 40% new disturbance. The
respondent believes this ratio will serve
to limit the number of remining sites
addressed and that operators need
maximum incentives to ensure that as
much remining will be done as
promptly as possible. We are seeking
further comment from the public on
whether we should address the COE
definition of remining in our final rule.
A respondent requested that we revise
30 CFR 785.25 to remove paragraph (c)
that allows 30 CFR 785.25 to expire. The
removal of the September 30, 2004,
expiration date will be addressed in a
separate rulemaking.
Several States expressed concerns
about whether they would be required
to amend their approved mining or
abandoned mine land programs to
include counterparts to any Federal
rules promulgated under section 415.
We anticipate that State adoption of any
rules we promulgate under section 415
of SMCRA will be discretionary.
However, to participate in the remining
incentives program, States will have to
adopt rules that are no less effective
than the Federal rules that may be
eventually promulgated.
II. Description of the Proposed
Amendment
After considering the comments we
received in outreach, we determined
that, while there was a general interest
in remining incentives, there was little
agreement on what specific incentives
should be offered. When envisioning
rules to implement section 415, we
determined that any incentives offered
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should be easily implemented and
result in the most rapid and complete
reclamation possible. We felt that
permittees would not likely take
advantage of incentives that add
excessive recordkeeping burdens or
result in cumbersome procedures. As a
result, we determined that a waiver of
reclamation fees would be the most
logical incentive to implement. A
waiver would require little or no
additional recordkeeping by operators
and would result in benefits to operators
as soon as coal is recovered from
remining operations. Since reclamation
fees are based on the amount of coal
produced, a waiver of fees would give
operators more revenue per ton and
would encourage operators to mine
quickly and efficiently. Mining more
rapidly will lead to more rapid
reclamation and efficient mining will
increase the amount of coal reserves
recovered from remining operations.
In deciding what types of remining
operations we should encourage
through the use of incentives, we felt
that it would be logical to remine and
subsequently reclaim previously
affected sites that have serious
environmental impacts and that have
sufficient coal reserves to make a waiver
of reclamation fees an attractive
incentive. Coal refuse disposal sites
appeared to be the most logical
candidates that fit these criteria.
The safety impacts of refuse disposal
sites can be severe. Refuse piles placed
on hillsides, such as exist throughout
Appalachia, may be unstable and slip,
resulting in landslides with damage to
adjacent property and roads. In
addition, refuse is often easily
combustible because of its significant
coal content. As a result, burning refuse
banks have been serious problems,
because of both noxious fume emissions
and the potential for fires spreading to
adjacent areas and to nearby residences.
Refuse piles are also attractive for offroad vehicle use which, because of the
piles’ unstable and steep slopes, can
result in injury and even death.
Refuse disposal sites can also have
severe environmental impacts,
including: Acid drainage and pollution
of adjacent streams resulting from the
large amounts of pyritic materials that
are often present; uncontrolled erosion
resulting in stream siltation and
downstream flooding; diminished
aesthetic qualities, and loss of land use.
While the amount of coal in each
refuse disposal site is variable, there can
be significant amounts remaining to be
remined. Remining can recover the
reserves while at the same time
reclaiming the site to eliminate the
safety and environmental impacts.
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We also considered whether to offer
incentives for all refuse remining
operations including both those that
reprocess refuse on site and those that
remove all on-site refuse material for
reprocessing off site. There are several
differences between abandoned coal
refuse removal operations and on-site
reprocessing operations that make
reprocessing the refuse material off site
preferable to on-site reprocessing. Most
significantly, refuse removal operations
generate little, if any, residual waste and
no wet refuse waste, as compared to that
generated by on-site reprocessing
operations. Further, refuse removal
operations do not require on-site
reprocessing or preparation plants with
their associated process water circuits,
discharges, and ponds. Additionally,
most refuse removal operations will be
of shorter duration than on-site refuse
reprocessing operations.
Having considered the above factors,
we are proposing, in this rule, to
authorize waiver of reclamation fees for
the remining of refuse disposal sites
where all refuse is removed for
reprocessing off site. We are proposing
to add four provisions to our regulations
at 30 CFR to implement this remining
incentive: 30 CFR 732.18, 785.26,
870.13(d), and 872.23.
Proposed 30 CFR 732.18 would
provide that a State regulatory authority
may submit a revision to its approved
regulatory program to provide remining
incentives under certain circumstances.
This provision would also establish that
approval by the Secretary of such a
revision would be deemed a
determination that without the
incentives, the lands to be remined
would not be likely to be remined and
reclaimed. Proposed 30 CFR 785.26
would establish procedures for a State
regulatory authority to waive
reclamation fees as incentives for
remining. Proposed section 870.13(d)
would authorize the waiver of
reclamation fees for abandoned coal
refuse remining operations that remove
all abandoned coal refuse to an off-site
location for reprocessing or direct use.
Finally, proposed 30 CFR 872.23 would
establish procedures for the States to
amend their programs to include
remining incentives in their Title IV and
Title V programs. We will discuss each
of the four proposed new regulations in
turn below.
30 CFR 732.18
We proposed 30 CFR 732.18 to satisfy
the requirement of SMCRA section
415(b) that the Secretary determine,
with the concurrence of the State
regulatory authority, that, without the
incentives, the eligible land would not
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be likely to be remined and reclaimed.
Proposed 30 CFR 732.18 provides:
(a) This section applies to any State
implementing 30 CFR 785.26 and 870.13
providing for a waiver of reclamation fees as
an incentive for remining.
(b) The State regulatory authority may
submit a revision to its approved regulatory
program to provide remining incentives by
waiver of reclamation fees pursuant to 30
CFR 785.26 and 870.13, if the State
determines that providing such incentives
will result in remining and reclamation of
eligible lands that would not otherwise be
likely to be remined and reclaimed.
(c) Approval by the Secretary of the
Interior of a revision to a State regulatory
program under this section will constitute a
determination that without the incentives
pursuant to this section, the lands to be
remined would not be likely to be remined
and reclaimed.
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Under this proposed provision, if a
State first determines that a regulatory
program provision providing remining
incentives would result in remining and
reclamation that would not otherwise be
likely, then approval by the Secretary of
the revision would constitute the
Secretary’s determination to the same
effect. This provision would avoid the
necessity for the Secretary to concur in
every waiver decision on a remining
permit. We believe that delegating to the
State the authority for waiver decisions
is consistent with the cooperative
federalism that is central to the SMCRA
regulatory scheme. When the State
submits an amendment to adopt these
remining incentives they will have to
include provisions to ensure that the
lands to be remined would not likely be
mined and reclaimed without these
provisions. Our approval of the
amendment would ensure that the
requirements for the finding are
included in the State’s program and
would establish that once implemented
by the State, OSM would conduct
oversight on these remining operations
to ensure that the finding was being
made. We are also considering an
alternative to this language: To delegate
to OSM Field Office Directors the
authority for making this finding on a
case-by-case basis for each remining
operation. We invite comment on this
alternative.
30 CFR 785.26
Proposed 30 CFR 785.26 is intended
to implement SMCRA sections 415(a)
and (b). This section would establish
procedures for a State regulatory
authority to waive reclamation fees as
an incentive for remining. It would
require a State regulatory authority to
consult with the State agency that
administers the State reclamation
program under Title IV and the
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implementing regulations at part 870,
before making the determinations
required under proposed 30 CFR
785.26(a) and (b). Proposed 30 CFR
785.26 provides:
This section applies to waiver of
reclamation fees by a State regulatory
authority as an incentive for remining
operations under part 872 of this chapter. A
waiver of reclamation fees under this section
shall apply only to production of coal by
removal of abandoned coal mine refuse for
reprocessing or direct use off site.
(a) Consultation with the Title IV
reclamation agency. You, the State regulatory
authority, may waive reclamation fees
otherwise required under part 870 of this
chapter, provided that you first consult with
the State agency designated to administer the
State reclamation program under part 870 of
this chapter, and make the following
determinations:
(1) That waiver of reclamation fees for
remining of eligible lands under the permit
would result in more reclamation of the
eligible land than would result from
expenditure of the same amount from the
Fund.
(2) That the eligible lands to be remined
under the permit would not be likely to be
remined and reclaimed without the waiver of
reclamation fees as an incentive.
(b) Eligibility. After you make the
determinations under paragraph (a) of this
section, production of coal by remining
pursuant to a permit you issue under part
786 of this chapter will be eligible for a
waiver of reclamation fees in accordance
with part 872 of this chapter.
(c) Documentation. You must include in
the remining case file for the permit:
(1) The determinations made under
paragraph (a) of this section; and
(2) The information taken into account in
making the determinations.
This proposed rule would require
that, after consultation, the State
regulatory authority would determine
whether remining under a permit for
which a waiver of fees was requested
would achieve more reclamation than
would be achieved without the
incentives. The required consultation
and determinations are intended to
assure that waivers could be authorized
only for remining that would leverage
use of moneys from the Fund to achieve
more reclamation of eligible lands than
would otherwise occur. If after making
the determinations required under this
section, the State regulatory authority
issued a permit for remining a coal
refuse pile to remove all abandoned coal
refuse, the State regulatory authority
could waive the reclamation fees that
would normally be due on coal
produced under that remining permit.
In general, the proposed rule would
authorize waiver of reclamation fees for
coal recovered from abandoned coal
refuse remining operations that remove
all refuse for reprocessing or burning off
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site if all criteria in section 415 of
SMCRA are met. A State that amends its
approved program to authorize fee
waivers would be required to document,
as part of the permit application
process, that a remining operation is
eligible for a waiver of the reclamation
fees and that it meets the provisions of
section 415. The State would have to
retain that documentation for the waiver
as part of the permitting package subject
to review by OSM pursuant to our
oversight and audit procedures.
Permittees receiving permits for
abandoned coal refuse remining
operations would be required to file the
OSM–1 form as provided for in the
Federal regulations at 30 CFR Part 870.
If this rule becomes final as proposed,
the OSM–1 would be modified to
address waiver of the reclamation fees
for tonnage reported for coal recovered
by these remining operations. The
permittee’s eligibility for a waiver
would be subject to periodic audit and
review under existing procedures in 30
CFR 870.16. If an audit confirms that a
permittee has improperly received a fee
waiver, or an operator fails to complete
reclamation of an abandoned coal refuse
remining operation, the fee waiver
would be cancelled and the fee imposed
for all coal produced.
The effect of this proposal on States
would be to authorize uncertified States
(i.e. States other than those States that
have certified achievement under
SMCRA section 411 of all section 403(a)
priorities), in their discretion, to adopt
State program amendments providing
for fee waivers consistent with the
proposed rule. If a State did amend its
program to authorize fee waivers, the
State would forego its share of the fees
waived. If a State waived reclamation
fees, the value of the waived fees would
usually be offset to the extent
abandoned coal refuse sites were
reclaimed. The limit on the amount of
fees waived for a particular remining
operation should be less than the State’s
cost to reclaim the site using abandoned
mine land funds. Therefore, the State
abandoned mine land program would
not have to expend Federal AML funds
to reclaim the priority problem, and
would realize a savings at least
equivalent to the value of the fees
waived. Additionally, a State could
actually achieve more reclamation
through remining incentives at less cost
because it would not have to prepare
designs and plans for reclamation of the
coal refuse sites. Instead, operators
would be responsible for preparing
these documents as part of a permit
application package to remine the site.
