Office of Surface Mining Reclamation and Enforcement
STRATEGIC PLAN
September 30, 1997

Executive Summary
Introduction
Mission
Strategic Goals
Goal 1 Aggressively pursue the reclamation of Abandoned Mine Lands
Goal 2 Prevent environmental problems in the coal fields
Goal 3 Strengthen the capabilities of States, Tribes, and OSM staff to enforce SMCRA effectively through quality technical and scientific information, expertise, and training.
Goal 4 Maintain the financial integrity of SMCRA by properly and promptly accounting for grant funds and all revenues collected; maximize compliance with AML reclamation fee provisions; provide grant financial services and accounting to the States and Tribes; and maximize collections through fair and consistent policies and procedures.
Goal 5 Enhance the Human Resource Program through a diverse, highly qualified, well trained, motivated and informed workforce that supports the mission of OSM.
External Factors
OSM's Program Evaluation System
OSM's Annual Performance Plans
OSM's Annual Reports
Conclusion
Appendix - OSM Outreach and Consultation Chronology

The Office of Surface Mining Reclamation and Enforcement (OSM) was established with the signing of the Surface Mining Control and Reclamation Act of 1977 (SMCRA), Public Law 95-87, August 3, 1977.

OSM's mission is to carry out the requirements of the Surface Mining Control and Reclamation Act in cooperation with States and Tribes. Our primary objectives are to ensure that coal mines are operated in a manner that protects citizens and the environment during mining and assures that the land is restored to beneficial use following mining, and to mitigate the effects of past mining by aggressively pursuing reclamation of abandoned coal mines.

OSM's mandates are carried out primarily through grants and cooperative agreements with States and Tribes that implement regulatory and reclamation programs in accordance with standards in SMCRA and its implementing regulations. When SMCRA was enacted and OSM subsequently established, a unified level of environmental performance standards was created for the coal industry. Coalfield citizens were provided the same rights as residents of other rural communities: safe lives, clean water, and secure lands for homes, pastures, farms, and recreation.

Currently, 24 States have "primacy," or approved State regulatory programs. Each State program includes key elements such as permitting and bonding requirements, on-the-ground performance standards which mining operations must meet, mine inspection and enforcement requirements, and procedures for designating lands as unsuitable for mining. In primacy States, OSM's mission becomes one of oversight, backup enforcement authority, and provide programmatic and technical assistance to the States.

In the absence of a State program, or a cooperative agreement with a State to regulate mining on Federal lands, OSM serves as the regulatory authority. OSM also regulates mining on Indian lands.

SMCRA provides the means for restoring abandoned coal mines through establishment of the Abandoned Mine Reclamation Fund based on collection of a tonnage-based reclamation fee assessed on current coal production. Each year, Congress appropriates monies from the Fund which are used primarily by 23 AML program States and three Indian programs for on-the-ground reclamation projects. Through these projects, safety hazards are removed, highwalls eliminated, and causes of water and air pollution are treated or eliminated. Additionally, monies are used to fund Federal and State AML emergency programs aimed at addressing unanticipated occurrences; for example, subsidence and landslides and the damages these events cause to human life and property. OSM conducts similar activities in non-program States and on Federal and other Indian lands. For States and Indian Tribes having approved AML programs, OSM conducts oversight activities and provides programmatic and technical assistance to the States and Tribes.

OSM is field-oriented, with headquarters in Washington, D.C., three regional coordinating centers, ten field offices, and six area offices. OSM administers 12 federal programs, oversees 23 state programs, AML emergency programs, the AML fee compliance program, and Indian lands program.

What follows is a presentation of OSM's strategic goals, with the first two primary goals, followed by the two supporting collateral goals and the organizational goal. A description appears under each general goal which describes how OSM plans to achieve it together with a description of the required operational processes, skills and technology, and the human, capital, information, and other necessary resources. Also included is a description of how the performance goals included in OSM's annual plan for Fiscal Year 1999 relates to the general goals and objectives in this strategic plan.

The following five goals are derived from discussions with OSM's State and Tribal partners and also reflect the results of an employee, customer, and stakeholder survey. The first two goals address the fundamental mission of reclaiming abandoned mine lands and protecting people and the environment during surface coal mining and ensuring that mined land is properly reclaimed. These goals are achieved by the State regulatory authorities, and State and Tribal reclamation authorities and therefore are driven by the commitments they are able to make with OSM. The primary business lines of environmental restoration and protection are the means by which OSM will perform its duties in support of these goals. The next two goals address OSM's expertise and efficiency in providing support for OSM's major functions and primary goals. The fifth goal represents OSM's commitment to enhancing its human resource program and the diversity of its workforce.

Along with the Mission Statement, the goals provide policy direction for OSM and a framework for the development of the strategic plan.

In support of this strategic goal, OSM's performance plan goals will reflect: providing the funds to the States and Tribes for administering their approved AML plans; evaluating the State and Tribal AML plans; abating all mining related hazards in our Federal Reclamation Programs and where OSM has the responsibility as the regulatory authority; administering the Abandoned Mine Land program effectively and efficiently through State and Tribal grants and plan amendments, AML accomplishments, and fostering partnerships for the Clean Streams Initiative.

Outcome:

An increase in the number of acres reclaimed (decrease in the number of acres of land degraded by environmental and safety hazards stemming from past mining).

Measure(s):

The Surface Mining Program will increase the rate of reclaimed/funded sites to total AML inventory sites to 55% by the year 2002.

The Surface Mining Program will reclaim approximately 40,000 acres by 2002.

The Surface Mining Program will abate emergency hazards, in accordance with OSM policy, through the year 2002.

The Office of Surface Mining will increase the number of cooperative Acid Mine Drainage projects by 50% through the year 2002.

