SENATE AMENDED
        PRIOR PRINTER'S NOS. 2396, 2877, 3381         PRINTER'S NO. 3484

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1940 Session of 1995


        INTRODUCED BY S. H. SMITH, GEORGE, LYNCH, COLAIZZO, STEELMAN,
           FARGO, LUCYK, SEMMEL, HUTCHINSON, HERMAN, WOZNIAK, JADLOWIEC
           AND DEWEESE, JUNE 29, 1995

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, MAY 6, 1996

                                     AN ACT

     1  Amending the act of May 31, 1945 (P.L.1198, No.418), entitled,
     2     as amended, "An act providing for the conservation and
     3     improvement of land affected in connection with surface
     4     mining; regulating such mining; providing for the
     5     establishment of an Emergency Bond Fund for anthracite deep
     6     mine operators; and providing penalties," FURTHER PROVIDING    <--
     7     FOR DEFINITIONS, FOR OPERATOR'S LICENSE, FOR BONDS, FOR
     8     HEALTH AND SAFETY AND FOR REMINING OF PREVIOUSLY AFFECTED
     9     AREAS; AUTHORIZING REMOVAL OF COAL REFUSE; AND further         <--
    10     providing for payment in lieu of bond and FINANCIAL            <--
    11     GUARANTEES, for reclamation bond credits AND FOR REMINING      <--
    12     ENVIRONMENTAL ENHANCEMENT FUND; AND PROVIDING FOR THE          <--
    13     DEPARTMENT OF ENVIRONMENTAL PROTECTION'S AUTHORITY FOR THE
    14     AWARDING OF GRANTS.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Sections 4.12 and 4.13 of the act of May 31, 1945  <--
    18  (P.L.1198, No.418), known as the Surface Mining Conservation and
    19  Reclamation Act, added December 18, 1992 (P.L.1384, No.173), are
    20  amended to read:
    21     SECTION 1.  THE DEFINITIONS OF "GOVERNMENT-FINANCED            <--
    22  RECLAMATION CONTRACT" AND "SURFACE MINING ACTIVITIES" IN SECTION
    23  3 OF THE ACT OF MAY 31, 1945 (P.L.1198, NO.418), KNOWN AS THE

     1  SURFACE MINING CONSERVATION AND RECLAMATION ACT, AMENDED OR
     2  ADDED DECEMBER 18, 1992 (P.L.1384, NO.173), ARE AMENDED AND THE
     3  SECTION IS AMENDED BY ADDING A DEFINITION TO READ:
     4     SECTION 3.  DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES,
     5  UNLESS A DIFFERENT MEANING IS PLAINLY REQUIRED BY THE CONTEXT,
     6  SHALL HAVE THE FOLLOWING MEANINGS:
     7     * * *
     8     "GOVERNMENT-FINANCED RECLAMATION CONTRACT" SHALL MEAN:
     9     (1)  FOR THE PURPOSES OF SECTION 4.8, A FEDERALLY FUNDED OR
    10  STATE-FUNDED AND -APPROVED ABANDONED MINE RECLAMATION CONTRACT
    11  ENTERED INTO BETWEEN THE DEPARTMENT AND AN ELIGIBLE PERSON OR
    12  ENTITY WHO HAS OBTAINED SPECIAL AUTHORIZATION TO ENGAGE IN
    13  INCIDENTAL AND NECESSARY EXTRACTION OF COAL OR IN REMOVAL OF
    14  COAL REFUSE PURSUANT TO GOVERNMENT-FINANCED RECLAMATION WHICH IS
    15  EITHER:
    16     (I)  A STATE-FINANCED RECLAMATION CONTRACT LESS THAN OR EQUAL
    17  TO FIFTY THOUSAND DOLLARS ($50,000) TOTAL PROJECT COSTS, WHERE
    18  UP TO FIVE HUNDRED (500) TONS OF COAL IS EXTRACTED, INCLUDING A
    19  RECLAMATION CONTRACT WHERE LESS THAN FIVE HUNDRED (500) TONS IS
    20  REMOVED AND THE GOVERNMENT'S COST OF FINANCING RECLAMATION WILL
    21  BE ASSUMED BY THE CONTRACTOR UNDER THE TERMS OF A NO-COST
    22  CONTRACT;
    23     (II)  A STATE-FINANCED RECLAMATION CONTRACT AUTHORIZING THE
    24  REMOVAL OF COAL REFUSE, INCLUDING WHERE RECLAMATION IS PERFORMED
    25  BY THE CONTRACTOR UNDER THE TERMS OF A NO-COST CONTRACT WITH THE
    26  DEPARTMENT, NOT INVOLVING ANY REPROCESSING OF COAL REFUSE ON THE
    27  PROJECT AREA OR RETURN OF ANY COAL REFUSE MATERIAL TO THE
    28  PROJECT AREA;
    29     (III)  A STATE-FINANCED RECLAMATION CONTRACT GREATER THAN
    30  FIFTY THOUSAND DOLLARS ($50,000) TOTAL PROJECT COSTS OR A
    19950H1940B3484                  - 2 -