Typically, the cost of preparing designs
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and plans for reclaiming a coal refuse
disposal area could amount to 10% of
the overall cost of a project. States could
save these costs by having an operator
remine the site and include the designs
and plans in a permit application
package.
Waiver of reclamation fees could
affect the amount of money available
from the Fund for distributions to the
States and for OSM’s use. Waiving fees
results in less money being sent to the
Fund and, in turn, would mean less
money available for distribution from
the Fund. Therefore, a State with
numerous remining sites qualifying for
a waiver could conceivably reduce the
amount of money available from the
Fund for use by other States and OSM.
While the amount of fee waivers is
expected to be minor and the
consequent impact to the Fund to also
be minor, we are seeking comment on
whether the proposed remining
incentives would impact the ability of
the States to effectively reclaim priority
1 and priority 2 sites.
Effects on industry would be positive.
Any companies granted a fee waiver
would remine and reclaim abandoned
coal refuse sites. If the remining and
reclamation would not be profitable,
even with a fee waiver, then the
operators would not conduct the
operation. There is a possibility that, in
some markets, an operator selling coal
from remined coal refuse might compete
with conventionally-mined coal, but
OSM does not anticipate that a typical
refuse remining operation would clean
and sell a large amount of refuse coal.
The rule as proposed could have a
minor effect on transfers to the United
Mine Workers of America (UMWA) as
authorized under SMCRA section
402(h). To the extent reclamation fees
are waived or rebated, a minor
reduction in the principal of the Fund
could result in a minor reduction in
earnings.
We are proposing to authorize waiver
of reclamation fees because we believe
that it would be simpler to administer
an incentives program that offers a
waiver, rather than a rebate. A rebate
program would involve additional steps
because it would first require an
operator to pay reclamation fees and
would require OSM to process the fees
before they are rebated by the State from
AML funds distributed to the State
under SMCRA section 401(f) and
allocated pursuant to SMCRA section
402(g). This would result in delayed
payments to operators and would not
achieve more rapid or complete
reclamation.
Additionally, we are proposing that
the waiver of fees apply only to
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operations that remove all coal refuse
from the site for reprocessing or direct
use off site. An operation that would
remove only a portion of the refuse
material from the site would not be
eligible for a waiver. As discussed
below, we believe that removal of all
refuse material would be the most
beneficial way to ensure complete
reclamation of the site.
We believe that our proposal could be
fairly and easily implemented by States
who elect to do so, and would result in
environmental improvements because
the incentive would encourage
operators to remine and reclaim
abandoned coal mine refuse piles.
However, as we noted earlier, we are
also seeking comments on the feasibility
and practicality of offering reclamation
fee rebates as provided in SMCRA
section 415(c)(1)(A). Under a rebate
program, operators would pay
reclamation fees on coal recovered from
abandoned coal refuse remining
operations. An operator could then seek
rebates of fees if the State elected to
include fee rebate provisions in their
approved program. The rebates would
be paid by the State from moneys
distributed from the Fund. In all cases,
OSM would retain audit authority to
ensure that the requirements of SMCRA
section 415 were met.
30 CFR 870.13(d)
We propose to add a new paragraph
(d) to existing 30 CFR 870.13 to provide
that a State may waive fees for
‘‘abandoned coal refuse remining
operations’’ under our specified
conditions.
Proposed 30 CFR 870.13(d) provides:
(d) Waiver of fees for abandoned coal
refuse remining operations. The operator will
not be required to pay fees for coal produced
by an abandoned coal refuse remining
operation as defined in § 701.5 of this chapter
that removes all abandoned coal refuse and
that meets the requirements of § 872.23 of
this chapter, if the fees have been waived
pursuant to §§ 732.18 and 785.26 of this
chapter.
Because existing 30 CFR 870.13 sets
out the reclamation fee rates for various
types of operations, we believe it would
be logical to add this proposed
provision on waiver of fee rates to it.
This proposed rule would change
OSM’s current practice regarding the
assessment of reclamation fees on coal
refuse material. Generally, OSM does
not assess fees if the refuse is
demonstrated to have no value for fee
purposes. SMCRA imposes the fees at a
flat rate per ton, but also states that the
fee shall not exceed 10 percent of the
value of the coal at the mine, as
determined by the Secretary. SMCRA
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section 402(a), 30 U.S.C. 1232(a). In
implementing this statutory restriction,
OSM may find that refuse has no value
in the following circumstances: when
the operator clearly documents that the
material was a by-product of a coal
preparation process, is of low quality,
has no relevant use other than as a
waste material in a small power
production or cogeneration facility
qualified by the Federal Energy
Regulatory Commission, and is not
reprocessed using gravity separation to
extract the useable coal. OSM also
considers any other relevant factors in
determining whether fees must be paid
under section 402(a). By contrast, the
fee waiver under this proposed rule
would apply regardless of the material’s
quality and use, and the type of
reprocessing.
30 CFR 872.23
Proposed 30 CFR 872.23 describes the
process and requirements for State
waiver of reclamation fees. As proposed,
this section provides:
(a) The State regulatory authority may
waive reclamation fees required under part
870 of this chapter for abandoned coal refuse
remining operations permitted under
subchapter G that remove all abandoned coal
refuse for reprocessing or direct use off site.
(b) The amount of the waiver provided as
an incentive under paragraph (a) of this
section to remine and reclaim eligible land
must not exceed the estimated cost as
required in 30 CFR 780.18(b)(2) of reclaiming
the eligible land.
Consistent with SMCRA section 415,
this proposed rule specifies the
circumstances in which a waiver may be
given, and also requires that the amount
of the waiver must not exceed the
estimated cost of reclaiming the eligible
land. Under proposed 30 CFR 872.23, if
an operator obtains a permit under Title
V of SMCRA to remine abandoned coal
refuse by removing the refuse for
reprocessing or direct use from the site,
and the State regulatory authority makes
the findings required under proposed 30
CFR 785.26, then the operation would
be eligible for waiver of reclamation fees
on coal removed thereafter.
Additional Provisions OSM Is
Considering
As discussed below, we request
comments on whether we should
implement any other alternatives for
incentives that are authorized in section
415, in addition to the incentives
addressed in the proposed rule text.
Under section 415 two types of
remining operations could be eligible
for a rebate or waiver of reclamation
fees: Those that remove or reprocess
abandoned coal mine waste; and
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remining of priority 1 and priority 2
sites. This proposed rule addresses
waiver of reclamation fees for
operations that remine abandoned coal
mine refuse and remove the refuse for
direct use or reprocessing off site. We
are not proposing a rebate or waiver of
reclamation fees for operations that
reprocess coal mine refuse on site
without removal of the refuse from the
site. An operation that reprocesses coal
mine waste on-site would be required to
reclaim any refuse remaining after
recoverable coal is removed. This is
required because failure to properly
reclaim the refuse material could lead to
serious environmental problems such as
erosion, siltation of streams, and water
quality issues, as well as safety concerns
because of the potential instability of
the disturbed refuse. Because of these
potential problems from refuse left on a
site, we believe a remining incentive
that requires removal of the abandoned
coal mine refuse is preferable. Removal
should encourage rapid removal of the
refuse and thus rapid alleviation of
associated environmental and safety
problems. However, we are considering
providing for fee waivers or rebates for
operations that reprocess abandoned
coal mine refuse on site and we seek
comments on whether such operations
should also be eligible for waivers or
rebates of reclamation fees. Commenters
may wish to focus on the environmental
benefits, if any, of reprocessing the
refuse on site as opposed to removal of
the refuse; whether incentives would
encourage more refuse remining
operations if they were applied to coal
produced from refuse processed on site;
and the relative costs and benefits of
reclaiming the material remaining after
separating coal from the refuse on site
versus reclaiming the site after complete
removal of all refuse.
This proposed rule would not
authorize waiver of reclamation fees for
remining of priority 1 or 2 sites, per se.
It would apply only to abandoned coal
refuse sites; however some abandoned
coal refuse sites may also qualify as
priority 1 or 2 sites. Nonetheless, we are
considering making priority 1 or 2 sites
eligible for a waiver of reclamation fees.
We seek comments on whether making
these sites eligible for incentives would
be likely to increase the remining and
subsequent reclamation of such sites
and whether incentives for these sites
would be likely to meet the
requirements of SMCRA section 415(a)
and (b).
We seek comments on alternative
ways to implement the reclamation fee
waiver provision. One alternative way
to implement the waiver provision
would be for the State to adopt a system
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that would provide a credit of
reclamation fees in the full amount of
the estimated cost to the State for
reclamation of the priority 1 or 2 site or
the coal refuse site. The credit would be
applied to the site being remined, and
if not fully utilized at that site, the
balance of the credit could be applied to
future fees otherwise payable for coal
produced at other permits. This
alternative could address situations in
which coal refuse remining would not
recover sufficient coal to ensure that a
fee waiver would cover the full cost of
reclamation. This type of incentive
might more effectively encourage the
remining of additional priority 1 or 2
sites and coal refuse areas.
We decided not to propose rules
regarding the use of amounts in the
Fund to provide financial assurance for
remining operations in lieu of all or a
portion of the performance bonds
required under section 509. As we noted
above, a nationwide rule that adds to, or
modifies, existing bonding regulations
would not fit well with the diversity of
bonding systems employed in the
States.
However, in addition to the proposed
rule, we are also considering either
addressing all types of incentives
specifically authorized by Congress in
section 415, or addressing other types of
incentives generally authorized but not
specified by Congress. Therefore, we
seek comments and information on
whether any additional remining
incentives would be practical and
would be likely to materially increase
reclamation by remining operations.
However, any additional incentives
would be subject to the restrictions in
section 415 on the use of remining
incentives.
Finally, we request comments on the
likely usefulness and effectiveness of
remining incentives authorized in
section 415 of SMCRA. If we determine
that the record demonstrates insufficient
interest in, or effectiveness of, remining
as authorized in section 415 we may
choose not to adopt a rule authorizing
incentives.
How Will This Rule Affect Approved
Regulatory Programs?
The proposed rule would authorize
States to adopt similar provisions if they
choose to, but we would not require the
States to amend their programs.
III. Public Comment Procedures
Electronic or Written Comments: If
you submit written comments, they
should be specific, confined to issues
pertinent to the proposed regulations,
and explain the reason for any
recommended change(s). We appreciate
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any and all comments, but those most
useful and likely to influence decisions
on the final regulations will be those
that either involve personal experience
or include citations to and analyses of
SMCRA, its legislative history, its
implementing regulations, case law,
other pertinent State or Federal laws or
regulations, technical literature, or other
relevant publications or information on
what factors are most significant when
determining the viability and
profitability of refuse remining.
We cannot ensure that comments
received after the close of the comment
period (see DATES) will be included in
the docket for this rulemaking and
considered. Comments sent to an
address other than those listed above
(see ADDRESSES) will not be included in
the docket for this rulemaking.
Public Availability of Comments:
Before including your address, phone
number, e-mail address, or other
personal identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Public Hearings: We will hold a
public hearing on the proposed
regulations upon request only. The time,
date, and address for any hearing will be
announced in the Federal Register at
least 7 days prior to the hearing.
