97-10247. Ownership and Control; Permit Application Process; Improvidently Issued Permits  

  • [Federal Register Volume 62, Number 76 (Monday, April 21, 1997)]
    [Rules and Regulations]
    [Pages 19450-19461]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-10247]
    
    
    
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    _______________________________________________________________________
    
    Part VI
    
    
    
    
    
    Department of the Interior
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    Office of Surface Mining Reclamation and Enforcement
    
    
    
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    30 CFR Parts 773, 778, and 843
    
    
    
    Ownership and Control; Permit Application Process; Improvidently Issued 
    Permits; Interim Final Rule
    
    Federal Register / Vol. 62, No. 76 / Monday, April 21, 1997 / Rules 
    and Regulations
    
    [[Page 19450]]
    
    
    
    DEPARTMENT OF THE INTERIOR
    
    Office of Surface Mining Reclamation and Enforcement
    
    30 CFR Parts 773, 778, and 843
    
    RIN 1029-AB-91
    
    
    Ownership and Control; Permit Application Process; Improvidently 
    Issued Permits
    
    AGENCY: Office of Surface Mining Reclamation and Enforcement, Interior.
    
    ACTION: Interim final rule.
    
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    SUMMARY: The Office of Surface Mining Reclamation and Enforcement (OSM) 
    is amending its regulations governing permit application information 
    requirements; criteria for permit issuance; and criteria, procedures, 
    and sanctions for improvidently issued permits. The affected provisions 
    generally address ownership and control information and compliance 
    review requirements. This action is being taken in response to a 
    decision by the U.S. Court of Appeals for the District of Columbia 
    Circuit invalidating the previous rules as inconsistent with the 
    Surface Mining Control and Reclamation Act of 1977 (SMCRA or the Act). 
    The court held that SMCRA authorizes the regulatory authority to block 
    issuance of a permit only for unabated violations incurred by the 
    applicant or entities owned or controlled by the applicant, not, as 
    provided in the previous rules, for violations incurred by any person 
    who owns or controls the permittee. The rules being promulgated today 
    cure this defect. Because of the urgent need to fill the void created 
    by the court's decision, OSM is invoking the good cause exemptions of 
    the Administrative Procedure Act and is adopting these rules on an 
    interim final basis, effective April 3, 1997.
    
    EFFECTIVE DATE: April 3, 1997.
    
    FOR FURTHER INFORMATION CONTACT:
    Nancy Broderick or Dennis Rice, Office of Surface Mining Reclamation 
    and Enforcement, U.S. Department of Interior, 1951 Constitution Ave., 
    NW., Washington, DC 20240. Telephone: (202) 208-2700 or 2829. E-mail 
    address; nbroderi@osmre.gov or drice@osmre.gov. Additional information 
    concerning OSM, this rule, and related documents may be found on OSM's 
    home page at hhtp://www.osmre.gov.
    
    SUPPLEMENTARY INFORMATION:
    
    Table of Contents
    
    I. Background.
    II. Rationale for Invoking APA Good Cause Exemptions.
    III. Discussion of Interim Final Rules.
        A. Section 773.5-Definitions.
        B. Section 773.15(b)--Permit Block.
        C. Section 773.15(e)--Final Compliance Review.
        D. Section 773.17(i)--Permit Condition.
        E. Sections 773.20 and 773.21--Improvidently Issued Permits.
        F. Section 778.10--Information Collection.
        G. Section 778.13--Organizational and Ownership Information 
    Requirements for Permit Applications.
        H. Section 778.14--Compliance Information Requirements for 
    Permit Applications.
        I. Section 843.11(g)--Notification Following Issuance of 
    Cessation Order.
        J. Section 843.21--Federal Procedures for Improvidently Issued 
    State Permits.
        K. Effect in Federal Program States and on Indian Lands.
        L. Effect on State Programs.
        M. Comparison of Interim Final Rule Language with Prior Rule 
    Language.
    IV. Procedural Matters.
    
    I. Background
    
        Section 510(c) of SMCRA, 30 U.S.C. 1260(c), requires that each 
    application for a permit to conduct surface coal mining operations 
    include a schedule listing ``any and all notices of violation of this 
    Act and any law, rule, or regulation of the United States, or of any 
    department or agency in the United States pertaining to air or water 
    environmental protection incurred by the applicant in connection with 
    any surface coal mining operation during the three-year period prior to 
    the date of application.'' It further specifies that ``[w]here the 
    schedule or other information available to the regulatory authority 
    indicates that any surface coal mining operation owned or controlled by 
    the applicant is currently in violation of this Act or such other laws 
    referred to in this subsection, the permit shall not be issued until 
    the applicant submits proof that such violation has been corrected, or 
    is in the process of being corrected to the satisfaction of the 
    regulatory authority, department, or agency which has jurisdiction over 
    such violation.'' Finally, it provides that ``no permit shall be issued 
    to an applicant after a finding by the regulatory authority, after 
    opportunity for hearing, that the applicant, or the operator specified 
    in the application, controls or has controlled mining operations with a 
    demonstrated pattern of willful violations of this Act of such nature 
    and duration with such resulting irreparable damage to the environment 
    as to indicate an intent not to comply with the provisions of this 
    Act.'' Id.
        To implement these provisions of the Act, OSM adopted three sets of 
    regulations known respectively as the ownership and control rule (53 FR 
    38868, October 3, 1998), the permit information rule (54 FR 8982, March 
    2, 1989), and the improvidently issued permits rule, also known as the 
    permit rescission rule (54 FR 18438, April 28, 1989). The ownership and 
    control rule revised 30 CFR 773.15(b) to prohibit permit issuance on 
    the basis of unabated violations attributed to either the applicant or 
    any person who owns or controls the applicant. It also defined the 
    terms ``owns or controls'' and ``owned or controlled'' as used in that 
    rule and as the latter term is used in section 510(c) of SMCRA. The 
    permit information rule revised 30 CFR 778.13 and 778.14 to establish 
    permit application information and compliance review and reporting 
    requirements consistent with the new ownership and control definition 
    and the revisions that the ownership and control rule made to 30 CFR 
    773.15(b). The improvidently issued permits rule established criteria 
    and procedures for determining when an existing permit has been issued 
    improvidently; i.e., in violation of 30 CFR 773.15(b) and section 
    510(c) of the Act. This rule also included remedial measures for 
    improvidently issued permits.
        The Applicant/Violator System procedures rule published on October 
    28, 1994 (59 FR 54306) modified several provisions of the ownership and 
    control, permit information, and improvidently issued permits rules. In 
    addition, the remining rule published on November 27, 1995 (60 FR 
    58480) added paragraph (b)(4) to 30 CFR 773.15. None of these revisions 
    was at issue in the litigation discussed below.
        The National Mining Association and the National Wildlife 
    Federation filed suit challenging the validity of the ownership and 
    control, permit information, and improvidently issued permits rules on 
    a variety of grounds. On August 31, 1995, the U.S. District Court for 
    the District of Columbia granted summary judgment in favor of OSM on 
    all claims. See National Wildlife Fed'n v. Babbitt, Civ. Nos. 88-3117, 
    88-3464, 88-3470 (consolidated) (Aug. 31, 1995), slip op. at 25: 
    National Wildlife Fed'n v. Babbitt, Civ. Nos. 89-1130, 89-1167 
    (consolidated) (Aug. 31, 1995), slip op. at 12: National Wildlife Fed'n 
    v. Babbitt, Civ. Nos. 89-1751, 89-1811 (consolidated) (Aug. 31, 1995), 
    slip op. at 19.
        On appeal, however, in a decision that took effect April 4, 1997, 
    the U.S. Court of Appeals for the District of Columbia Circuit found 
    the ownership and control rule to be ``unlawful'' because 30 CFR 
    773.15(b)(1) blocks
    
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    permit issuance for violations at operations owned or controlled by any 
    person who owns or controls the applicant, a provision that, according 
    to the court, ``conflicts with the plain meaning of section 510(c).'' 
    National Minning Ass'n v. United States Dept. of the Interior, 105 F.3d 
    691, 694 (D.C. Cir. 1997) (``NMA--O&C''). The court ruled that section 
    510(c) is ``unmistakably clear'' in stating that a permit may not be 
    issued ``when `any surface coal mining operation owned or controlled by 
    the applicant' is currently in violation of SMCRA.'' In addition, the 
    court held, with little elaboration, that because the permit 
    information rule and the permit rescission (improvidently issued 
    permits) rule ``are centered on the ownership and control rule * * *, 
    they too must fall.'' Id. at 696.
        Nothing is the court's decision eliminates the responsibility of 
    OSM and State regulatory authorities to implement the requirements of 
    sections 507(b) and 510(c) of the Act. Nor does it terminate the 
    Applicant/Violator System, the database that OSM and State regulatory 
    authorities use to track violations and violators, although it will 
    impact the use of that data. OSM has taken steps to modify system 
    reports and recommendations to reflect the court's decision. Today's 
    rulemaking action represents OSM's initial effort to conform its 
    regulations to the court's decision. OSM intends to propose further 
    regulatory revisions in the near future in accordance with standard 
    notice and comment procedures.
    