     1  FEDERALLY FINANCED ABANDONED MINE RECLAMATION PROJECT: PROVIDED,
     2  THAT THE DEPARTMENT DETERMINES IN WRITING THAT EXTRACTION OF
     3  COAL IS ESSENTIAL TO PHYSICALLY ACCOMPLISH THE RECLAMATION OF
     4  THE PROJECT AREA AND IS INCIDENTAL AND NECESSARY TO RECLAMATION;
     5  OR
     6     (IV)  FEDERALLY FINANCED OR STATE-FINANCED EXTRACTION OF COAL
     7  WHICH THE DEPARTMENT DETERMINES IN WRITING TO BE ESSENTIAL TO
     8  PHYSICALLY EXTINGUISH AN ABANDONED MINE FIRE THAT POSES A THREAT
     9  TO THE PUBLIC HEALTH, SAFETY AND WELFARE.
    10     (2)  FOR PURPOSES OF DETERMINING WHETHER OR NOT EXTRACTION OF
    11  COAL IS INCIDENTAL AND NECESSARY UNDER SECTION 4.8, THE
    12  DEPARTMENT SHALL CONSIDER STANDARD ENGINEERING FACTORS AND SHALL
    13  NOT IN ANY CASE CONSIDER THE ECONOMIC BENEFIT DERIVING FROM
    14  [COAL] EXTRACTION OF COAL. NECESSARY EXTRACTION OF COAL SHALL IN
    15  NO CASE INCLUDE:
    16     (I)  THE EXTRACTION OF COAL IN AN AREA ADJACENT TO THE
    17  PREVIOUSLY AFFECTED AREA WHICH WILL BE RECLAIMED; OR
    18     (II)  THE EXTRACTION OF COAL BENEATH THE PREVIOUSLY AFFECTED
    19  AREA WHICH WILL BE RECLAIMED.
    20     * * *
    21     "NO-COST RECLAMATION CONTRACT" SHALL MEAN A CONTRACT ENTERED
    22  INTO BETWEEN THE DEPARTMENT AND AN ELIGIBLE PERSON FOR THE
    23  PURPOSE OF RECLAIMING UNRECLAIMED ABANDONED MINE LANDS AND WHICH
    24  DOES NOT INVOLVE THE EXPENDITURE OF COMMONWEALTH FUNDS.
    25     * * *
    26     "SURFACE MINING ACTIVITIES" SHALL MEAN THE EXTRACTION OF COAL
    27  FROM THE EARTH OR FROM WASTE OR STOCK PILES OR FROM PITS OR
    28  BANKS BY REMOVING THE STRATA OR MATERIAL WHICH OVERLIES OR IS
    29  ABOVE OR BETWEEN THEM OR OTHERWISE EXPOSING AND RETRIEVING THEM
    30  FROM THE SURFACE, INCLUDING, BUT NOT LIMITED TO, STRIP, AUGER
    19950H1940B3484                  - 3 -

