Acid drainage from active and abandoned coal mines has already destroyed thousands of miles of streams nationwide. While States and the mining industry have made progress in preventing acid mine drainage (AMD) from active operations, we have more work ahead to prevent AMD from future mining and to remediate past damage. Thus, the prevention of acid and toxic discharges from coal mining operations into surface and ground waters, and the remediation of mining-related pollutant discharges, are among the Office of Surface Mining's (OSM) highest priorities.

To advance these priorities, OSM established the Appalachian Clean Streams Initiative, with a primary focus on AMD from abandoned mines, and the Acid Drainage Technology Initiative, which concerns both the mediation and prevention of AMD from future mining. To complement these efforts, OSM developed policy goals, objectives, and strategies to protect the hydrologic balance in coal mining areas from the effects of AMD.

To provide a framework for the above initiatives and other OSM actions, OSM has developed a comprehensive outline for ongoing and planned endeavors to strengthen overall efforts to prevent and control AMD and to address water-related issues in the regulatory and abandoned mine land programs. This framework is attached and details the policy, oversight, training, and cooperative efforts with State and Federal agencies and groups for AMD problem prevention and clean-up. This is a work in progress and will be updated as needed, with the latest version posted on OSM's home page at www.osm.gov.

OSM appreciates your valuable input to this important effort. If you have any comments please contact Richard Bryson on (202) 208-2776, or by electronic mail at RBryson@OSMRE.gov. We hope you will review the outline and provide us with your comments.

Kathy Karpan

Director

I. DETERMINATION OF AMD SCOPE

National Inventory of AMD Sites - to be developed by each Regional Coordinating Center (CC) for each of its States.

OSM is requesting the cooperation of the States in compiling a computerized inventory of permits with long-term pollutional mine discharge (commonly referred to as AMD). The purpose of the inventory is:

1) To identify permits with long-term pollutional discharges;

2) To define the scope and impact of water quality problems at bond forfeiture and other active mine sites;

3) To ensure consistent water quality data collection on bond forfeiture and other active mining sites within all States; and

4) To serve as the basis for estimating general costs for long-term treatment. (Cost estimates are for general program analysis and are not for determining site specific costs for establishing bond or trust fund amounts.)

OSM and the States will use the inventory to pinpoint the geographic location where coal mine drainage problems occur, to characterize the extent of water pollution problems for defined geographic areas, and to establish strategies for addressing the impacts of actual and potential discharges.

This inventory ultimately will be coordinated with the Abandoned Mine Land Inventory System to more easily identify qualified hydrologic units. Hydrologic units must contain both land and water which are eligible for funding as an abandoned mine land (AML) project and lands and waters which are proposed to be the subject of the expenditures by the State from amounts available from the forfeiture of bonds under SMCRA section 509 or from other State sources to mitigate AMD. (See item III.B.1 for more information about AMD abatement and treatment set aside.)

II. PROBLEM PREVENTION

A. Policy and Oversight

1. Continue to implement the national AMD policy adopted March 31, 1997.

The AMD policy statement clarifies OSM's goals and objectives and sets forth strategies to correct drainage from past coal mining operations and to prevent AMD at sites regulated under the Surface Mining Control and Reclamation Act (SMCRA) and its implementing regulations. Conducting regulatory and reclamation programs under SMCRA in harmony with the final policy goals and objectives will result in a comprehensive AMD remediation and prevention program. Regulatory program strategies focus on designing mining operations to prevent AMD formation, monitoring operations during mining and reclamation to identify any need for corrective actions to prevent or mitigate postmining pollutional discharges, and addressing liability for AMD in permit bonding determinations.

2. Print and distribute the Acid Drainage Technology Initiative (ADTI) "Prevention" Report.

The ADTI was initiated in 1995 by OSM, the National Mining Association, and the Interstate Mining Compact Commission. Today ADTI includes members from industry, the States, academia, and other Federal agencies, including the Department of Energy, Environmental Protection Agency, and the Bureau of Land Management, and other groups to identify science-based solutions to AMD problems. About to be released is the first work product of this collaboration, a user manual/notebook on AMD remediation methods, including historic case studies. For more information link to the OSM web site at: http://www.osmre.gov//amdres.htm#ADTI

3. The Hydrology Issues (HI) Team will revise existing guidance document for determining probable hydrologic consequences (PHC) and preparing cumulative hydrologic impact (CHIA).