The Office of Surface Mining will increase the ratio of OSM funds to non-OSM funds on Acid Mine Drainage projects, to 1:2 by the year 2002.

The Office of Surface Mining will provide grants and award funds within 60 days of receipt of a complete application in accordance with its customer service standards and established policies and procedures.

We will improve the AML program by simplifying and reducing administrative procedures and by enhancing and improving AML data systems, including the Abandoned Mine Land Inventory System and the Fee Billing and Collection System. We will reduce program costs and promote reclamation by encouraging remining and the reprocessing of coal refuse. We will advocate increased reclamation of abandoned mine lands. We will lead and coordinate the Clean Streams Initiative -- in concert with States and other Federal agencies, local governments, citizens, conservation groups, and corporations -- to develop and promote clean-up strategies for acid mine drainage from abandoned mines.

We will accomplish this goal primarily through our Environmental Restoration business line and associated program activities and in cooperation with our partners, the States and Tribes, with whom we have established a shared commitment. This business line involves all functions that contribute to reclaiming lands affected by past coal mining practices. It provides for the use of AML funds to protect public health, safety, and general welfare from extreme danger and from the adverse effects of pre-1977 coal mining practices. It also restores land and water resources and the environment previously degraded by these practices.

Since 1993, the rate at which the program has increased reclaimed/funded sites on the inventory has been approximately one-half percent per year. The inventory does not have a static base and continues to increase annually, due to more sites being identified and lower priority sites gaining higher priority. As an example, in 1993 the inventory had 9,307 sites of which 4,699 had been reclaimed or funded, in 1997 the inventory had grown to 10,682 sites of which 5,727 had been reclaimed or funded. Based on historical data and the assumption of static funding, the surface mining program will attain a 55% reclaim/funded rate by the year 2002. See Figure 1a.

The overall measure for this goal will be the number of additional abandoned mine land acres reclaimed on reclamation project sites and the rate at which sites in the AML inventory are reclaimed/funded. OSM realizes that this is an output measure, but makes the assumption that the results of reclaimed acreage have qualitative results and are a reflection of the elimination of hazards, or the potential of hazards; thus the reclaimed land will be of beneficial use. In FY 1996 the Surface Mining Program reclaimed 9,592 acres of abandoned coal mined land on 330 sites. The cumulative total reclaimed through FY 1996 was 105,655 acres on 3,813 sites. Since 1985, historical data would indicate a projection of approximately 40,000 additional acres being reclaimed on approximately 1,300 project sites, through the year 2002. See Figure 1b.

The following strategies were developed to support this goal and will be used as a basis for annual performance planning and budgeting.

We will protect public health, safety, general welfare, and the environment in abandoned coal mine land situations.

OSM will continue to seek to turn over responsibility for administration of AML emergency reclamation to primacy States. In the meantime, OSM will continue to operate the emergency program in primacy States, such as Kentucky and Pennsylvania, that have not yet taken it over, and for non-primacy States and Tribes.

In cooperation with the States and Tribes, OSM has established national principles of excellence for the AML program. Those principles reflect the fact that a strong sense of shared commitment to reclamation of abandoned mine lands is central to the success of the AML program. The

principles of excellence for the AML program stress the need to be responsive to public concerns, and the need to maintain a high level of compliance with project ranking and selection procedures in each State's or Tribe's approved plan.

Through the AML emergency program, the Office of Surface Mining and the States and Tribes will aggressively pursue abatement of all emergency AML situations.

Through the regular AML program, OSM and the States and Tribes will aggressively pursue reclamation of the most serious and highest priority non-emergency AML reclamation problems related to public health, safety, and the general welfare. OSM and the States and Tribes will also emphasize, as appropriate, the reclamation of environmental problems caused by past mining at eligible sites.

We will help communities that have been harmed by the effects of acid mine drainage (AMD) from abandoned mine lands.

Through the Clean Streams Initiative, OSM will support and assist in a multi-agency, non-regulatory effort aimed at remediation of existing sources of AMD, primarily affecting Appalachia. This includes making AMD clean-up a governmental priority, focusing on-going efforts to develop State, local, and Federal partnerships to clean up polluted streams using watershed-based planning efforts and bringing to bear the energies and resources of citizens, communities, and corporations. Major goals of the clean-up plan are to increase information exchange, to eliminate duplicative efforts among State, Federal, and local government agencies, and to help identify and obtain new sources of government and non-government funding.

In support of this strategic goal, OSM's performance plan goals will reflect: providing the funds to the States and Tribes for administering their approved regulatory programs; conducting results-oriented reviews in accordance with State Program evaluation performance agreements negotiated with the State regulatory authority; protecting the public and the environment during mining and reclaiming the land after mining in States, and on lands, including Tribal lands, where OSM is the regulatory authority; and protecting the public and the environment during mining and subsequent reclamation of those mined lands through efficient and effective OSM administrative processes.

Outcome:

The protection of the environment and public from off-site impacts resulting from surface coal mining and ensuring successful reclamation operations on lands affected by surface coal mining operations.

Measure(s):

The Surface Mining Program will minimize the number and severity of off-site impacts while protecting the environment and public from current mining. Example: The Surface Mining Program will strive for 90% of the sites to be free of off-site impacts by the year 2002. (Baseline data to be developed)

The Surface Mining Program will report the number of acres that meet the criteria for Performance Bonding Phases I & II.

The Surface Mining Program will maintain the number of acres that meet the criteria of Phase III Performance Bond release by encouraging the release of approximately 250,000 acres through the year 2002.

The Office of Surface Mining will provide grants and award funds within sixty days of receipt of a complete application in accordance with its customer service standards and established policies and procedures.

In cooperation with our partners, the States and Tribes, we have established a commitment to protect the coal field citizens and the environment from the adverse effects of surface coal mining.