    II. Rationale for Invoking APA Good Cause Exemptions
    
        The court's action in striking the ownership and control, permit 
    information, and improvidently issued permits rules creates 
    considerable uncertainty with respect to permit application information 
    requirements and implementation of the statutory permit block sanction 
    in section 510(c). This sanction has proven to be one of the most 
    effective incentives for compliance with the requirements of the Act. 
    It has prevented persons who are either unable or unwilling to adhere 
    to the environmental protection standards of the Act from repeatedly 
    causing environmental problems on additional sites.
        Under sections 101(f) and 503 of SMCRA, States have the primary 
    responsibility for regulating surface coal mining and reclamation 
    operations. Once a State attains primacy (an approved regulatory 
    program under section 503 of the Act), OSM's role is reduced to that of 
    assistance and oversight. At present, 24 of the 27 coal-producing 
    States have achieved primacy.
        At least 5 State programs include provisions that automatically 
    repeal or require review of any State program counterpart to a Federal 
    rule remanded or otherwise invalidated by the courts. In addition, 
    another 7 States have laws or regulations that prohibit the 
    promulgation of regulations that are more stringent than Federal 
    requirements. If there are no Federal rules in place, OSM expects that 
    most of these States will suspend or otherwise remove the corresponding 
    State provisions. While removal of a State program rule, either 
    automatically or by legislative or administrative action, is often 
    rapid restoration through SMCRA's program amendment process is both 
    lengthy and complex, often requiring a number of years to accomplish. 
    Regardless of the mechanism by which the programmatic void comes into 
    being, the result will be an absence of information that will translate 
    into the issuance of permits to persons who are not entitled to receive 
    them under section 510(c) of the Act.
        Prior to establishment of the Applicant/Violator System, OSM and 
    State regulatory authorities had few sources of information about 
    industry practices and enterprises except for disclosures in permit 
    applications. They also lacked a regulatory structure or centralized 
    data processing system to track persons or entities which owned or 
    controlled operations with unabated violations as they reincorporated 
    or renamed themselves, used a series of contract miners, or moved from 
    State to State. The lack of such a system is especially significant 
    since, as noted at 53 FR 38886 (October 3, 1988), over half of all 
    Federal permit applicants between March 1985 and April 1986 had 
    unabated violations, unpaid abandoned mine land reclamation fees, or 
    unpaid civil penalties, although some of these outstanding obligations 
    were under appeal. The problem was particularly difficult to address 
    when an applicant for a permit in one State owned or controlled an 
    operation with an unabated violation in another State, since there were 
    few mechanisms by which States exchanged information.
        The effectiveness of the section 510(c) permit block sanction 
    depends upon maintenance of a reliable nationwide database (currently, 
    the Applicant/Violator System) on permit applicants, organizational 
    relationships, and violations. Otherwise, violators can simply move 
    from State to State and company to company to evade their reclamation 
    obligations and other responsibilities under the Act. States are 
    primarily responsible for inputting data into this system. Therefore, 
    it is imperative that the integrity of State programs, including permit 
    application information requirements, be maintained. State program 
    provisions are relatively easy to delete, but difficult and time-
    consuming to restore.
        The court's decision creates a regulatory gap that would result in 
    substantial uncertainty and confusion regarding permit application 
    information requirements, use of the Applicant/Violator System, and the 
    identification and handling of improvidently issued permits. Such 
    regulatory confusion would be contrary to the public interest because 
    issuance of permits to persons who are not entitled to receive them 
    under the Act, as would likely occur in the absence of consistent 
    permit application content, review, and reporting requirements, would 
    prove injurious to the environment and public health and safety. The 
    schedule for issuance of the court's mandate allows insufficient time 
    for public notice and comment on replacement regulations before the 
    regulatory gap occurs. Therefore, following normal notice and comment 
    procedures under the Administrative Procedure Act (APA) would be 
    impracticable and contrary to the public interest.
        To avoid creation of a regulatory gap, OSM is now promulgating 
    replacement regulations on an interim final basis, as authorized by the 
    APA at 5 U.S.C. 553(b)(3)(B). This provision of the APA provides a 
    ``good cause'' exemption that allows an agency to issue a rule without 
    prior notice or opportunity for public comment ``when the agency for 
    good cause finds (and incorporates the finding and a brief statement of 
    the reasons therefor in the rules issued) that notice and public 
    procedure thereon are impracticable, unnecessary, or contrary to the 
    public interest.'' As discussed above, promulgation of an interim final 
    rule without prior notice or opportunity to comment is in the public 
    interest because it avoids creation of a regulatory gap and the adverse 
    impacts associated with such a gap. The requirements and procedures in 
    the interim final rules have gained widespread acceptance among State 
    regulatory authorities. Furthermore, most provisions of the rules being 
    promulgated today are substantively identical to those previously 
    promulgated in accordance with the standard notice and comment 
    procedures of the APA. The only substantive changes are those that 
    address the specific provisions that the court found to be in conflict 
    with, or
    
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    potentially in conflict with, the ``unmistakably clear'' language of 
    section 510(c) of SMCRA.
        Using the same rationale, OSM also is availing itself of the good 
    cause exemption at 5 U.S.C. 553(d)(3) to the APA requirement that rules 
    be published at least 30 days prior to their effective date. To avoid 
    any regulatory gap, the effective date of the rules being published 
    today is April 3, 1997.
        The interim final rules being published today are only interim 
    measures intended to ensure that implementation of the court's decision 
    does not result in a regulatory gap or substantial confusion in the 
    regulatory community or the regulated industry. OSM is committed to 
    exploring various methods of implementing the court's observation in 
    NMA-O&C that ``OSM has leeway in determining who the `applicant' is.'' 
    Id. at 695. The agency intends to seek public comment on any resulting 
    proposed regulatory changes.
    
    III. Discussion of Interim Final Rules
    
        The rulemaking actions that OSM is taking today remedy the defects 
    identified by the court in NMA-O&C. They also preserve those aspects of 
    the previous rules to which the court expressed no specific objection. 
    These measures are needed to fully and properly implement the permit 
    block sanction of section 510(c) of SMCRA and to flesh out other 
    statutory provisions, such as the permit application information 
    requirements of paragraphs (b)(4) and (b)(5) of section 507 of the Act.
        Nothing in the following findings or the rules to which they 
    pertain affects the regulatory authority's power or responsibility to 
    determine whether the nominal applicant is the true applicant to which 
    the court refers. Nor do these findings or rules affect the regulatory 
    authority's power to pierce the corporate veil or to withhold a permit, 
    which, if issued, would violate a court order.
    
    A. Section 773.5--Definitions
    
        On October 3, 1988 (53 FR 38868), OSM amended its regulations at 30 
    CFR 773.5 by adding a definition of the terms ``owned or controlled'' 
    and ``owns or controls.'' This definition determines, in part, what 
    type of information a permit applicant must submit under 30 CFR 778.13 
    and the circumstances under which the section 510(c) permit block 
    sanction would apply under 30 CFR 773.15(b).
        The reach of the definition depends on the context in which these 
    terms are used in a specific regulation. For example, as revised and 
    repromulgated in this rulemaking in response to the court's decision, 
    30 CFR 773.15(b) refers only to persons owned or controlled by the 
    applicant or operations that the applicant controls or has controlled. 
    Therefore, in this context, the definition would be used only to 
    determine which entities the applicant owns or controls, not which 
    entities own or control the applicant. As another example, 30 CFR 
    778.13(c), as revised and repromulgated in this rulemaking, provides 
    that a permit application must include identifying information about 
    persons who own or control the applicant. In this context, the 
    definition would be used to determine which individuals or entities own 
    or control the applicant, not which entities are owned or controlled by 
    the applicant. This information is needed to verify the applicant's 
    statement under section 507(b)(5) of the Act concerning bond 
    forfeitures and permit revocations for operations under common control 
    with the applicant. It also incorporates the ownership and control 
    information requirements of section 507(b)(4) of SMCRA, which, the 
    court noted, requires information relevant to statutory provisions 
    other than the section 510(c) permit block sanction, such as the 
    individual civil penalty sanction of section 518(f) of the Act. This 
    information would not, however, be used for purposes of blocking permit 
    issuance under 30 CFR 773.15(b) in a manner inconsistent with the 
    court's decision.
        Hence, the definition itself presents no conflict with the court's 
    interpretation of section 510(c) of the Act in NMA--O&C, and OSM is 
    repromulgating the definition without substantive change as part of the 
    rulemaking action being published today. The rationale for the text of 
    the definition is set forth in detail in the preamble to the 1988 
    rulemaking at 53 FR 38868-80 (October 3, 1988).
    
    B. Section 773.15(b)--Permit Block
    
        On October 3, 1988, OSM revised 30 CFR 773.15(b) to expand the 
    scope of the compliance review of permit applications and to expressly 
    require the withholding of a permit when persons who own or control the 
    applicant own or control operations with unabated violations. In NMA--
    O&C, the court held that this sanction applies only to violations 
    incurred by the applicant or entities owned or controlled by the 
    applicant, although the court left some room for the regulatory 
    authority to determine the true applicant. Id. at 695. Therefore, the 
    interim final rule being promulgated today does not include the 
    language in the version of 30 CFR 773.15(b)(1) and (b)(3) promulgated 
    in 1988 that applied the permit block sanction to violations incurred 
    by persons who own or control the applicant.
        Since there is nothing in the remainder of the 1988 changes to 30 
    CFR 773.15(b) (or the subsequent revisions in 1994 and 1995) that 
    presents a conflict with the court's interpretation of section 510(c) 
    of the Act in NMA--O&C, OSM is repromulgating the remainder of this 
    paragraph without substantive change as part of the interim final rule 
    being published today. The rationale for the other 1988, 1994, and 1995 
    changes, which include criteria for conditional issuance of a permit, 
    provisions concerning the presumption that a notice of violation is in 
    the process of abatement, and a special exception for remaining 
    operations, is set forth in detail in the preambles to the 1988 
    rulemaking at 53 FR 38880-89 (October 3, 1988), the 1994 rulemaking at 
    59 FR 4322-24 (October 28, 1994), and the 1995 rulemaking at 60 FR 
    58482-86 (November 27, 1995).
    
    C. Section 773.15(e)--Final Compliance Review
    
        On March 2, 1989 (54 FR 8982), OSM adopted 30 CFR 773.15(e), which 
    required that before issuing a permit, the regulatory authority 
    reconsider its initial compliance review in light of any new 
    information submitted pursuant to 30 CFR 778.13(i) and 778.14(d). In 
    NMA--O&C, the court was silent on this aspect of the permit information 
    rule. Since its contents do not present a conflict with the court's 
    findings concerning the scope of the section 510(c) permit block, OSM 
    is repromulgating it in substantively identical form as part of this 
    interim final rule. In keeping with the changes to 30 CFR 778.13, the 
    new rule replaces the reference to 30 CFR 778.13(i) with a reference to 
    its new designation, 30 CFR 778.13(k).
    