Probable hydrologic consequences (PHC) is a requirement that all applicants must provide in a permit application. It is a determination of baseline ground water and surface water quality and quantity conditions and the impact the proposed mining will have on these baseline conditions. Cumulative Hydrologic Impact Assessment (CHIA) must be done by the regulatory authority before making a decision on an individual permit. Its purpose is to examine the impacts from the proposed operation along with impacts of other mining in the general area - both existing and potential mining.

The HI Team, comprised of CC and Headquarters scientists, was created to address hydrologic issues; to improve PHC determinations and CHIAs and ensure that reasonable and technically-supportable PHCs and CHIAs are being prepared; and to coordinate information and activities related to hydrology. A PHC determination is the responsibility of the permit applicant and the CHIA is prepared by the regulatory authority as part of the permit review process. One of the first tasks of the HI Team will be to update and revise the existing PHC/CHIA document. The first phase of this effort will deal with hydrologic and geologic baseline data and other premining information needs.

4. Complete and report on the permit findings oversight initiative (contained in the Director's June 1, 1999 memorandum) for Evaluation Years 2000 and 2001.

The Director established "permit findings" as a national review topic for our permitting activities in Federal program States and on Indian lands in Fiscal Years 2000 and 2001. These evaluation reviews will focus on the governing Federal provisions for OSM's permitting actions with emphasis on required written findings and documentation of the basis for these findings. In addition, OSM Regions Field Offices will discuss with each State regulatory authority the adequacy of the State's permit findings. Once these discussions with the States are completed, each CC will prepare a written report on the interaction with the States. When a review of permit findings is included in the State/OSM performance agreement or work plans for FY 2000 or 2001, the Field Office will follow the procedures in Directive REG-8 to coordinate with the State.

5. Develop and implement policy for Tennessee Federal Program to evaluate cost of long-term AMD treatment for some permits and adjust bond amounts.

In an effort to ensure adequate performance bond on sites that develop unanticipated AMD requiring long term treatment, the Knoxville Field Office (KFO) is developing a policy for the Tennessee Federal Program that sets forth the procedures necessary to address adequate financial assurance for sites with long-term treatment needs. The policy document will address revision of permits to adequately reflect approved treatment systems, calculation of the bond to adequately treat the problem over the long term, and the alternative types of financial assurance acceptable. Once the policy is finalized and distributed, KFO will begin implementation by notifying affected permittees of the specific bond adjustments necessary for their sites and requesting that bonds be submitted within the required time frame. Additional financial assurance to cover long term treatment of AMD should be in place for all affected sites by October 1, 2000.

6. Systematically advise States concerning hydrology/AMD- and bonding-related decisions and policy.

As part of its ongoing effort to communicate Federal court and Interior Board of Land Appeals decisions, OSM nationwide policy and procedures, and other significant matters relative to hydrology/AMD and bonding-related issues, OSM will routinely advise and discuss these issues with State regulatory authorities.

7. Update Bonding Calculation Handbook.

OSM's Handbook for Calculation of Reclamation Bond Amounts was developed in 1987, with minor updates in 1993, and is established in OSM's Directive System as TSR-1. The Handbook is the guidance used by OSM staff to determine the amount of bond needed for each permitted site in cases where OSM is the regulatory authority. The Handbook also serves as the instructional guidance in OSM's technical training course on bond calculations, and as a reference guide for States, industry and other agencies. An OSM team comprised of individuals from each Region and the headquarters office is revising the Handbook to, among other things, update information to address the concern over the adequacy of bond amounts (in the event of a bond forfeiture). Revisions related to AMD also refer to the March 31, 1997, Policy Statement on AMD and the general procedures for calculating a bond amount for long-term treatment of pollutional discharges.

B. Financial Mechanisms

1. Develop options for financial assurance mechanisms that provide the capability to fund long-term or perpetual treatment of pollutional discharges from coal mining operations

OSM has contracted for financial and technical expertise to assess the financial liability associated with AMD treatment. When AMD develops, the cost of long-term treatment may greatly exceed the permit bond, and no other sources of funding exist. Under the contract, options for financial assurance mechanisms will be developed that provide the capability to fund long-term treatment of pollutional coal mine discharges. The contract will assist OSM in providing the following tools needed to adjust the amount of financial assurance on a permit for the liability to treat AMD once it is identified: an actuarially sound basis for establishing long-term treatment costs; various financial instruments appropriate to fund long-term treatment; and funding mechanisms that provide back-up financial capability when needed, since the amount of funding needed may be beyond the financial capability of many permittees.

