99-7282. Pennsylvania Abandoned Mine Land Reclamation Program; Pennsylvania Regulatory Program  

  • [Federal Register Volume 64, Number 58 (Friday, March 26, 1999)]
    [Rules and Regulations]
    [Pages 14610-14619]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-7282]
    
    
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    DEPARTMENT OF THE INTERIOR
    
    Office of Surface Mining Reclamation and Enforcement
    
    30 CFR Part 938
    
    [PA-121-FOR]
    
    
    Pennsylvania Abandoned Mine Land Reclamation Program; 
    Pennsylvania Regulatory Program
    
    AGENCY: Office of Surface Mining Reclamation and Enforcement (OSM), 
    Interior.
    
    ACTION: Final rule; approval of amendment.
    
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    SUMMARY: OSM is approving, with certain exceptions, a proposed 
    amendment to the Pennsylvania Abandoned Mine Land Reclamation (AMLR) 
    Plan (hereinafter referred to as the AMLR Plan) under the Surface 
    Mining Control and Reclamation Act of 1977 (SMCRA), 30 U.S.C. 1201 et 
    seq., as amended. The proposed amendment adds a new section ``F'' 
    entitled Government Financed Construction Contracts (GFCC) to authorize 
    the incidental removal of coal and coal refuse at Abandoned Mine Land 
    (AML) sites that would not otherwise be mined and reclaimed under the 
    Title V program, along with relevant statutory provisions authorizing 
    the AMLR Plan amendments. The proposed amendment also includes the 
    Program Requirements and Monitoring Requirements related to the use of 
    GFCC for that purpose. The proposed amendment is intended to improve 
    the efficiency of the Pennsylvania program by allowing the government-
    financed construction exemption in Section 528 of SMCRA to be applied 
    in cases involving less than 50% financing only in the limited 
    situation where the construction constitutes a government approved and 
    administered abandoned mine land reclamation project under Title IV of 
    SMCRA. The amendment is also intended to authorize the use of excess 
    spoil from a valid, permitted coal mining operation for the reclamation 
    of an abandoned unreclaimed area outside of the permit area.
    
    EFFECTIVE DATE: March 26, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Mr. Robert J. Biggi, Director, 
    Harrisburg Field Office, Third Floor, Suite 3C, Harrisburg 
    Transportation Center (Amtrack) 415 Market Street, Harrisburg, 
    Pennsylvania 17101. Telephone: (717) 782-4036.
    
    SUPPLEMENTARY INFORMATION: 
    
    I. Background on the Pennsylvania Program
    II. Submission of the Proposed Amendment
    III. Director's Findings
    IV. Summary and Disposition of Comments
    V. Director's Decision
    VI. Procedural Determinations
    
    I. Background on the Pennsylvania Program
    
        On July 30, 1982, the Secretary of the Interior conditionally 
    approved the Pennsylvania AMLR Plan. Background on the Pennsylvania 
    AMLR Plan, including the Secretary's findings and the disposition of 
    comments can be found in the July 30, 1982 Federal Register (47 FR 
    33081). Subsequent actions concerning the AMLR Plan amendments are 
    identified at 30 CFR 938.20 and 938.25.
        On July 31, 1982, the Secretary of the Interior conditionally 
    approved the Pennsylvania program. Background information on the 
    Pennsylvania program can be found in the July 30, 1982 Federal Register 
    (47 FR 33050). Subsequent actions concerning the conditions of approval 
    and program amendments are identified at 30 CFR 938.11, 938.12, 938.15 
    and 938.16.
    
    II. Description of the Proposed Amendment
    
        By letter dated November 21, 1997 (Administrative Record No. PA-
    855.00), the Pennsylvania Department of Environmental Protection 
    (PADEP) submitted proposed Program Amendment No. 2 to the Pennsylvania 
    AMLR Plan. In addition, PADEP also submitted the following documents: 
    Introduction; Basis of Authority for the Proposed Amendment; AML 
    Amendment Conformance with 30 CFR Section 884.13; Assistant Counsel's 
    Opinion of Authority for GFCC; PADEP Organization Chart; the Office of 
    Mineral Resources Management Organization Chart; and Public 
    Participation in Part F of the Reclamation Plan (Amendment No. 2). The 
    proposed amendment is intended to improve the efficiency of the 
    Pennsylvania program by allowing the Government-financed construction 
    exemption in Section 528 of SMCRA to be applied in certain cases 
    involving less than 50% government financing. Pennsylvania also 
    proposed to authorize the use of excess spoil from a valid, permitted 
    coal mining operation for the reclamation of an abandoned unreclaimed 
    area outside of the permit area.
        OSM announced receipt of the proposed amendment in the December 29, 
    1997, Federal Register (62 FR 67590), and in the same document opened 
    the public comment period and provided an opportunity for a public 
    hearing on the adequacy of the proposed amendment. The public comment 
    period closed on January 28, 1998.
        OSM's review of the proposed amendment determined that several 
    items required clarification. As a result, a letter requesting 
    clarification on three items pertaining to placement of excess spoil on 
    Abandoned Mine Lands was sent to Pennsylvania dated June 5, 1998 
    (Administrative Record No. PA 855.08). Pennsylvania initially responded 
    in its letter dated June 17, 1998, (Administrative Record No. PA 
    855.09), that it would require additional time to respond to OSM's 
    request, and that it expected to provide a response by July 15. A 
    response was received from Pennsylvania in its letter dated July 7,
    
    [[Page 14611]]
    
    1998 (Administrative Record No. PA-855.10). Therefore, OSM announced a 
    reopening of the public comment period until August 12, 1998, in the 
    July 28, 1998, Federal Register (63 FR 40237). No comments were 
    received. However, OSM subsequently informed Pennsylvania that its 
    program appeared to lack the statutory authority to implement the 
    exemption for incidental coal removal pursuant to government-financed 
    reclamation projects. Therefore, in letters, in letters dated October 8 
    and October 13, 1998 (Administrative Record No. PA 855.12), 
    Pennsylvania subsequently submitted portions of its state law which it 
    believes provides specific authorization to implement the proposed 
    changes to AMLR Plan. Pennsylvania requested to have the statutory 
    provisions included as part of Pennsylvania's Abandoned Mine 
    Reclamation Plan Amendment. The proposed additions were published in 
    the November 3, 1998, Federal Register (63 FR 59259), and the comment 
    period was reopened to November 18, 1998. No comments were received. 
    Since that time, national regulations known as the AML Enhancement Rule 
    were published in the February 12, 1999, Federal Register (64 FR 7470) 
    as a final rule to be effective March 15, 1999. OSM found that 
    Pennsylvania's amendment did not include certain aspects of the AML 
    Enhancement Rule. Therefore, in a letter to OSM dated March 2, 1999 
    (Administrative Record No. PA 855.15), Pennsylvania specified the 
    additional requirements it proposed to be included in its amendment.
    
    III. Director's Findings
    
        Set forth below, pursuant to SMCRA and the Federal regulations at 
    30 CFR 732.15, 732.17, 884.14 and 884.15, are the Director's findings 
    concerning the proposed amendment.
        Revisions not specifically discussed below concern nonsubstantive 
    wording changes and paragraph notations to reflect organizational 
    changes resulting from this amendment. The proposed amendment consists 
    of new Part F, Program Requirements, and a Monitoring Program for 
    GFCC's, both to be added to the AMLR Plan. The proposed amendment also 
    consists of amendments to the Pennsylvania state code, at 52 P.S. 
    1396.3 and 1396.4h.
    