     1  MINING, DREDGING, QUARRYING AND LEACHING, AND ALL SURFACE
     2  ACTIVITY CONNECTED WITH SURFACE OR UNDERGROUND MINING,
     3  INCLUDING, BUT NOT LIMITED TO, EXPLORATION, SITE PREPARATION,
     4  ENTRY, TUNNEL, DRIFT, SLOPE, SHAFT AND BOREHOLE DRILLING AND
     5  CONSTRUCTION AND ACTIVITIES RELATED THERETO, BUT NOT INCLUDING
     6  THOSE PORTIONS OF MINING OPERATIONS CARRIED OUT BENEATH THE
     7  SURFACE BY MEANS OF SHAFTS, TUNNELS OR OTHER UNDERGROUND MINE
     8  OPENINGS. "SURFACE MINING ACTIVITIES" SHALL NOT INCLUDE ANY OF
     9  THE FOLLOWING:
    10     (1)  [COAL EXTRACTION] EXTRACTION OF COAL OR COAL REFUSE
    11  REMOVAL PURSUANT TO A GOVERNMENT-FINANCED RECLAMATION CONTRACT
    12  FOR THE PURPOSES OF SECTION 4.8.
    13     (2)  [COAL EXTRACTION] EXTRACTION OF COAL AS AN INCIDENTAL
    14  PART OF FEDERAL, STATE OR LOCAL GOVERNMENT-FINANCED HIGHWAY
    15  CONSTRUCTION PURSUANT TO REGULATIONS PROMULGATED BY THE
    16  ENVIRONMENTAL QUALITY BOARD.
    17     (3)  THE RECLAMATION OF ABANDONED MINE LANDS NOT INVOLVING
    18  [COAL EXTRACTION] EXTRACTION OF COAL OR EXCESS SPOIL DISPOSAL
    19  UNDER A WRITTEN AGREEMENT WITH THE PROPERTY OWNER AND APPROVED
    20  BY THE DEPARTMENT.
    21     (4)  ACTIVITIES NOT CONSIDERED TO BE SURFACE MINING AS
    22  DETERMINED BY THE UNITED STATES OFFICE OF SURFACE MINING,
    23  RECLAMATION AND ENFORCEMENT AND SET FORTH IN DEPARTMENT
    24  REGULATIONS.
    25     * * *
    26     SECTION 2.  SECTION 3.1(A)(2), (B) AND (C) OF THE ACT,
    27  AMENDED OCTOBER 12, 1984 (P.L.916, NO.181) AND DECEMBER 18, 1992
    28  (P.L.1384, NO.173), ARE AMENDED TO READ:
    29     SECTION 3.1.  OPERATOR'S LICENSE; WITHHOLDING OR DENYING
    30  PERMITS OR LICENSES; PENALTY.--(A)  * * *
    19950H1940B3484                  - 4 -

     1     (2)  ANY PERSON WHO PROCEEDS TO MINE [MINERALS BY THE SURFACE
     2  MINING METHOD] COAL AS AN OPERATOR WITHOUT HAVING APPLIED FOR
     3  AND RECEIVED A LICENSE AS HEREIN PROVIDED OR IN VIOLATION OF THE
     4  TERMS THEREOF SHALL BE GUILTY OF A MISDEMEANOR, AND, UPON
     5  CONVICTION, SHALL BE SENTENCED TO PAY A FINE OF NOT LESS THAN
     6  FIVE THOUSAND DOLLARS ($5,000) OR IN AN AMOUNT NOT LESS THAN THE
     7  TOTAL PROFITS DERIVED BY HIM AS A RESULT OF HIS UNLAWFUL
     8  ACTIVITIES, AS DETERMINED BY THE COURT, TOGETHER WITH THE
     9  ESTIMATED COST TO THE COMMONWEALTH OF ANY RECLAMATION WORK WHICH
    10  MAY REASONABLY BE REQUIRED IN ORDER TO RESTORE THE LAND TO ITS
    11  CONDITION PRIOR TO THE COMMENCEMENT OF SAID UNLAWFUL ACTIVITIES,
    12  OR UNDERGO IMPRISONMENT NOT EXCEEDING ONE YEAR, OR BOTH. THE
    13  FINE SHALL BE PAYABLE TO THE SURFACE MINING CONSERVATION AND
    14  RECLAMATION FUND.
    15     (B)  THE DEPARTMENT SHALL NOT ISSUE [ANY SURFACE MINING
    16  OPERATOR'S LICENSE OR], RENEW OR AMEND [ANY] THE LICENSE OF ANY
    17  PERSON WHO MINES COAL BY THE SURFACE MINING METHOD IF IT FINDS,
    18  AFTER INVESTIGATION, AND AN OPPORTUNITY FOR AN INFORMAL HEARING
    19  THAT A PERSON, PARTNER, ASSOCIATE OFFICER, PARENT CORPORATION OR
    20  SUBSIDIARY CORPORATION HAS FAILED AND CONTINUES TO FAIL TO
    21  COMPLY OR HAS SHOWN A LACK OF ABILITY OR INTENTION TO COMPLY
    22  WITH AN ADJUDICATED PROCEEDING, CESSATION ORDER, CONSENT ORDER
    23  AND AGREEMENT OR DECREE, OR AS INDICATED BY A WRITTEN NOTICE
    24  FROM THE DEPARTMENT OF A DECLARATION OF FORFEITURE OF A PERSON'S
    25  BONDS. IF THE DEPARTMENT INTENDS NOT TO RENEW A LICENSE, IT
    26  SHALL NOTIFY THE LICENSEE OF THAT FACT AT LEAST SIXTY (60) DAYS
    27  PRIOR TO THE EXPIRATION OF THE LICENSE; PRIOR TO THE EXPIRATION,
    28  THE LICENSEE SHALL BE PROVIDED AN OPPORTUNITY FOR AN INFORMAL
    29  HEARING. THIS NOTICE REQUIREMENT SHALL NOT PRECLUDE THE
    30  DEPARTMENT FROM DENYING AN APPLICATION TO RENEW A LICENSE WITHIN
    19950H1940B3484                  - 5 -