2. Research grants programs outside OSM & make available to States (via CCs) possible sources of grant dollars (and how to apply) to fund reclamation of AMD occurrences on bond forfeiture sites. When a mining permit is issued, the permittee is required to post bond money so that he/she can perform reclamation on the site after mining is completed. Bond forfeiture sites are sites where the permittee has failed to perform the reclamation. When this happens, the states uses the bond forfeiture money to do reclamation, but 99% of the time the bond money is not enough to do the reclamation and the states must look elsewhere for funding. Funding sources for bond forfeiture sites can be found in the following links.

OSM currently is checking the Federal Domestic Assistance Catalog and other sources to locate possible research grant sources. OSM maintains a WEB page with information links to several grants search engines at http://www.osmre.gov/funding1.htm.

C. Training

1. Develop and pilot new technical training course for permit findings, including PHC/CHIA.

As part of the Director's oversight initiative on permit findings, OSM's National Technical Training Program, in cooperation with the States, will develop a new technical training course on permit findings and documentation. This course will serve as an important component of the overall initiative to assist State and Federal permitting staff in enhancing skills in developing and documenting findings during permit review, including hydrologic assessments and related permit findings.

2. If needs survey identifies additional interest, add session(s) of technical training course - AMD Workshop for Program Staff.

OSM's National Technical Training is a joint effort of States, Tribes and OSM to enhance the technical skills of staff through on-going training. The program offers 34 courses, including four courses specifically on acid-forming materials. Together these courses provide information on both basic and advanced aspects of identifying, planning for treatment, preventing, treating, and mitigating factors related to acid-forming materials on active and abandoned coal mine sites. The four courses include Acid-Forming Materials: Fundamentals and Applications, Acid-Forming Materials: Planning and Prevention, Acid-Forming Materials: Principles and Processes, and the new Acid-Forming Materials Workshop for Program Staff. The newest course, Acid-Forming Materials Workshop for Program Staff, provides an introduction to the state of the science and technology of AMD. It is designed for program staff, managers, attorneys and others who desire a general subject understanding. The workshop includes sections on acid formation and effects, the scientific method, collection and analysis of data for planning and prediction, and preventative and mitigation techniques.

3. Enhance technical capability of OSM through succession planning.

OSM is carrying out an in-depth analysis of the kind of workforce it will need in the future. As workers leave the Agency, either because of transfers, retirement or for other reasons, OSM must decide what kind of positions are needed; what the specific duties of the jobs should be; and where in the agency the position should be located. Called "succession planning," this, along with other management considerations (such as funding, industry trends, legislation, etc.), will help OSM to:

• identify what skills and abilities will be needed to implement the short-range and strategic plans for the future;

• implement new strategies, for example, more science, better education and re-training opportunities for OSM employees; and

• obtain employee input on the future direction of the agency.

The results of all this should enhance the technical capability of the agency.

D. Other Agencies and Cooperative Efforts

1. Continue, report and use results from Acid Drainage Technology Initiative (ADTI) which concentrates on the prevention of AMD from mining.

The AMD prediction effort is part of ADTI's ongoing actions to identify science-based solutions to AMD problems. It is expected to result in multi-party agreed upon recommendations for best science-based testing standards for AMD prediction and convert them into a best technology user manual for those working on AMD problems in the eastern United States. For more information link to the OSM web site at: http://www.osmre.gov/amdres.htm#ADTI

2. Continue efforts with States, Interstate Mining Compact Commission and EPA under the Interagency Remining Task Force to provide information and support for the EPA rule making effort to codify the 1987 remining amendment to the Clean Water Act. Such a rule would address existing obstacles to remining and foster reclamation at many sites that otherwise would be bypassed during mining.

