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OSM Program Deficiencies and Remining Financial Guarantee Rulemaking Changes

OSM Program Deficiencies and Remining Financial Guarantee Rulemaking Changes. EQB--November 16, 2010 J. Scott Roberts, Deputy Secretary Mineral Resources Management. Timeline. October 2009-MRAB Recommends proposed regulations proceed March 2010-Proposed Regulation Approved by EQB

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OSM Program Deficiencies and Remining Financial Guarantee Rulemaking Changes

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  1. OSM Program Deficiencies and Remining Financial Guarantee Rulemaking Changes EQB--November 16, 2010 J. Scott Roberts, Deputy Secretary Mineral Resources Management

  2. Timeline • October 2009-MRAB Recommends proposed regulations proceed • March 2010-Proposed Regulation Approved by EQB • May 1, 2010-PA Bulletin Publication as Proposed Regulation • May 31, 2010-Public Comment Period Ends • September 7, 2010-MRAB Final Regulation recommendation

  3. Comments • 3 Commentators • 14 Comments • Additional request from OSM for clarification • Regulations were revised in response to these comments

  4. Sections with Changes • 86.1 Revise definition of ownership to exactly match the Federal Regulation • 86.133 Emphasize that the application and permit for exploration on UFM areas must be available to the public • 86.282 (RFGs) Clarification and adding a subsection that states that existing participants are eligible for subsequent RFGs

  5. Sections with changes Continued • 88.321 and 90.133 (noncoal waste disposal) changes made to match federal language • 90.112 (spillway design) another clarification

  6. Other Comments • Comment: The definition of "violation" is unclear as 30 C.F.R. § 701.5 includes two definitions of "violation." • Federal regulations have two terms • violation • violation, failure or refusal

  7. Exploration on UFM • Comment: The proposed revisions to §86.133 prevents the Department from waiving the UFM permit requirement • Federal Regulations require a permit • Comment: The permit term for should be consistent with other permits (5 years) • Exploration is limited to 250 tons

  8. Self-bonding qualifications • Comment: Subsection (a)(2) contains overly broad language relating to “all applicable Federal and State laws” • This exactly matches the federal language

  9. Letters of Credit • Comment: The Department should not undermine a bank’s ability to: (1) evaluate an operator’s financial stability and (2) issue a letter of credit based on that informed and highly regulated decision. • The regulation doesn’t do what the comment suggests

  10. RFGs and LCs • Comment: The option to post a letter of credit should not be eliminated. • LCs can still be used as bonds. • Comment: DEP and the Board should provide evidence to provide justification for the change. • 16 RFGs have been forfeited-4 have required payment from the fund-for three of these the demonstration was made by LC

  11. RFGs and Discharges • Comment: Department should clarify that an RFG needs to be replaced if discharge liability is related to the remining area. • This requirement in not intended to be limited to the remining area. Any liability for a discharge is too great of a risk for the RFG program

  12. Rebuttable Presumption Reimbursement • Comment: The Department should not unilaterally eliminate a surface mine operator’s or mine owner’s cost recovery rights. • State law was changed. The regulation is being changed to conform. There are other cost recovery provisions that are still applicable

  13. Conclusion • The Department is requesting a approval of this final-form regulation. • Thank you

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