    AMLR Plan, Part F: Government Financed Construction Contracts
    
        (1) Incidental Coal Removal--PADEP proposes to authorize the 
    incidental removal of coal at AML sites that would not otherwise be 
    mined and reclaimed under the Title V program. Through its management 
    of the permitting process and knowledge of the status of the AML lands 
    in Pennsylvania, PADEP plans to enter into agreements with mining 
    companies and adjacent permit holders to direct the reclamation of AML 
    lands which involve some incidental removal of coal. Following are (3) 
    examples of situations where PADEP proposes to utilize the GFCC to 
    address AML liabilities.
        (a) Refuse Pile Reclamation--As a result of an extensive history of 
    mining in Pennsylvania, thousands of coal refuse piles are scattered 
    throughout the state in both the bituminous and anthracite fields. In 
    many cases these piles are unsightly, unsafe and are adding to the 
    sedimentation and mine drainage pollution of Pennsylvania streams in 
    areas that are economically deprived because of poor water quality and 
    general aesthetics.
        Depending on the method used to clean the coal and the volume of 
    material available, these piles have varying degrees of value. Those 
    piles that are larger in volume and higher in quality have 
    traditionally been permitted under the Title V Program while piles of 
    smaller, poorer quality have remained virtually untouched and are not 
    and will not be likely candidates for permitting. These are the types 
    of piles that are generally suitable for use in fluidized-bed 
    combustion processes employed at congeneration plants and the types of 
    piles that will be reclaimed under the proposed program.
        (b) Reclamation of Abandoned Deep Mines--An example specific to 
    this initiative would be represented by an abandoned deep mine that 
    includes subsidence problems and acid mine drainage discharges. The 
    reclamation of this type of site would involve the daylighting of the 
    deep mined area, the incidental and necessary removal of any coal 
    encountered, the placement of alkaline material over the area of deep 
    mine affected, and the construction of some type of passive treatment 
    system to insure the reduction of pollutional loading from the 
    discharges. Daylighting is the method of removing coal from a deep mine 
    by first removing the overburden. Because of the limited amount of coal 
    available, and the potential water quality liability for the 
    discharges, this sample site would not be a candidate for a surface 
    mine permit under the Title V Program.
        (c) Unreclaimed High Walls Adjacent to Active Mine Sites--Nearly 
    all permits issued under the Title V program include varying levels of 
    remining or are located within close proximity to previously affected 
    areas located outside of permit boundaries. In some cases coal along 
    the crop barrier may have gone unmined because of poor quality or high 
    moisture content. In other cases an additional cut taken off the 
    highwall may facilitate a reclamation plan that results in a more 
    suitable post-mining land use or may facilitate an abatement project 
    (alkaline addition--highwall drains, etc.) that will result in improved 
    water quality. In those situations where a Title V permit is 
    impractical due to limited coal recovery or poor coal quality, PADEP 
    proposes to direct reclamation of these sites through a GFCC which 
    allows for the incidental removal of coal to complete reclamation of 
    the AML lands.
        (2) Placement of Excess Spoil on Adjacent AML Lands--PADEP proposes 
    to authorize the placement of excess spoil from active mining 
    operations on AML sites that would not otherwise be mined and reclaimed 
    under the Title V program. Through its management of the permitting 
    process and the knowledge of the status of AML lands in Pennsylvania, 
    PADEP plans to enter into agreements with mining companies and adjacent 
    permit holders to direct the reclamation of AML lands adjacent to 
    permitted operations. The institution of this program will allow PADEP 
    to maximize its reclamation efforts on AML lands at no expense to the 
    funding sources for PADEP's AML program. Savings to the AML program 
    would be used for reclamation at other sites throughout the 
    Commonwealth.
        Pennsylvania was asked to clarify which requirements in the 
    approved program will apply to the placement of excess spoil on 
    abandoned mine lands as referenced in the proposed amendment at page 7 
    where it is stated that the placement of excess spoil on adjacent AML 
    lands would be approved AML reclamation projects and would therefore 
    encompass the same time-tested administrative, financial, contractual 
    and environmental safeguards as any other approved AML projects in the 
    Commonwealth. OSM requested Pennsylvania either require that these 
    projects be handled in the same manner as Federally-funded AML 
    projects, or otherwise identify the administrative, financial, 
    contractual and environmental safeguards that will be applied to these 
    ``no-cost'' GFCC's, and show how these safeguards will ensure the same 
    level of environmental protection as that provided by Federally-funded 
    AML projects. Pennsylvania responded that these projects will be 
    handled in the same manner as Federally-funded AML projects. 
    Furthermore, projects that involve the support and involvement of the 
    District Mining Offices will be
    
    [[Page 14612]]
    
    subject to the additional administrative requirements designed to 
    address the coordination between the Bureau of Abandoned Mine 
    Reclamation and the District Mining Offices. Pennsylvania revised page 
    7 of its proposed amendment to include these clarifications. 
    (Administrative Record No. PA-855.10).
        Pennlsyvania was asked to include in its AMLR Plan provisions to 
    ensure that excess spoil from Title V operations will not be placed on 
    approved AML sites in amounts greater than necessary to address the AML 
    impacts and problems. Pennsylvania responded that it modified its 
    amendment by adding the following sentence to the end of the first 
    paragraph on page 6, C.1; after the fourth sentence of the first full 
    paragraph on page 7; after the first sentence of the last paragraph on 
    page 9; after the first sentence of Part F(2) on page 13; and after the 
    first sentence of third paragraph under Program Requirements on page 
    15: ``The amount of excess spoil from title V operations will not 
    exceed that amount necessary to address the AML impacts and problems.'' 
    (Administrative Record No. PA-855.10).
    
    AMLR Plan, Part F: Program Requirements
    
        A. The Department will solicit and accept proposals to enter into a 
    GFCC for the purpose of reclamation of abandoned mine lands, some of 
    which may involve the incidental and necessary removal of coal.
        To be an ``eligible person'', for purposes of entering into a GFCC, 
    the person must clear the Department's standard compliance with the 
    Applicant Violator System (AVS) checks. In addition, the person must 
    clear a check through the Commonwealth's contractor responsibility 
    program. (See summary of 52 P.S. 1396.4h, under the heading ``STATUTORY 
    PROVISIONS'', below.)
        A GFCC under the terms of this amendment, is limited to those 
    situations where a contractor proposes to enter into an agreement to 
    perform reclamation on abandoned mine lands with the incidental and 
    necessary removal of coal or to use excess spoil from a permitted site 
    to reclaim an abandoned mine land. Reclamation should also include, 
    where feasible, the installation of passive treatment systems and/or 
    other measures to mitigate pre-existing discharges. No processing of 
    coal will be conducted on-site.
        Coal refuse ash may be returned to the site consistent with a 
    general permit issued by the PADEP. General permits are issued by 
    Pennsylvania's Bureau of Water Quality Protection as authorized by its 
    Solid Waste Management Act (35 P.S. Secs. 6018.101 et seq) and 25 Pa 
    Code Chapters 77, 86-90 and 271.
        Sewage sludge may be utilized for site reclamation consistent with 
    a beneficial use order or land reclamation permit. Beneficial use and 
    land reclamation permit are also authorized by Pennsylvania's Solid 
    Waste Management Act.
        PADEP will conduct an expeditious review of the proposal for 
    adequacy of the monitoring plan, erosion and sedimentation control 
    plan, operation plan, and reclamation plan. Particular attention will 
    be given to the feasibility of installing passive treatment systems 
    and/or other measures to mitigate pre-existing discharges. Any 
    deficiencies are to be communicated to the contractor in writing.
        Even though reclamation activities under a GFCC are not subject to 
    the barrier prohibitions of 25 Pa. Code 86.102, precautions will be 
    designed in the operation and reclamation plans to minimize any 
    potential adverse impacts on areas that would be considered prohibited 
    areas under a coal mining permit.
        A performance bond in an amount determined by the PADEP shall be 
    submitted on forms provided by the PADEP for all GFCC sites where bond 
    is required. Specifically, a performance bond will be required on 
    GFCC's which involve coal removal which is incidental to reclamation. 
    PADEP stated that it has developed a bond rate schedule to be used to 
    establish the bond amount for each GFCC. The bond rate schedule is 
    based on acreage involved and PADEP's experience in reclaiming 
    abandoned mine lands. The authority for requiring a bond is contained 
    in the statutes cited in the legal opinion attached to the proposed 
    program amendment initially submitted. (Administrative Record No. PA-
    855.00, Exhibit 2B), PADEP revised pages 15 and 16 of its proposed 
    amendment to include these clarifications. Should a contractor default 
    on a GFCC or otherwise fail to perform the required reclamation, PADEP 
    will make a demand upon the surety to fulfill its performance bond 
    obligations to either complete the reclamation required by the GFCC or 
    to pay that amount of bond money necessary for PADEP to hire another 
    contractor to complete the remaining contract reclamation work.
        A consent order and agreement, in conjunction with a permit 
    condition, will be used to ensure that AML sites which receive excess 
    spoil from a Title V site are fully reclaimed in accordance with the 
    contract standards and/or the consent order. The permit condition will 
    provide that the operator will use no more than that amount of excess 
    spoil which is necessary to reclaim the AML site and that the 
    operator's failure to complete the required reclamation of the AML site 
    prohibits release of the bond on the Title V permit. An operator's 
    failure to complete reclamation of the AML site would also be a 
    violation of its permit, exposing the operator to civil penalties and/
    or bond forfeiture and enforcement of the consent order and agreement.
        B. A proposal for a GFCC will consist of a face sheet and the 
    following Pennsylvania Surface Mine Permitting modules as applicable:
    
