PRINTER'S NO. 2312
No. 176 Session of 1985
INTRODUCED BY SWEET, RYBAK, HALUSKA, BALDWIN, J. L. WRIGHT,
COHEN, SAURMAN, DEAL, OLASZ, FARGO, PETRARCA, COLAFELLA AND
HERMAN, OCTOBER 16, 1985
REFERRED TO COMMITTEE ON RULES, OCTOBER 21, 1985
A RESOLUTION
1 Urging the Department of Environmental Resources to promulgate
2 regulations implementing self-bonding for coal mine
3 operators.
4 WHEREAS, Section 4(d) of the act of May 31, 1945 (P.L.1198,
5 No.418), known as the Surface Mining Conservation and
6 Reclamation Act, amended October 10, 1980 (P.L.835, No.155),
7 grants to the Department of Environmental Resources the
8 authority and discretion to accept self-bonds from surface coal
9 mine operators, without separate surety, if said operators
10 demonstrate financial solvency, continuous business operation
11 and compliance with applicable environmental laws; and
12 WHEREAS, Said act further provides 13 requirements which
13 operators must meet in order to qualify for self-bonding; and
14 WHEREAS, A recent opinion of the Environmental Hearing Board
15 held that the department's refusal to accept self-bonding
16 applications constitutes a derogation of the legislative mandate
17 to exercise its departmental discretion; and
18 WHEREAS, There are a limited number of insurance carriers
1 which underwrite surety bonds for Pennsylvania surface coal mine
2 operations; and
3 WHEREAS, The recent repermitting of Pennsylvania surface coal
4 mine operators at higher bond amounts has resulted in a greatly
5 increased demand on the existing insurance moneys available to
6 underwrite these bonds; and
7 WHEREAS, The current troubled financial position of the
8 insurance industry has further reduced the capacity of this
9 industry to supply bonds to Pennsylvania surface mine operators;
10 and
11 WHEREAS, The United States Office of Surface Mining has
12 issued self-bonding regulations which serve as guidelines for
13 those states wishing to implement self-bonding; and
14 WHEREAS, The implementation of a program of self-bonding for
15 well-established, financially sound companies would effectively
16 extend the capacity of private insurance carriers to underwrite
17 surface mine bonds; therefore be it
18 RESOLVED, That the House of Representatives hereby finds that
19 implementation of a program of self-bonding for surface coal
20 mine operators would benefit the coal mining industry in
21 Pennsylvania; and be it further
22 RESOLVED, That the House of Representatives hereby urges the
23 Department of Environmental Resources to immediately draft and
24 propose to the Environmental Quality Board regulations designed
25 to implement such a self-bonding program; and be it further
26 RESOLVED, That a copy of this resolution be transmitted to
27 the Secretary of Environmental Resources.
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