    D. Section 773.17(i)--Permit Condition
    
        On March 2, 1989 (54 FR 8982), OSM adopted 30 CFR 773.17(i), which 
    required that each permit include a condition obligating the permittee 
    to update the information required by 30 CFR 778.13(c), which pertains 
    to the identity and organizational position and relationship of persons 
    who own or control the applicant, whenever the permittee receives a 
    cessation order. The preamble to the 1989 rulemaking at 54 FR 8982-83 
    explains that the purpose of this condition was to reveal the identity 
    of persons who own or control the permittee, and then use the
    
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    information collected to block issuance of permits to these persons 
    pursuant to 30 CFR 773.15(b). However, in NMA--O&C, the court held that 
    section 510(c) of the Act does not allow the blocking of permit 
    issuance on the basis of violations incurred by persons who own or 
    control the applicant. Therefore, the information can no longer be used 
    for its original purpose. However, as noted at 54 FR 8986 (March 2, 
    1989) in the preamble to a related provision in 30 CFR 843.11(g), the 
    information collected through this condition has other uses, such as 
    the identification of persons against whom individual civil penalties 
    may be assessed under 30 CFR Part 846 and section 518(f) of the Act. 
    Therefore, OSM is repromulgating this permit condition in substantively 
    identical form as part of the interim final rule being promulgated 
    today, although its designation is now paragraph (h), which was 
    previously reserved, instead of paragraph (i).
    
    E. Section 773.20 and 773.21--Improvidently Issued Permits
    
        On April 28, 1989 (54 FR 18438), OSM promulgated 30 CFR 773.20 and 
    773.21 to establish procedures and criteria for (1) determining when a 
    permit had been improvidently issued, and (2) applying appropriate 
    remedial measures. In NMA--O&C, the court struck down these rules based 
    on a finding that they ``are centered on the ownership and control 
    rule,'' which the court found to exceed the mandate of SMCRA. Id. at 
    696. In support of its decision, the court pointed to the reference to 
    ownership or control links in 30 CFR 773.20(b)(1)(iii).
        Accordingly, the interim final rule being published today replaces 
    the term ``ownership or control link'' (and related language concerning 
    ownership and control links and responsibility for violations, 
    penalties, or fees) in 30 CFR 773.20(b)(1)(iii), 773.20(b)(2)(ii), and 
    773.21(a)(4) with more specific language that applies the provisions of 
    these rules only to situations in which the permittee or any person 
    owned or controlled by the permittee is responsible for the violation, 
    penalty, or fee.
        OSM also is revising 30 CFR 773.20(b)(1)(ii)(B), 773.20(c)(1) (i) 
    and (ii), and 30 CFR 773.21(a) (2) and (3) to either eliminate the 
    phrase ``the permittee or other person responsible'' or replace it with 
    language that clarifies that the rule applies only to violations, 
    penalties, and fees for which the permittee or persons owned or 
    controlled by the permittee are responsible. OSM is making these 
    changes to ensure that 30 CFR 773.20 and 773.21 are applied in a manner 
    consistent with the revisions to 30 CFR 773.15(b) and the court's 
    decision on the scope of section 510(c) of the Act.
        Since there is nothing in the remainder of the 1989 version of 30 
    CFR 773.20 and 773.21 (or the subsequent revisions in 1994) that 
    presents a conflict with the court's interpretation of section 510(c) 
    of the Act in NMA--O&C, OSM is repromulgating the remainder of these 
    sections without substantive change as part of the interim final rule 
    being published today. The rationale for these procedural requirements 
    and criteria for improvidently issued permit is set forth in detail in 
    the preambles to the 1989 rulemaking at 54 FR 18439-62 (April 28, 1989) 
    and the 1994 rulemaking at 59 FR 54325-29 (October 28, 1994). However, 
    in view of the court decision and the changes in wording of these rules 
    and 30 CFR 773.15(b), the discussions of ownership or control links in 
    the preambles to previous versions of these rules no longer apply in 
    full, especially Part II of the violations review criteria set forth in 
    the April 28, 1989 preamble at 54 FR 18440-41. Similarly, the 
    explanation of the meaning of ``other person responsible'' at 54 FR 
    18447 under the heading ``Inconsistent Terminology'' and at 54 FR 18455 
    under the heading ``Ownership and Control Relationships Covered'' is no 
    longer fully applicable, especially since the revised versions of the 
    rules no longer include this term.
    
    F. Section 778.10--Information Collection
    
        In NMA--O&C at 696, the court struck down the permit information 
    rule, of which this section was a part. Since the contents of this 
    section do not present a conflict with the court's holding on the scope 
    of the section 510(c) permit block sanction, OSM is repromulgating it 
    in revised form as part of the interim final rule being published 
    today. The revisions reflect current Departmental guidance concerning 
    format and content.
    
    G. Section 778.13--Organizational and Ownership Information 
    Requirements for Permit Applications
    
        On March 2, 1989 (54 FR 8982), OSM promulgated revised permit 
    application information requirements at 30 CFR 778.13 to conform these 
    requirements to the definition of `` `owned or controlled or' `owns or 
    controls' '' at 30 CFR 773.5. In NMA--O&C, the court struck down the 
    revised rules based on a finding that they ``are centered on the 
    ownership and control rule,'' which the court found to exceed the 
    mandate of SMCRA. Id. at 696. In support of its decision, the court 
    pointed to 30 CFR 778.13(d), which requires information pertaining to 
    any surface coal mining operation owned or controlled by either the 
    applicant or by any person who owns or controls the applicant under the 
    definition of owned or controlled and owns or controls in 30 CFR 773.5.
        Accordingly, the interim final rule being published today modifies 
    the language of former 30 CFR 778.13(d) [now 30 CFR 778.13(f)] to 
    restrict its scope to operations owned or controlled by the applicant. 
    OSM also is:
         Recodifying former 30 CFR 778.13(c)(4) as paragraph (d) 
    and revising it to apply only to the applicant and each partner or 
    principal shareholder of the applicant in accordance with the language 
    of section 507(b)(4) of the Act;
         Recodifying former 30 CFR 778.13(c)(5) as paragraph (e) 
    and revising it to apply only to the applicant in accordance with the 
    language of section 507(b)(3) of the Act; and
         Redesignating former 30 CFR 778.13 (d) through (j) as 
    paragraphs (f) through (l), respectively.
        Under revised 30 CFR 778.13(c), the application must continue to 
    include identifying information about persons who own or control the 
    applicant. This information is needed to verify the applicant's 
    statement under section 507(b)(5) of the Act as to ``whether the 
    applicant, any subsidiary, affiliate, or persons controlled by or under 
    common control with the applicant'' has ever forfeited a mining bond or 
    had a mining permit suspended or revoked within the 5-year period 
    preceding the date of application. Revised 30 CFR 778.13(c) also is 
    based upon and generally analogous to the ownership and control 
    information requirements of section 507(b)(4) of SMCRA. The court noted 
    that this section of the Act requires information relevant to statutory 
    provisions other than the section 510(c) permit block sanction, such as 
    the individual civil penalty sanction of section 518(f) of the Act. The 
    court also observed that ``OSM or the state regulatory authority can 
    use the information required under section 507(b) to determine who the 
    real applicant is--i.e., to pierce the corporate veil in cases of 
    subterfuge in order to ensure that it has the true applicant before 
    it.'' Id. at 695. The information required under revised 30 CFR 
    778.13(c) will improve the ability of OSM and state regulatory 
    authorities to initiate these types of enforcement and compliance 
    measures.
        Since there is nothing in the remainder of the 1989 version of 30 
    CFR
    
    [[Page 19454]]
    
    778.13 that presents a conflict with the court's interpretation of 
    section 510(c) of the Act in NMA--O&C, OSM is repromulgating the 
    remainder of this section without substantive change (apart from 
    redesignation of paragraphs) as part of the interim final rule being 
    published today. The rationale for these permit application information 
    requirements is set forth in the preamble to the 1989 rulemaking at 54 
    FR 8983-90 (March 2, 1989).
    
    H. Section 778.14--Compliance Information Requirements for Permit 
    Applications
    
        On March 2, 1989 (54 FR 8982), OSM promulgated revised permit 
    application information requirements at 30 CFR 778.14. Among other 
    things, these regulations required information about unabated 
    violations and other compliance data concerning persons who own or 
    control the applicant. In NMA--O&C, the court struck down the revised 
    rules based on a finding that they ``are centered on the ownership and 
    control rule,'' which the court found to exceed the mandate of SMCRA by 
    applying the permit block sanction of section 510(c) of the Act to 
    violations incurred by persons who own or control the applicant. Id. at 
    696.
        Accordingly, the interim final rule being published today modifies 
    the language of former 30 CFR 778.14(c) to restrict its scope to the 
    applicant and operations owned or controlled by the applicant. Since 
    there is nothing in the remainder of the 1989 version of 30 CFR 778.14 
    (or the subsequent 1994 revisions to that section) that presents a 
    conflict with the court's interpretation of section 510(c) of the Act 
    in NMA--O&C, OSM is repromulgating the remainder of this section 
    without substantive change as part of the interim final rule being 
    published today. The rationale for these permit application information 
    requirements is set forth in the preambles to the 1989 rulemaking at 54 
    FR 8985-90 (March 2, 1989) and the 1994 rulemaking at 59 FR 54347-49 
    (October 28, 1994).
    
    I. Section 843.11(g)--Notification Following Issuance of Cessation 
    Order
    
        On March 2, 1989 (54 FR 8982), OSM amended its regulations by 
    adding 30 CFR 843.11(g), which provides that, within 60 days of 
    issuance of a cessation order in situations in which OSM is the 
    regulatory authority, OSM must notify all owners and controllers 
    identified under 30 CFR 778.13(c) that a cessation order has been 
    issued and that they have been identified as owners or controllers of 
    the violator. As explained in the preamble at 54 FR 8986, one of the 
    purposes of this requirement is to provide notification to individual 
    owners and controllers of a nature sufficient to establish a basis for 
    the assessment of an individual civil penalty under section 518(f) of 
    the Act and 30 CFR part 846 or its State program equivalent.
        Since this purpose and the language of the regulation itself do not 
    present a conflict with the court's interpretation of section 510(c) of 
    the Act in NMA--O&C, OSM is repromulgating 30 CFR 843.11(g) in 
    substantively identical form as part of the interim final rule being 
    published today. Unlike the previous rule, the new rule does not 
    contain a reference to 30 CFR 778.13(d). While the latter rule is being 
    repromulgated in revised form as 30 CFR 778.13(f) as part of this 
    rulemaking, the revised version no longer includes information 
    requirements pertinent to owners or controllers of the applicant. 
    Therefore, it is no longer relevant to the requirements of 30 CFR 
    843.11(g). OSM also is replacing the reference to 30 CFR 773.17(i) with 
    a reference to 30 CFR 773.17(h) to reflect the new designation of the 
    paragraph in question.
    