    Module #1--Ownership and Right of Entry
    Module #2--Environmental Resource and Operations Map
    Module #3--Hydrology
    Module #4--Operational Information
    Module #5--Streams
    Module #25--Flyash
    Module #27--Sewage Sludge
    
        (a) The ownership and control information is to be entered into the 
    Land Use Management Information System (LUMIS) and a compliance check/
    AVS check run. If a ``bar'' is found, the proposal is to be returned. 
    If ``no bar'' is found, the proposal will be accepted and given an ID 
    number.
        (b) All proposals will be subject to the consultation requirements 
    with other state agencies as prescribed by Pennsylvania's approved AMLR 
    Plan.
        (c) The PADEP will advertise receipt of the proposal. This notice 
    shall be run once a week for two weeks in a newspaper local to the 
    project area.
        (d) The municipality and the county in which the site is located 
    will be notified, by certified letter, that the PADEP received a 
    proposal for a GFCC to perform reclamation activities within the 
    municipality.
        (e) Upon final execution of the contract, PADEP will notify the 
    host municipality and county by certified mail of the action; notify 
    any agencies who submitted comments; notify appropriate state 
    Legislators, in writing, of the action; and issue a press release of 
    the action (The Regional Community Relations Coordinator will assist in 
    preparation of this release). If a Small Projects Permit is issued with 
    the executed contract, notice must be made in the Pennsylvania 
    Bulletin.
    
    AMLR Plan, Part F: Monitoring Program for GFCC's
    
        The PADEP will conduct monthly inspections of all GFCC's until the 
    site is determined to be stabilized by vegetation. At that time, the 
    PADEP will
    
    [[Page 14613]]
    
    continue to conduct regular inspections on a quarterly basis until the 
    contract receives final approval and final bond release.
        The inspection forms and related instructions to be utilized to 
    monitor the GFCC program are part of the amendment.
        According to the PADEP, the proposed program amendment would offer 
    solutions to the following problems that exist throughout 
    Pennsylvania's coal field:
        (1) Conditions which create a risk of fire, landslide, subsidence, 
    cave-in or other unsafe, dangerous or hazardous conditions, including 
    but not limited to any unguarded or unfenced open pit area, highwall, 
    water pool, spoil bank and culm bank, abandoned structure, equipment, 
    machinery, tools, or other property used in or resulting from surface 
    mining operations. or other serious hazards to public health or safety.
        (2) AMD pollution and sedimentation into Pennsylvania's streams.
        (3) Unsightly, and unproductive property that has been largely 
    unreclaimed through either the AML or active mining programs.
        (4) Inadequate funding to address the above three Pennsylvania 
    reclamation liabilities.
        Generally speaking, the above conditions exist in areas that are 
    economically depressed and environmentally damaged. The necessary 
    reclamation represents an AML liability well in excess of hundreds of 
    millions of dollars. The proposed program offers an additional solution 
    to Pennsylvania's obligation to provide clean water and a safe and 
    healthy environment to its citizens.
    
    Statutory Provisions
    
        At 52 P.S. 1396.3, Pennsylvania proposes to modify its definition 
    of the term ``surface mining activities'', to add four exceptions. The 
    effect of the modification will be that the excepted activities'' will 
    not be required to apply for and receive surface coal mining permits, 
    and will not be required to comply with the full panoply of performance 
    standards contained in the Pennsylvania surface coal mining regulatory 
    program. Currently, Pennsylvania's definition of ``surface mining 
    activities'' is as follows:
        ``Surface mining activities'' shall mean the extraction of coal 
    from the earth or from waste or stockpiles or from pits or banks by 
    removing the strata or material which overlies or is above or between 
    them or otherwise exposing and retrieving them from the surface, 
    including, but not limited to, strip, auger mining, dredging, quarrying 
    and leaching, and all surface activity connected with surface or 
    underground mining, including, but not limited to, exploration, site 
    preparation, entry, tunnel, drift, slope, shaft and borehole drilling 
    and construction and activities related thereto, but not including 
    those portions of mining operations carried out beneath the surface by 
    means of shafts, tunnels or other underground mine openings. The 
    proposed amendment, which includes four exceptions to the definition of 
    ``surface mining activities'' states that:
        ``Surface mining activities'' shall not include any of the 
    following: (1) Extraction of coal or coal refuse removal pursuant to a 
    government-financed reclamation contract for the purposes of section 
    4.8 [52 P.S. 1396.4h]. (2) Extraction of coal as an incidental part of 
    Federal, State or local government-financed highway construction 
    pursuant to regulations promulgated by the Environmental Quality Board. 
    (3) The reclamation of abandoned mine lands not involving extraction of 
    coal or excess spoil disposal under a written agreement with the 
    property owner and approved by the department. (4) Activities not 
    considered to be surface mining as determined by the United States 
    Office of Surface Mining, Reclamation and Enforcement and set forth in 
    department regulations. The Director finds that exception number two, 
    the extraction of coal as an incidental part of Federal, State or local 
    government-financed highway construction pursuant to regulations 
    promulgated by the Environmental Quality Board, is substantively 
    identical to, and therefore no less stringent than, SMCRA Section 
    528(2), and she is therefore approving it. Prior to implementation of 
    this exception, however, Pennsylvania must submit to OSM and receive 
    OSM approval of the implementing regulations promulgated by the 
    Environmental Quality Board. The Director finds that exception number 
    three, the reclamation of abandoned mine lands not involving extraction 
    of coal or excess spoil disposal under a written agreement with the 
    property owner and approved by the department, is not inconsistent with 
    the Federal definition of ``surface coal mining operations'' at SMCRA 
    Section 701(28), and she is therefore approving it. The Director finds 
    that exception number four, activities not considered to be surface 
    mining as determined by the United States Office of Surface Mining, 
    Reclamation and Enforcement and set forth in department regulations, is 
    not inconsistent with SMCRA or the Federal regulations, and she is 
    therefore approving it. Prior to implementing this exception, however, 
    Pennsylvania must submit to and receive from OSM approval of any 
    implementing regulations it promulgates. Exception number one, 
    extraction of coal or coal refuse removal pursuant to a government-
    financed reclamation contract for the purposes of section 4.8 [52 P.S. 
    1396.4h], is discussed below in the section of this finding entitled 
    ``Analysis of Proposal to Allow Incidental Coal Removal Pursuant to 
    GFCC's.''
        Also at 52 P.S. Sec. 1396.3, Pennsylvania proposes to define the 
    term ``government-financed reclamation contract'', as follows:
        ``Government-financed reclamation contract'' shall mean:
        (1) For the purposes of Section 4.8 [52 P.S. 1396.4h], a Federally-
    funded or state-funded and approved abandoned mine reclamation contract 
    entered into between the department and an eligible person or entity 
    who has obtained special authorization to engage in incidental and 
    necessary extraction of coal refuse pursuant to government-financed 
    reclamation which is either:
        (i) a State-financed reclamation contract less than or equal to 
    fifty thousand dollars ($50,000) total project costs, where up to five 
    hundred (500) tons of coal is extracted, including a reclamation 
    contract where less than five hundred (500) tons is removed and the 
    government's cost of financing reclamation will be assumed by the 
    contractor under the terms of a no-cost contract;
        (ii) a State-financed reclamation contract authorizing the removal 
    of coal refuse, including where reclamation is performed by the 
    contractor under the terms of a no-cost contract with the department, 
    not involving any reprocessing of coal refuse on the project area or 
    return of any coal refuse material to the project area;
        (iii) a State-financed reclamation contract greater than fifty 
    thousand dollars ($50,000) total project costs or a federally-financed 
    abandoned mine reclamation project: Provided, That the department 
    determines in writing that extraction of coal is essential to 
    physically accomplish the reclamation of the project area and is 
    incidental and necessary to reclamation, or
        (iv) federally financed or state-financed extraction of coal which 
    the department determines in writing to be essential to physically 
    extinguish an abandoned mine fire that poses a threat to the public 
    health, safety and welfare.
        (2) For purposes of determining whether or not extraction of coal 
    is
    