     1  THE SIXTY (60) DAY PERIOD SO LONG AS THE DEPARTMENT PROVIDES AN
     2  OPPORTUNITY FOR AN INFORMAL HEARING PRIOR TO NOT RENEWING THE
     3  LICENSE. ANY PERSON WHO OPPOSES THE DEPARTMENT'S DECISION ON
     4  ISSUANCE OR RENEWAL OF A LICENSE SHALL HAVE THE BURDEN OF PROOF.
     5     (C)  THE APPLICATION FOR LICENSE, RENEWAL OR PERMIT SHALL BE
     6  ACCOMPANIED BY A CERTIFICATE OF INSURANCE CERTIFYING THAT THE
     7  APPLICANT HAS IN FORCE A PUBLIC LIABILITY INSURANCE POLICY
     8  ISSUED BY AN INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN
     9  PENNSYLVANIA COVERING ALL SURFACE MINING [OPERATIONS] ACTIVITIES
    10  OF THE APPLICANT IN THIS STATE AND AFFORDING PERSONAL INJURY AND
    11  PROPERTY DAMAGE PROTECTION, TO BE WRITTEN FOR THE TERM OF THE
    12  LICENSE, RENEWAL OR PERMIT. THE TOTAL AMOUNT OF INSURANCE SHALL
    13  BE IN AN AMOUNT ADEQUATE TO COMPENSATE ANY PERSONS DAMAGED AS A
    14  RESULT OF SURFACE MINING [OPERATIONS] ACTIVITIES, INCLUDING BUT
    15  NOT LIMITED TO USE OF EXPLOSIVES, AND ENTITLED TO COMPENSATION
    16  UNDER THE APPLICABLE PROVISIONS OF STATE LAW. THE TOTAL AMOUNT
    17  SHALL BE AS PRESCRIBED BY RULES AND REGULATIONS: PROVIDED, THAT
    18  THE INSURANCE OR A BOND GUARANTEE SHALL BE REQUIRED AS PART OF A
    19  [SURFACE] MINING PERMIT APPLICATION IF THE DEPARTMENT DETERMINES
    20  IN ITS BEST CONSERVATIVE ESTIMATE THAT THE [MINING OPERATION]
    21  SURFACE MINING ACTIVITIES MAY AFFECT A PUBLIC OR PRIVATE WATER
    22  SUPPLY. HOWEVER, IT IS FURTHER PROVIDED THAT THE OPERATOR
    23  RETAINS THE OPTION TO INCLUDE THE REQUIRED LIABILITY INSURANCE
    24  RELATED TO SECTION 4.2(F) OF THIS ACT, PERTAINING TO REPLACEMENT
    25  OR RESTORATION OF WATER SUPPLIES AS PART OF THE APPLICATION FOR
    26  OR RENEWAL OF A LICENSE.
    27     (1)  THE DEPARTMENT SHALL ACCEPT A CERTIFICATE OF SELF-
    28  INSURANCE FROM THE APPLICANT, IN LIEU OF A CERTIFICATE FOR A
    29  PUBLIC LIABILITY INSURANCE POLICY, ACCOMPANIED BY SATISFACTORY
    30  EVIDENCE FROM THE APPLICANT THAT IT MEETS ONE OF THE FOLLOWING
    19950H1940B3484                  - 6 -