Through the year 2002, the Surface Mining Program (OSM through its partners, the States and Tribes, and stakeholders) will develop and implement national standards to evaluate the environmental protection goals of SMCRA for protection the environment, property, and citizens by striving to prevent hazards in the coal fields through minimizing off-site impacts during mining and ensuring reclamation of mined coal lands. These standards will focus on program activities that present the best opportunity for minimizing the impact of mining on society and the environment and for achieving environmental improvement. The standards include establishing performance measures and a process for evaluating effective performance.

We will protect the public health and safety and the environment during mining and reclamation by minimizing off-site impacts and ensuring the restoration of land stability and capability following mining.

The goal is to minimize off-site impacts. But, any off-site impacts observed also will be evaluated, and reported in relation to severity. The indicator and measure will be the number of incidents investigated, documented, and verified. The reclamation of mined lands will be determined by reporting the number of acres that meet the criteria of Performance Bond Phases I and II, and the number of acres of mined land released at Phase III. See Figure 2.

OSM will seek to prevent environmental damage before it occurs, particularly in the area of hydrologic balance based on sound scientific evidence including the identification of acid/toxic-producing strata.

A fundamental concern of SMCRA is to ensure that land being reclaimed is stable and presents no health, safety, or environmental hazards following reclamation. Equally important is the restoration of land that has been mined to a productive capability equal to what it was before mining. In addition to ensuring reclamation at regulated mining operations, we will work with the States and Tribes to continue to meet our statutory responsibility to promote the implementation and achievement of SMCRA's goals and objectives by: ensuring that States implement and maintain their approved SMCRA programs in a manner consistent with SMCRA and have the resources necessary to improve and maintain their capability; developing and implementing Federal programs in non-primacy States; negotiating and monitoring cooperative agreements with primacy States for the regulation of coal mining on Federal land within the State; and conducting regulatory activities on Indian lands and on Federal lands in States without cooperative agreements. In cooperation with States and Tribes, we will assure protection of the public and the environment and ensure adequate reclamation of land mined for coal as envisioned in SMCRA's five principal provisions to implement the regulatory program.

Lands Unsuitable.

Congress acknowledged and declared that certain coal deposits cannot be mined without permanent damage to unique cultural or natural resources. In addition, a process was established to determine suitability for mining and to allow citizens to petition regulatory authorities to designate lands as unsuitable for mining.

In concert with States, we will provide protection from off-site impacts and restoration of land by ensuring the regulatory authority has a process in place which enables it to evaluate lands accurately for objective unsuitability decisions. We will ensure that such decisions will be based on, but not limited to, technological and economical infeasibility; incompatibility with State or local land use plans; effect on fragile or historic lands; effect on renewable resource lands; or effect on natural hazard lands.

Permitting.

Before developing a surface or underground coal mine, an operator must have a permit issued under SMCRA. An application for a permit to conduct a surface coal mining operation is a detailed document that consists of text and numeric data describing the proposed mining and planned reclamation. Information must be furnished on pre-mining environmental conditions, existing land use, proposed mining and reclamation, how the performance standards will be met, and the post-mining land use. This provides the regulatory authority with the information necessary to determine whether the operation can be conducted in accordance with statutory and regulatory provisions.

In concert with States, we will provide protection from off-site impacts and ensure restoration of the land by accepting only those permit applications that are complete and accurate, and by approving only those that are valid and in compliance with all SMCRA regulatory requirements.

We will work with States to ensure that no permit shall be approved unless: the application is complete and accurate and complies with all requirements of SMCRA; reclamation can be accomplished under the reclamation plan in the permit application; the assessment of the impact on the hydrologic balance has been made and operations are designed to prevent material damage to the hydrologic balance outside the permit area; the area to be mined is not included within an area designated unsuitable for mining; and, if, the proposed operation is west of the 100th meridian, the proposed operation does not affect farming on alluvial valley floors or damage the quantity or quality of water systems that supply alluvial valley floors.

Bonding.

Before a permit can be granted, an operator must post a performance bond sufficient to cover the cost of reclaiming the site in the event the operator does not complete reclamation. The bond is not fully released until all performance standards have been met and reclamation of the site has been determined to be successful -- this period is at least five years in the East and Midwest; 10 years in the arid and semiarid of the interior western states, west of the 100th meridian. However, the bond can be partially released as various phases of reclamation are completed.

In concert with States, we will ensure the restoration of land being currently mined by requiring a performance bond payable to the United States or the State, based on faithful performance of all the requirements of the Act and the permit; and evaluating the effectiveness of State and Federal regulatory programs in ensuring successful reclamation on lands affected by surface coal mining operations based on the number of acres that meet the bond release standards.

Performance Standards.

Performance standards are intended to ensure that all surface coal mining is conducted in a way that protects the environment and the public and ensures that the mined land is restored to productive use following mining. In concert with States, we will provide protection from off-site impacts and restoration of land by assuring that all applicable performance standards of SMCRA for coal mining operations are met by: requiring that surface coal mining operations are conducted so as to maximize the recovery of the resource so that reaffecting the land in the future can be minimized; and restoring the land affected to a condition capable of supporting the uses which it was capable of supporting prior to any mining.

Inspection and Enforcement.

The primary goal of OSM and the States is to achieve voluntary compliance with applicable requirements by the industry. However, if a violation of SMCRA or of a State surface mining and reclamation law is observed, an inspector issues a notice of violation to the operator. The violation must be corrected within a specific time, and the operator also may be required to pay a fine based on the severity of the violation. If the violation is not corrected, a cessation order is issued immediately stopping active coal mining, and the operator must pay a fine. If a violation is especially serious (e.g., creates imminent danger to public health or safety or causes significant damage to land, air, or water resources) the inspector immediately issues a cessation order. An operator must correct all violations and pay all fines in order to obtain permits for new mines. In addition, OSM and the State regulatory authority will continue to maintain additional enforcement measures including litigation should such measures be needed to bring about compliance. We will provide protection from off-site impacts and restoration of land by causing such inspections of any surface coal mining and reclamation operation to be made as are necessary to enforce compliance with the regulatory program and approved permit.