    [[Page 14614]]
    
    incidental and necessary under section 4.8, the department shall 
    consider standard engineering factors and shall not in any case 
    consider the economic benefit deriving from extraction of coal. 
    Necessary extraction of coal shall in no case include:
        (i) the extraction of coal in an area adjacent to the previously 
    affected area which will be reclaimed; or
        (ii) the extraction of coal beneath the previously affected area 
    which will be reclaimed. This definition is discussed below in the 
    section of this finding entitled ``Analysis of Proposal to Allow 
    Incidental Coal Removal Pursuant to GFCC's.''
        Also at 52 P.S. 1396.3, Pennsylvania proposes to define the term 
    ``no-cost reclamation contract,'' as follows:
        ``No-cost reclamation contract'' shall mean a contract entered into 
    between the department and an eligible person for the purpose of 
    reclaiming unreclaimed abandoned mine lands and which does not involve 
    the expenditure of Commonwealth funds. This definition is discussed 
    below in the section of this finding entitled ``Analysis of Proposal to 
    Allow Incidental Coal Removal Pursuant to GFCC's.''
        Finally, at 52 P.S. 1396.4h [also referred to as ``section 4.8''], 
    Pennsylvania proposes to add a new section entitled ``Government-
    financed reclamation contracts authorizing incidental and necessary 
    extraction of coal or authorizing removal of coal refuse'' which states 
    that:
        (a) No person may engage in the extraction of coal or in removal of 
    coal refuse pursuant to a government-financed reclamation contract 
    without a valid surface mining permit issued pursuant to this act 
    unless such person affirmatively demonstrates that he is eligible to 
    secure special authorization pursuant to this section to engage in a 
    government-financed reclamation contract authorizing incidental and 
    necessary extraction of coal or authorizing removal of coal refuse. The 
    department shall determine eligibility before entering into a 
    government-financed reclamation contract authorizing incidental and 
    necessary extraction of coal or authorizing removal of coal refuse. The 
    department may provide the special authorization as part of the 
    government-financed reclamation contract: Provided, That the contract 
    contains and does not violate the requirements of this section. The 
    department shall not be required to grant a special authorization to 
    any eligible person. The department may, however, in its discretion, 
    grant a special authorization allowing incidental and necessary 
    extraction of coal or allowing removal of coal refuse pursuant to a 
    government-financed reclamation contract in accordance with this 
    section.
        (b) Only eligible persons may secure special authorization to 
    engage in incidental and necessary extraction of coal or to engage in 
    removal of coal refuse pursuant to a government-financed reclamation 
    contract. A person is eligible to secure a special authorization if he 
    can demonstrate, at a minimum, to the department's satisfaction that:
        (1) The contractor or any related party or subcontractor which will 
    act under its direction has no history of past or continuing violations 
    which show the contractor's lack of ability or intention to comply with 
    the acts or the rules and regulations promulgated thereunder, whether 
    or not such violation relates to any adjudicated proceeding agreement, 
    consent order or decree, or which resulted in a cease order or civil 
    penalty assessment. For the purposes of this section, the term 
    ``related party'' shall mean any partner, associate, officer, parent 
    corporation, affiliate or person by or under common control with the 
    contractor.
        (2) The person has submitted proof that any violation related to 
    the mining of coal by the contractor or any related party or 
    subcontractor which will act under its direction of any of the acts, 
    rules, regulations, permits or licenses of the department has been 
    corrected or is in the process of being corrected to the satisfaction 
    of the department, whether or not the violation relates to any 
    adjudicated proceeding, agreement, consent order or decree or which 
    resulted in a cease order or civil penalty assessment. For purposes of 
    this section, the term ``related party'' shall mean any partner, 
    associate, officer, parent corporation, subsidiary corporation, 
    affiliate or person by or under common control with the contractor.
        (3) The person has submitted proof that any violation by the 
    contractor or by any person owned or controlled by the contractor or by 
    a subcontractor which acts under its direction of any law, rule or 
    regulation of the United States or any state pertaining to air or water 
    pollution has been corrected or is in the process of being 
    satisfactorily corrected.
        (4) The person or any related party or subcontractor which will act 
    under the direction of the contractor has no outstanding unpaid civil 
    penalties which have been assessed for violations of either this act or 
    the act of June 22, 1937 (Pub. L. 1987, No. 394), known as ``The Clean 
    Streams Law'' (35 P.S. Sec. 691.1 et seq.), in connection with either 
    surface mining or reclamation activities.
        (5) The person or any related party or subcontractor which will act 
    under the direction of the contractor has not been convicted of a 
    misdemeanor or felony under this act or the acts set forth in 
    subsection (e) and has not had any bonds declared forfeited by the 
    department.
        (c) Any eligible person who proposes to engage in extraction of 
    coal or in removal of coal refuse pursuant to a government-financed 
    reclamation contract may request and secure special authorization from 
    the department to conduct such activities under this section. The 
    department may issue the special authorization as part of the 
    government-financed reclamation contract: Provided, That the contract 
    contains and does not violate the requirements of this section. A 
    special authorization can only be obtained if a clause is inserted in a 
    government-financed reclamation contract authorizing such extraction of 
    coal or authorizing removal of coal refuse and the person requesting 
    such authorization has affirmatively demonstrated to the department's 
    satisfaction that he has satisfied the provision of this section. A 
    special authorization shall only be granted by the department prior to 
    the commencement of extraction of coal or commencement of removal of 
    coal refuse on a project area. In order to be considered for a special 
    authorization by the department, an eligible person must demonstrate at 
    a minimum that:
        (1) The primary purpose of the operation to be undertaken is the 
    reclamation of abandoned mine lands.
        (2) The extraction of coal will be incidental and necessary, or the 
    removal of coal refuse will be required, to accomplish the reclamation 
    of abandoned mine lands pursuant to a government-financed reclamation 
    contract.
        (3) Incidental and necessary extraction of coal or in removal of 
    coal refuse will be confined to the project area being reclaimed.
        (4) All extraction of coal or in removal of coal refuse and 
    reclamation activity undertaken pursuant to a government-financed 
    reclamation project will be accomplished pursuant to:
        (i) The applicable environmental protection performance standards 
    promulgated in the rules and regulations relating to surface coal 
    mining listed in the government-financed reclamation contract; and
    
    [[Page 14615]]
    