    J. Section 843.21--Federal Procedures for Improvidently Issued State 
    Permits
    
        On April 28, 1989 (54 FR 18438), OSM amended its regulations by 
    adding 30 CFR 843.21 to provide a mechanism for Federal enforcement in 
    those situations where the regulatory authority has failed to take 
    appropriate actions under 30 CFR 773.20 with respect to an 
    improvidently issued permit. In NMA--O&C, the court struck down this 
    rule and related regulations based on a finding that they ``are 
    centered on the ownership and control rule,'' which the court found to 
    exceed the mandate of SMCRA. Id. at 696. In support of its decision, 
    the court pointed to the reference to ownership or control links in 30 
    CFR 773.20(b)(1)(iii).
        Accordingly, the interim final rule being published today replaces 
    the term ``ownership or control link'' (and related language concerning 
    ownership and control links and responsibility for violations, 
    penalties, or fees) in 30 CFR 843.21(d) and (e)(2)(iii) with more 
    specific language that applies the provisions of these rules only to 
    situations in which the permittee or any person owned or controlled by 
    the permittee is responsible for the violation, penalty, or fee.
        OSM also is revising 30 CFR 843.21(e)(2) (i) and (ii) to either 
    eliminate the phrase ``the permittee or other person responsible'' or 
    replace it with language that clarifies that the rule applies only to 
    violations, penalties, and fees for which the permittee or persons 
    owned or controlled by the permittee are responsible. OSM is making 
    these changes to ensure that 30 CFR 843.21 is applied in a manner 
    consistent with the revisions to 30 CFR 773.15(b) and the court's 
    decision on the scope of section 510(c) of the Act.
        Since there is nothing in the remainder of the 1989 version of 30 
    FR 843.21 that presents a conflict with the court's interpretation of 
    section 510(c) of the Act in NMA--O&C, OSM is repromulgating the 
    remainder of this section without substantive change as part of the 
    interim final rule being published today. The rationale for the 
    procedural requirements and enforcement provisions of 30 CFR 843.21 is 
    set forth in detail in the preamble to the 1989 version of this rule at 
    54 FR 18454-62 (April 28, 1989). However, the discussions of ownership 
    or control links in that preamble no longer apply in full in view of 
    the court decision and the wording changes in 30 CFR 843.21 (d) and 
    (e). Similarly, the explanation of the meaning of ``other person 
    responsible'' at 54 FR 18447 under the heading ``Inconsistent 
    Terminology'' and at 54 FR 18455 under the heading ``Ownership and 
    Control Relationships Covered'' is no longer fully applicable, 
    especially since the revised version of 30 CFR 843.21 no longer 
    includes this term.
    
    K. Effect in Federal Program States and on Indian Lands
    
        Through cross-referencing in the respective regulatory programs, 
    this rule will apply in the following Federal program States: Arizona, 
    California, Georgia, Idaho, Massachusetts, Michigan, North Carolina, 
    Oregon, Rhode island, South Dakota, Tennessee, and Washington. The 
    Federal Programs for these States are codified at 30 CFR parts 903, 
    905, 910, 912, 921, 922, 933, 937, 939, 941, 942 and 947, respectively. 
    The rule also applies to Indian lands through cross-referencing in 30 
    CFR part 750.
    
    L. Effect on State Programs
    
        None of the rules being promulgated today will require changes in 
    State regulatory programs under the standards set forth in section 503 
    of SMCRA and 30 CFR part 732, provided States have fully amended their 
    programs to be consistent with the previous versions of these Federal 
    rules. If the Director determines that there are special circumstances 
    in a particular State that result in a need for a State program 
    amendment as a result of this rulemaking, she or he will notify the 
    State in accordance with 30 CFR 732.17.
    
    [[Page 19455]]
    
    M. Comparison of Interim Final Rule Language with Prior Rule Language
    
        Set forth below is the text of the interim final rule showing all 
    changes in paragraph designation and substantive changes in language 
    from the version of the rules that currently appears in the Code of 
    Federal Regulations. Deleted text is enclosed in brackets ([  ]). Added 
    text appears in italics. Asterisks indicate no change in the existing 
    text.
        This comparison is provided solely as a user aid in locating 
    significant changes. It does not identify every minor editorial 
    revision, and it does not include 30 CFR 778.10, the information 
    collection section. It is not a substitute for the actual rule text 
    that follows the preamble.
    
    Sec. 773.5  Definitions.
    
        No substantive change.
    
    Sec. 773.15  Review of permit applications.
    
        (a) * * *
        (b) Review of violations. (1) Based on a review of all 
    reasonably available information concerning violation notices [and 
    ownership or control links] involving either the applicant or any 
    person owned or controlled by the applicant, including information 
    obtained pursuant to Secs. 773.22, 773.23, 778.13, and 778.14 of 
    this chapter, the regulatory authority may not issue the permit if 
    any surface coal mining and reclamation operation owned or 
    controlled by [either] the applicant [or by any person who owns or 
    controls the applicant] is currently in violation of the Act, any 
    Federal rule or regulation promulgated pursuant thereto, a State 
    program, or any Federal or State law, rule, or regulation pertaining 
    to air or water environmental protection. In the absence of a 
    failure-to-abate cessation order, the regulatory authority may 
    presume that a notice of violation issued pursuant to Sec. 843.12 of 
    this chapter or under a Federal or State program is being corrected 
    to the satisfaction of the agency with jurisdiction over the 
    violation where the abatement period for the [such] notice of 
    violation has not yet expired and where, as part of the violation 
    information provided pursuant to Sec. 778.14 of this chapter, the 
    applicant has provided certification that the [such] violation is in 
    the process of being so corrected. This [such] presumption does not 
    apply where evidence to the contrary is set forth in the permit 
    application, or where the notice of violation is issued for 
    nonpayment of abandoned mine land reclamation fees or civil 
    penalties. If a current violation exists, the regulatory authority 
    must require the applicant or any person [who owns or controls] 
    owned or controlled by the applicant, before the issuance of the 
    permit, to either:
        (i) Submit to the regulatory authority proof that the current 
    violation has been or is in the process of being corrected to the 
    satisfaction of the agency that has jurisdiction over the violation; 
    or
        (ii) Establish for the regulatory authority that the applicant, 
    or any person owned or controlled by [either] the applicant [or any 
    person who owns or controls the applicant], has filed and is 
    presently pursuing, in good faith, a direct administrative or 
    judicial appeal to contest the validity of the current violation. If 
    the initial judicial review authority under Sec. 775.13 of this 
    chapter affirms the violation, then the applicant must, within 30 
    days of the judicial action, submit the proof required under 
    paragraph (b)(1)(i) of this section.
        (2) Any permit that is issued on the basis of a presumption 
    supported by certification under Sec. 778.14 of this chapter that a 
    violation is in the process of being corrected, on the basis of 
    proof submitted under paragraph (b)(1)(i) of this section that a 
    violation is in the process of being corrected, or pending the 
    outcome of an appeal described in paragraph (b)(1)(ii) of this 
    section, must be issued conditionally.
        (3) If the regulatory authority makes a finding that the 
    applicant, [anyone who owns or controls the applicant,] or the 
    operator specified in the application, controls or has controlled 
    surface coal mining and reclamation operations with a demonstrated 
    pattern of willful violations of the Act of such nature and 
    duration, and with resulting irreparable damage to the environment 
    as to indicate an intent not to comply with the Act, no permit may 
    be issued. Before such a finding becomes final, the applicant or 
    operator must be afforded an opportunity for an adjudicatory hearing 
    on the determination as provided for in Sec. 775.11 of this chapter.
        (4) No substantive change.
        (c) * * *
        (d) * * *
        (e) Final compliance review. After an application is approved, 
    but before the permit is issued, the regulatory authority must 
    reconsider its decision to approve the application, based on the 
    compliance review required by paragraph (b)(1) of this section in 
    light of any new information submitted under sections [778.13(i)] 
    778.13(k) and 778.14(d) of this chapter.
    
    Sec. 773.17  Permit conditions.
    
    * * * * *
        (h)[(i)] Within 30 days after a cessation order is issued under 
    Sec. 843.11 of this chapter, or the State program equivalent, for 
    operations conducted under the permit, except where a stay of the 
    cessation order is granted and remains in effect, the permittee must 
    either submit to the regulatory the following information, current 
    to the date the cessation order was issued, or notify the regulatory 
    authority in writing that there has been no charge since the 
    immediately preceding submittal of such information:
        (1) Any new information needed to correct or update the 
    information previously submitted to the regulatory authority by the 
    permittee under Sec. 778.13(c) of this chapter; or
        (2) If not previously submitted, the information required from a 
    permit applicant by Sec. 778.13(c) of this chapter.
    
    Sec. 773.20  Improvidently issued permits: General procedures.
    
