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OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

Library of COALEX Research Reports

COALEX Research Reports are the products of research and analysis conducted on specific issues relating to the regulation of Surface Mining Control and Reclamation Act of 1977. The research is conducted in response to requests for information from State Regulatory Authorities, under a cooperative agreement between the Office of Surface Mining (OSM) and the Interstate Mining Compact Commission (IMCC).

COALEX refers to the Library of Surface Mining Materials maintained by OSM in LEXIS-NEXIS and is a major source for the research.

Each Report includes a list of resources which were sent as attachments to the individual who requested the research. To obtain a copy of the attachments or to obtain any additional information, contact Joyce Zweben Scall by phone at 202-686-9138 or by email at JZScall@aol.com.

COALEX STATE COMPARISON REPORT - 185

May 1991

Interstate Mining Compact
459 B Carlisle Drive
Herndon, Virginia 22090

TOPIC: SELF-BONDING

INQUIRY:Please conduct a survey of the states to determine which state programs use self-bonding as an alternative bonding system. Include copies of the state statutes and regulations. List the state contacts.

SEARCH RESULTS: A survey of 15 states was conducted, using a questionnaire and supplemented by COALEX Library research. The survey asked the following questions:

  1. Does your state program contain authority for the use of self-bonding? If not, has your state program ever contained such authority ? Why did you decide to remove the self-bonding provisions?

  2. Citation for relevant statutes and regulations.

  3. Are you currently using self-bonding for any companies in your state? If so, how many companies?

  4. Provide comments on the value and success of your state's self-bonding program as an alternative bonding system.

The results of the survey follow. A Table summarizing the findings, a list of the state contacts, and copies of the statutes, regulations, policies or procedures are attached.

TABLE OF RESPONSES

ALABAMA

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

No

No. of companies:

None

Statute/Regulation cite:

Regulation Chap. 880-X-9. Bond and Insurance Requirements for Surface Coal Mining and Reclamation Operations; Form, Conditions and Terms of Performance Bonds and Liability Insurance.

Comments:

Only two applications for self-bonding were ever submitted to the Commission. Both were later withdrawn at the company's request.

ARKANSAS

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

Yes

No. of companies:

One

Statute/Regulation cite:

Regulation Sec. 806.11 Form of the Performance Bond (1987).

Comments:

Self-bonding is seldom requested.

ILLINOIS

QUESTIONS

RESPONSES

Has self-bonding?

No

Currently using self-bonding?

No

No. of companies:

N/A

Statute/Regulation cite:

N/A

Comments:

The self-bonding provision was removed because it was incompatible with the state act. The bonding requirements of the current state act are based on the requirements of previous Illinois reclamation regulatory programs which have been highly successful.

INDIANA [from COALEX]

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

Unknown

No. of companies:

Unknown

Statute/Regulation cite:

Statute Sec. 13-4.1-6.3 Self-Bonding (1988).

Comments:

N/A

KENTUCKY [from COALEX]

QUESTIONS

RESPONSES

Has self-bonding?

No

Currently using self-bonding?

N/A

No. of companies:

N/A

Statute/Regulation cite:

N/A

Comments:

Kentucky deleted self-bonding as an option in 1982, in response to OSM findings that the state's definition was inconsistent with the federal definition.

LOUISIANA [from COALEX]

QUESTIONS

RESPONSES

Has self-bonding?

No

Currently using self-bonding?

N/A

No. of companies:

N/A

Statute/Regulation cite:

N/A

Comments:

OSM disapproved the state self-bonding regulations in 1980. A revised definition of "self-bonding" was proposed in 1990 and is awaiting OSM approval.

NEW MEXICO

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

Yes

No. of companies:

Three companies (eight permits)

Statute/Regulation cite:

Regulation Sec. 14-23; CSMC Rule 80-1; Amendment No. 3 (1984).

Comments:

We have had self-bonding since 1987. Total amount of self-bonds is currently $64,402,200. We have not had any bad experiences. Self-bonds save the companies a considerable amountof money.

OHIO

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

No

No. of companies:

None

Statute/Regulation cite:

Regulation Sec. 1501:13-7-04 Self-Bonding (1988).

Comments:

No self-bonding application has been approved yet.

OKLAHOMA {from COALEX]

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

Unknown

No. of companies:

Unknown

Statute/Regulation cite:

Regulation Sec. 800.23 Self-bonding (1988).

Comments:

N/A

PENNSYLVANIA

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

No

No. of companies:

None

Statute/Regulation cite:

25 Pa Code Ch. 86, Secs. 86.142 Definitions and 86.159 Self-bonding (1990).

Comments:

Very few companies can qualify. Those who can are financially secure enough to obtain surety bonds.

TENNESSEE

QUESTIONS

RESPONSES

Has self-bonding?

No

Currently using self-bonding?

N/A

No. of companies:

N/A

Statute/Regulation cite:

N/A

Comments:

N/A

TEXAS

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

Yes

No. of companies:

Three companies

Statute/Regulation cite:

Regulation Sec. 806.309 Terms and Conditions of the Bond (recently promulgated).

Comments:

Texas is participating in a joint OSM and Industry Task Force to evaluate self-bonding rules applicable to public electric utilities.

VIRGINIA

QUESTIONS

RESPONSES

Has self-bonding?

No

Currently using self-bonding?