        (ii) Additional conditions included in the government-financed 
    reclamation contract by the department.
        (d) The contractor will pay any applicable per-ton reclamation fee 
    established by OSM for each ton of coal extracted pursuant to a 
    government-financed reclamation project.
        (e) Prior to commencing extraction of coal or commencement of 
    removal of coal refuse pursuant to a government-financed reclamation 
    project, the contractor shall file with the department a performance 
    bond payable to the Commonwealth and conditioned upon the contractor's 
    performance of all the requirements of the government-financed 
    reclamation contract, this act, ``The Clean Streams Law'', the act of 
    January 8, 1960 (1959 P.L. 2119, No. 787) (35 P.S. section 4001 et 
    seq.), known as the ``Air Pollution Control Act'', the act of September 
    24, 1968 (P.L. 1040, No. 318) (52 P.S. Sec. 30.51 et seq.), known as 
    the ``Coal Refuse Disposal Control Act,'' where applicable, the act of 
    November 26, 1978 (P.L. 1375, No. 325) (32 P.S. Sec. 693.1 et seq.), 
    known as the ``Dam Safety and Encroachments Act'', and, where 
    applicable, the act of July 7, 1980 (P.L. 380, No. 97) (35 P.S. 
    Sec. 6018.101 et seq.), known as the ``Solid Waste Management Act''. An 
    operator posting a bond sufficient to comply with this section shall 
    not be required to post a separate bond for the permitted area under 
    each of the acts herein above enumerated. For government-financed 
    reclamation contracts other than a no-cost reclamation contract, the 
    criteria for establishing the amount of the performance bond shall be 
    the engineering estimate, determined by the department, of meeting the 
    environmental obligations enumerated above. The performance bond which 
    is provided by the contractor under a contract other than a government-
    financed reclamation contract shall be deemed to satisfy the 
    requirements of this section provided that the amount of the bond is 
    equivalent to or greater than the amount determined by the criteria set 
    forth in this subsection. For no-cost reclamation projects in which the 
    reclamation schedule is shorter than two (2) years the bond amount 
    shall be a per acre fee, which is equal to the department's average per 
    acre cost to reclaim abandoned mine lands; provided, however, for coal 
    refuse removal operations, the bond amount shall only apply to each 
    acre affected by the coal refuse removal operations. For long-term, no-
    cost reclamation projects in which the reclamation schedule extends 
    beyond two (2) years, the department may establish a lesser bond 
    amount. In these contracts, the department may in the alternative 
    establish a bond amount which reflects the cost of the proportionate 
    amount of reclamation which will occur during a period specified.
        (f) The department shall insert in government-financed reclamation 
    contracts conditions which prohibit coal extraction pursuant to 
    government-financed reclamation in areas subject to the restrictions of 
    Section 4.2 (52 P.S. Sec. 1396.4b.), except as surface coal mining is 
    allowed pursuant to that section.
        (g) Any person engaging in extraction of coal pursuant to a no-cost 
    government-financed reclamation contract authorized under this section 
    who affects a public or private water supply by contamination or 
    diminution shall restore or replace the affected supply with an 
    alternate supply adequate in quantity and quality for the purposes 
    served.
        (h) Extraction of coal or removal of coal refuse pursuant to a 
    government-financed reclamation contract cannot be initiated without 
    the consent of the surface owner for right of entry and consent of the 
    mineral owner for extraction of coal. Nothing in this section shall 
    prohibit the department's entry onto land where such entry is necessary 
    in the exercise of police powers.
        This new section is discussed below in the section of this finding 
    entitled ``Analysis of Proposal to Allow Incidental Coal Removal 
    Pursuant to GFCC's.''
    
    Analysis of Proposal To Allow Incidental Coal Removal Pursuant to 
    GFCC's
    
        Section 528(2) of SMCRA provides an exemption from the requirements 
    of SMCRA for coal extraction incidental to government-financed highway 
    or other construction under regulations established by the regulatory 
    authority. The amendments to Pennsylvania's statutes and to its AMLR 
    Plan would allow incidental coal extraction pursuant to the reclamation 
    of abandoned sites without the need of a surface coal mining permit. 
    The State contends that this amendment is consistent with the 
    provisions of section 528(2) of SMCRA and, therefore, not subject to 
    SMCRA.
        The Federal regulations at 30 CFR Part 707 set forth the procedures 
    for determining those surface coal mining and reclamation operations 
    which are exempt from the Act and the Federal regulations because the 
    extraction of coal is an incidental part of Federal, State, or local 
    government-financed highway or other construction. Under 30 CFR 707.5, 
    government-financed construction, generally, means construction funded 
    50 percent or more by funds appropriated from a government financing 
    agency's budget or obtained from general revenue bonds. However, OSM 
    has recently promulgated a revision to the definition of ``government 
    financed construction'' at 30 CFR 707.5. The new revision allows 
    incidental coal extraction to be performed pursuant to approved 
    reclamation projects under Title IV of SMCRA, even where the government 
    funding portion is less than 50%. 64 FR 7470, February 12, 1999. 
    Therefore, Pennsylvania's proposed statutory and AMLR Plan amendments 
    are no less than the newly promulgated revision to the Federal 
    definition of ``government financed construction'', insofar as the 
    State provisions apply to approved Title IV projects. The Director also 
    finds that the AMLR plan amendment is no less effective than the 
    federal regulations at 30 CFR 707.12, pertaining to the information 
    required to be maintained on site, with respect to approved Title IV 
    projects. However, other new Federal provisions were enacted in the 
    same rulemaking. These new provisions, at 30 CFR 874.17, contain 
    consultation responsibilities and concurrence obligations, as well as 
    documentation requirements, for the Title IV and Title V divisions of 
    State Regulatory Authorities as a prerequisite to approval of 
    incidental coal extraction without a permit, on approved Title IV 
    reclamation projects which are less than 50% government financed. 
    Pennsylvania's proposed amendment already contained counterparts to the 
    requirements contained in 30 CFR 874.17(b), (d)(3) and (d)(4). Also, 
    since our approval of the incidental extraction of coal on projects 
    which are less than 50% government financed is limited to approved AML 
    projects under Title IV, the projects will necessarily be conducted in 
    accordance with 30 CFR Subchapter R, thereby fulfilling the requirement 
    at 30 CFR 874.17(d)(2). Finally, in a letter dated March 2, 1999 
    (Administrative Record No. PA-855.15), Pennsylvania proposed to amend 
    its AML Plan to require that any Title IV reclamation projects to 
    require compliance with the remaining portions of 30 CFR 874.17. 
    Therefore, the Director finds that the amendment submitted by 
    Pennsylvania, including the March 2, 1999, modification, complies with 
    30 CFR 874.17, to the extent that it applies to the incidental 
    extraction of coal on approved Title IV projects which are less than 
    50% government financed.
    
    [[Page 14616]]
    