        (a) Permit review. A regulatory authority which has reason to 
    believe that it improvidently issued a surface coal mining and 
    reclamation permit must review the circumstances under which the 
    permit was issued, using the criteria in paragraph (b) of this 
    section. When the regulatory authority finds that the permit was 
    improvidently issued, it must comply with paragraph (c) of this 
    section.
        (b) Review criteria. (1) A regulatory authority must find that a 
    surface coal mining and reclamation permit was improvidently issued 
    if:
        (i) Under the violations review criteria of the regulatory 
    program at the time the permit was issued:
        (A) The regulatory authority should not have issued the permit 
    because of an unabated violation or a delinquent penalty or fee; or
        (B) The permit was issued on the presumption that a notice of 
    violation was in the process of being corrected to the satisfaction 
    of the agency with jurisdiction over the violation, but a cessation 
    order subsequently was issued; and
        (ii) The violation, penalty, or fee:
        (A) Remains unabated or delinquent; and
        (B) Is not the subject of a good faith appeal, or of an 
    abatement plan or payment schedule that is being met [with which the 
    permittee or other person responsible is complying] to the 
    satisfaction of the responsible agency; and
        (iii) [Where the] The permittee or any person owned or 
    controlled by the permittee [was linked to the violation, penalty, 
    or fee through ownership or control under the violations review 
    criteria of the regulatory program at the time the permit was 
    issued, an ownership or control link between the permittee and the 
    person responsible for the violation, penalty, or fee still exists, 
    or where the link has been severed, the permittee] continues to be 
    responsible for the violation, penalty, or fee.
        (2) The provisions of Sec. 773.25 of this part apply whenever 
    [shall be applicable when] a regulatory authority [determines] makes 
    one of the following determinations:
        (i) Whether a violation, penalty, or fee existed at the time 
    that it was cited, remains unabated or delinquent, has been 
    corrected, is in the process of being corrected, or is the subject 
    of a good faith appeal, and
        (iii) Whether [any ownership or control link between] the 
    permittee or any person owned or controlled by the permittee 
    continues to be [and the person] responsible for the violation, 
    penalty, or fee [existed, still exists, or has been severed].
        (c) Remedial measures. (1) A regulatory authority which, under 
    paragraph (b) of this section, finds that, because of an unabated 
    violation or a delinquent penalty or fee, a permit was improvidently 
    issued must use one or more of the following remedial measures:
        (i) Implement, with the cooperation of the responsible agency, 
    the permittee, and persons owned or controlled by the permittee [or 
    other person responsible, and of the responsible agency], a plan for 
    abatement of the violation or a schedule for payment of the penalty 
    or fee;
        (ii) Impose on the permit a condition requiring abatement of the 
    violation or payment of the penalty or fee within [that in] a 
    reasonable time [the permittee or other
    
    [[Page 19456]]
    
    person responsible abate the violation or pay the penalty or fee];
        (iii) Suspend the permit until the violation is abated or the 
    penalty or fee is paid; or
        (iv) Rescind the permit.
        (2) If the regulatory authority decides to suspend the permit, 
    it must afford at least 30 days written notice to the permittee. If 
    the regulatory authority decides to rescind the permit, it must 
    issue a notice in accordance with Sec. 773.21 of this part. In 
    either case, the permittee must be given the opportunity to request 
    administrative review of the notice under 43 CFR 4.1370 through 
    4.1377, where OSM is the regulatory authority, or under the State 
    program equivalent, where a State is the regulatory authority. The 
    regulatory authority's decision will remain in effect during the 
    pendency of the appeal, unless temporary relief is granted in 
    accordance with 43 CFR 4.1376 or the State program equivalent.
    
    Sec. 773.21  Improvidently issued permits: Rescission procedures.
    
        A regulatory authority which, under Sec. 773.20(c)(1)(iv) of 
    this part, elects to rescind an improvidently issued permit must 
    serve on the permittee a notice of proposed suspension and 
    rescission which includes the reasons for the finding of the 
    regulatory authority under Sec. 773.20(b) of this part and states 
    that:
        (a) Automatic suspension and rescission. After a specified 
    period of time not to exceed 90 days, the permit automatically will 
    become suspended, and not to exceed 90 days thereafter rescinded, 
    unless within those periods the permittee submits proof, and the 
    regulatory authority finds, consistent with the provisions of 
    Sec. 773.25 of this part, that:
        (1) The finding of the regulatory authority under Sec. 773.20(b) 
    of this part was erroneous;
        (2) The [permittee or other person responsible has abated the] 
    violation has been abated, [on which the finding was based,] or 
    [paid] the penalty or fee paid, to the satisfaction of the 
    responsible agency;
        (3) The violation, penalty, or fee is the subject of a good 
    faith appeal, or of an abatement plan or payment schedule that is 
    being met [with which the permittee or other person responsible is 
    complying] to the satisfaction of the responsible agency; or
        (4) [Since the finding was made, the] The permittee and all 
    persons owned or controlled by the permittee [has severed any 
    ownership or control link with the person responsible for, and does 
    not continue to be] are no longer responsible for the violation, 
    penalty, or fee.
        (b) Cessation of operations. After permit suspension or 
    rescission, the permittee must cease all surface coal mining and 
    reclamation operations under the permit, except for violation 
    abatement and for reclamation and other environmental protection 
    measures as required by the regulatory authority.
    
    Sec. 778.13  Identification of interests.
    
        An application must contain the following information, except 
    that the submission of a social security number is voluntary;
        (a) A statement as to whether the applicant is a corporation, 
    partnership, single proprietorship, association, or other business 
    entity.
        (b) The name, address, telephone number, and, as applicable, 
    social security number and employer identification number of the:
        (1) Applicant;
        (2) Applicant's resident agent; and
        (3) Person who will pay the abandoned mine land reclamation fee.
        (c) For each person who owns or controls the applicant under the 
    definition of `` `owned or controlled' and `owns or controls' '' in 
    Sec. 773.5 of this chapter, as applicable:
        (1) The person's name, address, social security number, and 
    employer identification number;
        (2) The person's ownership or control relationship to the 
    applicant, including percentage of ownership and location in the 
    organizational structure; and
        (3) The title of the person's position, [and] the date that the 
    person assumed the position, [was assumed,] and, when submitted 
    under section [773.17(i)] 773.17(h) of this chapter, the date of 
    departure from the position.
        [(4)] (d) For the applicant and each partner or principal 
    shareholder of the applicant, each [additional] name and identifying 
    number, including employer identification number, Federal or State 
    permit number, and MSHA number with date of issuance, under which 
    the person owns or controls, or previously owned or controlled, a 
    surface coal mining and reclamation operation in the United States 
    within the 5 years preceding the date of the application.[; and]
        [(5)] (e) The application number or other identifier of, and the 
    regulatory authority for, any other pending surface coal mining 
    operation permit application filed by the [person] applicant in any 
    State in the United States.
        [(d)](f) For any surface coal mining operation owned or 
    controlled by [either] the applicant [or by any person who owns or 
    controls the applicant] under the definition of ``owned or 
    controlled'' and ``owns or controls'' in Sec. 773.5 of this chapter, 
    the operation's:
        (1) Name, address, identifying numbers, including employer 
    identification number, Federal or State permit number and MSHA 
    number, the date of issuance of the MSHA number, and the regulatory 
    authority; and
        (2) Ownership or control relationship to the applicant, 
    including percentage of ownership and location in organizational 
    structure.
        [(e)](g) The name and address of each legal or equitable owner 
    of record of the surface and mineral property to be mined, each 
    holder of record of any leasehold interest in the property to be 
    mined, and any purchaser of record under a real estate contract for 
    the property to be mined.
        [(f)](h) The name and address of each owner of record of all 
    property (surface and subsurface) contiguous to any part of the 
    proposed permit area.
        [(g)](i) The Mine Safety and Health Administration (MSHA) 
    numbers for all mine-associated structures that require MSHA 
    approval.
        [(h)](j) A statement of all lands, interest in lands, options, 
    or pending bids on interests held or made by the applicant for lands 
    contiguous to the area described in the permit application. If 
    requested by the applicant, any information required by this 
    paragraph which is not on public file pursuant to State law must be 
    held in confidence by the regulatory authority, as provided under 
    Sec. 773.13(d)(3)(ii) of this chapter.
        [(i)](k) After an applicant is notified that his or her 
    application is approved, but before the permit is issued, the 
    applicant must, as applicable, update, correct or indicate that no 
    change has occurred in the information previously submitted under 
    paragraphs (a) through [(d)](f) of this section.
        [(j)](l) The applicant must submit the information required by 
    this section and by Sec. 778.14 of this part in any format that OSM 
    prescribes.
    
    Sec. 778.14  Violation information.
    
        Each application must contain the following information:
        (a) A statement of whether the applicant or any subsidiary, 
    affiliate, or persons controlled by or under common control with the 
    applicant has:
        (1) Had a Federal or State coal mining permit suspended or 
    revoked in the 5 years preceding the date of submission of the 
    application; or
        (2) Forfeited a performance bond or similar security deposited 
    in lieu of bond.
        (b) A brief explanation of the facts involved if any such 
    suspension, revocation, or forfeiture referred to in paragraphs 
    (a)(1) and (a)(2) of this section has occurred, including:
        (1) Identification number and date of issuance of the permit, 
    and the date and amount of bond or similar security;
        (2) Identification of the authority that suspended or revoked 
    the permit or forfeited the bond and the stated reasons for the 
    action;
        (3) The current status of the permit, bond, or similar security 
    involved;
        (4) The date, location, and type of any administrative or 
    judicial proceedings initiated concerning the suspension, 
    revocation, or forfeiture; and
        (5) The current status of the proceedings.
        (c) A list of all violation notices received by the applicant 
    during the three-year period preceding the application date, and a 
    list of all outstanding violation notices received prior to the date 
    of the application by any surface coal mining operation that is 
    deemed or presumed to be owned or controlled by [either] the 
    applicant [or any person who is deemed or presumed to own or control 
    the applicant] under the definition of ``owned or controlled'' and 
    ``owns or controls'' in Sec. 773.5 of this chapter. For each notice 
    of violation issued pursuant to Sec. 843.12 of this chapter or under 
    a Federal or State program for which the abatement period has not 
    expired, the applicant must certify that such notice of violation is 
    in the process of being corrected to the satisfaction of the agency 
    with jurisdiction over the violation. For each violation notice 
    reported, the list must include the following information, as 
    applicable:
        (1) Any identifying numbers for the operation, including the 
    Federal or State permit number and MSHA number, the dates of 
    issuance of the violation notice and MSHA
    
    [[Page 19457]]
    
    number, the name of the person to whom the violation notice was 
    issued, and the name of the issuing regulatory authority, department 
    or agency;
        (2) A brief description of the violation alleged in the notice;
        (3) The date, location, and type of any administrative or 
    judicial proceedings initiated concerning the violation, including, 
    but not limited to, proceedings initiated by any person identified 
    in paragraph (c) of this section to obtain administrative or 
    judicial review of the violation;
        (4) The current status of the proceedings and of the violation 
    notice; and
        (5) The actions, if any, taken by any person identified in 
    paragraph (c) of this section to abate the violation.
        (d) After an applicant is notified that his or her application 
    is approved, but before the permit is issued, the applicant must, as 
    applicable, update, correct or indicate that no change has occurred 
    in the information previously submitted under this section.
    
    Sec. 843.11  Cessation orders.
    