     1  TWO FINANCIAL REQUIREMENTS FOR SUCH SELF-INSURANCE:
     2     (I)  THE APPLICANT HAS:
     3     (A)  A NET WORKING CAPITAL AND TANGIBLE NET WORTH EACH AT
     4  LEAST SIX TIMES THE AMOUNT OF THE LIABILITY COVERAGE TO BE
     5  DEMONSTRATED;
     6     (B)  TANGIBLE NET WORTH OF AT LEAST TEN MILLION DOLLARS
     7  ($10,000,000); AND
     8     (C)  ASSETS IN THE UNITED STATES OF AT LEAST NINETY PER CENT
     9  OF TOTAL ASSETS OR AT LEAST SIX TIMES THE AMOUNT OF LIABILITY
    10  COVERAGE.
    11     (II)  THE APPLICANT MAINTAINS:
    12     (A)  A CURRENT BOND RATING EQUAL TO OR BETTER THAN BBB
    13  (STANDARD AND POOR'S) OR BAA (MOODY'S);
    14     (B)  TANGIBLE NET WORTH OF AT LEAST TEN MILLION DOLLARS
    15  ($10,000,000);
    16     (C)  TANGIBLE NET WORTH AT LEAST SIX TIMES THE AMOUNT OF THE
    17  LIABILITY COVERAGE TO BE DEMONSTRATED; AND
    18     (D)  PRIME ASSETS IN THE UNITED STATES OF AT LEAST NINETY PER
    19  CENT OF TOTAL ASSETS OR SIX TIMES THE LIABILITY COVERAGE TO BE
    20  DEMONSTRATED.
    21     (2)  FOR PURPOSES OF THIS SUBSECTION, SATISFACTORY EVIDENCE
    22  FROM THE APPLICANT SHALL BE SATISFIED BY SUBMISSION OF A FORM
    23  10-K ANNUAL REPORT, AS SUBMITTED TO THE SECURITIES AND EXCHANGE
    24  COMMISSION OR VALIDATION BY AN INDEPENDENT CERTIFIED PUBLIC
    25  ACCOUNTANT.
    26     (3)  CLAUSES (1) AND (2) OF THIS SUBSECTION SHALL BE VOID ONE
    27  YEAR AFTER THE EFFECTIVE DATE OF THIS AMENDATORY ACT.
    28     * * *
    29     SECTION 3.  SECTIONS 4(G.1) AND (G.2), (G.2) AND (H) AND       <--
    30  4.2(F)(2) OF THE ACT, AMENDED OR ADDED DECEMBER 18, 1992
    19950H1940B3484                  - 7 -

     1  (P.L.1384, NO.173), ARE AMENDED TO READ:
     2     SECTION 4.  MINING PERMIT; RECLAMATION PLAN; BOND.--* * *
     3     (G.1)  (1)  WHERE THE OPERATOR DEMONSTRATES THAT ALL
     4  STANDARDS FOR STAGE II BOND RELEASE HAVE BEEN SATISFIED WITH THE
     5  EXCEPTION OF CONSISTENTLY MEETING THE MINE DRAINAGE EFFLUENT
     6  LIMITATIONS SPECIFIED IN THE PERMIT OR OTHERWISE REQUIRED BY
     7  LAW, THE DEPARTMENT MAY RELEASE THE AMOUNT OF BOND WHICH EXCEEDS
     8  THE COST OF ENSURING TREATMENT TO THE EFFLUENT LIMITATIONS
     9  SPECIFIED IN THE PERMIT, THIS ACT, THE ACT OF JUNE 22, 1937
    10  (P.L.1987, NO.394), KNOWN AS "THE CLEAN STREAMS LAW," THE
    11  FEDERAL WATER POLLUTION CONTROL ACT (62 STAT. 1155, 33 U.S.C. §
    12  1251 ET SEQ.) AND THE RULES AND REGULATIONS PROMULGATED
    13  THEREUNDER, OF ALL THE DISCHARGES EMANATING FROM OR
    14  HYDROLOGICALLY CONNECTED TO THE MINE SITE FOR A PERIOD OF AT
    15  LEAST FIFTY (50) YEARS, AS CALCULATED BY THE DEPARTMENT.
    16     (2)  THE RELEASE OF ANY BOND PURSUANT TO [SUBSECTION (A)]
    17  CLAUSE (1) OR PURSUANT TO REGULATIONS PROMULGATED BY THE
    18  ENVIRONMENTAL QUALITY BOARD ESTABLISHING A FINAL PROGRAM IN NO
    19  WAY ALLEVIATES THE OPERATOR'S RESPONSIBILITY TO TREAT DISCHARGES
    20  OF MINE DRAINAGE EMANATING FROM OR HYDROLOGICALLY CONNECTED TO
    21  THE SITE TO THE STANDARDS SET FORTH IN THE PERMIT, THIS ACT,
    22  "THE CLEAN STREAMS LAW," THE FEDERAL WATER POLLUTION CONTROL ACT
    23  AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.
    24     (G.2)  (1)  UNTIL SUCH TIME AS THE ENVIRONMENTAL QUALITY
    25  BOARD PROMULGATES REGULATIONS CONCERNING RELEASE OF RECLAMATION
    26  BONDS ON MINE SITES WITH MINIMAL-IMPACT POST-MINING DISCHARGES,
    27  THE DEPARTMENT MAY RELEASE RECLAMATION BONDS HELD SOLELY FOR
    28  MINIMAL-IMPACT POST-MINING DISCHARGES PURSUANT TO THIS SECTION,
    29  WHERE AN OPERATOR DEMONSTRATES THAT ALL OF THE FOLLOWING EXIST:
    30     (I)  ALL THE CRITERIA FOR RECLAMATION BOND RELEASE HAVE BEEN
    19950H1940B3484                  - 8 -

