OFFICE OF SURFACE MINING
      RECLAMATION & ENFORCEMENT

For Release February 7, 1994                          Alan Cole (202) 208-2719


           INTERIOR FISCAL 1995 BUDGET REQUEST INCLUDES $278,385,000
                 FOR FEDERAL AND STATE SURFACE MINING PROGRAMS


      The Interior Department today announced that President Clinton's Fiscal
Year 1995 budget request for the Office of Surface Mining Reclamation and
Enforcement (OSM) includes $278,385,000 for state and federal programs to
protect the environment during coal mining and assure prompt reclamation and
the cleanup of abandoned mine lands (AML).

      The budget request, $23,464,000 less than fiscal 1994, will support
OSM's regulatory and AML reclamation programs, plus those of the 24 coal
states and 3 Indian tribes receiving federal Interior Department funds for
their surface mining programs, according to OSM.  The decrease is primarily
the result of reduced funding for the State Reclamation Grant Program and the
elimination of $13.2 million for the Rural Abandoned Mine Program.

      OSM's fiscal 1995 budget request includes $111,394,000 for regulation
and technology programs and $166,991,000 for AML.

      Regulatory program grants to states are budgeted at $51.6 million in the
fiscal 1995 request, no change from fiscal 1994.  The funds are for OSM grants
that match state expenses dollar for dollar to operate programs for issuing
coal mine permits, inspecting surface coal mines, enforcing environmental
standards, and assuring reclamation of surface coal mines.

      Funds for state and Indian AML reclamation grants are budgeted at $125.8
million, $10 million less than fiscal 1994.  The reduction in state
reclamation grants preserves a viable AML reclamation program.  Through the
use of carryover funds and continued project efficiencies, states will
continue to be able to address the inventory of abandoned sites and operate
their ownemergency reclamation programs.  Through AML grants, OSM pays 100
percent of state and tribal costs for reclaiming abandoned coal mine lands
that were left unreclaimed or inadequately reclaimed before enactment of the
1977 Surface Mining Control and Reclamation Act (SMCRA).

      The AML program, including AML grants to states and tribes, is funded by
production fees of 35 cents per ton of surface mined coal, 15 cents per ton of
coal mined underground, and 10 cents per ton of lignite, which OSM collects
from coal producers.  Proceeds go to a specially earmarked U.S. Treasury
interest-bearing fund until Congress makes appropriations for AML work.

      OSM administers national standards requiring environmental protection
during coal mining and land reclamation afterward, and OSM reclaims abandoned
mine lands.  The agency provides support and oversight for approved state
regulatory and reclamation programs and directly carries out such activities
on federal and Indian lands.  OSM was established in the Interior Department
under authority of SMCRA.


                                     -DOI-