In support of this strategic goal, OSM's performance plan goals will reflect: designing and providing state-of-the-art technical training responsive to State, Tribal and OSM staff needs; providing assistance, technology development and advice to State and Federal personnel; and disseminating and facilitating state-of-the-art technical information.

Outcome:

Knowledgeable regulatory and reclamation staff, supported by training and technical expertise provided by OSM specialists, in the implementation of SMCRA.

Measure(s):

The Office of Surface Mining will attain a 90% customer satisfaction rate for technical training and the Technical Information Processing System (TIPS). (Measures still being developed for the following activities):

Customer service for assistance

Customer service for information and technology transfer

The Office of Surface Mining will train 4,500 students through the year 2002 and determine program effectiveness.

The Office of Surface Mining will maintain a high level of providing timely (provide permit and non-emergency AML contract recommendations within 72 hours and emergency AML contract recommendations within 4 hours) Applicant Violator System (AVS) recommendations to regulatory authorities and other agencies using the AVS in making permitting and contracting decisions.

We will:

• provide the technical assistance and training necessary to improve and maintain the staff capability of OSM, the States, and the Tribes to carry out their SMCRA responsibilities;
• maintain a high level of technical expertise and stay abreast of new and developing technology for protection of the public, property, and the environment;
• share the technology we have acquired with our partners and stakeholders;
• consult and work with our partners and stakeholders to develop and deliver the best technical tools and training in order for them to carry out their jobs and the mandates of SMCRA;
• provide excellent technical assistance through a cadre of multi-disciplinary scientists and experts and make available information systems and technological databases that will complement and supplement decision-making;
• permit applications in a timely fashion in order that coal can be extracted in a responsible manner for the nation's energy needs; and
• assist the industry in meeting environmental standards by emphasizing compliance.
• work with industry, States, and the public to respond to technical issues related to SMCRA implementation through development of technical tools, training, policies, regulations, and other appropriate mechanisms.

The transfer of technical expertise results in cooperative efforts between and among States, Tribes, Federal agencies, the coal industry and citizen organizations in accomplishing the best possible mine permitting, compliance monitoring, and reclamation under SMCRA. Many SMCRA regulatory authorities do not have technical specialists on staff in certain disciplines and thus rely on OSM's expertise and technology to assist them in resolving complex issues which arise during permitting, compliance monitoring, evaluation of mine sites for bond release, and AML reclamation.

The measures of performance related to this goal are varied, based on the diversity of activities that may be involved in achieving this goal. The actual measures will be closely related to indicators of activity in this functional area, such as the number of requests for technical assistance in disciplines like those listed above from States, Tribes, industry, and the public. The satisfaction of those customers with the quality and relevance of the technical assistance provided may be indicated by stable or increasing numbers of requests from one year to the next, or through customer surveys and questionnaires. Other measures will include the number of students signing up for the technical training available and using information from technical training courses, also the number of times the Technical Information Processing System (TIPS) was used. See Figure 3.

The following primary strategies were developed to achieve this goal and will be used for annual planning and budgeting.

We will provide States, Tribes, and other interested parties with technical expertise in a variety of disciplines related to mine permitting, compliance monitoring, and the evaluation of the success of reclamation.

OSM will achieve this through efforts related to the four specific activities below.

Specific Assistance.

OSM will respond to requests for technical assistance relating to specific permitting, compliance monitoring, mitigation, or reclamation decisions. For example, OSM will provide requested expertise related to archeology, hydrology, engineering, bonding, vegetation and soils, and wildlife biology related to the decisions pertaining to mining plan review, permit issuance, bond calculations and release determinations, land unsuitability determinations, etc.

Programmatic Assistance.

OSM will respond to technical issues related to the implementation of SMCRA, such as subsidence, effects of blasting, remining, etc., raised by industry, the States, and the public. OSM will also investigate the current implementation of SMCRA to identify technical issues, such as the reclamation of prime farmland and the disposal of coal combustion byproducts, which may require the development of additional technical tools, training, policy, regulations, or other mechanisms to ensure the mandates of SMCRA are being followed. Such programmatic assistance will be designed to build protection of the public, property, and the environment into the industrial process of providing an adequate coal supply to meet the Nation's energy needs.

Technology Transfer.

OSM will work to identify new mechanisms for ensuring that those with decision making responsibilities have access to the best possible technical information related to the decision making process. OSM will identify barriers to communication and seek to overcome those barriers by providing technical information throughout the decision-making process.

Technology Development.

OSM will investigate the current effectiveness of mechanisms for implementing technical provisions of SMCRA, such as the experimental practices program. OSM will identify inadequacies of current approaches and will work with our stakeholders and customers to develop more effective approaches to implementing these provisions of SMCRA. OSM will work to eliminate unnecessary barriers inhibiting transfer of state-of-the-art technologies to on-the-ground mining and reclamation operations.

OSM will work to identify inadequacies in the science and technology of mining and reclamation which inhibit the realization of the goals of SMCRA. OSM will work with other agencies, the States, industry, and the public to develop mechanisms for addressing those inadequacies.

We have developed state-of-the-art technical training responsive to State, Tribal, and OSM staff needs.