        A discussion of the support statutory revisions follows.
        At 52 P.S. 1396.3, Pennsylvania proposes an exception from the 
    definition of ``surface mining activities'' for the extraction of coal 
    or coal refuse removal pursuant to a government-financed reclamation 
    contract. Also at 52 P.S. 1396.3, Pennsylvania proposes a definition of 
    ``government-financed reclamation contract.'' (This definition is 
    summarized above.) To the extent that these provisions apply to the 
    incidental extraction of coal pursuant to approved AML projects, they 
    are no less stringent than Section 528(2) of SMCRA, for the reasons 
    discussed in the preceding paragraphs under this heading. These 
    projects may be less than 50% government financed, and may be approved 
    by Pennsylvania at any time after the effective date of this final 
    rule. Our approval includes state financed reclamation projects, which 
    receive no federal AML funding, so long as those projects are approved 
    under title IV and the federal regulations at 30 CFR Subchapter R. In 
    other words, the State need not actually use federal AML moneys to fund 
    these projects, but the projects must first comply with the criteria in 
    SMCRA and the federal regulations which govern eligibility for federal 
    funding. Projects that are State financed, but that do not receive 
    Title IV approval, qualify for the government financed construction 
    exemption only if they are at least 50% government financed. Therefore, 
    the director is not approving the definition of ``government-financed 
    reclamation contract'' to the extent that it proposes to allow 
    incidental coal removal, pursuant to state financed reclamation 
    contracts which are less than 50 percent government financed, on sites 
    which have not been approved as Title IV AML projects.
        In addition, the Director is not approving the portions of the 
    definition of ``government-financed reclamation contract'' which refer 
    to ``no-cost contracts.'' (See the proposed definition of ``no-cost 
    reclamation contract'', which is set forth in its entirety, above.) In 
    order to qualify as ``government-financed construction'', projects must 
    receive some funding through appropriations from the government 
    financing agency's budget. Any expenses incurred directly or indirectly 
    by the AML agency, including the costs of project design, solicitation, 
    management and oversight, qualify as government financing. However, 
    Pennsylvania defines no-cost contracts as those contracts that do not 
    involve the expenditure of any government funding, either as direct 
    payments or as indirect expenses such as those listed above. Therefore, 
    Pennsylvania's definition of ``government financed reclamation 
    contract'' is less effective than the Federal definition of 
    ``government-financed construction'', at 30 CFR 707.5, to the extent 
    that it would allow incidental coal extraction or coal refuse removal, 
    without a permit, pursuant to no-cost contracts. Specifically, the 
    Director is not approving the following language in the definition of 
    ``government-financed reclamation contract'':
        In paragraph (1)(i), the phrase ``including a reclamation contract 
    where less than five hundred (500) tons is removed and the government's 
    cost of financing reclamation will be assumed by the contractor under 
    the terms of a no-cost contract''; and,
        In paragraph (1)(ii), the phrase ``including where reclamation is 
    performed by the contractor under the terms of a no-cost contract with 
    the department, not involving any reprocessing of coal refuse on the 
    project area or return of any coal refuse material to the project 
    area.''
        In addition, the Director is not approving the definition of ``no-
    cost reclamation contract'', at 52 P.S. 1396.3.
        Finally, the Director is requiring Pennsylvania to amend 52 P.S. 
    1396.3 to delete the above-referenced language.
        At 52 P.S. 1396.4h, also known as ``Section 4.8'', which is set 
    forth in its entirety above, Pennsylvania has established criteria for 
    determining eligibility for receipt of a special authorization to 
    conduct incidental coal extraction or coal refuse removal pursuant to a 
    government-financed reclamation contract. This provision also requires 
    eligible persons to demonstrate that coal extraction or refuse removal 
    will be incidental and necessary to reclamation, which shall be the 
    primary purpose of the contract, and that it will comply with 
    environmental protection performance standards listed in the contract. 
    Next, the provision requires that applicable reclamation fees be paid 
    for each ton of coal extracted, sets forth criteria for the posting of 
    performance bonds, prohibits the incidental extraction of coal and 
    removal of coal refuse in areas subject to other restrictions on coal 
    extraction, pursuant to 52 P.S. 1396.4b, and requires surface owner 
    consent for right of entry and for extraction of coal. These 
    provisions, which are contained in subsections ``a'' through ``d'', 
    ``f'' and ``h'' of 52 P.S. 1396.4h, have no Federal counterparts. 
    However, they are not inconsistent with Section 528(2) of SMCRA or 30 
    CFR Part 707, and add restrictions to the issuance of ``special 
    authorizations'' which should help to ensure that proposed projects 
    which are truly ``surface mining activities'' will be required to 
    obtain full surface mining permits. Therefore, the Director is 
    approving these subsections. She is also approving subsection ``e'' for 
    the same reasons, except for the following language, pertaining to 
    ``no-cost contracts'', which is not approved:
    
        For no-cost reclamation projects in which the reclamation 
    schedule is shorter than two (2) years the bond amount shall be a 
    per acre fee, which is equal to the department's average per acre 
    cost to reclaim abandoned mine lands; provided, however, for coal 
    refuse removal operations, the bond amount shall only apply to each 
    acre affected by the coal refuse removal operations. For long-term, 
    no-cost reclamation projects in which the reclamation schedule 
    extends beyond two (2) years, the department may establish a lesser 
    bond amount. In these contracts, the department may in the 
    alternative establish a bond amount which reflects the cost of the 
    proportionate amount of reclamation which will occur during a period 
    specified.
    
        Also, the Director is not approving any portion of subsection 
    ``g'', since it pertains solely to extraction of coal pursuant to no-
    cost contracts. Finally, the Director is requiring the State to amend 
    52 P.S. 1396.4h to delete the above-quoted portion of subsection ``e'', 
    and to delete subsection ``g'' in its entirety.
    
    Analysis of Proposal to Allow Placement of Excess Spoil on Adjacent AML 
    Lands
    
        Placement of excess spoil on adjacent abandoned mine land has been 
    addressed previously in other rulemaking. Specifically, in a July 9, 
    1991, letter to Ohio (Administrative Record No. OH-1546), the Director 
    of OSM clarified OSM's position concerning the standards and 
    requirements which apply to the usage of excess spoil for reclamation 
    of abandoned mine land sites. OSM focused on the parameters for excess 
    spoil disposal outside the permit area as established, in part, in 
    several final rules approving such a provision in the West Virginia 
    program (45 FR 69254-69255, October 20, 1980; 46 FR 5919, January 21, 
    1981; and 55 FR 21328-21329, May 23, 1990).
        In the January 21, 1981, Federal Register announcing approval of 
    the West Virginia program (46 FR 5919), the Secretary found that, for 
    purposes of excess spoil disposal, a reclamation contract governing 
    work to be performed on a Federal AML reclamation grant project is the 
    equivalent of permit and bond under Title V of SMCRA. In the May 23, 
    1990, Federal Register (55 FR 21329), OSM found that West Virginia's 
    proposed
    
    [[Page 14617]]
    
    disposal of excess spoil on a Federally funded AML reclamation project 
    is approvable provided the spoil is not necessary to restore 
    approximate original contour (AOC) on or otherwise reclaim the active 
    mine. In addition, as stated in the May 23, 1990, Federal Register, 
    fills are not to be created on AML reclamation projects. Spoil 
    deposited on such sites may be used only to complete reclamation and to 
    return the site to its AOC. OSM restricted eligibility for such spoil 
    deposition to AML reclamation projects funded through the Federal AML 
    grant process. The May 23, 1990, finding, however, did not prohibit the 
    possibility that ``no-cost reclamation'' contracts, which allow spoil 
    disposal on AML sites not included in Federally funded grants, could be 
    approved in the future. In order to gain OSM approval, however, ``no-
    cost reclamation'' amendments would have to contain meaningful 
    performance incentives or safeguards to ensure that spoil is placed 
    only where it is needed to restore AOC and where it will not destroy or 
    degrade features of environmental value. In addition, the amendments 
    must require that spoil be placed in an environmentally and technically 
    sound fashion. See OSM Director's July 9, 1991, letter to Ohio 
    (Administrative Record No. OH-1546). In short, ``no cost reclamation'' 
    amendments must provide a degree of security comparable to that 
    afforded by a Federally funded AML reclamation project.
        The Director finds that Pennsylvania's proposal regarding placement 
    of excess spoil, at Part F, meets these requirements, for the reasons 
    set forth below.
        First, Pennsylvania's proposal requires that the amount of excess 
    spoil placed on an abandoned site will not exceed that required to 
    restore that site to AOC. Also, the proposal limits the amount of 
    excess spoil placed on AML sites to that amount needed to address the 
    AML impacts and problems. Therefore, valley, head-of-hollow and durable 
    rock fills will not be constructed on these AML sites, because the 
    amount of material deposited would exceed that necessary to address the 
    AML impacts and problems.
        Second, the proposal requires that the plan for excess spoil 
    placement pursuant to a GFCC will be developed and implemented in the 
    same manner as is done for Federally funded AML projects. The 
    environmental safeguards that therefore will apply to GFCC's should 
    ensure that the excess spoil is placed in an environmentally sound 
    fashion, and that placement will not destroy or degrade features of 
    environmental value.
        Third, and finally, the Director finds that the proposal contains 
    sufficient performance incentives to require compliance with all 
    applicable requirements, since a consent order and agreement, in 
    conjunction with a permit condition, will be used to ensure that AML 
    sites which receive excess spoil from a Title V site are fully 
    reclaimed. The permit condition will provide that the operator will use 
    no more than that amount of excess spoil which is necessary to reclaim 
    the AML site and that the operator's failure to complete the required 
    reclamation of the AML site prohibits release of the bond on the Title 
    V permit. An operator's failure to complete reclamation of the AML site 
    would also be a violation of its permit, exposing the operator to civil 
    penalties and/or bond forfeiture and enforcement of the consent order 
    and agreement. Finally, the PADEP always has AML grant funds available 
    to reclaim these sites in the event that the operator defaults on the 
    terms of its contract.
    