OSM and the interagency task force seek to promote remining because of the reclamation benefits to abandoned mine lands and the lack of AML funds to address existing problems. If the private sector mining industry can be encouraged to remine more areas, then the industry, not the Federal or State governments, will pay for much of the environmental clean up resulting from AMD and excessive sediment coming from abandoned and unreclaimed mine sites. The amendment to the Clean Water Act was passed in 1987 in order to encourage more remining. The task force believes preparing regulations to implement the amendment would substantially increase reclamation of abandoned mine lands through remining.

3. Continue efforts with Western Coal Mining Work Group, Western Interstate Energy Board (WIEB) and the EPA to provide information and support for the EPA rule revising 40 CFR 434 by adding a new sub-part for the Western Alkaline Coal Mining Category. EPA is recommending adding an option for sediment control for areas undergoing reclamation, through approved best management practices (BMPs) such as alternative sediment control measures (ASCMs).

The development of a new western coal mining effluent subcategory is being proposed by the EPA. The new subcategory will consider the unique and significantly different factors of the semi-arid western United States, including climate, hydrology, and geomorphology. The semi-arid western U.S. includes areas west of the 100th meridian, receiving less than 26" of annual rainfall. The current effluent limitations guidelines are based on the use of sedimentation ponds, which have been shown to create potentially adverse environmental impacts in the semi-arid west. The current guidelines do not consider the semi-arid system's dynamic equilibrium and the environmental effects of discharging relatively clean water into a sediment rich environment.

III. CLEAN-UP

A. Policy and Oversight

1. Discuss with States the use of the AMD abatement and treatment set aside from State reclamation grants (Director's September 10, 1999, memorandum).

Section 402(g)(7) allows a State or Indian Tribe to establish an interest bearing AMD set aside. Annually, the State or Tribe may deposit up to 10 percent of its total grant, exclusive of emergency and Clean Streams grants, into the AMD set aside to be used to implement acid mine drainage abatement and treatment plans. The abatement and treatment plans are to provide for the comprehensive abatement of the causes and treatment of the effects of AMD within qualified hydrologic units affected by coal mining operations. Qualified hydrologic units are those in which the water quality has been significantly affected by AMD from coal mining practices in a manner which adversely impacts biological resources. Each must contain both lands and waters which are eligible for funding as an abandoned mine land (AML) project and lands and waters which are proposed to be the subject of the expenditures by the State from amounts available from the forfeiture of bonds under SMCRA section 509 or from other State sources to mitigate AMD. In keeping with our commitment to provide clean water in the coal fields, OSM is supporting and promoting this program, and making a concerted effort to discuss with the States and Tribes the discretion and flexibility they have in spending their AMD set aside funds.

2. Assist States with submission and approval of State program amendments necessary to implement AML enhancement rule published February 12, 1999, in order to achieve environmental gains such as reduction or elimination of AMD. Reclamation would occur at many abandoned mine land sites that otherwise would not be of sufficiently high priority to be reclaimed under the Title IV AML program.

The rule is intended to facilitate the reclamation of certain abandoned mine lands that have little likelihood of otherwise being reclaimed under either the current Title IV or Title V programs. These sites would not likely be reclaimed under the Title IV program because of severely limited funds; nor would they likely be mined under the Title V regulatory program due to marginal coal reserves and/or the potential risk for long-term liability associated with existing acid mine drainage or other environmental problems. Under a Title IV AML contract, coal remaining at the abandoned site would be used by private contractors to offset the cost of the reclamation. In a number of cases, reclamation conducted under the provisions of the AML enhancement rule is expected to eliminate environmental problems like site-specific AMD and excessive sediment stemming from the site by actually removing and thus eliminating the source of the problem.

OSM is making a concerted effort with the States to develop and approve State program amendments consistent with the new Federal rule. For example, ARCC developed program amendment guidance to the States to promote the AML enhancement rule and the ARCC remining team members are assisting the Field Offices and States upon request.

3. Conduct extensive outreach and develop a proposed rule for Title V Coal Refuse.

OSM recently completed a study under contract that shows many coal refuse piles in the eastern coal states contain sufficient coal to constitute a viable economic resource, and removal of the refuse results in calculable environmental improvement. The report characterizing the physical and chemical properties of refuse piles is believed to provide the necessary data and support to initiate a rule making designed to facilitate the removal of coal refuse piles.