    * * * * *
        (g) Where OSM is the regulatory authority, within 60 days after 
    issuing a cessation order, OSM will notify in writing any person who 
    has been identified under sections [773.17(i)] 773.17(h) and 
    778.13(c) (d)] of this chapter as owning or controlling the 
    permittee, that the cessation order was issued and that the person 
    has been identified as an owner or controller.
    
    Sec. 843.21  Procedures for improvidently issued State permits.
    
        (a) Initial notice. If OSM has reason to believe that a State 
    surface coal mining and reclamation permit meets the criteria for an 
    improvidently issued permit in Sec. 773.20(b) of this chapter, or 
    the State program equivalent, and the State has failed to take 
    appropriate action on the permit under State program equivalents of 
    Secs. 773.20 and 773.21 of this chapter, OSM will issue to the 
    State, and should provide to the permittee, an initial notice 
    stating in writing the reasons for that belief.
        (b) State response. Within 30 days of the date on which an 
    initial notice is issued under paragraph (a) of this section, the 
    State must demonstrate to OSM in writing either that:
        (1) The permit does not meet the criteria of Sec. 773.20(b) of 
    this chapter, or the State program equivalent; or
        (2) The State is in compliance with the State program 
    equivalents of Secs. 773.20 and 773.21 of this chapter.
        (c) Ten-day notice. If OSM finds that the State has failed to 
    make the demonstration required by paragraph (b) of this section, 
    OSM will issue to the State a ten-day notice stating in writing the 
    reasons for that finding and requesting that within 10 days the 
    State take appropriate action under the State program equivalents of 
    Secs. 773.20 and 773.21 of this chapter;
        (d) Federal enforcement. After 10 days from the date on which a 
    ten-day notice is issued under paragraph (c) of this section, if OSM 
    finds that the State has failed to take appropriate action under the 
    State program equivalents of Secs. 773.20 and 773.21 of this 
    chapter, or to show good cause for such failure, OSM will take 
    appropriate remedial action. Such remedial action may include the 
    issuance to the permittee of a notice of violation requiring that by 
    a specified date all mining operations must cease and reclamation of 
    all areas for which a reclamation obligation exists must commence or 
    continue unless, to the satisfaction of the responsible agency, any 
    violation, penalty, or fee on which the notice of violation was 
    based is abated or paid, an abatement plan or payment schedule is 
    entered into, or [any ownership or control link with the person 
    responsible for the violation, penalty or fee is severed and] the 
    permittee and all persons owned or controlled by the permittee are 
    no longer [does not continue to be] responsible for the violation, 
    penalty, or fee. Under this paragraph, good cause does not include 
    the lack of State program equivalents of Secs. 773.20 and 773.21 of 
    this chapter.
        (e) Remedies to notice of violation. Upon receipt from any 
    person of information concerning the issuance of a notice of 
    violation under paragraph (d) of this section, OSM will review the 
    information and:
        (1) Vacate the notice of violation if it resulted from an 
    erroneous conclusion under this section; or
        (2) Terminate the notice of violation if:
        (i) [The permittee or other person responsible has, to the 
    satisfaction of the responsible agency, abated any violation or paid 
    any penalty or fee on which the notice of violation was based] All 
    violations have been abated and all penalties or fees have been 
    paid;
        (ii) The permittee or any [other] person [responsible] owned or 
    controlled by the permittee has filed and is pursuing a good faith 
    appeal of the violation, penalty, or fee, or has entered into and is 
    complying with an abatement plan or payment schedule to the 
    satisfaction of the responsible agency; or
        (iii) [Since the notice of violation was issued, the] The 
    permittee [has severed any ownership or control link with the person 
    responsible for, and does not continue to be] and all persons owned 
    or controlled by the permittee are no longer responsible for the 
    violation, penalty, or fee.
        (f) No civil penalty. OSM will not assess a civil penalty for a 
    notice of violation issued under this section.
    
    IV. Procedural Matters
    
    A. Executive Order 12866
    
        This rule has been reviewed under the criteria of Executive Order 
    12866.
    
    B. Regulatory Flexibility Act
    
        The Department of the Interior certifies 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 rule will not add to the cost of operating a mine under an approved 
    regulatory program. Its provisions apply mainly to operators who 
    previously operated mines in violation of the provisions of SMCRA and 
    then failed to abate the violation or pay monetary civil penalties that 
    were assessed. Further, most coal mining operations subject to these 
    regulations do not engage in prohibited activities and practices, and, 
    as a result, the aggregate economic impact of these revised regulations 
    will be minimal, affecting only those who engage in prohibited behavior 
    in violation of SMCRA.
    
    C. Executive Order 12988 on Civil Justice Reform
    
        The Department of the Interior has determined that this rule meets 
    the requirements of sections 3(a) and 3(b)(2) of Executive Order 12988, 
    ``Civil Justice Reform'' (56 FR 55195).
    
    D. Unfunded Mandates Reform Act
    
        This rule will not impose a cost of $100 million or more in any 
    given year on any governmental entity or the private sector.
    
    E. Federal Paperwork Reduction Act
    
        The Department of the Interior has determined that this rule does 
    not contain collections of information which require approval by the 
    Office of Management and Budget under 44 U.S.C. 3501 et seq. OMB has 
    previously approved the collection activities and assigned clearance 
    numbers 1029-0034- 1029-0041 to 30 CFR parts 778 and 773, respectively.
    
    F. National Environmental Policy Act
    
        OSM has determined that this rulemaking action is categorically 
    excluded from the requirement to prepare an environmental document 
    under the National Environmental Policy Act of 1969, as amended, 42 
    U.S.C. 4332 et seq. This determination was made in accordance with the 
    Departmental Manual (516 DM 2, Appendix 1.10).
        Authors: The principal authors of this rule are Nancy Broderick and 
    Dennis Rice, Office of Surface Mining Reclamation and Enforcement, U.S. 
    Department of the Interior, 1951 Constitution Ave., NW., Washington, DC 
    20240. Telephone: (202) 2028-2700 and 2829. E-mail address: 
    nbroderi@osmre.gov and drice@osmre.gov.
    
    List of Subjects
    
    30 CFR Part 773
    
        Administrative practice and procedure, Reporting and recordkeeping 
    requirements, Surface mining, Underground mining.
    
    [[Page 19458]]
    
    30 CFR Part 778
    
        Reporting and recordkeeping requirements, Surface mining, 
    Underground mining.
    
    30 CFR Part 843
    
        Federal enforcement.
    
        Dated: April 11, 1997.
    Bob Armstrong,
    Assistant Secretary, Land and Minerals Management.
    
        For the reasons set forth in the preamble, the Department is 
    amending 30 CFR parts 773, 778, and 843 as set forth below:
    
    PART 773--REQUIREMENTS FOR PERMITS AND PERMIT PROCESSING
    
        1. The authority citation for part 773 is revised to read as 
    follows:
    
        Authority: 30 U.S.C. 1201 et seq., as amended; 16 U.S.C. 1531 et 
    seq.; 16 U.S.C. 661 et seq.; 16 U.S.C. 703 et seq.; 16 U.S.C. 668a; 
    16 U.S.C. 469 et seq.; 16 U.S.C. 470aa et seq.; and Pub. L. 100-34.
    
        2. In Sec. 773.5, the definition of `` `Owned or controlled' and 
    `owns or controls' '' is revised to read as follows:
    
    
    Sec. 773.5  Definitions.
    
    * * * * *
        Owned or controlled and owns or controls mean any one or a 
    combination of the relationships specified in paragraphs (a) and (b) of 
    this definition:
        (a)(1) Being a permittee of a surface coal mining operation;
        (2) Based on instrument of ownership or voting securities, owning 
    of record in excess of 50 percent of an entity; or
        (3) Having any other relationship which gives one person authority 
    directly or indirectly to determine the manner in which an applicant, 
    an operator, or other entity conducts surface coal mining operations.
        (b) The following relationships are presumed to constitute 
    ownership or control unless a person can demonstrate that the person 
    subject to the presumption does not in fact have the authority directly 
    or indirectly to determine the manner in which the relevant surface 
    coal mining operation is conducted:
        (1) Being an officer or director of an entity;
        (2) Being the operator of a surface coal mining operation;
        (3) Having the ability to commit the financial or real property 
    assets or working resources of an entity;
        (4) Being a general partner in a partnership;
        (5) Based on the instruments of ownership or the voting securities 
    of a corporate entity, owning of record 10 through 50 percent of the 
    entity; or
        (6) Owning or controlling coal to be mined by another person under 
    a lease, sublease or other contract and having the right to receive 
    such coal after mining or having authority to determine the manner in 
    which that person or another person conducts a surface coal mining 
    operation.
    * * * * *
        3. In Sec. 773.15, paragraphs (b) and (e) are revised to read as 
    follows:
    
    
    Sec. 773.15  Review of permit applications.
    