States and Tribes consistently cite the OSM Technical Training Program as an outstanding means of technical assistance. Recognizing the need for an ongoing educational program to increase the technical competence and professionalism of Federal, State, and Tribal personnel, OSM established the technical training program in 1985. The program delivers training to staff whose duties relate to permit approval, bonding, bond release, reclamation, and enforcement. The program updates technical expertise and fosters consistent application of standards by inspectors in primacy States and OSM. Inspectors and other program staff must make numerous and complex technical judgments when performing their duties. No single discipline encompasses all the technical requirements; therefore, all personnel have some areas where their expertise must be upgraded. Without a comprehensive technical training resource, significant problems would likely develop in SMCRA regulatory and reclamation program implementation. For example, lack of knowledge by permitting staff could result in delayed or improvidently issued permits; AML project designs might not be optimal in terms of cost or efficiency; poor handling of evidence, incomplete documentation, or poorly prepared testimony could lead to invalid enforcement actions.

Disciplines involved in enforcement of SMCRA and in reclamation of abandoned mine lands include engineering, hydrology, blasting, agronomy, and botany. Staff must also have the ability to gather evidence and testify in court. Also, periodic training is needed to disseminate the latest technological and other changes in regulatory and associated reclamation activities. To meet those needs, over the past 12 years, more than 12,000 students have attended 530 sessions involving 29 OSM technical training courses. In addition to keen interest in the technical training program from the States and Tribes, the program has garnered industry support since training better enables regulatory staff to make sound technical analyses and decisions. Moreover, a number of companies have indicated interest in attending program courses.

OSM will continue to maintain and enhance its technical assistance through the technical training program. OSM will continue to work with the States and Tribes to identify areas for which training is needed. All aspects of the training program, from needs identification through course development and presentation, are cooperative efforts of State, Tribal, and OSM offices. Each year, OSM surveys all State, Tribal, and OSM offices to determine their technical training needs, then a course schedule is developed in accordance with available funding. In-class and follow-up evaluations provide feedback on which classes should be revised to better meet student needs, what new classes should be developed, and how classes are helping to enhance students' skills. The most important product of the training program has been the steady improvement in the regulation and reclamation of surface coal mining. These successes have been largely due to the increase in staff technical knowledge, the improvement of relationships among Federal, State, and Tribal personnel, and the improvements in staff's ability to make sound evaluations and decisions.

We will develop and share the utilization of automated technologies, such as TIPS and Electronic Permitting.

The Technical Information Processing System(TIPS) is a computer system designed by OSM in close cooperation with the States. It is maintained by OSM for use by States, OSM, and the Tribes in carrying out the technical regulatory responsibilities under Titles IV (Abandoned Mine Land Program) and V (Regulation and Technology Program) of SMCRA. TIPS consists of a centrally located super minicomputer networked through a wide area network with sophisticated work stations and software in State, Tribal, and selected Federal offices. TIPS provides high quality, timely technical assistance to the States and Tribes in their mine permit reviews, cumulative hydrologic impact assessments, demonstrated revegetation success, design of abandoned mine land projects, and preparation of environmental assessments and environmental impact statements. TIPS is a key element in the implementation of the OSM Electronic Permitting Initiative on Federal and Tribal lands and in the States.

The objective of electronic permitting nationwide is for the regulatory authority to process more and better permits, more quickly and to manage the growing amount of data more efficiently, without diminishing the thoroughness or quality of the application review process.

We will coordinate our staff, partners, stakeholders, and customers for the exchange of technical and programmatic information.

OSM will participate in interagency, intergovernmental, and other forums to help focus the work of government, academia, and other researchers on technical problems related to the protection of the public, property, and the environment. OSM will provide a mechanism to transfer the results of this work to States, industry, and other stakeholders to address "real world" problems.

OSM will participate in various forums to maintain the technical expertise of its personnel involved in technology development and transfer. OSM staff will need to stay abreast of developments in mining and reclamation technology and environmental protection in order to ensure that the technology is transferred to all appropriate OSM personnel, the States, industry, and the public to enhance the implementation of SMCRA.

In support of this strategic goal, OSM's annual performance goals will reflect: producing accurate and useful financial information on revenues collected and all grant disbursements; maximize AML reclamation fee compliance; optimizing financial services to States and Tribes regarding grant monies appropriated by Congress; and identifying debt, notifying debtors, and collecting and processing delinquent debt in a timely manner.

Outcome:

Accurate and timely accounting for financial transactions, maximization of revenue for the restoration and protection of the environment, and prompt financial services to States, Tribes, and industry.

Measure(s):

The Office of Surface Mining's annual financial statements will be free of any material weaknesses regarding fee compliance, revenue, and grants financial services as determined by the Office of the Inspector General.

The Office of Surface Mining will maintain a 90+ percent AML reclamation fee compliance rate through the year 2002 by measuring:

Percentage of permits reporting (OSM-1's returned) compared to number of permits mailed (OSM-1's mailed); and

Percent of audited tons reported (Accurately reported tons identified in audits divided by total tons audited).

The Office of Surface Mining will process requests for grant payments within one day, 95 percent of the time by measuring the total days to process requests compared to number of requests received.

The financial management of OSM's fiscal resources has been exemplified by our earning unqualified audit opinions by the Office of the Inspector General on our financial statements for the past six years. The integrity of managing those resources is vitally important to us and to our customers and stakeholders. OSM has attained a 97 percent compliance rate of known operators who report their coal sales tonnage. Due to that compliance rate, OSM collects over $250 million a year and has totaled $4.3 billion in collections for the Abandoned Mine Reclamation Fund, which is the funding source for the reclamation of abandoned mine sites. OSM has averaged, and will continue to collect approximately $250 million per year through the year 2002. See Figure 4.

Other strategic initiatives under the financial management program include: electronic data interchange for AML reclamation fee reporting; electronic transfer of audit results and debt information; increased communication with customers and stakeholders concerning fee payment through OSM's World Wide Web site; reengineering our reporting and collection processes to focus on compliance and efficiency; and sharing fee audit information with the States electronically.