Any person interested in participating
at a hearing should inform James Taitt
(see FOR FURTHER INFORMATION CONTACT),
either orally or in writing by 4 p.m.,
Eastern Time, on May 22, 2008. Any
disabled individual who requires
reasonable accommodation to attend a
public hearing should also contact Mr.
Taitt so that appropriate arrangements
can be made.
If no one has contacted Mr. Taitt to
express an interest in participating in a
hearing by that date, a hearing will not
be held. If only a few people express an
interest, a public meeting rather than a
hearing may be held. At the public
meeting, we will note any concerns that
are expressed and a summary will be
entered into the docket for the
rulemaking.
The public hearing will continue on
the specified date until all persons
scheduled to speak have been heard. If
you are in the audience and have not
been scheduled to speak and wish to do
so, you will be allowed to speak after
those who have been scheduled. We
will end the hearing after all persons
scheduled to speak and persons present
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in the audience who wish to speak have
been heard. To assist the transcriber and
ensure an accurate record, we request, if
possible, that each person who testifies
at a public hearing provide us with a
written copy of his or her testimony.
IV. Procedural Determinations
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Executive Order 12866—Regulatory
Planning and Review
This document is not a significant
rule and the Office of Management and
Budget has not reviewed this rule under
Executive Order 12866. We have made
the assessments required by Executive
Order 12866 and the results are given
below.
(1) The provisions in the rule would
not create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency.
(2) The provisions in the rule would
not alter the budgetary effects of
entitlements, grants, user fees, or loan
programs or the rights or obligations of
their recipients.
(3) The provisions in the rule do not
raise novel legal or policy issues.
(4) This rule would not have an effect
of $100 million or more on the
economy. The costs associated with this
proposed rule would be in the form of
waivers of reclamation fees that would
normally be made part of the Fund.
These costs are estimated at
approximately $1.5 million;
significantly less than $100 million. The
costs are estimated from available data
that indicate that refuse piles may have
a carbon content ranging from a low of
27.5 percent to a high of 98.9 percent of
the original coal values that were
mined. Recovery of these formerly
‘‘lost’’ coal values, either by
reprocessing or by directly burning the
refuse, in a sense increases the nation’s
coal resources. Since the percentage of
recoverable coal varies widely, we are
assuming, for computation purposes,
that the coal refuse, on average, contains
from 5,000 to 8,000 Btu/lb, or about half
the Btu value of bituminous coal.
Approximately 9 million tons of refuse
is recovered/utilized annually. Because
this material has about half the Btu
value of bituminous coal, these 9
million tons of refuse would represent,
theoretically, at least 4.5 million tons of
coal. Assuming that 4.5 million tons of
coal are recovered from the remining of
refuse piles each year, then $1,417,500
in reclamation fees would be waived in
each year through fiscal year 2012, and
$1,260,000 would be waived each year
from fiscal years 2013 through 2021.
The reduced waiver amount for fiscal
years 2013 through 2021 results from
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the fact that the fee rate for those years
has been set at a lower rate by law.
The rule might result in an increase
in remining operations from the current
levels; however, the increase is not
expected to be significant and, therefore,
would not add greatly to the waiver
estimates provided above.
The rule would not adversely affect in
a material way the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local, or tribal governments or
communities. The rule would have the
positive effects on the economy and the
environment of increasing the number
of coal refuse remining sites that are
reclaimed, and of recovering coal within
those sites that was unavailable for use
because it was deposited as waste.
While waiver of reclamation fees will
reduce the amount of money in the
Fund, we do not expect the reduction to
significantly affect the ability of States
to reclaim priority 1 or priority 2 sites.
Regulatory Flexibility Act
The Department of the Interior
certifies that the proposed rules would
not have a significant economic impact
on a substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.). The proposed rules
would not have an adverse economic
impact on the coal industry or State
regulatory authorities. Further, they
would not produce adverse effects on
competition, employment, investment,
productivity, innovation, or the ability
of United States enterprises to compete
with foreign-based enterprises in
domestic or export markets.
The fee waiver contained in the
proposed rule would presumably result
in an economic benefit for the coal
operator. Based on available data, we
estimate that approximately $1,417,500
in reclamation fees would be waived in
each year through fiscal year 2012 and
$1,260,000 would be waived each year
from fiscal years 2013 through 2021.
Small Business Regulatory Enforcement
Fairness Act
For the reasons previously stated, the
regulations are not considered ‘‘major’’
under 5 U.S.C. 804(2), the Small
Business Regulatory Enforcement
Fairness Act. The rule:
a. Would not have an annual effect on
the economy of $100 million or more.
b. Would not cause a major increase
in costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions.
c. Would not have significant adverse
effects on competition, employment,
investment, productivity, innovation, or
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the ability of U.S.-based enterprises to
compete with foreign-based enterprises
for the reasons stated above.
Unfunded Mandates
The rule would not impose an
unfunded mandate on State, Tribal, or
local governments or the private sector
of more than $100 million per year. The
rule would not have a significant or
unique effect on State, Tribal, or local
governments or the private sector. A
statement containing the information
required by the Unfunded Mandates
Reform Act (2 U.S.C. 1501 et seq.) is not
required.
Executive Order 12630—Takings
In accordance with Executive Order
12630, the rule would not have takings
implications that would require a
takings implication analysis.
Executive Order 12988—Civil Justice
Reform
In accordance with Executive Order
12988, the Office of the Solicitor has
determined that the rule would not
unduly burden the judicial system and
that it meets the requirements of
sections 3(a) and 3(b)(2) of the Order.
Executive Order 13132—Federalism
In accordance with Executive Order
13132, the rule would not have
Federalism implications sufficient to
warrant the preparation of a Federalism
Assessment for the reasons discussed
above.
Executive Order 13175—Consultation
and Coordination With Indian Tribal
Governments
In accordance with Executive Order
13175, we have evaluated the potential
effects of the rule on Federallyrecognized Indian tribes and have
determined that the rule would not have
substantial direct effects on the
relationship between the Federal
Government and Indian tribes, or on the
distribution of power and
responsibilities between the Federal
Government and Indian Tribes.
Executive Order 13211—Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
These regulations are not considered
a significant energy action under
Executive Order 13211. The proposed
revisions would not have a significant
effect on the supply, distribution, or use
of energy.
Paperwork Reduction Act
In accordance with 44 U.S.C. 3507(d),
OSM has submitted the following
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Federal Register / Vol. 73, No. 85 / Thursday, May 1, 2008 / Proposed Rules
request for information collection and
recordkeeping authority for 30 CFR 785
to the Office of Management and Budget
(OMB) for review and approval:
Title: 30 CFR 785—Requirements for
permits for special categories of mining.
OMB Control Number: 1029–0040.
Summary: The information is being
collected to meet the requirements of
sections 507, 508, 510, 515, 701 and 711
of Public Law 95–87, which requires
applicants for special types of mining
activities to provide descriptions, maps,
plans and data of the proposed activity.
This information will be used by the
regulatory authority in determining if
the applicant can meet the applicable
performance standards for the special
type of mining activity.
Bureau Form Number: None.
Frequency of Collection: Once.
Description of Respondents:
Applicants for coal mine permits and
State Regulatory Authorities.
Total Annual Responses: 387.
Total Annual Burden Hours: 24,521.
Total Non-Wage Costs: 0.
Under the Paperwork Reduction Act,
OSM must obtain OMB approval of all
information and recordkeeping
requirements. No person is required to
respond to an information collection
request unless the form or regulation
requesting the information has a
currently valid OMB control (clearance)
number. The control number appears in
30 CFR 785.10. To obtain a copy of
OSM’s information collection clearance
request contact John A. Trelease at (202)
208–2783 or by e-mail at
jtrelease@osmre.gov.
Comments are invited on:
(a) Whether the proposed collection of
information is necessary for SMCRA
regulatory authorities to implement
their responsibilities, including whether
the information will have practical
utility.
(b) The accuracy of OSM’s estimate of
the burden of the proposed collection of
information.
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected, and
(d) Ways to minimize the burden of
collection on the respondents.
By law, OMB must respond to OSM
within 60 days of publication of this
proposed rule, but may respond as soon
as 30 days after publication. Therefore,
to ensure consideration by OMB, you
must send comments regarding these
burden estimates or any other aspect of
these information collection and
recordkeeping requirements by June 2,
2008 to the Office of Management and
Budget, Office of Information and
Regulatory Affairs, Attention: Interior
Desk Officer, via e-mail to
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17:57 Apr 30, 2008
Jkt 214001
OIRA_DOCKET@omb.eop.gov, or via
facsimile to (202) 395–6566. Also,
please send a copy of your comments to
John A. Trelease, Office of Surface
Mining Reclamation and Enforcement,
1951 Constitution Ave, NW., Room 202
SIB, Washington, DC 20240, or
electronically to jtrelease@osmre.gov.
Please include the OMB control
number, 1029–0040, at the top of your
correspondence.
National Environmental Policy Act
OSM has prepared a draft
environmental assessment (EA) of this
proposed rule and has made a tentative
finding that it would not significantly
affect the quality of the human
environment under section 102(2)(C) of
the National Environmental Policy Act
of 1969 (NEPA), 42 U.S.C. 4332(2)(C). It
is anticipated that a finding of no
significant impact (FONSI) will be made
for the final rule in accordance with
OSM procedures under NEPA. The draft
EA is on file in the docket for this
rulemaking and may be viewed online
at https://www.regulations.gov. At that
internet address, the document is listed
under ‘‘Office of Surface Mining
Reclamation and Enforcement.’’ The EA
will be completed and a finding made
on the significance of any resulting
impacts before we publish the final rule.
Data Quality Act
In developing this rule we did not
conduct or use a study, experiment, or
survey requiring peer review under the
Data Quality Act (Pub. L. 106–554).
Clarity of This Regulation
We are required by Executive Orders
12866 and 12988 and by the
Presidential Memorandum of June 1,
1998, to write all rules in plain
language. This means that each rule we
publish must:
(a) Be logically organized;
(b) Use the active voice to address
readers directly;
(c) Use clear language rather than
jargon;
(d) Be divided into short sections and
sentences; and
(e) Use lists and tables wherever
possible.
If you feel that we have not met these
requirements, send us comments by one
of the methods listed in the ADDRESSES
section. To better help us revise the
rule, your comments should be as
specific as possible. For example, you
should tell us the numbers of the
sections or paragraphs that are unclearly
written, which sections or sentences are
too long, the sections where you feel
lists or tables would be useful, etc.
PO 00000
Frm 00010
Fmt 4701
Sfmt 4702
List of Subjects
30 CFR Part 732
Intergovernmental relations,
Reporting and recordkeeping
requirements, Surface mining,
Underground mining.
30 CFR Part 785
Reporting and recordkeeping
requirements, Surface mining,
Underground mining.
30 CFR Part 870
Abandoned Mine Reclamation Fund,
Reclamation fees, Reporting and
recordkeeping requirements, Surface
mining, Underground mining.
30 CFR Part 872
Abandoned Mine Reclamation Fund,
Indian lands, Reclamation fees, Surface
mining, Underground mining.
