OSM NEWS
U.S. Department of the Interior
Office of Surface Mining
For Release June 25, 1998     
Jerry Childress (202) 209-2719
jchildre@osmre.gov

OSM PROPOSES NEW RULES TO
ENHANCE AML RECLAMATION

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

     The proposed rules were published in the Federal Register of June 25. 1998
for public review and comment.

     "The primary objective of this rulemaking is to accomplish reclamation at sites
that otherwise would not be reclaimed," Karpan said. "There's not enough money in
the AML fund to reclaim all known abandoned sites eligible for funding. This rule would
allow AML agencies to use the limited dollars more effectively to bring about more
reclamation."

     The proposed rule would 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 would allow
private companies to underwrite most of the cost of reclamation at many sites that
would otherwise not be reclaimed. The reclamation would be funded largely through
the sale of coal recovered from the project site. The government's or tribe's share of
the cost, and the ultimate cost to the AML program, would be greatly reduced in many
cases. Savings to the AML program would be used for reclamation at other sites.

     The rule also would require 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. If
the AML agency decides to proceed with a reclamation project, it would carry out the
project in accordance with existing AML requirements.

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

     Comments on the rulemaking proposals should be sent to the OSM Administrative
Record, 1951 Constitution Avenue, N.W., Washington  D.C. 20240, no
later than July 27 1998 E-Mail comments should be sent to osmrules@osmre.gov.

     OSM conducted outreach on this proposal in November 1997, including holding
8 public meetings to discuss the proposal at several locations nationwide. This proposed rule
includes revisions that reflect input OSM received 
during the outreach.

     Public hearings will be held if requested. Requests for hearings, or for further
information, should be directed to Douglas J. Growitz (202) 208-2634, (dgrowitz@osmre.gov) at
the address above. Hearing requests must be received by July 6, 1998.

-DOI-