    * * * * *
        (b) Review of violations. (1) Based on a review of all reasonably 
    available information concerning violation notices involving either the 
    applicant or any person owned or controlled by the applicant, including 
    information obtained pursuant to Secs. 773.22, 773.23, 778.13, and 
    778.14 of this chapter, the regulatory authority may not issue the 
    permit if any surface coal mining and reclamation operation owned or 
    controlled by the applicant is currently in violation of the Act, any 
    Federal rule or regulation promulgated pursuant thereto, a State 
    program, or any Federal or State law, rule, or regulation pertaining to 
    air or water environmental protection. In the absence of a failure-to-
    abate cessation order, the regulatory authority may presume that a 
    notice of violation issued pursuant to Sec. 843.12 of this chapter or 
    under a Federal or State program is being corrected to the satisfaction 
    of the agency with jurisdiction over the violation where the abatement 
    period for the notice of violation has not yet expired and where, as 
    part of the violation information provided pursuant to Sec. 778.14 of 
    this chapter, the applicant has provided certification that the 
    violation is in the process of being so corrected. This presumption 
    does not apply where evidence to the contrary is set forth in the 
    permit application, or where the notice of violation is issued for 
    nonpayment of abandoned mine land reclamation fees or civil penalties. 
    If a current violation exists, the regulatory authority must require 
    the applicant or any person owned or controlled by the applicant, 
    before the issuance of the permit, to either:
        (i) Submit to the regulatory proof that the current violation has 
    been or is in the process of being corrected to the satisfaction of the 
    agency that has jurisdiction over the violation; or
        (ii) Establish for the regulatory authority that the applicant, or 
    any person owned or controlled by the applicant, has filed and is 
    presently pursuing, in good faith, a direct administrative or judicial 
    appeal to contest the validity of the current violation. If the initial 
    judicial review authority under Sec. 775.13 of this chapter affirms the 
    violation, then the applicant must, within 30 days of the judicial 
    action, submit the proof required under paragraph (b)(1)(i) of this 
    section.
        (2) Any permit that is issued on the basis of a presumption 
    supported by certification under Sec. 778.14 of this chapter that a 
    violation is in the process of being corrected, on the basis of proof 
    submitted under paragraph (b)(1)(i) of this section that a violation is 
    in the process of being corrected, or pending the outcome of an appeal 
    described in paragraph (b)(1)(ii) of this section, must be issued 
    conditionally.
        (3) If the regulatory authority makes a finding that the applicant, 
    or the operator specified in the application, controls or has 
    controlled surface coal mining and reclamation operations with a 
    demonstrated pattern of willful violations of the Act of such nature 
    and duration, and with resulting irreparable damage to the environment 
    as to indicate an intent not to comply with the Act, no permit may be 
    issued. Before such a finding becomes final, the applicant or operator 
    must be afforded an opportunity for an adjudicatory hearing on the 
    determination as provided for in Sec. 775.11 of this chapter.
        (4)(i) Subsequent to October 24, 1992, the prohibitions of 
    paragraph (b) of this section regarding the issuance of a new permit do 
    not apply to any violation that:
        (A) Occurs after that date;
        (B) Is unabated; and
        (C) Results from an unanticipated event or condition that arises 
    from a surface coal mining and reclamation operation on lands that are 
    eligible for remining under a permit:
        (1) Issued before September 30, 1994, or any renewals thereof; and
        (2) Held by the person making application for the new permit.
        (ii) For permits issued under Sec. 785.25 of this chapter, an event 
    or condition will be presumed to be unanticipated for the purposes of 
    this paragraph if it:
        (A) Arose after permit issuance;
        (B) Was related to prior mining; and
        (C) Was not identified in the permit.
    * * * * *
        (e) Final compliance review. After an application is approved, but 
    before the permit is issued, the regulatory authority must reconsider 
    its decision to approve the application, based on the compliance review 
    required by paragraph (b)(1) of this section in light of any new 
    information submitted under Secs. 778.13(k) and 778.14(d) of this 
    chapter.
    
    [[Page 19459]]
    
        4. In Sec. 773.17, paragraph (i) is redesignated as paragraph (h), 
    which is revised to read as follows:
    
    
    Sec. 773.17  Permit conditions.
    
    * * * * *
        (h) Within 30 days after a cessation order is issued under 
    Sec. 843.11 of this chapter, or the State program equivalent, for 
    operations conducted under the permit, except where a stay of the 
    cessation order is granted and remains in effect, the permittee must 
    either submit to the regulatory authority the following information, 
    current to the date the cessation order was issued, or notify the 
    regulatory authority in writing that there has been no change since the 
    immediately preceding submittal of such information:
        (1) Any new information needed to correct or update the information 
    previously submitted to the regulatory authority by the permittee under 
    Sec. 778.13(c) of this chapter; or
        (2) If not previously submitted, the information required from a 
    permit application by Sec. 778.13(c) of this chapter.
        5. Sec. 773.20 is revised to read as follows:
    
    
    Sec. 773.20  Improvidently issued permits: General procedures.
    
        (a) Permit review. A regulatory authority which has reason to 
    believe that it improvidently issued a surface coal mining and 
    reclamaiton permit must review the circumstances under which the permit 
    was issued, using the criteria in paragraph (b) of this section. When 
    the regulatory authority finds that the permit was improvidently 
    issued, it must comply with paragraph (c) of this section.
        (b) Review criteria. (1) A regulatory authority must find that a 
    surface coal mining and reclamation permit was improvidently issued if:
        (i) Under the violations review criteria of the regulatory program 
    at the time the permit was issued:
        (A) The regulatory authority should not have issued the permit 
    because of an unabated violation or a delinquent penalty or fee; or
        (B) The permit was issued on the presumption that a notice of 
    violation was in the process of being corrected to the satisfaction of 
    the agency with jurisdiction over the violation, but a cessation order 
    subsequently was issued; and
        (ii) The violation, penalty, or fee:
        (A) Remains unabated or delinquent; and
        (B) Is not the subject of a good faith appeal, or of an abatement 
    plan or payment schedule that is being met to the satisfaction of the 
    responsible agency; and
        (iii) The permittee or any person owned or controlled by the 
    permittee continues to be responsible for the violation, penalty, or 
    fee.
        (2) The provisions Sec. 773.25 of this part apply whenever a 
    regulatory authority makes one of the following determinations:
        (i) Whether a violation, penalty, or fee existed at the time that 
    it was cited, remains unabated or delinquent, has been corrected, is in 
    the process of being corrected, or is the subject of a good faith 
    appeal, and
        (ii) Whether the permittee or any person owned or controlled by the 
    permittee continues to be responsible for the violation, penalty, or 
    fee.
        (c) Remedial measures. (1) A regulatory authority which, under 
    paragraph (b) of this section, finds that, because of an unabated 
    violation or a delinquent penalty or fee, a permit was improvidently 
    issued must use one or more of the following remedial measures:
        (i) Implement, with the cooperation of the responsible agency, the 
    permittee, and persons owned or controlled by the permittee, a plan for 
    abatement of the violation or a schedule for payment of the penalty or 
    fee;
        (ii) Impose on the permit a condition requiring abatement of the 
    violation or payment of the penalty or fee within a reasonable time;
        (iii) Suspend the permit until the violation is abated or the 
    penalty or fee is paid; or
        (iv) Rescind the permit.
        (2) If the regulatory authority decides to suspend the permit, it 
    must afford at least 30 days written notice to the permittee. If the 
    regulatory authority decides to rescind the permit, it must issued a 
    notice in accordance with Sec. 773.21 of this part. In either case, the 
    permittee must be given the opportunity to request administrative 
    review of the notice under 43 CFR 4.1370 through 4.1370 through 4.1377, 
    where OSM is the regulatory authority, or under the State program 
    equivalent, where a State is the regulatory authority. The regulatory 
    authority's decision will remain in effect during the pendency of the 
    appeal, unless temporary relief is granted in accordance with 43 CFR 
    4.1376 or the State program equivalent.
        6. Sec. 773.21 is revised to read as follows:
    
    
    Sec. 773.21  Improvidently issued permits: Rescission procedures.
    
        A regulatory authority which, under Sec. 773.20(c)(1)(iv) of this 
    part, elects to rescind an improvidently issued permit must serve on 
    the permittee a notice of proposed suspension and rescission which 
    includes the reasons for the finding of the regulatory authority under 
    Sec. 773.20(b) of this part and states that:
        (a) Automatic suspension and rescission. After a specified period 
    of time not to exceed 90 days, the permit automatically will become 
    suspended, and not to exceed 90 days thereafter rescinded, unless 
    within those periods the permittee submits proof, and the regulatory 
    authority finds, consistent with the provisions of Sec. 773.25 of this 
    part, that:
        (1) The finding of the regulatory authority under Sec. 773.20(b) of 
    this part was erroneous;
        (2) The violation has been abated, or the penalty or fee paid, to 
    the satisfaction of the responsible agency;
        (3) The violation, penalty, or fee is the subject of a good faith 
    appeal, or of an abatement plan or payment schedule that is being met 
    to the satisfaction of the responsible agency; or
        (4) The permittee and all persons owned or controlled by the 
    permittee are no longer responsible for the violation, penalty, or fee.
        (b) Cessation of operations. After permit suspension or rescission, 
    the permittee must cease all surface coal mining and reclamation 
    operations under the permit, except for violation abatement and for 
    reclamation and other environmental protection measures as required by 
    the regulatory authority.
    
    PART 778--PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR LEGAL, 
    FINANCIAL, COMPLIANCE, AND RELATED INFORMATION
    
        7. The authority citation for Part 778 is revised to read as 
    follows:
    
        Authority: 30 U.S.C. 1201 et seq., as amended and Pub. L. 100-
    34.
    
        8. Sec. 778.10 is revised to read as follows:
    
    
    Sec. 778.10  Information collection.
    
        (a) In accordance with 44 U.S.C. 3501 et seq., the Office of 
    Management and Budget (OMB) has approved the information collection 
    requirements of this part. Section 507(b) of SMCRA provides that 
    persons applying for a permit to conduct surface coal mining operations 
    must submit to the regulatory authority certain information regarding 
    the applicant and affiliated entities, their compliance status and 
    history, property ownership and other property rights, right of entry, 
    liability insurance, the status of unsuitability claims, and proof of 
    publication of a newspaper notice. The regulatory authority uses this 
    information to insure that all legal,
    
    [[Page 19460]]
    
    financial and compliance requirements are satisfied prior to issuance 
    of a permit. Persons seeking to conduct surface coal mining operations 
    must respond to obtain a benefit. A Federal agency may not conduct or 
    sponsor, and a person is not required to respond to, a collection of 
    information unless it displays a currently valid OMB control number. 
    The OMB clearance number for this part is 1029-0034.
        (b) OSM estimates that the public reporting and recordkeeping 
    burden for this part averages 48 hours per response, including time 
    spent reviewing instructions, searching existing data sources, 
    gathering and maintaining the data needed, and completing and reviewing 
    the collection of information. Send comments regarding this burden 
    estimate or any other aspect of these information collection and 
    recordkeeping requirements, including suggestions for reducing the 
    burden, to the Office of Surface Mining Reclamation and Enforcement, 
    Information Collection Clearance Officer, 1951 Constitution Avenue, 
    NW., Washington, DC 20240; and the Office of Management and Budget, 
    Office of Information and Regulatory Affairs, Attention: Interior Desk 
    Officer, 725 17th Street, NW, Washington, DC 20503. Please refer to OMB 
    Control Number 1029-0034 in any correspondence.
        9. Sec. 778.13 is revised to read as follows:
    
    
    Sec. 778.13  Identification of interests.
    