Dated: April 2, 2008.
C. Stephen Allred,
Assistant Secretary, Land and Minerals
Management.
For the reasons discussed in the
preamble, we are proposing to amend 30
CFR Parts 732, 785, 870, and 872 as set
forth below:
PART 732—PROCEDURES AND
CRITERIA FOR APPROVAL OR
DISAPPROVAL OF STATE PROGRAM
SUBMISSIONS
1. The authority citation for part 732
continues to read as follows:
Authority: 30 U.S.C. 1201 et seq. and 16
U.S.C. 470 et seq.
2. Part 732 is amended by adding
§ 732.18 to read as follows:
§ 732.18 How does a State get approval to
offer remining incentives?
(a) This section applies to any State
implementing 30 CFR 785.26 and
870.13 providing for a waiver of
reclamation fees as an incentive for
remining.
(b) The State regulatory authority may
submit a revision to its approved
regulatory program to provide remining
incentives by waiver of reclamation fees
pursuant to 30 CFR 785.26 and 870.13,
if the State determines that providing
such incentives will result in remining
and reclamation of eligible lands that
would not otherwise be likely to be
remined and reclaimed.
(c) Approval by the Secretary of the
Interior of a revision to a State
regulatory program under this section
will constitute a determination that
without the incentives pursuant to this
section, the lands to be remined would
not be likely to be remined and
reclaimed.
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Federal Register / Vol. 73, No. 85 / Thursday, May 1, 2008 / Proposed Rules
PART 785—REQUIREMENTS FOR
PERMITS FOR SPECIAL CATEGORIES
OF MINING
3. The authority citation for part 785
is revised to read as follows:
Authority: 30 U.S.C. 1201 et seq.
4. Part 785 is amended by adding
§ 785.26 to read as follows:
§ 785.26 What are the procedures for a
waiver of the reclamation fee for remining?
rwilkins on PROD1PC63 with PROPOSALS2
This section applies to waiver of
reclamation fees by a State regulatory
authority as an incentive for remining
operations under part 872 of this
chapter. A waiver of reclamation fees
under this section shall apply only to
production of coal by removal of
abandoned coal mine refuse for
reprocessing or direct use off site.
(a) Consultation with the Title IV
reclamation agency. You, the State
regulatory authority, may waive
reclamation fees otherwise required
under part 870 of this chapter, provided
that you first consult with the State
agency designated to administer the
State reclamation program under part
870 of this chapter, and make the
following determinations:
(1) That waiver of reclamation fees for
remining of eligible lands under the
permit would result in more
reclamation of the eligible land than
would result from expenditure of the
same amount from the Fund.
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17:57 Apr 30, 2008
Jkt 214001
(2) That the eligible lands to be
remined under the permit would not be
likely to be remined and reclaimed
without the waiver of reclamation fees
as an incentive.
(b) Eligibility. After you make the
determinations under paragraph (a) of
this section, production of coal by
remining pursuant to a permit you issue
under part 786 of this chapter will be
eligible for a waiver of reclamation fees
in accordance with part 872 of this
chapter.
(c) Documentation. You must include
in the remining case file for the permit:
(1) The determinations made under
paragraph (a) of this section; and
(2) The information taken into
account in making the determinations.
PART 870—ABANDONED MINE
RECLAMATION FUND—FEE
COLLECTION AND COAL
PRODUCTION REPORTING
5. The authority citation for part 870
continues to read as follows:
Authority: 28 U.S.C. 1746, 30 U.S.C. 1201
et seq., and Pub. L. 105–277.
6. Section 870.13 is amended by
adding paragraph (d) to read as follows:
§ 870.13
Fee rates.
*
*
*
*
*
(d) Waiver of fees for abandoned coal
refuse remining operations. The
operator will not be required to pay fees
PO 00000
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Fmt 4701
Sfmt 4702
24129
for coal produced by an abandoned coal
refuse remining operation as defined in
§ 701.5 of this chapter that removes all
abandoned coal refuse and that meets
the requirements of § 872.23 of this
chapter, if the fees have been waived
pursuant to §§ 732.18 and 785.26 of this
chapter.
PART 872—ABANDONED MINE
RECLAMATION FUNDS
7. The authority citation for part 872
is revised to read as follows:
Authority: 30 U.S.C. 1201 et seq.
8. Part 872 is amended by adding
§ 872.23 to read as follows:
§ 872.23 Incentives for abandoned coal
refuse remining operations.
(a) The State regulatory authority may
waive reclamation fees required under
part 870 of this chapter for abandoned
coal refuse remining operations
permitted under subchapter G that
remove all abandoned coal refuse for
reprocessing or direct use off site.
(b) The amount of the waiver
provided as an incentive under
paragraph (a) of this section to remine
and reclaim eligible land must not
exceed the estimated cost as required in
30 CFR 780.18(b)(2) of reclaiming the
eligible land.
[FR Doc. E8–9564 Filed 4–30–08; 8:45 am]
BILLING CODE 4310–05–P
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Agencies
[Federal Register Volume 73, Number 85 (Thursday, May 1, 2008)]
[Proposed Rules]
[Pages 24120-24129]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-9564]
[[Page 24119]]
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Part II
Department of the Interior
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Office of Surface Mining Reclamation and Enforcement
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30 CFR Parts 732, 785, 870 and 872
Remining Incentives; Proposed Rule
Federal Register / Vol. 73, No. 85 / Thursday, May 1, 2008 / Proposed
Rules
[[Page 24120]]
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DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation and Enforcement
30 CFR Parts 732, 785, 870 and 872
[Docket ID: OSM-2007-0016]
RIN 1029-AC57
Remining Incentives
AGENCY: Office of Surface Mining Reclamation and Enforcement, Interior.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: We, the Office of Surface Mining Reclamation and Enforcement
(OSM), are proposing to amend our existing regulations to provide
incentives to promote the remining and reclamation of eligible
abandoned coal mine refuse piles. We are also considering and seeking
comment on other remining incentives that were authorized by recent
amendments to the Surface Mining Control and Reclamation Act of 1977
made by the Tax Relief and Health Care Act of 2006 (2006 Act).
DATES: Comments on the proposed rule must be received on or before on
June 30, 2008, to ensure our consideration.
Public hearings: Upon request, we will hold a public hearing on the
proposed rule at a date, time, and location to be announced in the
Federal Register before the hearing. We will accept requests for a
public hearing until 4 p.m., Eastern Time, on May 22, 2008. If you wish
to attend a hearing, but not speak, you should contact the person
identified under FOR FURTHER INFORMATION CONTACT before the hearing
date to verify that the hearing will be held. If you wish to attend and
speak at a hearing, you should follow the procedures under ``III.
Public Comment Procedures'' in the SUPPLEMENTARY INFORMATION section of
this document.
ADDRESSES: You may submit comments by any of the following methods:
Federal e-Rulemaking Portal: www.regulations.gov. The
notice is listed under the agency name ``Office of Surface Mining
Reclamation and Enforcement.'' The proposed rule has been assigned
Docket ID: OSM-2007-0016.
If you would like to submit comments through the Federal e-
Rulemaking Portal, go to www.regulations.gov and do the following.
Click on the ``Advanced Docket Search'' button on the right side of the
screen. Type in the Docket ID OSM-2007-0016 and click the ``Submit''
button at the bottom of the page. The next screen will display the
Docket Search Results for the rulemaking. If you click on OSM-2007-
0016, you can view the proposed rule and submit a comment. You can also
view supporting material and any comments submitted by others.
Mail, Hand-Delivery/Courier to: Office of Surface Mining
Reclamation and Enforcement, Administrative Record, Room 252-SIB, 1951
Constitution Avenue, NW., Washington, DC 20240. Please include the
Docket ID (OSM-2007-0016) with your comment.
We cannot ensure that comments received after the close of the
comment period (see DATES) will be included in the docket for this
rulemaking and considered. Comments sent to an address other than those
listed above will not be included in the docket for this rulemaking.
For additional information on the rulemaking process and the public
availability of comments, see ``III. Public Comment Procedures'' in the
SUPPLEMENTARY INFORMATION section of this document.
If you wish to comment on the information collection aspects of
this proposed rule, submit your comments to the Office of Management
and Budget, Office of Information and Regulatory Affairs, Attention:
Interior Desk Officer, via electronic mail, to OIRA_DOCKET@omb.eop.gov
or via fax at (202) 395-6566. Please refer to OMB control number 1029-
0040 in your correspondence.
FOR FURTHER INFORMATION CONTACT: James M. Taitt, Office of Surface
Mining Reclamation and Enforcement, Three Parkway Center, Pittsburgh,
PA 15220. Telephone: 412-937-2106.
SUPPLEMENTARY INFORMATION:
I. Background
A. Remining
B. The 2006 Act
C. Outreach Summary
II. Description of the Proposed Amendment
III. Public Comment Procedures
IV. Procedural Determinations
I. Background
A. Remining
Remining is defined in 30 CFR 701.5 as ``surface coal mining and
reclamation operations which affect previously mined areas.'' Many
previously mined areas, generally those mined prior to the passage of
SMCRA, were not adequately reclaimed during the original mining
operation. These sites often include environmental and safety problems
resulting from inadequate reclamation, such as landslides, instability,
erosion and sedimentation of streams, inadequate vegetation, and water
quality problems. In many cases, previously mined lands may still
include coal reserves that can be economically mined using present
technology. Often, operators can economically remine and reclaim these
areas while at the same time eliminating the environmental and safety
problems associated with the site.
Recognizing that remining can eliminate environmental and safety
problems at previously mined sites while recovering coal reserves,
Congress, in 1992, revised SMCRA to encourage remining. In the Energy
Policy Act of 1992 (EPAct) (Pub. L. 102-486), Congress amended section
404 of SMCRA (30 U.S.C. 1234) to extend eligibility for reclamation of
lands and water under that section to lands which are reaffected by
remining operations. In the May 31, 1994, Federal Register (59 FR
28136) we published a final rule implementing changes to SMCRA made by
the EPAct. We promulgated 30 CFR 874.12(h) which provides in relevant
part that ``[s]urface coal mining operations on lands eligible for
remining pursuant to section 404 of the Act shall not affect the
eligibility of such lands for reclamation activities after the release
of the bonds or deposits posted by any such operation as provided by
Sec. 800.40 of this chapter.''
We made further changes in our rules regarding remining in response
to revisions to SMCRA made by the EPAct. In the November 27, 1995,
Federal Register (60 FR 58479) we published amendments to our rules at
30 CFR 701.5, 773.15(b)(4)(i), 785.25, and 816/817.116(c)(2) that were
designed to encourage remining of lands eligible for expenditures under
sections 402(g)(4) and 404 of SMCRA.
In the February 12, 1999, Federal Register (64 FR 7470) we
published a rule concerning the financing of abandoned mine land
reclamation (AML) projects that involve the incidental extraction of
coal. The rule (known as the enhancing AML reclamation rule) amends the
definition of ``government-financed construction'' at 30 CFR 707.5.
