![]() |
Office of Surface Mining News Release |
|
![]() |
November 18, 2004 For immediate release | Contact: Mike Gauldin (202) 208-2565 mgauldin@osmre.gov | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Under Public Law 102-486, OSM is required to transfer annually a portion of the interest collected from the Abandoned Mine Land Fund to the UMWA's Combined Benefit Fund. The UMWA fund provided medical benefits in Fiscal Year (FY) 2004 for 17,394 coal miners living in 45 states who worked for companies that no longer exist. States with the most miners receiving benefits are Pennsylvania (4,935), West Virginia (3,957), Kentucky (2,507), Virginia (1,200) and Ohio (883). The cash transfer is based on OSM's estimated interest earnings for the upcoming Fiscal Year. OSM projects its FY 2005 annual investment collections will be $69,040,000. In addition to the annual transfer, adjustments are made to prior year transfers based on actual interest collected, actual costs of health care, and changes to the unassigned beneficiary population. On October 1, 2004, that population is 16,502. OSM's continuing obligation to make such transfers was jeopardized earlier this year when it appeared that Congress would not reauthorize OSM's authority to collect the AML fee that funds the annual transfers to the CBF. The AML fee was set to expire September 30. About two weeks before that deadline, OSM put in place an emergency rule that would have enabled it to continue collecting fees from coal operators to provide transfers to the Combined Benefit Fund even if the AML fee had been allowed to expire. On September 29, Congress approved a Continuing Resolution to fund government operations through November 20 and extended OSM's AML fee authority until the same date. Since the AML fee is still in force, OSM's emergency CBF rule has not taken effect. OSM does not manage the fund or participate in making decisions about its administration. However, earlier this year the Bush Administration proposed legislation to reauthorize and reform the Abandoned Mine Land fund which would also increase the stability of funding for th CBF by: The Administration legislation would extend OSM's authority to collect the fee for AML reclamation and to make reforms in the distribution of AML funds that would devote more of the fees being collected to the worst AML problems. Sen. Arlen Specter (PA) has introduced the Administration's proposal as S. 2049 and Rep. John Peterson (PA) has introduced the legislation in the House as H.R. 3778.Title IV of the Surface Mining Control and Reclamation Act of 1977 (SMCRA) created an abandoned mine reclamation program funded by a fee assessed on each ton of coal used, sold, or transferred (35 cents for surface-mined coal, 15 cents for coal from underground mines, and 10 cents for lignite). Money from these fees is placed in a fund, which, subject to appropriation, is used to reclaim lands and waters adversely impacted by mining conducted before the enactment of SMCRA and to mitigate the adverse impacts from these sites on individuals and communities. The Energy Policy Act of 1992 amended SMCRA to transfer, subject to certain limitations, an amount equal to the amount of interest earned on the fund to the United Mine Workers of America Combined Benefit Fund for use in paying health care benefits to "unassigned beneficiaries" -- former coal miners and their dependents for which no company is responsible for paying premiums. The Energy Policy Act also amended SMCRA to extend collection of the reclamation fees through September 30, 2004, with an additional requirement that after that date the fee must be established at a rate sufficient to continue to provide for transfers to the Combined Benefit Fund with respect to unassigned beneficiaries.
United Mine Workers of America Combined Benefit Fund
* States of residence are determined from latest known addresses provided by beneficiaries. Some residences may have changed. Unassigned beneficiary count is as of the beginning of FY 2004 (October 1, 2003). The number of beneficiaries changed at the beginning of FY 2005 (October 1, 2004) to 16,502.
|