N/A

No. of companies:

N/A

Statute/Regulation cite:

N/A

Comments:

N/A

WEST VIRGINIA

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

Yes

No. of companies:

Four companies

Statute/Regulation cite:

Regulation Sec. 38-2-11. Insurance and Bonding.

Comments:

The program seems to be working satisfactorily. There has been no occasion to forfeit or collect the bond on a self-bonded permittee.

WYOMING [from COALEX]

QUESTIONS

RESPONSES

Has self-bonding?

Yes

Currently using self-bonding?

Unknown

No. of companies:

Unknown

Statute/Regulation cite:

Regulation Chap. XII Self-Bonding Program. Secs. 1-7.

Comments:

N/A


LIST OF CONTACTS

STATE

CONTACT INFO

ALABAMA

Carla D. Lightsey
Alabama Surface Mining Commission
P.O. Box 2390
Jasper, AL 35502-2390
205-221-4130

ARKANSAS

Art Ritchie, Engineering Supervisor
Arkansas Department of Pollution Control and Ecology
8001 National Drive
P.O. Box 8913
Little Rock, AR 72219-8913
501-562-6533

ILLINOIS

Don Pflederer
Illinois Department of Mines and Minerals
Land Reclamation Division
300 West Jefferson Street
P.O. Box 10137
Springfield, IL 62791-0197
217-782-4970

INDIANA

Michael Sponsler, Director
Division of Reclamation
Department of Natural Resources
P.O. Box 147
210 W. Main Street
Jasonville, IN 47438
812-665-2207

KENTUCKY

Carl Campbell
Department for Surface Mining and Reclamation Enforcement
No. 2 Hudson Hollow
Frankfort, KY 40601
502-564-6940

LOUISIANA

Anthony J. Duplechin, Geologist Supervisor
Injection and Mining Division
Office of Conservation
P.O. Box 94275
Baton Rouge, LA 70804
504-342-5515

MARYLAND

Anthony F. Abar, Director
Maryland Bureau of Mines
160 South Water Street
Frostburg, MD 21532
301-689-8150

NEW MEXICO

Barry Bailey, Operations Manager
Energy, Minerals and Natural Resources Department
2040 South Pacheco
Santa Fe, NM 87505
505-827-5990

OHIO

Jean Backs
Division of Reclamation
Department of Natural Resources
1855 Fountain Square Court, Bldg. H
Columbus, OH 43224
614-265-7070

OKLAHOMA

James Hamm
Oklahoma Department of Mines
4040 N. Lincoln
Oklahoma City, OK 73105
405-521-3859

PENNSYLVANIA

Ernest Giovanetti, Director
Bureau of Mining and Reclamation
Department of Environmental Resources
209 Executive House Bldg.
P.O. Box 2357
Harrisburg, PA 17105-2357
717-787-5103

TENNESSEE

Carl Tenut, Director
Division of Surface Mining
Department of Environment and Conservation
2700 Middlebrook Pike, Suite 220
Knoxville, TN 37921
615-594-6035

TEXAS

Melvin B. Hodgkiss, Director
Surface Mining and Reclamation Division
Railroad Commission of Texas
P.O. Drawer 12967
Austin, TX 78711-2967
512-463-6901

VIRGINIA

Benny Wampler, Ass't Director
Department of Mines, Minerals and Energy
P.O. Drawer 900
Big Stone Gap, VA 24219
703-523-8145

WEST VIRGINIA

Stephen C. Keen, Director
Mines and Minerals Section
Division of Energy
Department of Commerce, Labor and Environmental Resources
10 McJunkin Road
Nitro, WV 25143
304-558-3500

WYOMING

Rick Chancellor
Department of Environmental Quality
122 West 25th Street
Herschler Bldg.
Cheyenne, WY 82002
307-777-7756

ATTACHMENTS

ALABAMA:

Regulation Chap. 880-X-9. Bond and Insurance Requirements for Surface Coal Mining and Reclamation Operations; Form, Conditions and Terms of Performance Bonds and Liability Insurance.

ARKANSAS:

Regulation Sec. 806.11 Form of the Performance Bond (1987).

INDIANA:

Statute Sec. 13-4.1-6.3 Self-Bonding (1988).

KENTUCKY:

  1. 47 FR 21404 (May 18, 1982) [Excerpts].
  2. 45 FR 69940 (October 22, 1980) [Excerpts].

LOUISIANA:

  1. 45 FR 58576 (September 4, 1980) [Excerpts].
  2. 55 FR 42207 (October 18, 1990) [Excerpts].
  3. Regulation Sec. 206.11 Form of the Performance Bond (1980).

NEW MEXICO:

Regulation Sec. 14-23; CSMC Rule 80-1; Amendment No. 3; Dated 3/5/84.

OHIO:

Regulation Sec. 1501:13-7-04 Self-Bonding (1988) and accompanying procedures.

OKLAHOMA:

Regulation Sec. 800.23 Self-bonding (1988).

PENNSYLVANIA:

25 Pa Code Ch. 86, Secs. 86.142 Definitions and 86.159 Self-bonding (1990).

TEXAS:

Regulation Sec. 806.309 Terms and Conditions of the Bond (recently promulgated).

WEST VIRGINIA:

Regulation Sec. 38-2-11. Insurance and Bonding.

WYOMING:

Regulation Chap. XII Self-Bonding Program. Secs. 1-7.

Research conducted by: Gregory Conrad (IMCC)
Additional research conducted by: Joyce Zweben Scall

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