The strategy of OSM's AML reclamation fee and civil penalty collection program is to maximize compliance in accordance with SMCRA. These collections provide funding for the restoration of abandoned mine lands and protection of the environment. In FY 1996, OSM collected a record $256.5 million in revenue for the AML fund and over $350 thousand in civil penalties. The objectives of this program are accomplished through the billing, collection, and audit of reclamation fees payable to the Abandoned Mine Fund for Title IV, and the assessment and collection of civil penalties for Title V.

Operational improvement strategies for the collection of receipts are aimed primarily at providing reasonable assurance, through audits and other compliance activities, that coal operators accurately report tonnage that is subject to the abandoned mine land fee. In addition, collection strategies will provide for an effective assessment, collection and debt management program for the efficient processing of delinquent debt.

Our strategy will be to respond to technological changes as they create new opportunities for improving collection procedures, and to work consistently to develop new applications of existing technologies that will streamline the processes. This strategy includes establishing "electronic collections" utilizing automated means of collecting funds. Other strategies include the use of private sector financial institutions for processing transactions using lockboxes, electronic data interchange, and public and private collection contractors. OSM will continue to use new and streamlined collection services as they become available, and will work with customers and stakeholders to ensure fair and consistent policies.

OSM's strategy is to provide an efficient funds transfer mechanism to the States and Tribes, providing on-line, real-time management information. Individual grants and cooperative agreements fund the SMCRA operations of the States and Tribes and provide money for the restoration of the land. The Title IV and V grant programs account for approximately 70 percent of the total OSM appropriation. Most of OSM's payments are transfers of grant funds to States and Tribes. OSM has over 150 grants and cooperative agreements with the States and Tribes accounting for over $306 million.

Our strategic considerations are aimed at improving the quality of financial information and delivery of services, embracing efforts to find innovative ways to increase efficiency of basic financial operations. OSM will pursue a strategy of exploiting new technologies offered by the Grant Information Tracking System, and of using integrated, less labor-intensive processing system that will streamline information processing and establish state-of- the-art communication.

OSM's financial management policy reflects the practice of helping managers implement effective financial management through policy development, regulation, and compliance. Through improved financial management, OSM will maximize the effectiveness and efficiency of accounting, reporting, and management of its operational budget, leading to improved cash management results.

OSM will develop a program to identify customer information needs and improve financial tools to assist managers in making timely and accurate decisions regarding their resources. We will pursue innovative strategies addressing data base management, administration, and maintenance of financial information through improved programs and networks. We will utilize advanced technologies including LAN/WAN technologies, and digital imaging. In addition, OSM will establish partnerships with the Department of the Treasury for debt collection processing.

In support of this strategic goal, OSM's performance plan goals will reflect: providing the necessary formal training to employees and managers to enhance skills and competencies; improving and developing skills of employees and managers through rotational assignments and details; achieving significant improvements in workforce diversity goals for key OSM occupations and positions and eliminating systemic barriers to workforce diversity; and improving the skills and abilities of all employees through better communication by providing state-of-the-art information technology tools, training, and access.

Outcome: A diverse, highly qualified, well trained, motivated and informed workforce that supports the strategic and annual performance goals and the mission of OSM.

Measure(s):

By 2002, OSM will improve the skills and abilities of all employees through better communication by providing state-of-the-art information technology tools, training, and access.

OSM will utilize the strategies contained in its recruitment plan to reduce the level of under-representation in "special interest" occupations.

We will accomplish this goal primarily through our Executive Direction and Administration business line and associated program activities of Human Resource management and Equal Employment Opportunity. In addition to these program activities, the other four business lines and their managers will play a major role in meeting the objectives of this goal.

Human Resources

It is our intent to create a diverse and well trained workforce that is capable of adapting to changes in program and corporate direction. We believe that through a comprehensive workforce skills enhancement program, we will create a workforce environment that is conducive to efficiency and productivity. By instituting a continual workforce analysis and skills assessment program, our training needs will become clear, as well as to provide a mechanism that will assist in our annual recruitment planning strategies.

It is essential that for the Bureau to meet the demands of our customers and to produce the related outcomes, our Human Resources strategy must focus on maintaining a highly trained, motivated workforce. This workforce must reflect the population it serves and be continually cognizant and supportive of our mission and goals.

Diversity

OSM reduced it's workforce by 26% (233) during Fiscal Year 96. This drastic decrease was due to a Reduction In Force (RIF) that took place in November 1995. The RIF had a negative effect on AEP progress previously made in reducing under-representation. Seniority and Veterans preference played a large role in the reduction of women. To correct the above losses, it would take approximately 157 diverse hires to reach parity with the Civilian Labor Force (CLF) in all occupations.

Notwithstanding the above, OSM is committed to achieving a diverse workforce which is reflective of the nations citizenry and that recognizes and appreciates the value of differences. OSM will be able to better serve their customers with a diverse workforce that reflects and understands the differing needs and preferences of those who make up our customer base. In addition, a diverse workforce will provide us with a wider talent pool that will bring new innovative approaches to accomplishing our mission.

Information Technology

Information technology is a vital factor in providing employees, management, customers, stakeholders and partners with the means of communication to share information and make decisions.

Key to achievement of many OSM goals is the availability, reliability and accessibility of data. Information Resource Management (IRM) is committed to developing advanced data management policies, procedures and standards, and empowering groups to enforce these policies, procedures and standards. The OSM task force on Information and Data Management has been developing requirements for data management as well as the standards and policies to support the data management program.

Regular">Public access to information is a matter of growing interest and concern within most government agencies. OSM is cognizant of public interest in the environment. The IRM organization will provide the infrastructure to make information available to stakeholders, and will be able to accept and distribute information received from those stakeholders.