     1  SATISFIED, EXCEPT FOR THE EXISTENCE OF A MINIMAL-IMPACT POST-
     2  MINING DISCHARGE, UNDER THE DEPARTMENT'S REGULATIONS FOR BOND
     3  RELEASE ON SURFACE COAL MINES EXCEPT AS PROVIDED IN CLAUSE
     4  (2)(I).
     5     (II)  THE DISCHARGE OF MINE DRAINAGE IS A MINIMAL-IMPACT
     6  POST-MINING DISCHARGE, AS DEMONSTRATED BY A SAMPLING PROTOCOL
     7  APPROVED BY THE DEPARTMENT.
     8     (III)  THE [DISCHARGER] OPERATOR HAS DESIGNED, CONSTRUCTED
     9  AND MAINTAINED A FUNCTIONING PASSIVE TREATMENT SYSTEM APPROVED
    10  BY THE DEPARTMENT WHICH SUBSTANTIALLY IMPROVED WATER QUALITY OF
    11  THE DISCHARGE AFTER IT ENTERS THE PASSIVE TREATMENT SYSTEM TO
    12  THE SATISFACTION OF THE DEPARTMENT. THE DEPARTMENT SHALL TAKE
    13  INTO ACCOUNT THE CUMULATIVE LOADING OF OTHER DISCHARGES IN
    14  ASCERTAINING WHETHER WATER QUALITY STANDARDS ARE BEING ACHIEVED.
    15     (IV)  THE [DISCHARGER] OPERATOR HAS ESTABLISHED A SITE-
    16  SPECIFIC TRUST FUND FOR EACH MINIMAL-IMPACT POST-MINING
    17  DISCHARGE IN AN AMOUNT CALCULATED BY THE DEPARTMENT AT LEAST
    18  EQUAL TO ANNUAL OPERATION AND MAINTENANCE COSTS OF A PASSIVE
    19  TREATMENT SYSTEM, CAPITAL COSTS FOR REPLACEMENT OF THE PASSIVE
    20  TREATMENT SYSTEM IN TWENTY-FIVE (25) YEARS FROM THE DATE OF ITS
    21  INSTALLATION, AN INFLATION FACTOR AND THE COST OF TREATMENT OF
    22  THE DISCHARGE FOR AT LEAST FIFTY (50) YEARS. THE MINIMUM AMOUNT
    23  OF THE FUND SHALL BE TEN THOUSAND DOLLARS ($10,000).
    24     (2)  UPON A DEMONSTRATION BY THE MINE OPERATOR, APPROVED BY
    25  THE DEPARTMENT, THAT THE REQUIREMENTS SET FORTH IN CLAUSE (1)
    26  HAVE BEEN MET, THE DEPARTMENT MAY RELEASE THE RECLAMATION BOND
    27  ACCORDING TO THE FOLLOWING SCHEDULE:
    28     (I)  UP TO EIGHTY-FIVE PER CENT OF THE RECLAMATION BOND ON A
    29  SITE WITH A MINIMAL-IMPACT POST-MINING DISCHARGE UPON A
    30  DEMONSTRATION BY THE OPERATOR THAT ALL OF THE FOLLOWING HAVE
    19950H1940B3484                  - 9 -

     1  BEEN MET:
     2     (A)  THE OPERATOR HAS DEMONSTRATED AND THE DEPARTMENT HAS
     3  FOUND THAT ALL RECLAMATION STANDARDS FOR STAGES I AND II, EXCEPT
     4  FOR THE EXISTENCE OF A MINIMAL-IMPACT POST-MINING DISCHARGE,
     5  HAVE BEEN MET BY THE OPERATOR.
     6     (B)  A TRUST FUND IN AN AMOUNT AND ON A FORM CONTAINING SUCH
     7  TERMS AND CONDITIONS APPROVED BY THE DEPARTMENT HAS BEEN
     8  ESTABLISHED AND FULLY FUNDED AS FINANCIAL ASSURANCE FOR
     9  MAINTENANCE AND REPLACEMENT OF THE APPROVED PASSIVE TREATMENT
    10  SYSTEM.
    11     (C)  THE OPERATOR HAS DEMONSTRATED TO THE SATISFACTION OF THE
    12  DEPARTMENT THAT THE PASSIVE TREATMENT SYSTEM HAS BEEN PROPERLY
    13  DESIGNED, CONSTRUCTED AND MAINTAINED AND IS FUNCTIONING
    14  PROPERLY.
    15     (II)  UP TO THE ENTIRE AMOUNT OF RECLAMATION BOND ON A SITE
    16  WITH A MINIMAL-IMPACT POST-MINING DISCHARGE WHERE:
    17     (A)  THE OPERATOR HAS DEMONSTRATED AND THE DEPARTMENT HAS
    18  FOUND THAT ALL OF THE RECLAMATION STANDARDS FOR STAGES I, II AND
    19  III BOND RELEASE, EXCEPT FOR THE EXISTENCE OF THE MINIMAL-IMPACT
    20  POST-MINING DISCHARGE, HAVE BEEN MET.
    21     (B)  A TRUST FUND IN AN AMOUNT AND ON A FORM CONTAINING SUCH
    22  TERMS AND CONDITIONS APPROVED BY THE DEPARTMENT HAS BEEN
    23  ESTABLISHED AND FULLY FUNDED AS FINANCIAL ASSURANCE FOR
    24  MAINTENANCE AND REPLACEMENT OF THE APPROVED PASSIVE TREATMENT
    25  SYSTEM.
    26     (C)  THE OPERATOR HAS DEMONSTRATED TO THE SATISFACTION OF THE
    27  DEPARTMENT THAT THE PASSIVE TREATMENT SYSTEM HAS BEEN PROPERLY
    28  DESIGNED, CONSTRUCTED AND MAINTAINED AND IS FUNCTIONING
    29  PROPERLY.
    30     (3)  THE DEPARTMENT MAY, IF THE PASSIVE TREATMENT SYSTEM IS
    19950H1940B3484                 - 10 -