We have also published a proposed rule that provides environmental
performance and reclamation standards for remining abandoned coal
refuse remining operations. That proposed rule was published in the
Federal Register on January 17, 2007 (72 FR 2136). A provision of the
January 17th proposed rule proposes a definition of the term
``abandoned coal refuse remining operations'' at 30 CFR 701.5. That
proposed definition states:
Abandoned coal refuse remining operations means those surface
mining activities for the on-site reprocessing of abandoned coal
refuse and for the removal of abandoned coal refuse on lands that
would
[[Page 24121]]
otherwise be eligible for expenditure under section 404 and section
402(g)(4) of the Act. Reprocessing operations include on-site
activities that separate the coal from waste material using specific
gravity or floatation methods, as well as activities that use
mechanical means to sort and size the refuse material prior to
separation. Removal operations include on-site activities that
remove refuse from the site as well as those activities that use
mechanical means to sort and size the refuse material prior to its
removal. The term ``abandoned coal refuse remining operations'' does
not encompass the removal of refuse for non-fuel uses.
A final rule regarding this definition has not yet been
promulgated, but the term has been used throughout this preamble and in
our proposed rule language. Therefore, for purposes of the rulemaking,
we will review any comments on the definition submitted in response to
the January 17th proposed rule and we will accept any additional
comments with regard to the definition that are submitted concerning
this proposed rule.
B. The 2006 Act
Remining Incentives
On December 20, 2006, Congress enacted the 2006 Act, which included
amendments to SMCRA. These amendments, among other things, added
section 415, titled ``Remining Incentives'' to SMCRA. Section 415 gives
the Secretary of the Interior the option to promulgate rules, subject
to certain requirements, to provide incentives to promote remining of
eligible lands. Section 415(a) provides that rules promulgated under
this section must:
* * * describe conditions under which amounts in the fund may be
used to provide incentives to promote remining of eligible land
under section 404 in a manner that leverages the use of amounts from
the fund to achieve more reclamation with respect to the eligible
land than would be achieved without the incentives.
The fund referred to in that provision is defined in SMCRA section
701(7) as ``the Abandoned Mine Reclamation Fund established pursuant to
section 401.'' In this proposed rule we refer to the Abandoned Mine
Reclamation Fund as ``the Fund.''
Section 415(b) provides that ``Any regulations promulgated under
subsection (a) shall specify that the incentives shall apply only if
the Secretary determines, with the concurrence of the State regulatory
authority referred to in title V, that, without the incentives, the
eligible land would not be likely to be remined and reclaimed.''
In essence, section 415 establishes that the Secretary has
discretion to promulgate rules authorizing remining incentives that use
amounts from the Fund, so long as the incentives meet certain
requirements. Section 415(c) specifies two types of incentives that the
Secretary may consider.
(1) IN GENERAL.--Incentives that may be considered for inclusion
in the regulations promulgated under subsection (a) include, but are
not limited to--
(A) A rebate or waiver of the reclamation fees required under
section 402(a); and
(B) The use of amounts in the fund to provide financial
assurance for remining operations in lieu of all or a portion of the
performance bonds required under section 509.
Section 415(c)(1)(A) specifies that the Secretary may consider a
rebate or waiver of the reclamation fees that operators must pay for
coal produced. Reclamation fees are authorized by SMCRA section 402 (30
U.S.C. 1232) which is implemented in large part at 30 CFR part 870.
These fees are collected from coal companies and deposited into the
Fund account in the United States Treasury. The Fund is then allocated
according to SMCRA. Section 415 authorizes the Secretary to consider
whether rebate or waiver of these reclamation fees as an incentive for
remining operations would achieve more reclamation of eligible lands
than would otherwise be achieved. Only moneys from the Fund can be used
for incentives authorized under section 415. As a result, States cannot
use prior balance money they receive under SMCRA section 411(h)(1) to
pay for remining incentives because the prior balance money is
appropriated from the general Treasury and not the Fund.
Section 415(c)(1)(B) specifies the second incentive that the
Secretary may consider: ``The use of amounts in the fund to provide
financial assurance for remining operations in lieu of all or a portion
of the performance bonds required under section 509.'' The performance
bonds required by section 509 must be posted by permittees wishing to
conduct coal mining and reclamation operations including remining
operations. Section 509(a) provides that, ``[t]he amount of the bond
shall be sufficient to assure the completion of the reclamation plan if
the work had to be performed by the regulatory authority in the event
of forfeiture * * *. .'' A permittee may have difficulty obtaining a
bond for remining previously mined sites because of the environmental
and safety problems often associated with these sites. Therefore,
Congress authorized the Secretary to offer as a remining incentive, the
use of amounts in the Fund in lieu of all or a portion of the
performance bond.
Limitations on Remining Incentives
As discussed above, general requirements for remining incentives
are set out in sections 415(a) and (b). Section 415 sets no additional
limitations on the use of amounts in the Fund as financial assurance in
lieu of performance bonds for remining operations. However, under
section 415(c), only two types of remining operations could be eligible
for a rebate or waiver of reclamation fees: Those that remove or
reprocess abandoned coal mine waste; and remining activities that meet
the priorities specified in paragraph (1) or (2) of section 403(a).
Section 415(c)(2) establishes limitations on the use of a rebate or
waiver of reclamation fees. Subsection 415(c)(2)(A) provides that:
A rebate or waiver under paragraph (1)(A) shall be used only for
operations that--
(i) Remove or reprocess abandoned coal mine waste; or
(ii) Conduct remining activities that meet the priorities
specified in paragraph (1) or (2) of section 403(a).
Under subsection 415(c)(2)(B), ``[t]he amount of a rebate or waiver
provided as an incentive under paragraph (1)(A) to remine or reclaim
eligible land shall not exceed the estimated cost of reclaiming the
eligible land under this section.''
Remining Operations
Under subsection 415(c)(2)(A)(i), the Secretary may authorize a
rebate or waiver of reclamation fees for operations that remove or
reprocess abandoned coal mine waste. Abandoned coal mine waste
(referred to in this rulemaking as abandoned coal refuse) is the refuse
resulting from the cleaning of mined coal. Abandoned coal refuse sites
are lands on which refuse was placed prior to the passage of SMCRA and
that were not adequately reclaimed when mining was completed. The
refuse material was often dumped or piled on lands without sufficient
environmental protection controls or without ensuring stability of the
piles. These piles can cause numerous environmental problems including
acid drainage and pollution of adjacent streams, uncontrolled erosion
resulting in stream siltation and downstream flooding, and diminished
aesthetic qualities. Additionally, the coal refuse piles present
serious health and safety risks including landslides, uncontrolled
burning of the refuse material, and injuries to site visitors because
of pile instability.
[[Page 24122]]
In many cases, the technology for separating coal from refuse
material when these sites were created left a significant amount of
coal in the piles. Operators may remine refuse material to recover coal
by either reprocessing it (separating the coal from refuse material) in
place or by hauling the refuse material to an offsite location for
processing or burning. Remining and subsequent reclamation of refuse
piles can eliminate safety and environmental problems while recovering
coal reserves.
Under subsection 415(c)(2)(A)(ii), the Secretary may authorize a
waiver or rebate of reclamation fees for remining activities that meet
the priorities specified in paragraph (1) or (2) of SMCRA section
403(a) (known as priority 1 or priority 2 sites). Section 403(a) was
also amended by the SMCRA Amendments of 2006. As amended, subsection
403(a)(1) is subdivided into subparagraphs (1)(A) and (1)(B).
Similarly, amended subsection 403(a)(2) is subdivided into
subparagraphs (2)(A) and (2)(B). The priority referred to in
subparagraph (1)(A) is protection of public health, safety, and
property from extreme danger of adverse effects of coal mining
practices; and the priority referred to in subparagraph (1)(B) is
restoration of land and water resources and the environment that have
been degraded by the adverse effects of coal mining practices; and are
adjacent to a site that has been or will be remediated under
subparagraph (1)(A). The priority referred to in subparagraph (2)(A) is
protection of public health and safety from adverse effects of coal
mining practices; and the priority referred to in subparagraph (2)(B)
is restoration of land and water resources and the environment that
have been degraded by the adverse effects of coal mining practices, and
are adjacent to a site that has been or will be remediated under
subparagraph (2)(A). OSM refers to the priorities in subparagraphs
(1)(A) and (B) collectively as ``priority 1,'' and to the priorities in
subparagraphs (2)(A) and (B) collectively as ``priority 2.''
Priority 1 and priority 2 sites can include, among other things,
abandoned surface mine areas and abandoned deep mine entries and voids,
as well as abandoned coal refuse sites. As with coal refuse sites,
remining of priority 1 and priority 2 sites can eliminate many safety
and environmental hazards while recovering coal reserves.
The 2006 Act made numerous other changes to SMCRA. This rule
proposes regulations to implement only new SMCRA section 415. Other
amendments of SMCRA in the 2006 Act will be addressed in separate
rulemakings.
C. Outreach Summary
Because Congress gave the Secretary the option to promulgate rules
to use the Fund to implement section 415, we decided to ask
stakeholders whether rules to encourage remining were necessary and, if
so, what those rules should encompass. On February 23 and February 26,
2007, we conducted an outreach program to solicit comments, concerns
and ideas for regulatory changes to implement section 415. We provided,
via e-mail, a series of discussion points for stakeholders to consider
when thinking of possible regulatory changes. We asked the stakeholders
whether incentives were necessary to encourage remining operations and
if so, what form the incentives should take. We also were concerned
about any impacts incentives for remining operations may have on the
amount of money in the Fund that would be used to reclaim abandoned
mine land projects.
We sent the outreach discussion points to representatives of
industry, the States, environmental, citizen and conservation
organizations and groups. Information we received from the outreach was
considered in the drafting of this proposed rule.
We received a limited response to our outreach effort. For the most
part, organizations that responded supported efforts to encourage the
remining of abandoned coal mines and indicated that remining incentives
could complement existing programs to encourage remining.
In addition to the general comments supporting the concept of
additional remining incentives, we also received some specific
suggestions about incentives. One outreach respondent indicated that we
should make a determination in the regulations that the incentives
proposed will encourage remining that would not likely otherwise occur.
The respondent believes that an individual finding by the Secretary for
each remining permit would delay permit issuance and that the State
regulatory authority should make the determination that remining
permits are justified on a case by case basis. We have proposed a
regulation at 30 CFR 732.18(c) that would implement this suggestion. We
would interpret the requirement for the Secretary's determination in
section 415(b) as a requirement applicable to changes in State AML or
regulatory programs that implement these incentives. We do not propose
to interpret section 415(b) as requiring a Secretarial determination
for every proposed remining operation to which these incentives could
apply.
However, we recognize that delegating this responsibility to the
State regulatory authority may not be feasible or wanted by States. In
the alternative, a potential process could be developed where the OSM
Field Office Directors would be responsible for making the
determination that remining and reclamation would not likely occur,
save for the remining incentives, on a case-by-case basis. Operators
seeking incentives would propose the projects to the State regulatory
authority who, in turn, would notify the OSM Field Office Director with
oversight authority in their State. The Field Office Director would
examine the permit application and would forward his or her
determination of eligibility for remining incentives to the State
regulatory authority. We are seeking comments on whether such a system
would be practical and advantageous; and on whether some other method
of making the finding required in section 415(b) could be more
practical or more helpful.