    General Findings
    
        Pursuant to 30 CFR 884.15(a), an AMLR Plan amendment which changes 
    the scope, objectives or major policies followed by the State in the 
    conduct of its reclamation program must meet the requirements of 30 CFR 
    884.14 before OSM may approve it. Accordingly, OSM makes the following 
    findings:
        1. OSM offered the public an opportunity for a public hearing on 
    the amendment in the December 29, 1997, Federal Register Notice, (62 FR 
    67590), thereby complying with the requirement of 30 CFR 884.14(a)(1);
        2. In both the December 29, 1997 (62 FR 67590) and July 28, 1998 
    (63 FR 40237) Federal Register Notices, OSM solicited the views of 
    other Federal agencies having an interest in the AMLR Plan amendment, 
    and OSM considered the views of those agencies in reaching its 
    decision, thereby complying with the requirements of 30 CFR 
    884.14(a)(2);
        3. PADEP has provided evidence of the State's legal authority, 
    policies and administrative structure necessary to carry out the 
    proposed AMLR Plan amendment, thereby complying with the requirements 
    of 30 CFR 884.14(a)(3);
        4. The AMLR Plan amendment meets all of the requirements of the 
    Federal Regulations at Title 30, Chapter VII, Subchapter R, ``Abandoned 
    Mine Land Reclamation'', including the newly promulgated ``AML 
    Enhancement Rule'' at 30 CFR 874.17, and therefore complies with the 
    requirements of 30 CFR 884.14(a)(4);
        5. Pennsylvania has an approved State regulatory program, as 
    announced in the July 30, 1982, Federal Register Notice (47 FR 33050), 
    as required by 30 CFR 884.14(a)(5); and,
        6. The AMLR Plan amendment is in compliance with all applicable 
    State and Federal laws and regulations, and therefore complies with the 
    requirements of 30 CFR 884.14(a)(6).
        Based upon all of the above considerations, the Director is 
    approving Part F.
    
    IV. Summary and Disposition of Comments
    
        The Director solicited public comments and provided an opportunity 
    for a public hearing on the proposed amendment. Comments were received 
    from the Pennsylvania Coal Association, the Anthracite Region 
    Independent Power Producers Association, and the Indiana Coal Council, 
    Inc. (Administrative Record Nos. PA-855.05, 855.06 and 855.07, each 
    dated January 28, 1998, respectively). In each case, comments regarding 
    the proposed amendment were favorable and supportive, and encouraged 
    OSM's approval. Because no one requested an opportunity to speak at a 
    public hearing, no hearing was held.
    
    Federal Agency Comments
    
        Pursuant to 30 CFR 884.14(a)(2), the Director solicited comments on 
    the proposed amendment from various Federal agencies with an actual or 
    potential interest in the Pennsylvania AMLR Plan. The Mine Safety and 
    Health Administration (MSHA) responded in its letter dated December 15, 
    1997, (Administrative Record No. PA-855.03) that it saw no conflict 
    with Coal Mine Safety and Health Impoundment or Refuse Pile Regulations 
    under 30 CFR 77.214, 215 and 216. No other comments were received.
    
    Environmental Protection Agency (EPA)
    
        Pursuant to 30 CFR 732.17(h)(11)(ii), OSM is required to obtain the 
    written concurrence of the EPA with respect to those provisions of the 
    proposed program amendment that relate to air or water quality 
    standards promulgated under the authority of the Clean Water Act (33 
    U.S.C. 1251 et seq.) The Director has determined that this amendment 
    contains no such provisions and that EPA concurrence is therefore 
    unnecessary. Also, EPA did not respond to OSM's request for comments.
    
    V. Director's Decision
    
        Based on the above finding(s), the Director approves the proposed
    
    [[Page 14618]]
    
    amendment as submitted by Pennsylvania on November 21, 1997, clarified 
    on July 7, 1998, and revised on October 8 and October 13, 1998, and 
    March 2, 1999 with the exceptions noted below. In particular, the 
    Director is approving Part F, which authorizes the use of GFCCs which 
    involve incidental coal removal, or which allow the placement of excess 
    spoil on adjacent Abandoned Mine Lands. In addition, the Director is 
    approving the statutory provisions submitted by the State, consisting 
    of portions of 52 P.S. 1396.3 and a new section, 52 P.S. 1396.4th, with 
    the exceptions noted below.
        The Director is not approving the definition of ``government-
    financed reclamation contract'', at 52 P.S. 1386.3, to the extent that 
    it proposes to allow incidental coal removal, pursuant to state 
    financed reclamation contracts which are less than 50 percent 
    government financed, on sites which have not been approved as Title IV 
    AML project. Projects that are state financed, but that do not receive 
    Title IV AML approval, can include incidental coal removal if the 
    project are at least 50% government financed. In addition, the Director 
    is not approving the portions of the definition of ``government-
    financed reclamation contract'' which refer to ``no-cost contracts.'' 
    Specifically, the Director is not approving the following language in 
    the definition of ``government-financed reclamation contract'':
        In paragraph (1)(i), the phrase ``including a reclamation contract 
    where less than five hundred (500) tons is removed and the government's 
    cost of financing reclamation will be assumed by the contractor under 
    the terms of a no-cost contract''; and,
        In paragraph (1)(ii), the phrase ``including where reclamation is 
    performed by the contractor under the terms of a no-cost contract with 
    the department, not involving any reprocessing of coal refuse on the 
    project area or return of any coal refuse material to the project 
    area.''
        In addition, since the Director is not approving the use of no-cost 
    reclamation contracts that involve incidental extraction of coal or 
    coal refuse, she is also not approving the definition of ``no-cost 
    reclamation contract'', at 52 P.S. 1396.3.
        Also, the Director is not approving the following portions of 
    subsection ``e'' of 52 P.S. 1396.4h:
    
        For no-cost reclamation projects in which the reclamation 
    schedule is shorter than two (2) years the bond amount shall be a 
    per acre fee, which is equal to the department's average per acre 
    cost to reclaim abandoned mine lands; provided, however, for coal 
    refuse removal operations, the bond amount shall only apply to each 
    acre affected by the coal refuse removal operations. For long-term 
    no-cost reclamation projects in which the reclamation schedule 
    extends beyond two (2) years, the department may establish a lesser 
    bond amount. In these contracts, the department may in the 
    alternative establish a bond amount which reflects the cost of the 
    proportionate amount of reclamation which will occur during a period 
    specified.
    
        Finally, the Director is not approving any portion of 52 P.S. 
    1396.4h., subsection ``g'', since it pertains solely to extraction of 
    coal pursuant to no-cost contracts.
        The Director is requiring Pennsylvania to amend 52 P.S. 1396.3 and 
    1396.4h to delete the above-referenced language.
        The Federal regulations at 30 CFR part 938, codifying decisions 
    concerning the Pennsylvania program, are being amended to implement 
    this decision. This final rule is being made effective immediately to 
    expedite the State AMLR Plans and State Regulatory Program amendment 
    processes and to encourage States to bring their programs into 
    conformity with the Federal standards without undue delay. Consistency 
    of State and Federal standard is required by SMCRA.
    