     1  NOT CONSTRUCTED, MAINTAINED OR FUNCTIONING PROPERLY, PURSUE ANY
     2  REMEDIES AT LAW OR EQUITY, ORDER THE [DISCHARGER] OPERATOR TO
     3  UPGRADE THE TREATMENT SYSTEM OR TO PROVIDE CONVENTIONAL
     4  TREATMENT AND INCREASE THE AMOUNT OF THE SITE-SPECIFIC TRUST
     5  FUND REQUIRED TO REFLECT THE COST OF ADDITIONAL TREATMENT.
     6     (4)  THE ENVIRONMENTAL QUALITY BOARD SHALL PROMULGATE FINAL
     7  REGULATIONS ESTABLISHING A PROGRAM FOR RELEASING RECLAMATION
     8  BONDS HELD SOLELY FOR MINIMAL-IMPACT POST-MINING DISCHARGES. IN
     9  PROMULGATING SUCH REGULATIONS, THE BOARD SHALL CONSIDER VARIOUS
    10  FACTORS, INCLUDING, BUT NOT LIMITED TO, THE FACTORS SET FORTH IN
    11  CLAUSE (1).
    12     * * *                                                          <--
    13     (H)  IF THE OPERATOR FAILS OR REFUSES TO COMPLY WITH THE
    14  REQUIREMENTS OF THE ACT IN ANY RESPECT FOR WHICH LIABILITY HAS
    15  BEEN CHARGED ON THE BOND, THE DEPARTMENT SHALL DECLARE SUCH BOND
    16  FORFEITED, AND THE AMOUNT OF THE FORFEITED BOND SHALL BE PAID
    17  OVER TO THE DEPARTMENT WITHIN THIRTY (30) DAYS AFTER NOTICE BY
    18  CERTIFIED MAIL FROM THE DEPARTMENT, AND THAT AMOUNT SHALL BE
    19  HELD IN ESCROW WITH ANY INTEREST ON THE BOND ACCRUING TO THE
    20  DEPARTMENT PENDING THE RESOLUTION OF ANY APPEALS, UNLESS IT IS
    21  DETERMINED BY A COURT OF COMPETENT JURISDICTION AFTER EXHAUSTION
    22  OF APPEALS THAT THE COMMONWEALTH WAS NOT ENTITLED TO ALL OR A
    23  PORTION OF THE AMOUNT FORFEITED IN WHICH CASE THE INTEREST SHALL
    24  ACCRUE PROPORTIONATELY TO THE SURETY IN THE AMOUNT DETERMINED TO
    25  BE IMPROPERLY FORFEITED BY THE DEPARTMENT, IF ANY. WHERE THE
    26  OPERATOR HAS DEPOSITED CASH OR SECURITIES AS COLLATERAL IN LIEU
    27  OF A SURETY BOND, THE DEPARTMENT SHALL DECLARE SUCH PORTION OF
    28  SAID COLLATERAL FORFEITED, AND SHALL DIRECT THE STATE TREASURER
    29  TO PAY SAID FUNDS INTO THE SURFACE MINING CONSERVATION AND
    30  RECLAMATION FUND, OR TO PROCEED TO SELL SAID SECURITIES TO THE
    19950H1940B3484                 - 11 -

