For Release February 12, 1999                      Jerry Childress (202) 209-2719
                                              jchildre@osmre.gov
                                
       OSM ISSUES FINAL RULES TO ENHANCE AML RECLAMATION

     Kathy Karpan, Director of the Interior Department's Office of Surface Mining
Reclamation and Enforcement (OSM), today issued final rules dealing with the financing of
Abandoned Mine Land (AML) reclamation projects that involve the incidental removal of coal.  

     The new rules were published in the Federal Register of  February 12, 1999.     

     "The primary objective of these rules is to accomplish reclamation at sites that otherwise
would not be reclaimed," Karpan said.  "Projections of receipts to the AML fund through the
year 2004, when the authority to collect fees is scheduled to expire, strongly indicate that there
will not be enough money in the fund to reclaim all known sites currently listed in the
Abandoned Mine Land Inventory System.  Given the limited AML reclamation resources, this
rule provides an innovative way for AML agencies to use the limited dollars more effectively to
bring about more reclamation." 

     The final rules amend the definition of government-financed construction activities to
allow less than 50 percent government funding when the construction is an approved AML
reclamation project under Title IV of the Surface Mining Control and Reclamation Act
(SMCRA).  

      Removing the requirement for 50 percent government funding allows private companies
to underwrite most of the cost of reclamation at many sites that would otherwise not be
reclaimed.  The reclamation will be funded largely through the sale of incidental coal recovered
from the project site, and coal removed and sold will be limited to that which must be removed to
accomplish the required reclamation.  The government's or tribe's share of the cost, and the
ultimate cost to the AML program, will be greatly reduced in many cases.  Savings based on the
rule will be used for reclamation at additional AML sites.

The rules also requires the AML agency to consult with the appropriate regulatory authority to
determine on a case-by-case basis whether particular sites might be more appropriately mined
and reclaimed under a Title V regulatory permit.  

     "Since the reclamation projects involving the incidental removal of coal will be approved
AML reclamation projects, they will be subject to time-tested administrative, financial,
contractual, and environmental safeguards the same as any other approved AML project," Karpan
explained.

     Requests for further information about the final rules should be directed to Douglas J.
Growitz, Office of Surface Mining, 1951 Constitution Ave. NW, Washington, D.C. 20240;
telephone: (202) 208-2634; E-Mail: (growitz@osmre.gov).      .

                              -DOI-