    VI. Procedural Determinations
    
    Executive Order 12866
    
        This proposed rule is exempted from review by the Office of 
    Management and Budget (OMB) under Executive Order 12866 (Regulatory 
    Planning and Review).
    
    Executive Order 12988
    
        The Department of the Interior has conducted the reviews required 
    by section 3 of Executive Order 12988 (Civil Justice Reform) and has 
    determined that, to the extent allowed by law, this rule meets the 
    applicable standards of subsections (a) and (b) of that section. 
    However, these standards are not applicable to the actual language of 
    State and Tribal abandoned mine land reclamation plans and revisions 
    thereof since each such plan is drafted and promulgated by a specific 
    State or Tribe, no by OSM. These standards are also not applicable to 
    the actual language of state regulatory programs and program amendments 
    for the same reason. Decisions on State and Tribal abandoned mine land 
    reclamation plans and revisions thereof submitted by a State or Tribe 
    are based on a determination of whether the submittal meets the 
    requirements of Title IV of SMCRA (30 U.S.C. 1231-1243) and the Federal 
    regulations at 30 CFR Part 884. Similarly, under sections 503 and 505 
    of SMCRA (30 U.S.C. 1253 and 1255) and 30 CFR 730.11, 732.15, and 
    732.17(h)(1), decisions on proposed state regulatory programs and 
    program amendments submitted by the states must be based solely on a 
    determination of whether the submittal is consistent with SMCRA and its 
    implementing Federal regulations and whether the other requirements of 
    30 CFR Parts 730, 731, and 732 have been met.
    
    National Environmental Policy Act
    
        No environmental impact statement is required for this rule since 
    agency decisions on proposed State and Tribal abandoned mine land 
    reclamation plans and revisions thereof are categorically excluded from 
    compliance with the National Environmental Policy Act (42 U.S.C. 4332) 
    by the Manual of the Department of the Interior (516 DM 6, appendix 8, 
    paragraph 8.4B(29)), and since section 702(d) of SMCRA (30 U.S.C. 
    1292(d)) provides that agency decisions on proposed State regulatory 
    program provisions do not constitute major Federal actions within the 
    meaning of section 102(2)(C) of the National Environmental Policy Act 
    (42 U.S.C. 4332(2)(C)).
    
    Paperwork Reduction Act
    
        This rule does not contain information collection requirements that 
    require approval by OMB under the Paperwork Reduction Act (44 U.S.C. 
    3507 et seq.).
    
    Regulatory Flexibility Act
    
        The Department of the Interior has determined that this rule will 
    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 State submittal which is the subject of this rule is based upon 
    corresponding Federal regulations for which an economic analysis was 
    prepared and certification made that such regulations would not have a 
    significant economic effect upon a substantial number of small 
    entities. Accordingly, this rule will ensure that existing requirements 
    previously promulgated by OSM will be implemented by the State. In 
    making the determination as to whether this rule would have a 
    significant economic impact, the Department relied upon the data and 
    assumptions in the analyses for the corresponding Federal regulations.
    
    Unfunded Mandates
    
        This rule will not impose a cost of $100 million or more in any 
    given year on any governmental entity or the private sector.
    
    [[Page 14619]]
    
    List of Subjects in 30 CFR Part 938
    
        Intergovernmental relations, Surface mining, Underground mining.
    
        Dated: March 5, 1999.
    Allen D. Klein,
    Regional Director, Appalachian Regional Coordinating Center.
    
        For the reasons set out in the preamble, Title 30, Chapter VII, 
    Subchapter T of the Code of Federal Regulations is amended as set forth 
    below:
    
    PART 938--PENNSYLVANIA
    
        1. The authority citation for part 938 continues to read as 
    follows:
    
        Authority: 30 U.S.C. 1201 et seq.
    
        2. Section 938.15 is amended in the table by adding a new entry in 
    chronological order by ``Date of Final Publication'' to read as 
    follows:
    
    
    Sec. 938.15  Approval of Pennsylvania regulatory program amendments.
    
    * * * * *
    
    ------------------------------------------------------------------------
     Original amendment submission    Date of final
                 date                  publication      Citation/description
    ------------------------------------------------------------------------
     
    *                  *                  *                  *
                      *                  *                  *
    October 8, 1998...............  March 26, 1999...  52 P.S. Secs.
                                                        1396.3, 1396.4h.
    ------------------------------------------------------------------------
    
        3. Section 938.16 is amended by adding new paragraphs (cccc), 
    (dddd), (eeee) and (ffff) to read as follows:
        (cccc) By May 26, 1999, Pennsylvania must submit either a proposed 
    amendment or a description of an amendment to be proposed, together 
    with a timetable for adoption, to delete the following portions of the 
    definition of ``government-financed reclamation contract'', at 52 P.S. 
    Sec. 1396.3: in paragraph (1)(i), the phrase ``including a reclamation 
    contract where less than five hundred (500) tons is removed and the 
    government's cost of financing reclamation will be assumed by the 
    contractor under the terms of a no-cost contract''; and, in paragraph 
    (1)(ii), the phrase ``including where reclamation is performed by the 
    contractor under the terms of a no-cost contract with the department, 
    not involving any reprocessing of coal refuse on the project area or 
    return of any coal refuse material of the project area.''
        (dddd) By May 26, 1999, Pennsylvania must submit either a proposed 
    amendment or a description of an amendment to be proposed, together 
    with a timetable for adoption, to delete the definition of ``no-cost 
    reclamation contract'', at 52 P.S. Sec. 1396.3.
        (eeee) By May 26, 1999, Pennsylvania must submit either a proposed 
    amendment or a description of an amendment to be proposed, together 
    with a timetable for adoption, to delete the following language 
    contained in subsection ``e'' of 52 P.S. Sec. 1396.4h:
    
        For no-cost reclamation projects in which the reclamation 
    schedule is shorter than two (2) years the bond amount shall be a 
    per acre fee, which is equal to the department's average per acre 
    cost to reclaim abandoned mines lands; provided, however, for coal 
    refuse removal operations, the bond amount shall only apply to each 
    acre affected by the coal refuse removal operations. For long-term, 
    no-cost reclamation projects in which the reclamation schedule 
    extends beyond two (2) years, the department may establish a lesser 
    bond amount. In these contracts, the department in the alternative 
    establish a bond amount which reflects the cost of the proportionate 
    amount of reclamation.
    
        (ffff) By May 26, 1999, Pennsylvania must submit either a proposed 
    amendment or a description of an amendment to be proposed, together 
    with a timetable for adoption, to delete, in its entirety, subsection 
    ``g'' of 52 P.S. Sec. 1396.4h.
        4. Section 938.25 is amended in the table by adding a new entry in 
    chronological order by ``Date of Final Publication'' to read as 
    follows:
    
    
    Sec. 938.25  Approval of Pennsylvania abandoned mine reclamation plan 
    amendments.
    
    * * * * *
    
    ------------------------------------------------------------------------
     Original amendment submission    Date of final
                 date                  publication      Citation/description
    ------------------------------------------------------------------------
     
    *                  *                  *                  *
                      *                  *                  *
    November 21, 1997.............  March 26, 1999...  Part F--Government
                                                        Financed
                                                        Construction
                                                        Contracts.
    ------------------------------------------------------------------------
    
    [FR Doc. 99-7282 Filed 3-25-99; 8:45 am]
    BILLING CODE 4310-05-M
    
    
    

Document Information

Effective Date:
3/26/1999
Published:
03/26/1999
Department:
Surface Mining Reclamation and Enforcement Office
Entry Type:
Rule
Action:
Final rule; approval of amendment.
Document Number:
99-7282
Dates:
March 26, 1999.
Pages:
14610-14619 (10 pages)
Docket Numbers:
PA-121-FOR
PDF File:
99-7282.pdf
CFR: (3)
30 CFR 938.15
30 CFR 938.25
30 CFR 1396.3