B. Other Agencies and Cooperative Efforts

1. Coordinate with watershed groups and others, through the ADTI, to develop long-term treatment options.

The ADTI was initiated in 1995 by OSM, the National Mining Association, and the Interstate Mining Compact Commission. Today ADTI includes members from industry, the States, academia, and other government agencies, including the Department of Energy, EPA, and the Bureau of Land Management, and groups to identify science-based solutions to AMD problems. The first work product of this collaboration titled, "A Handbook of Technologies for Avoidance and Remediation of Acid Mine Drainage," is a user manual/notebook on AMD remediation methods, including historic case studies ,recently was released. For more information link to the OSM web site at: http://www.osmre.gov/amdres.htm#ADTI

2. Contact Appalachian Regional Commission (ARC) to seek support and joint agenda for addressing AMD and other regional water-related issues.

OSM will coordinate with ARC to seek support and joint agenda for addressing AMD and other regional water-related issues. As stated in its 1998 annual report, "(t)he broad objective of ...(the ARC)... is to support development of Appalachia's human and community infrastructure to provide a climate for the growth in business and industry that will create jobs. ARC-funded programs include construction of interstate-quality highway system, education and job training, health care, water and sewer systems, housing, and other essentials of comprehensive economic development." ARC's projects fall under five broad agency goals: Education and Workforce Training, Infrastructure Improvements, Civic Capacity and Leadership, Dynamic Economies, and Health Care.

During 1998, ARC provided $82.1 million dollars in grants for projects meeting these five goals. Combined with funds leveraged from other State and Federal agencies, a total of $282.8 million was provided for these projects. More information about ARC can be obtained from the agency's web page at http://www.arc.gov.

Mr. John Cartwright, the Regional Planning and Research Director, can be contacted by phone at (202) 884-7709, or e-mail at jcartwright@arc.gov.

3. Contact Department of Energy, EPA and other Federal agencies concerning their experience on long-term liabilities risk assessment.

OSM has contracted for an actuarial assessment to address long term financial liability associated with post-mining pollutional discharges. As part of that effort, the Department of Energy, EPA and other Federal agencies, which have been identified as dealing with similar long term pollution abatement and treatment problems, will be contacted regarding their experience and program requirements. These agencies have existing regulatory programs with frameworks that address the risk associated with financing long-term treatment costs.

4. Coordinate with EPA on in-stream treatment, specifically to determine whether EPA is treating some streams further down stream of pollution sources.

OSM will continue to work with the EPA on a program involving the implementation of demonstration projects designed to address pollution abatement from a watershed-based approach, where the compliance/monitoring point may be in-stream rather than at a particular discharge location. The effort is part of a rulemaking initiative by EPA to encourage remining areas with pre-existing pollutional discharges.

5. Continue regularly scheduled Appalachian Clean Streams Initiative contacts involving OSM field units, EPA, Corps of Engineers and Natural Resources Conservation Service.

Ongoing, regular contact between OSM's offices and other Federal agencies help to track the progress of Appalachian Clean Streams Initiative projects and plan for new assistance. For an update on projects look on the Appalachian Clean Streams Initiative website at http://www.osmre.gov/acsihome.htm.

6. Continue support of water-related Presidential initiatives, such as:

a. The Clean Water Action Plan and

b. The American Heritage Rivers Initiative.

To commemorate the 25th anniversary of the Clean Water Act, Federal agencies are developing and implementing a comprehensive plan that would help revitalize the nation's commitment to our valuable water resources. The result was the Clean Water Action Plan, which was released on February 19, 1998. Since that time the Federal agencies have been working with Tribal, State, and local partners to implement the more than 100 key actions in the Action Plan and build a new framework for watershed protection in the 21st century. In September 1999, OSM hosted an Appalachian Roundtable meeting to obtain watershed group/citizen input on Clean Water Act initiatives. Another such meeting will be held in the Fall 2000. Also, OSM is exploring ways to use geographic information system capabilities to display AMD data gathered by the States and OSM. For a CWAP update link to http://www.cleanwater.gov.

The American Heritage Rivers initiative offers special recognition to outstanding stretches of America's rivers by selecting them to be "American Heritage Rivers." Designated rivers will receive federal assistance in the form of refocused programs, grants, and technical assistance from existing federal resources. For an AHRI update : link to http://www.epa.gov/rivers.