An outreach respondent indicated that waiver of reclamation fees
was preferred over rebate of the fees. This respondent indicated that a
rebate of fees would inject an element of uncertainty into the remining
process when the purpose of the incentives should be to eliminate or
reduce uncertainty. We have proposed rules at 30 CFR 785.26 and 30 CFR
870.13(d) to provide for waivers of reclamation fees for abandoned coal
refuse remining operations that remove all refuse material for
reprocessing off site. However, we are seeking comments on whether
rebates of reclamation fees for abandoned coal refuse remining
operations would be more practical than waivers and would increase the
number of remining operations and their subsequent reclamation.
Another respondent to our outreach efforts supported the use of the
Fund to provide financial assurance in lieu of some or all of the
performance bonds. The respondent suggested that we establish a bond
pool for remining operations. Since each State's bonding process is
unique, we decided not to propose a national rule requiring a specific
bonding system for remining operations such as a bond pool.
One respondent proposed that we create a bond pool for remining
projects in the anthracite and bituminous regions of Pennsylvania. A
State-specific bonding program would be beyond the scope of a national
rulemaking. We chose not to propose a rule to use monies from the Fund
to provide financial assurances in lieu of all or part of required
performance bonds. A nationwide rule that adds to,
[[Page 24123]]
or modifies, existing bonding regulations would not fit well with the
diversity of bonding systems employed in the States. Additionally, one
State indicated that it employed one agency to administer Title IV
projects and a separate agency to administer Title V projects. That
State was concerned that its laws may not allow the use of Title IV
funds to provide bonds to guarantee reclamation of Title V projects or
may not allow transfer of funds from its Title IV agency to its Title V
agency.
One respondent suggested that we develop a remining operator's
assistance program to provide financial assistance to operators for
preparing permit materials for remining sites. We are seeking comment
from the public on the feasibility and utility of such a program.
One respondent also indicated support of the concept of a special
nationwide permit for remining, but disagrees with the way it was
limited by the Army Corps of Engineers (COE). The respondent indicated
that we should not follow the COE practice of defining a remining site
by a ratio of 60% remining acreage to 40% new disturbance. The
respondent believes this ratio will serve to limit the number of
remining sites addressed and that operators need maximum incentives to
ensure that as much remining will be done as promptly as possible. We
are seeking further comment from the public on whether we should
address the COE definition of remining in our final rule.
A respondent requested that we revise 30 CFR 785.25 to remove
paragraph (c) that allows 30 CFR 785.25 to expire. The removal of the
September 30, 2004, expiration date will be addressed in a separate
rulemaking.
Several States expressed concerns about whether they would be
required to amend their approved mining or abandoned mine land programs
to include counterparts to any Federal rules promulgated under section
415. We anticipate that State adoption of any rules we promulgate under
section 415 of SMCRA will be discretionary. However, to participate in
the remining incentives program, States will have to adopt rules that
are no less effective than the Federal rules that may be eventually
promulgated.
II. Description of the Proposed Amendment
After considering the comments we received in outreach, we
determined that, while there was a general interest in remining
incentives, there was little agreement on what specific incentives
should be offered. When envisioning rules to implement section 415, we
determined that any incentives offered should be easily implemented and
result in the most rapid and complete reclamation possible. We felt
that permittees would not likely take advantage of incentives that add
excessive recordkeeping burdens or result in cumbersome procedures. As
a result, we determined that a waiver of reclamation fees would be the
most logical incentive to implement. A waiver would require little or
no additional recordkeeping by operators and would result in benefits
to operators as soon as coal is recovered from remining operations.
Since reclamation fees are based on the amount of coal produced, a
waiver of fees would give operators more revenue per ton and would
encourage operators to mine quickly and efficiently. Mining more
rapidly will lead to more rapid reclamation and efficient mining will
increase the amount of coal reserves recovered from remining
operations.
In deciding what types of remining operations we should encourage
through the use of incentives, we felt that it would be logical to
remine and subsequently reclaim previously affected sites that have
serious environmental impacts and that have sufficient coal reserves to
make a waiver of reclamation fees an attractive incentive. Coal refuse
disposal sites appeared to be the most logical candidates that fit
these criteria.
The safety impacts of refuse disposal sites can be severe. Refuse
piles placed on hillsides, such as exist throughout Appalachia, may be
unstable and slip, resulting in landslides with damage to adjacent
property and roads. In addition, refuse is often easily combustible
because of its significant coal content. As a result, burning refuse
banks have been serious problems, because of both noxious fume
emissions and the potential for fires spreading to adjacent areas and
to nearby residences. Refuse piles are also attractive for off-road
vehicle use which, because of the piles' unstable and steep slopes, can
result in injury and even death.
Refuse disposal sites can also have severe environmental impacts,
including: Acid drainage and pollution of adjacent streams resulting
from the large amounts of pyritic materials that are often present;
uncontrolled erosion resulting in stream siltation and downstream
flooding; diminished aesthetic qualities, and loss of land use.
While the amount of coal in each refuse disposal site is variable,
there can be significant amounts remaining to be remined. Remining can
recover the reserves while at the same time reclaiming the site to
eliminate the safety and environmental impacts.
We also considered whether to offer incentives for all refuse
remining operations including both those that reprocess refuse on site
and those that remove all on-site refuse material for reprocessing off
site. There are several differences between abandoned coal refuse
removal operations and on-site reprocessing operations that make
reprocessing the refuse material off site preferable to on-site
reprocessing. Most significantly, refuse removal operations generate
little, if any, residual waste and no wet refuse waste, as compared to
that generated by on-site reprocessing operations. Further, refuse
removal operations do not require on-site reprocessing or preparation
plants with their associated process water circuits, discharges, and
ponds. Additionally, most refuse removal operations will be of shorter
duration than on-site refuse reprocessing operations.
Having considered the above factors, we are proposing, in this
rule, to authorize waiver of reclamation fees for the remining of
refuse disposal sites where all refuse is removed for reprocessing off
site. We are proposing to add four provisions to our regulations at 30
CFR to implement this remining incentive: 30 CFR 732.18, 785.26,
870.13(d), and 872.23.
Proposed 30 CFR 732.18 would provide that a State regulatory
authority may submit a revision to its approved regulatory program to
provide remining incentives under certain circumstances. This provision
would also establish that approval by the Secretary of such a revision
would be deemed a determination that without the incentives, the lands
to be remined would not be likely to be remined and reclaimed. Proposed
30 CFR 785.26 would establish procedures for a State regulatory
authority to waive reclamation fees as incentives for remining.
Proposed section 870.13(d) would authorize the waiver of reclamation
fees for abandoned coal refuse remining operations that remove all
abandoned coal refuse to an off-site location for reprocessing or
direct use. Finally, proposed 30 CFR 872.23 would establish procedures
for the States to amend their programs to include remining incentives
in their Title IV and Title V programs. We will discuss each of the
four proposed new regulations in turn below.
30 CFR 732.18
We proposed 30 CFR 732.18 to satisfy the requirement of SMCRA
section 415(b) that the Secretary determine, with the concurrence of
the State regulatory authority, that, without the incentives, the
eligible land would not
[[Page 24124]]
be likely to be remined and reclaimed. Proposed 30 CFR 732.18 provides:
(a) This section applies to any State implementing 30 CFR 785.26
and 870.13 providing for a waiver of reclamation fees as an
incentive for remining.
(b) The State regulatory authority may submit a revision to its
approved regulatory program to provide remining incentives by waiver
of reclamation fees pursuant to 30 CFR 785.26 and 870.13, if the
State determines that providing such incentives will result in
remining and reclamation of eligible lands that would not otherwise
be likely to be remined and reclaimed.
(c) Approval by the Secretary of the Interior of a revision to a
State regulatory program under this section will constitute a
determination that without the incentives pursuant to this section,
the lands to be remined would not be likely to be remined and
reclaimed.
Under this proposed provision, if a State first determines that a
regulatory program provision providing remining incentives would result
in remining and reclamation that would not otherwise be likely, then
approval by the Secretary of the revision would constitute the
Secretary's determination to the same effect. This provision would
avoid the necessity for the Secretary to concur in every waiver
decision on a remining permit. We believe that delegating to the State
the authority for waiver decisions is consistent with the cooperative
federalism that is central to the SMCRA regulatory scheme. When the
State submits an amendment to adopt these remining incentives they will
have to include provisions to ensure that the lands to be remined would
not likely be mined and reclaimed without these provisions. Our
approval of the amendment would ensure that the requirements for the
finding are included in the State's program and would establish that
once implemented by the State, OSM would conduct oversight on these
remining operations to ensure that the finding was being made. We are
also considering an alternative to this language: To delegate to OSM
Field Office Directors the authority for making this finding on a case-
by-case basis for each remining operation. We invite comment on this
alternative.
30 CFR 785.26
Proposed 30 CFR 785.26 is intended to implement SMCRA sections
415(a) and (b). This section would establish procedures for a State
regulatory authority to waive reclamation fees as an incentive for
remining. It would require a State regulatory authority to consult with
the State agency that administers the State reclamation program under
Title IV and the implementing regulations at part 870, before making
the determinations required under proposed 30 CFR 785.26(a) and (b).
Proposed 30 CFR 785.26 provides:
This section applies to waiver of reclamation fees by a State
regulatory authority as an incentive for remining operations under
part 872 of this chapter. A waiver of reclamation fees under this
section shall apply only to production of coal by removal of
abandoned coal mine refuse for reprocessing or direct use off site.
(a) Consultation with the Title IV reclamation agency. You, the
State regulatory authority, may waive reclamation fees otherwise
required under part 870 of this chapter, provided that you first
consult with the State agency designated to administer the State
reclamation program under part 870 of this chapter, and make the
following determinations:
(1) That waiver of reclamation fees for remining of eligible
lands under the permit would result in more reclamation of the
eligible land than would result from expenditure of the same amount
from the Fund.
(2) That the eligible lands to be remined under the permit would
not be likely to be remined and reclaimed without the waiver of
reclamation fees as an incentive.
(b) Eligibility. After you make the determinations under
paragraph (a) of this section, production of coal by remining
pursuant to a permit you issue under part 786 of this chapter will
be eligible for a waiver of reclamation fees in accordance with part
872 of this chapter.
(c) Documentation. You must include in the remining case file
for the permit:
(1) The determinations made under paragraph (a) of this section;
and
(2) The information taken into account in making the
determinations.
This proposed rule would require that, after consultation, the
State regulatory authority would determine whether remining under a
permit for which a waiver of fees was requested would achieve more
reclamation than would be achieved without the incentives. The required
consultation and determinations are intended to assure that waivers
could be authorized only for remining that would leverage use of moneys
from the Fund to achieve more reclamation of eligible lands than would
otherwise occur. If after making the determinations required under this
section, the State regulatory authority issued a permit for remining a
coal refuse pile to remove all abandoned coal refuse, the State
regulatory authority could waive the reclamation fees that would
normally be due on coal produced under that remining permit.