        An application must contain the following information, except that 
    the submission of a social security number is voluntary:
        (a) A statement as to whether the applicant is a corporation, 
    partnership, single proprietorship, association, or other business 
    entity.
        (b) The name, address, telephone number, and, as applicable, social 
    security number and employer identification number of the:
        (1) Applicant;
        (2) Applicant's resident agent; and
        (3) Person who will pay the abandoned mine land reclamation fee.
        (c) For each person who owns or controls the applicant under the 
    definition of ```owned or controlled' and `owns or controls''' in 
    Sec. 773.5 of this chapter, as applicable:
        (1) The person's name, address, social security number, and 
    employer identification number;
        (2) The person's ownership or control relationship to the 
    applicant, including percentage of ownership and location in the 
    organizational structure; and
        (3) The title of the person's position, the date that the person 
    assumed the position, and, when submitted under Sec. 773.17(h) of this 
    chapter, the date of departure from the position.
        (d) For the applicant and each partner or principal shareholder of 
    the applicant, each name and identifying number, including employer 
    identification number, Federal or State permit number, and MSHA number 
    with date of issuance, under which the person owns or controls, or 
    previously owned or controlled, a surface coal mining and reclamation 
    operation in the United States within the 5 years preceding the date of 
    the application.
        (e) The application number or other identifier of, and the 
    regulatory authority for, any other pending surface coal mining 
    operation permit application filed by the applicant in any State in the 
    United States.
        (f) For any surface coal mining operation owned or controlled by 
    the applicant under the definition of ``owned or controlled'' and 
    ``owns or controls'' in Sec. 773.5 of this chapter, the operation's:
        (1) Name, address, identifying numbers, including employer 
    identification number, Federal or State permit number and MSHA number, 
    the date of issuance of the MSHA number, and the regulatory authority; 
    and
        (2) Ownership or control relationship to the applicant, including 
    percentage of ownership and location in organizational structure.
        (g) The name and address of each legal or equitable owner of record 
    of the surface and mineral property to be mined, each holder of record 
    of any leasehold interest in the property to be mined, and any 
    purchaser of record under a real estate contract for the property to be 
    mined.
        (h) The name and address of each owner of record of all property 
    (surface and subsurface) contiguous to any part of the proposed permit 
    area.
        (i) The Mine Safety and Health Administration (MSHA) numbers for 
    all mine-associated structures that require MSHA approval.
        (j) A statement of all lands, interest in lands, options, or 
    pending bids on interests held or made by the applicant for lands 
    contiguous to the area described in the permit application. If 
    requested by the applicant, any information required by this paragraph 
    which is not on public file pursuant to State law must be held in 
    confidence by the regulatory authority, as provided under 
    Sec. 773.13(d)(3)(ii) of this chapter.
        (k) After an applicant is notified that his or her application is 
    approved, but before the permit is issued, the applicant must, as 
    applicable, update, correct or indicate that no change has occurred in 
    the information previously submitted under paragraphs (a) through (f) 
    of this section.
        (l) The applicant must submit the information required by this 
    section and by Sec. 778.14 of this part in any format that OSM 
    prescribes.
        10. Sec. 778.14 is revised to read as follows:
    
    
    Sec. 778.14  Violation information
    
        Each application must contain the following information:
        (a) A statement of whether the applicant or any subsidiary, 
    affiliate, or persons controlled by or under common control with the 
    applicant has:
        (1) Had a Federal or State coal mining permit suspended or revoked 
    in the 5 years preceding the date of submission of the application; or
        (2) Forfeited a performance bond or similar security deposited in 
    lieu of bond.
        (b) A brief explanation of the facts involved in any such 
    suspension, revocation, or forfeiture referred to in paragraphs (a)(1) 
    and (a)(2) of this section has occurred, including:
        (1) Identification number and date of issuance of the permit, and 
    the date and amount of bond or similar security;
        (2) Identification of the authority that suspended or revoked the 
    permit or forfeited the bond and the stated reasons for the action;
        (3) The current status of the permit, bond, or similar security 
    involved;
        (4) The date, location, and type of any administrative or judicial 
    proceedings initiated concerning the suspension, revocation, or 
    forfeiture; and
        (5) The current status of the proceedings.
        (c) A list of all violation notices received by the applicant 
    during the three-year period preceding the application date, and a list 
    of all outstanding violation notices received prior to the date of the 
    application by any surface coal mining operation that is deemed or 
    presumed to be owned or controlled by the applicant under the 
    definition of ``owned or controlled'' and ``owns or controls'' in 
    Sec. 773.5 of this chapter. For each notice of violation issued 
    pursuant to Sec. 843.12 of this chapter or under a Federal or State 
    program for which the abatement period has not expired, the applicant 
    must certify that such notice of violation is in the process of being 
    corrected to the satisfaction of the agency with jurisdiction over the 
    violation. For each violation notice reported, the list must include 
    the following information, as applicable:
        (1) Any identifying numbers for the operation, including the 
    Federal or State
    
    [[Page 19461]]
    
    permit number and MSHA number, the dates of issuance of the violation 
    notice and MSHA number, the name of the person to whom the violation 
    notice was issued, and the name of the issuing regulatory authority, 
    department or agency;
        (2) A brief description of the violation alleged in the notice;
        (3) The date, location, and type of any administrative or judicial 
    proceedings initiated concerning the violation, including, but not 
    limited to, proceedings initiated by any person identified in paragraph 
    (c) of this section to obtain administrative or judicial review of the 
    violation;
        (4) The current status of the proceedings and of the violation 
    notice; and
        (5) The actions, if any, taken by any person identified in 
    paragraph (c) of this section to abate the violation.
        (d) After an applicant is notified that his or her application is 
    approved, but before the permit is issued, the applicant must, as 
    applicable, update, correct or indicate that no change has occurred in 
    the information previously submitted under this section.
    
    PART 843--FEDERAL ENFORCEMENT
    
        11. The authority citation for part 843 is revised to read as 
    follows:
    
        Authority: 30 U.S.C. 1201 et seq., as amended and Pub. L. 100-
    34.
    
        12. In Sec. 843.11, paragraph (g) is revised to read as follows:
    
    
    Sec. 843.11  Cessation orders.
    
    * * * * *
        (g) Where OSM is the regulatory authority, within 60 days after 
    issuing a cessation order, OSM will notify in writing any person who 
    has been identified under Secs. 773.17(h) and 778.13(c) of this chapter 
    as owning or controlling the permittee that the cessation order was 
    issued and that the person has been identified as an owner or 
    controller.
        13. Sec. 843.21 is revised to read as follows:
    
    
    Sec. 843.21  Procedures for improvidently issued State permits.
    
        (a) Initial notice. If OSM has reason to believe that a State 
    surface coal mining and reclamation permit meets the criteria for an 
    improvidently issued permit in Sec. 773.20(b) of this chapter, or the 
    State program equivalent, and the State has failed to take appropriate 
    action on the permit under State program equivalents of Secs. 773.20 
    and 773.21 of this chapter, OSM will issue to the State, and should 
    provide to the permittee, an initial notice stating in writing the 
    reasons for that belief.
        (b) State response. Within 30 days of the date on which an initial 
    notice is issued under paragraph (a) of this section, the State must 
    demonstrate to OSM in writing either that:
        (1) The permit does not meet the criteria of Sec. 773.20(b) of this 
    chapter, or the State program equivalent; or
        (2) The State is in compliance with the State program equivalents 
    of Secs. 773.20 and 773.21 of this chapter.
        (c) Ten-day notice. If OSM finds that the State has failed to make 
    the demonstration required by paragraph (b) of this section, OSM will 
    issue to the State a ten-day notice stating in writing the reasons for 
    that finding and requesting that within 10 days the State take 
    appropriate action under the State program equivalents of Secs. 773.20 
    and 773.21 of this chapter.
        (d) Federal enforcement. After 10 days from the date on which a 
    ten-day notice is issued under paragraph (c) of this section, if OSM 
    finds that the State has failed to take appropriate action under the 
    State program equivalents of Secs. 773.20 and 773.21 of this chapter, 
    or to show good cause for such failure, OSM will take appropriate 
    remedial action. Such remedial action may include the issuance to the 
    permittee of a notice of violation requiring that by a specified date 
    all mining operations must cease and reclamation of all areas for which 
    a reclamation obligation exists must commence or continue unless, to 
    the satisfaction of the responsible agency, any violation, penalty, or 
    fee on which the notice of violation was based is abated or paid, an 
    abatement plan or payment schedule is entered into, or the permittee 
    and all persons owned or controlled by the permittee are no longer 
    responsible for the violation, penalty, or fee. Under this paragraph, 
    good cause does not include the lack of State program equivalents of 
    Secs. 773.20 and 773.21 of this chapter.
        (e) Remedies to notice of violation. Upon receipt from any person 
    of information concerning the issuance of a notice of violation under 
    paragraph (d) of this section, OSM will review the information and:
        (1) Vacate the notice of violation if it resulted from an erroneous 
    conclusion under this section; or
        (2) Terminate the notice of violation if:
        (i) All violations have been abated and all penalties or fees have 
    been paid;
        (ii) The permittee or any person owned or controlled by the 
    permittee has filed and is pursuing a good faith appeal of the 
    violation, penalty, or fee, or has entered into and is complying with 
    an abatement plan or payment schedule to the satisfaction of the 
    responsible agency; or
        (iii) The permittee and all persons owned or controlled by the 
    permittee are no longer responsible for the violation, penalty, or fee.
        (f) No civil penalty. OSM will not assess a civil penalty for a 
    notice of violation issued under this section.
    
    [FR Doc. 97-10247 Filed 4-21-97; 8:45 am]
    BILLING CODE 4310-05-M
    
    
    

Document Information

Effective Date:
4/3/1997
Published:
04/21/1997
Department:
Surface Mining Reclamation and Enforcement Office
Entry Type:
Rule
Action:
Interim final rule.
Document Number:
97-10247
Dates:
April 3, 1997.
Pages:
19450-19461 (12 pages)
RINs:
1029-AB91
PDF File:
97-10247.pdf
CFR: (15)
30 CFR 773.20(b)
30 CFR 778.13(c)
30 CFR 773.13(d)(3)(ii)
30 CFR 773.5
30 CFR 773.15
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