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Coal Mining Program Fees

Coal Mining Program Fees. Environmental Quality Board Meeting July 17, 2012 John J. Stefanko, Deputy Secretary for Active and Abandoned Mining Operations. Coal Mining Program Background. Permits ~1600 Coal Mining Permits Operators ~500 Permittees Program Cost Total ~$21,000,000

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Coal Mining Program Fees

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  1. Coal Mining Program Fees Environmental Quality Board Meeting July 17, 2012 John J. Stefanko, Deputy Secretary for Active and Abandoned Mining Operations

  2. Coal Mining Program Background • Permits • ~1600 Coal Mining Permits • Operators • ~500 Permittees • Program Cost • Total ~$21,000,000 • up to 50% Federal Funding

  3. Regulation Development Timeline • Fee Proposal-October 2009 Mining and Reclamation Advisory Board (MRAB) Meeting • Opposition was expressed • Relegated to committee for discussion • MRAB Committee Meetings • November 2009-January 2010 • January 2010 MRAB Recommendations • April 2010 MRAB Recommendation

  4. Regulation Development Timeline • EQB adopted proposed regulations at October 12, 2010 Meeting • Proposed regulations published for comment March 10, 2012 • No Comments were received

  5. IRRC May 9, 2012 IRRC letter: • They had no comments • If the final-form regulation is delivered without changes and the committees take no action then the regulations will be deemed approved.

  6. January 2010 MRAB Recommendationss • Because permit fees have not gone up since 1982, a permit fee increase is reasonable. • Any increase in permit fees should be dedicated to finance the permitting process. • DEP should not discourage remining activities. • It is reasonable to ask industry to contribute to funding some part of the program. • MRAB will continue to advise DEP on permit fee assessment and allocations.

  7. April 2010 MRAB Recommendation • Fee package should include permit application fees • Fees should generate about $400,000 per year

  8. No Changes No changes were made to the rulemaking from proposed to final version

  9. Definitions Added • Permit Application Fee • Major Permit Revisions

  10. Fee Basis • Workload Analysis • Review time for each application type • Personnel costs • Overhead • Proportion needed to generate $400,000 • ~37% of state share of cost for application review

  11. Example Fee Amounts New Bituminous Underground Permit $5,750 Surface Mine Permit Major revision $300 Permit Renewal $250

  12. Periodic Fee Review Every three years the Department will compare the fees collected with program costs and prepare a report for the EQB.

  13. Summary and Recommendation • Final-form regulations are in line with MRAB Recommendations • Estimated to generate about $400,000 per year • The Department is requesting approval of the final-form regulations.

  14. Thank youJohn J. Stefanko, Deputy Secretary for Active and Abandoned Mining Operations

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