In general, the proposed rule would authorize waiver of reclamation
fees for coal recovered from abandoned coal refuse remining operations
that remove all refuse for reprocessing or burning off site if all
criteria in section 415 of SMCRA are met. A State that amends its
approved program to authorize fee waivers would be required to
document, as part of the permit application process, that a remining
operation is eligible for a waiver of the reclamation fees and that it
meets the provisions of section 415. The State would have to retain
that documentation for the waiver as part of the permitting package
subject to review by OSM pursuant to our oversight and audit
procedures. Permittees receiving permits for abandoned coal refuse
remining operations would be required to file the OSM-1 form as
provided for in the Federal regulations at 30 CFR Part 870. If this
rule becomes final as proposed, the OSM-1 would be modified to address
waiver of the reclamation fees for tonnage reported for coal recovered
by these remining operations. The permittee's eligibility for a waiver
would be subject to periodic audit and review under existing procedures
in 30 CFR 870.16. If an audit confirms that a permittee has improperly
received a fee waiver, or an operator fails to complete reclamation of
an abandoned coal refuse remining operation, the fee waiver would be
cancelled and the fee imposed for all coal produced.
The effect of this proposal on States would be to authorize
uncertified States (i.e. States other than those States that have
certified achievement under SMCRA section 411 of all section 403(a)
priorities), in their discretion, to adopt State program amendments
providing for fee waivers consistent with the proposed rule. If a State
did amend its program to authorize fee waivers, the State would forego
its share of the fees waived. If a State waived reclamation fees, the
value of the waived fees would usually be offset to the extent
abandoned coal refuse sites were reclaimed. The limit on the amount of
fees waived for a particular remining operation should be less than the
State's cost to reclaim the site using abandoned mine land funds.
Therefore, the State abandoned mine land program would not have to
expend Federal AML funds to reclaim the priority problem, and would
realize a savings at least equivalent to the value of the fees waived.
Additionally, a State could actually achieve more reclamation through
remining incentives at less cost because it would not have to prepare
designs and plans for reclamation of the coal refuse sites. Instead,
operators would be responsible for preparing these documents as part of
a permit application package to remine the site. Typically, the cost of
preparing designs
[[Page 24125]]
and plans for reclaiming a coal refuse disposal area could amount to
10% of the overall cost of a project. States could save these costs by
having an operator remine the site and include the designs and plans in
a permit application package.
Waiver of reclamation fees could affect the amount of money
available from the Fund for distributions to the States and for OSM's
use. Waiving fees results in less money being sent to the Fund and, in
turn, would mean less money available for distribution from the Fund.
Therefore, a State with numerous remining sites qualifying for a waiver
could conceivably reduce the amount of money available from the Fund
for use by other States and OSM. While the amount of fee waivers is
expected to be minor and the consequent impact to the Fund to also be
minor, we are seeking comment on whether the proposed remining
incentives would impact the ability of the States to effectively
reclaim priority 1 and priority 2 sites.
Effects on industry would be positive. Any companies granted a fee
waiver would remine and reclaim abandoned coal refuse sites. If the
remining and reclamation would not be profitable, even with a fee
waiver, then the operators would not conduct the operation. There is a
possibility that, in some markets, an operator selling coal from
remined coal refuse might compete with conventionally-mined coal, but
OSM does not anticipate that a typical refuse remining operation would
clean and sell a large amount of refuse coal.
The rule as proposed could have a minor effect on transfers to the
United Mine Workers of America (UMWA) as authorized under SMCRA section
402(h). To the extent reclamation fees are waived or rebated, a minor
reduction in the principal of the Fund could result in a minor
reduction in earnings.
We are proposing to authorize waiver of reclamation fees because we
believe that it would be simpler to administer an incentives program
that offers a waiver, rather than a rebate. A rebate program would
involve additional steps because it would first require an operator to
pay reclamation fees and would require OSM to process the fees before
they are rebated by the State from AML funds distributed to the State
under SMCRA section 401(f) and allocated pursuant to SMCRA section
402(g). This would result in delayed payments to operators and would
not achieve more rapid or complete reclamation.
Additionally, we are proposing that the waiver of fees apply only
to operations that remove all coal refuse from the site for
reprocessing or direct use off site. An operation that would remove
only a portion of the refuse material from the site would not be
eligible for a waiver. As discussed below, we believe that removal of
all refuse material would be the most beneficial way to ensure complete
reclamation of the site.
We believe that our proposal could be fairly and easily implemented
by States who elect to do so, and would result in environmental
improvements because the incentive would encourage operators to remine
and reclaim abandoned coal mine refuse piles.
However, as we noted earlier, we are also seeking comments on the
feasibility and practicality of offering reclamation fee rebates as
provided in SMCRA section 415(c)(1)(A). Under a rebate program,
operators would pay reclamation fees on coal recovered from abandoned
coal refuse remining operations. An operator could then seek rebates of
fees if the State elected to include fee rebate provisions in their
approved program. The rebates would be paid by the State from moneys
distributed from the Fund. In all cases, OSM would retain audit
authority to ensure that the requirements of SMCRA section 415 were
met.
30 CFR 870.13(d)
We propose to add a new paragraph (d) to existing 30 CFR 870.13 to
provide that a State may waive fees for ``abandoned coal refuse
remining operations'' under our specified conditions.
Proposed 30 CFR 870.13(d) provides:
(d) Waiver of fees for abandoned coal refuse remining
operations. The operator will not be required to pay fees for coal
produced by an abandoned coal refuse remining operation as defined
in Sec. 701.5 of this chapter that removes all abandoned coal
refuse and that meets the requirements of Sec. 872.23 of this
chapter, if the fees have been waived pursuant to Sec. Sec. 732.18
and 785.26 of this chapter.
Because existing 30 CFR 870.13 sets out the reclamation fee rates
for various types of operations, we believe it would be logical to add
this proposed provision on waiver of fee rates to it.
This proposed rule would change OSM's current practice regarding
the assessment of reclamation fees on coal refuse material. Generally,
OSM does not assess fees if the refuse is demonstrated to have no value
for fee purposes. SMCRA imposes the fees at a flat rate per ton, but
also states that the fee shall not exceed 10 percent of the value of
the coal at the mine, as determined by the Secretary. SMCRA section
402(a), 30 U.S.C. 1232(a). In implementing this statutory restriction,
OSM may find that refuse has no value in the following circumstances:
when the operator clearly documents that the material was a by-product
of a coal preparation process, is of low quality, has no relevant use
other than as a waste material in a small power production or
cogeneration facility qualified by the Federal Energy Regulatory
Commission, and is not reprocessed using gravity separation to extract
the useable coal. OSM also considers any other relevant factors in
determining whether fees must be paid under section 402(a). By
contrast, the fee waiver under this proposed rule would apply
regardless of the material's quality and use, and the type of
reprocessing.
30 CFR 872.23
Proposed 30 CFR 872.23 describes the process and requirements for
State waiver of reclamation fees. As proposed, this section provides:
(a) The State regulatory authority may waive reclamation fees
required under part 870 of this chapter for abandoned coal refuse
remining operations permitted under subchapter G that remove all
abandoned coal refuse for reprocessing or direct use off site.
(b) The amount of the waiver provided as an incentive under
paragraph (a) of this section to remine and reclaim eligible land
must not exceed the estimated cost as required in 30 CFR
780.18(b)(2) of reclaiming the eligible land.
Consistent with SMCRA section 415, this proposed rule specifies the
circumstances in which a waiver may be given, and also requires that
the amount of the waiver must not exceed the estimated cost of
reclaiming the eligible land. Under proposed 30 CFR 872.23, if an
operator obtains a permit under Title V of SMCRA to remine abandoned
coal refuse by removing the refuse for reprocessing or direct use from
the site, and the State regulatory authority makes the findings
required under proposed 30 CFR 785.26, then the operation would be
eligible for waiver of reclamation fees on coal removed thereafter.
Additional Provisions OSM Is Considering
As discussed below, we request comments on whether we should
implement any other alternatives for incentives that are authorized in
section 415, in addition to the incentives addressed in the proposed
rule text. Under section 415 two types of remining operations could be
eligible for a rebate or waiver of reclamation fees: Those that remove
or reprocess abandoned coal mine waste; and
[[Page 24126]]
remining of priority 1 and priority 2 sites. This proposed rule
addresses waiver of reclamation fees for operations that remine
abandoned coal mine refuse and remove the refuse for direct use or
reprocessing off site. We are not proposing a rebate or waiver of
reclamation fees for operations that reprocess coal mine refuse on site
without removal of the refuse from the site. An operation that
reprocesses coal mine waste on-site would be required to reclaim any
refuse remaining after recoverable coal is removed. This is required
because failure to properly reclaim the refuse material could lead to
serious environmental problems such as erosion, siltation of streams,
and water quality issues, as well as safety concerns because of the
potential instability of the disturbed refuse. Because of these
potential problems from refuse left on a site, we believe a remining
incentive that requires removal of the abandoned coal mine refuse is
preferable. Removal should encourage rapid removal of the refuse and
thus rapid alleviation of associated environmental and safety problems.
However, we are considering providing for fee waivers or rebates for
operations that reprocess abandoned coal mine refuse on site and we
seek comments on whether such operations should also be eligible for
waivers or rebates of reclamation fees. Commenters may wish to focus on
the environmental benefits, if any, of reprocessing the refuse on site
as opposed to removal of the refuse; whether incentives would encourage
more refuse remining operations if they were applied to coal produced
from refuse processed on site; and the relative costs and benefits of
reclaiming the material remaining after separating coal from the refuse
on site versus reclaiming the site after complete removal of all
refuse.
This proposed rule would not authorize waiver of reclamation fees
for remining of priority 1 or 2 sites, per se. It would apply only to
abandoned coal refuse sites; however some abandoned coal refuse sites
may also qualify as priority 1 or 2 sites. Nonetheless, we are
considering making priority 1 or 2 sites eligible for a waiver of
reclamation fees. We seek comments on whether making these sites
eligible for incentives would be likely to increase the remining and
subsequent reclamation of such sites and whether incentives for these
sites would be likely to meet the requirements of SMCRA section 415(a)
and (b).
We seek comments on alternative ways to implement the reclamation
fee waiver provision. One alternative way to implement the waiver
provision would be for the State to adopt a system that would provide a
credit of reclamation fees in the full amount of the estimated cost to
the State for reclamation of the priority 1 or 2 site or the coal
refuse site. The credit would be applied to the site being remined, and
if not fully utilized at that site, the balance of the credit could be
applied to future fees otherwise payable for coal produced at other
permits. This alternative could address situations in which coal refuse
remining would not recover sufficient coal to ensure that a fee waiver
would cover the full cost of reclamation. This type of incentive might
more effectively encourage the remining of additional priority 1 or 2
sites and coal refuse areas.
We decided not to propose rules regarding the use of amounts in the
Fund to provide financial assurance for remining operations in lieu of
all or a portion of the performance bonds required under section 509.
As we noted above, a nationwide rule that adds to, or modifies,
existing bonding regulations would not fit well with the diversity of
bonding systems employed in the States.
However, in addition to the proposed rule, we are also considering
either addressing all types of incentives specifically authorized by
Congress in section 415, or addressing other types of incentives
generally authorized but not specified by Congress. Therefore, we seek
comments and information on whether any additional remining incentives
would be practical and would be likely to materially increase
reclamation by remining operations. However, any additional incentives
would be subject to the restrictions in section 415 on the use of
remining incentives.