The Government Performance and Results Act requires that OSM identify significant external factors which may affect the accomplishment of the goals of the Strategic Plan. As part of its planning assumptions, OSM management makes determinations regarding how significant external factors could influence goals. For this strategic plan, OSM has made the following broad assumptions regarding significant external factors which may affect program accomplishment:

Continuous But Moderate Growth in The Nationwide Demand for Coal.

For the time period considered in the Strategic Plan, OSM has assumed that the demand for coal would remain steady on a nationwide basis and that production would increase approximately 1-2 percent per year. At the same time, coal production at a local or regional level may decrease or increase depending upon local markets, changes in demand for specific types or grades of coal, or shifts from one region to another. Those changes may affect workloads and program operations in some OSM regions.

Urbanization.

Urbanization creates a need for more high priority AML reclamation work. Undermined subsidence-prone areas can become problems as people settle near those areas. Mine openings that are currently not considered dangerous will become a threat to human welfare as the population around them grows and the region is visited by more and more people. Open pits can also become attractive nuisances and serious hazards.

Legislation and Reclamation.

Legislation can have an effect on the reclamation program. For example, changes to the Clean Water Act could impose restrictions on water treatment that would affect the way reclamation is accomplished. Phase Two of the Clean Air Act requires a reduction in sulfur emissions by January 1, 2000. At present, no scrubbers are planned for power plants using the high sulfur Appalachian coal. Unless changes occur soon, there will be a shift in coal production to low sulfur Powder River Basin coal. In turn, that will affect the fee collection structure, the distribution of appropriations, and ultimately the type of reclamation occurring.

Fluctuations in the coal market sufficient to affect operator and mine viability.

Coal is a derived demand product, and the industry does not set the price: the market does. While coal continues to compete against oil, gas and nuclear energy, there may be less inter-fuel competition today than in 1977 (when SMCRA was enacted) since much of today's demand is relatively fixed. Historically, except for a few short time periods since World War I, the coal industry has not been in a position to control prices. The industry's excess production capacity has resulted in decreasing prices to a point that only variable costs were covered. This inability to cover all costs drove many companies out of business leaving the remaining companies to continue to install even more mechanization in an attempt to reduce costs so as to be price competitive. During the 1930's, the Federal government considered placing a floor on coal prices. Following World War II, mechanization increased again and prices fell further. Today the same actions are occurring as reflected with the use of longwall equipment in underground operations. It was after the Mideast wars and oil embargo of 1974 that the industry felt that world energy demand would allow the new reclamation and fee costs to be passed on to the consumer. While we cannot predict what events might affect the market for coal, OSM and the State regulatory authorities need to be cognizant of the different scenarios. If coal demand declines, there may be operators who can no longer mine economically resulting in mine closure, possible bond forfeitures and reclamation work that will need to be coordinated by the regulatory authority. Should demand rise significantly, then regulatory authorities may find they need additional resources to issue permits and inspect more mines.

Solvency of bonding companies.

As part of the regulatory process, coal operators must post a performance bond in an amount sufficient to assure the completion of the reclamation plan if the work has to be performed by the regulatory authority in the event of forfeiture. There have been instances in the past where a surety company has failed, placing operators in a bind of having to obtain a new bond from another company. Also, there have been occasions where operators have had difficulty in obtaining bonds due to a lack of bonding companies willing to do business in a particular area. Thus, the solvency of bonding companies is critical to fulfilling a core regulatory requirement on current and future mining operations in order to ensure that reclamation will occur. At the same time, should one or more sureties fail, additional burdens are then placed on the regulatory authority to coordinate and manage site reclamation. Again, for strategic planning purposes, OSM and the State regulatory authorities need to remain cognizant of this variable even though company matters are beyond their immediate control.

Stable funding for state regulatory programs.

Increasing demands on State governments are beginning to affect the funding of State regulatory programs. Under current law and regulations, OSM provides up to 50 percent of the funding needed by a State to implement its approved regulatory program. Thus, if a State regulatory authority finds its budget reduced, the Federal match will necessarily be reduced by the same proportion. In effect, a 5% funding cut at the State level becomes an overall 10% cut once the Federal match is reduced. The reverse scenario can also occur if Congress directed that State regulatory grants be reduced, the net effect would likely be the same, unless a State chose to fill the funding gap on its own.

These kinds of budget fluctuations may pose significant problems for State program administrators, such as in keeping a cadre of experienced staff, or maintaining and obtaining essential equipment needed to conduct regulatory activities. Any drastic funding scenarios could result in a State deciding to give up primacy. This would result in OSM having to implement a full Federal program in that State at a significant cost increase to the Federal government.

Appropriation levels from the AML Fund.

The Abandoned Mine Land Inventory System reports 4,580 high priority sites remaining to be reclaimed. An estimated $2.5 billion is needed to reclaim these sites. If additional appropriations for grants were provided, OSM could distribute the additional funds to States (without impacting the existing staffing and support structure of OSM).

Staff from the OSM have discussed this proposal with the States and Indian Tribes on several occasions and have sent informal comments on the plan to the National Association of Abandoned Mine Land Programs. We agree with the general precept of the plan, that being a more focused approach to identifying and prioritizing reclamation problems. We also agree with the idea of multiple year planning. At this time, we are not in a position to support the implementation strategy. Since the implementation of the plan would involve changes to SMCRA and a substantial increase in appropriations from the AML Fund, additional review by us and by other parts of the Administration is necessary. We will be coordinating this review over the next several years.