Finally, we request comments on the likely usefulness and
effectiveness of remining incentives authorized in section 415 of
SMCRA. If we determine that the record demonstrates insufficient
interest in, or effectiveness of, remining as authorized in section 415
we may choose not to adopt a rule authorizing incentives.
How Will This Rule Affect Approved Regulatory Programs?
The proposed rule would authorize States to adopt similar
provisions if they choose to, but we would not require the States to
amend their programs.
III. Public Comment Procedures
Electronic or Written Comments: If you submit written comments,
they should be specific, confined to issues pertinent to the proposed
regulations, and explain the reason for any recommended change(s). We
appreciate any and all comments, but those most useful and likely to
influence decisions on the final regulations will be those that either
involve personal experience or include citations to and analyses of
SMCRA, its legislative history, its implementing regulations, case law,
other pertinent State or Federal laws or regulations, technical
literature, or other relevant publications or information on what
factors are most significant when determining the viability and
profitability of refuse remining.
We cannot ensure that comments received after the close of the
comment period (see DATES) will be included in the docket for this
rulemaking and considered. Comments sent to an address other than those
listed above (see ADDRESSES) will not be included in the docket for
this rulemaking.
Public Availability of Comments: Before including your address,
phone number, e-mail address, or other personal identifying information
in your comment, you should be aware that your entire comment--
including your personal identifying information--may be made publicly
available at any time. While you can ask us in your comment to withhold
your personal identifying information from public review, we cannot
guarantee that we will be able to do so.
Public Hearings: We will hold a public hearing on the proposed
regulations upon request only. The time, date, and address for any
hearing will be announced in the Federal Register at least 7 days prior
to the hearing.
Any person interested in participating at a hearing should inform
James Taitt (see FOR FURTHER INFORMATION CONTACT), either orally or in
writing by 4 p.m., Eastern Time, on May 22, 2008. Any disabled
individual who requires reasonable accommodation to attend a public
hearing should also contact Mr. Taitt so that appropriate arrangements
can be made.
If no one has contacted Mr. Taitt to express an interest in
participating in a hearing by that date, a hearing will not be held. If
only a few people express an interest, a public meeting rather than a
hearing may be held. At the public meeting, we will note any concerns
that are expressed and a summary will be entered into the docket for
the rulemaking.
The public hearing will continue on the specified date until all
persons scheduled to speak have been heard. If you are in the audience
and have not been scheduled to speak and wish to do so, you will be
allowed to speak after those who have been scheduled. We will end the
hearing after all persons scheduled to speak and persons present
[[Page 24127]]
in the audience who wish to speak have been heard. To assist the
transcriber and ensure an accurate record, we request, if possible,
that each person who testifies at a public hearing provide us with a
written copy of his or her testimony.
IV. Procedural Determinations
Executive Order 12866--Regulatory Planning and Review
This document is not a significant rule and the Office of
Management and Budget has not reviewed this rule under Executive Order
12866. We have made the assessments required by Executive Order 12866
and the results are given below.
(1) The provisions in the rule would not create a serious
inconsistency or otherwise interfere with an action taken or planned by
another agency.
(2) The provisions in the rule would not alter the budgetary
effects of entitlements, grants, user fees, or loan programs or the
rights or obligations of their recipients.
(3) The provisions in the rule do not raise novel legal or policy
issues.
(4) This rule would not have an effect of $100 million or more on
the economy. The costs associated with this proposed rule would be in
the form of waivers of reclamation fees that would normally be made
part of the Fund. These costs are estimated at approximately $1.5
million; significantly less than $100 million. The costs are estimated
from available data that indicate that refuse piles may have a carbon
content ranging from a low of 27.5 percent to a high of 98.9 percent of
the original coal values that were mined. Recovery of these formerly
``lost'' coal values, either by reprocessing or by directly burning the
refuse, in a sense increases the nation's coal resources. Since the
percentage of recoverable coal varies widely, we are assuming, for
computation purposes, that the coal refuse, on average, contains from
5,000 to 8,000 Btu/lb, or about half the Btu value of bituminous coal.
Approximately 9 million tons of refuse is recovered/utilized annually.
Because this material has about half the Btu value of bituminous coal,
these 9 million tons of refuse would represent, theoretically, at least
4.5 million tons of coal. Assuming that 4.5 million tons of coal are
recovered from the remining of refuse piles each year, then $1,417,500
in reclamation fees would be waived in each year through fiscal year
2012, and $1,260,000 would be waived each year from fiscal years 2013
through 2021. The reduced waiver amount for fiscal years 2013 through
2021 results from the fact that the fee rate for those years has been
set at a lower rate by law.
The rule might result in an increase in remining operations from
the current levels; however, the increase is not expected to be
significant and, therefore, would not add greatly to the waiver
estimates provided above.
The rule would not adversely affect in a material way the economy,
productivity, competition, jobs, the environment, public health or
safety, or State, local, or tribal governments or communities. The rule
would have the positive effects on the economy and the environment of
increasing the number of coal refuse remining sites that are reclaimed,
and of recovering coal within those sites that was unavailable for use
because it was deposited as waste. While waiver of reclamation fees
will reduce the amount of money in the Fund, we do not expect the
reduction to significantly affect the ability of States to reclaim
priority 1 or priority 2 sites.
Regulatory Flexibility Act
The Department of the Interior certifies that the proposed rules
would not have a significant economic impact on a substantial number of
small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.). The proposed rules would not have an adverse economic impact on
the coal industry or State regulatory authorities. Further, they would
not produce adverse effects on competition, employment, investment,
productivity, innovation, or the ability of United States enterprises
to compete with foreign-based enterprises in domestic or export
markets.
The fee waiver contained in the proposed rule would presumably
result in an economic benefit for the coal operator. Based on available
data, we estimate that approximately $1,417,500 in reclamation fees
would be waived in each year through fiscal year 2012 and $1,260,000
would be waived each year from fiscal years 2013 through 2021.
Small Business Regulatory Enforcement Fairness Act
For the reasons previously stated, the regulations are not
considered ``major'' under 5 U.S.C. 804(2), the Small Business
Regulatory Enforcement Fairness Act. The rule:
a. Would not have an annual effect on the economy of $100 million
or more.
b. Would not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions.
c. Would not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises for
the reasons stated above.
Unfunded Mandates
The rule would not impose an unfunded mandate on State, Tribal, or
local governments or the private sector of more than $100 million per
year. The rule would not have a significant or unique effect on State,
Tribal, or local governments or the private sector. A statement
containing the information required by the Unfunded Mandates Reform Act
(2 U.S.C. 1501 et seq.) is not required.
Executive Order 12630--Takings
In accordance with Executive Order 12630, the rule would not have
takings implications that would require a takings implication analysis.
Executive Order 12988--Civil Justice Reform
In accordance with Executive Order 12988, the Office of the
Solicitor has determined that the rule would not unduly burden the
judicial system and that it meets the requirements of sections 3(a) and
3(b)(2) of the Order.
Executive Order 13132--Federalism
In accordance with Executive Order 13132, the rule would not have
Federalism implications sufficient to warrant the preparation of a
Federalism Assessment for the reasons discussed above.
Executive Order 13175--Consultation and Coordination With Indian Tribal
Governments
In accordance with Executive Order 13175, we have evaluated the
potential effects of the rule on Federally-recognized Indian tribes and
have determined that the rule would not have substantial direct effects
on the relationship between the Federal Government and Indian tribes,
or on the distribution of power and responsibilities between the
Federal Government and Indian Tribes.
Executive Order 13211--Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
These regulations are not considered a significant energy action
under Executive Order 13211. The proposed revisions would not have a
significant effect on the supply, distribution, or use of energy.
Paperwork Reduction Act
In accordance with 44 U.S.C. 3507(d), OSM has submitted the
following
[[Page 24128]]
request for information collection and recordkeeping authority for 30
CFR 785 to the Office of Management and Budget (OMB) for review and
approval:
Title: 30 CFR 785--Requirements for permits for special categories
of mining.
OMB Control Number: 1029-0040.
Summary: The information is being collected to meet the
requirements of sections 507, 508, 510, 515, 701 and 711 of Public Law
95-87, which requires applicants for special types of mining activities
to provide descriptions, maps, plans and data of the proposed activity.
This information will be used by the regulatory authority in
determining if the applicant can meet the applicable performance
standards for the special type of mining activity.
Bureau Form Number: None.
Frequency of Collection: Once.
Description of Respondents: Applicants for coal mine permits and
State Regulatory Authorities.
Total Annual Responses: 387.
Total Annual Burden Hours: 24,521.
Total Non-Wage Costs: 0.
Under the Paperwork Reduction Act, OSM must obtain OMB approval of
all information and recordkeeping requirements. No person is required
to respond to an information collection request unless the form or
regulation requesting the information has a currently valid OMB control
(clearance) number. The control number appears in 30 CFR 785.10. To
obtain a copy of OSM's information collection clearance request contact
John A. Trelease at (202) 208-2783 or by e-mail at jtrelease@osmre.gov.
Comments are invited on:
(a) Whether the proposed collection of information is necessary for
SMCRA regulatory authorities to implement their responsibilities,
including whether the information will have practical utility.
(b) The accuracy of OSM's estimate of the burden of the proposed
collection of information.
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected, and
(d) Ways to minimize the burden of collection on the respondents.
By law, OMB must respond to OSM within 60 days of publication of
this proposed rule, but may respond as soon as 30 days after
publication. Therefore, to ensure consideration by OMB, you must send
comments regarding these burden estimates or any other aspect of these
information collection and recordkeeping requirements by June 2, 2008
to the Office of Management and Budget, Office of Information and
Regulatory Affairs, Attention: Interior Desk Officer, via e-mail to
OIRA_DOCKET@omb.eop.gov, or via facsimile to (202) 395-6566. Also,
please send a copy of your comments to John A. Trelease, Office of
Surface Mining Reclamation and Enforcement, 1951 Constitution Ave, NW.,
Room 202 SIB, Washington, DC 20240, or electronically to
jtrelease@osmre.gov. Please include the OMB control number, 1029-0040,
at the top of your correspondence.
National Environmental Policy Act
OSM has prepared a draft environmental assessment (EA) of this
proposed rule and has made a tentative finding that it would not
significantly affect the quality of the human environment under section
102(2)(C) of the National Environmental Policy Act of 1969 (NEPA), 42
U.S.C. 4332(2)(C). It is anticipated that a finding of no significant
impact (FONSI) will be made for the final rule in accordance with OSM
procedures under NEPA. The draft EA is on file in the docket for this
rulemaking and may be viewed online at https://www.regulations.gov. At
that internet address, the document is listed under ``Office of Surface
Mining Reclamation and Enforcement.'' The EA will be completed and a
finding made on the significance of any resulting impacts before we
publish the final rule.
Data Quality Act
In developing this rule we did not conduct or use a study,
experiment, or survey requiring peer review under the Data Quality Act
(Pub. L. 106-554).
Clarity of This Regulation
We are required by Executive Orders 12866 and 12988 and by the
Presidential Memorandum of June 1, 1998, to write all rules in plain
language. This means that each rule we publish must:
(a) Be logically organized;
(b) Use the active voice to address readers