Funds granted to minimum program and non-minimum program States are used primarily to abate health and safety hazards stemming from abandoned coal mines. The reduction in the minimum program funding has no discernable effect on the overall reclamation efforts of the national program; it does transfer the reclamation achievement from some States to others. The minimum program States all have efficient, well run programs, however, individual programs are not as efficient because of the annual AML grant reduction to $1.5 million. For the minimum program States, the reduction to $1.5 million means that fewer health and safety problems will be corrected than would be addressed if $2 million were the funded minimum level. Thus, changing the distribution pattern due to a change in minimum program levels does not affect in a substantial way the priority or quality of reclamation, but does affect the amount of reclamation accomplished for any of the individual minimum program States.

Congressional action on Indian primacy.

OSM is providing grants to four coal resource Indian Tribes designed to prepare them for full primacy. OSM is working with four Tribes toward developing an amendment to SMCRA which will provide for Tribal primacy. The grants are authorized by the Energy Policy Act of 1992 and were funded through the Bureau of Indian Affairs budget (and transferred to OSM) during FY 1997 as follows: the Navajo Nation - $253,413, the Hopi Tribe $121,484, the Crow Tribe - $78,790, and the Northern Cheyenne - $26,313. The grant amounts are based on each Tribe's anticipated workload to develop Tribal regulations and SMCRA program policies, to assist OSM with surface coal mine inspections and enforcement (including permitting activities, mine plan review, and bond release), and to sponsor employment training and education in the area of mining and mineral resources.

Droughts, floods, etc., which can disrupt reclamation efforts or cause a rash of AML problems.

The effect of unusual weather patterns can pose significant problems to effective reclamation planning, particularly in reassessing priorities and the actual initiation of on-the-ground reclamation projects. For example, in the early 1990's, unseasonably heavy rains caused a significant increase in dangerous landslides in Kentucky. While OSM administers the emergency reclamation program in Kentucky which addresses many landslides, there was not sufficient funding for OSM to complete action on all emergency projects. As a result, OSM forwarded many cases to the State for priority ranking and funding under its regular AML grants. As Kentucky shifted its focus to these urgent sites, it was not able to initiate reclamation of other high priority sites in its inventory to the extent that it had planned to do. There are always possibilities that unforeseen events, such as those illustrated in this example, can affect OSM and the State/Tribal reclamation agencies' abilities to carry out their reclamation plans.

Regional shifts in coal production sufficient to affect the viability of regulatory programs or the source and distribution of AML funds.

The general trend of coal production shifting from East to West is expected to continue over the next five years, but there may be some exceptions. According to the Energy Information Agency, U.S. Department of Energy, in its U.S. Coal Supply and Demand: 1996 Review, coal output in Appalachia and the interior region rose in 1996, reversing the declining trend in recent years. Rising demand for western low-sulfur coal is likely to continue to influence regional coal production patterns. However, in 1996 there were concurrent increases in demand for eastern high- and medium-sulfur mainly due to interfuel competition for the electricity generation market. Given these trends, OSM expects relative stability in the coal mining industry and a corresponding level of regulatory and abandoned mine land program funding during the next five years. However, if unforeseen events were to occur causing significant shifts in a State's coal production, there could be extensive impacts. For example, if production were to decline markedly or cease entirely, then an assessment would need to be made to determine whether further mining ventures were viable. Assuming that further mining was not viable, then the State would have to sustain a minimal regulatory program in order to keep its approved AML plan in effect.

Significant shifts in coal mining methods (cast blasting, longwall, etc.) sufficient to affect program implementation.

There may be future unanticipated changes in mining technology which could affect program implementation.

The Government Performance and Results Act also requires that agencies establish systems for evaluating program accomplishments and the degree to which the broad goals of the agency strategic plan are being accomplished. Developing accurate information on program activities and accomplishments and keeping top management informed of progress are critical components of effective strategic planning.

The OSM program evaluation system is an ongoing process of assessing program accomplishments and communicating those assessments to management. The Program Evaluation System includes Management Control Reviews, Alternate Management Control Reviews (conducted in compliance with the Inspector General Act), audits done under the auspices of the Federal Managers' Financial Integrity Act, and evaluations of specific program components identified by management.

Evaluations of specific program components rely on performance measurement information developed by OSM program managers and on other data to portray the actual on-the-ground accomplishments that are attributable to program operations and outputs. Information obtained through oversight, and reports made pursuant to SMCRA requirements, also contribute to developing an accurate picture of progress in accomplishing OSM's mission.

Results of reviews, audits, and evaluations are used by management to assess accomplishments, correct deficiencies, improve program operations, and modify existing programs and policies to improve program effectiveness.

Annual plans, prepared at the beginning of each year, set forth what we intend to accomplish during the year. By describing our performance goals and the performance indicators to be used to measure success, those plans (also called performance plans or work plans) form the basis for later comparison with actual program results. They outline the relative importance assigned to general goals and program responsibilities in the strategic plan. At the State level, annual performance agreements will perform similar functions.

OSM's annual performance goals will include program activities derived from the general performance goals identified in the strategic plan. Those program activities will provide more detailed information regarding operational processes, skills and technology, and the human, capital, information, or other resources used to support the general performance goals. The program activities will be aligned with OSM's business lines and fiscal year budget requests. Once program activities are identified, measured, and evaluated, their aggregation will reflect the success, or failure, of the general goals.

Annual reports, prepared at the end of each year, describe what we actually accomplished under our annual performance plan in terms of the prescribed performance measures. They will

(1) review our success in achieving the previous year's performance goals; (2) evaluate the annual plan for the upcoming year relative to the performance achieved in the previous year; (3) discuss why specific goals were not met and how they will be met in the future, and; (4) report on our financial operations and condition.

On behalf of OSM's Management Council and all OSM employees, we are committed to using this strategic plan to help us achieve our mission in the most effective and efficient way possible and to provide opportunities for increased success in the future.

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Kathy Karpan, Director

OSM Outreach and Consultation Chronology