     1  EXTENT FORFEITED AND PAY THE PROCEEDS THEREOF INTO THE SURFACE
     2  MINING CONSERVATION AND RECLAMATION FUND. SHOULD ANY CORPORATE
     3  SURETY FAIL TO PROMPTLY PAY, IN FULL, A FORFEITED BOND, IT SHALL
     4  BE DISQUALIFIED FROM WRITING ANY FURTHER SURETY BONDS UNDER THIS
     5  ACT. ANY OPERATOR AGGRIEVED BY REASON OF FORFEITING THE BOND OR
     6  CONVERTING COLLATERAL, AS HEREIN PROVIDED, SHALL HAVE A RIGHT TO
     7  CONTEST SUCH ACTION AND APPEAL THEREFROM AS HEREIN PROVIDED. A
     8  CORPORATE SURETY ISSUING SURETY BONDS WHICH ARE FORFEITED BY THE
     9  DEPARTMENT SHALL HAVE THE OPTION OF RECLAIMING THE FORFEITED
    10  SITE, IN LIEU OF PAYING THE BOND AMOUNT TO THE DEPARTMENT, UPON
    11  THE CONSENT AND APPROVAL OF THE DEPARTMENT. A CORPORATE SURETY
    12  ISSUING SURETY BONDS WHICH ARE FORFEITED MAY PROPOSE, UPON THE
    13  CONSENT AND APPROVAL OF THE DEPARTMENT, THE RECLAMATION OF THE
    14  FORFEITED MINE SITES AFTER PAYMENT OF THE AMOUNT OF THE
    15  FORFEITED BONDS TO THE DEPARTMENT. IF THE DEPARTMENT APPROVES
    16  THE CORPORATE SURETY'S PROPOSAL TO RECLAIM THE FORFEITED SITE
    17  AFTER THE SURETY PAYS THE BOND AMOUNT TO THE DEPARTMENT, THE
    18  STATE TREASURER SHALL RETURN TO THE CORPORATE SURETY ANY MONEYS
    19  PAID TO THE DEPARTMENT IN CONNECTION WITH THE FORFEITED BOND
    20  PROVIDED THE PROPOSAL INCLUDES ACCEPTABLE FINANCIAL ASSURANCE.
    21  ACCEPTABLE FINANCIAL ASSURANCE INCLUDES THE DEPARTMENT
    22  WITHHOLDING RETURN OF THE MONEYS UNTIL THE RECLAMATION IS
    23  COMPLETE OR THE POSTING OF A REPLACEMENT BOND.
    24     * * *
    25     SECTION 4.2.  GENERAL RULE MAKING; HEALTH AND SAFETY.--* * *
    26     (F)  * * *
    27     (2)  IT SHALL BE PRESUMED, AS A MATTER OF LAW, THAT A SURFACE
    28  MINE OPERATOR OR OWNER IS RESPONSIBLE WITHOUT PROOF OF FAULT,
    29  NEGLIGENCE OR CAUSATION FOR ALL POLLUTION, EXCEPT
    30  BACTERIOLOGICAL CONTAMINATION, OR DIMINUTION OF PUBLIC OR
    19950H1940B3484                 - 12 -

     1  PRIVATE WATER SUPPLIES WITHIN ONE THOUSAND (1,000) LINEAR FEET
     2  OF THE BOUNDARIES OF THE [LAND AFFECTED OR ACREAGE ASSIGNED TO
     3  THE SURFACE MINING OPERATION UNDER SECTION 4 BY A PERMIT ISSUED
     4  BY THE DEPARTMENT.] AREAS BONDED AND AFFECTED BY COAL MINING
     5  OPERATIONS, AREAS OF OVERBURDEN REMOVAL AND STORAGE AND SUPPORT
     6  AREAS EXCEPT FOR HAUL AND ACCESS ROADS. IF SURFACE MINING
     7  ACTIVITIES ARE CONDUCTED ON AREAS WHICH ARE NOT PERMITTED AND
     8  BONDED, THIS PRESUMPTION APPLIES TO ALL WATER SUPPLIES WITHIN
     9  ONE THOUSAND (1,000) LINEAR FEET OF THE LAND AFFECTED BY SUCH
    10  OPERATIONS. THERE SHALL BE ONLY FIVE DEFENSES TO THE PRESUMPTION
    11  OF LIABILITY PROVIDED IN THIS CLAUSE. A MINE OWNER OR OPERATOR
    12  MUST AFFIRMATIVELY PROVE BY A PREPONDERANCE OF EVIDENCE THAT ONE
    13  OF THE FOLLOWING CONDITIONS EXISTS:
    14     (I)  THE LANDOWNER OR WATER SUPPLY COMPANY REFUSED TO ALLOW
    15  THE SURFACE MINING OPERATOR OR OWNER ACCESS TO CONDUCT A SURVEY
    16  PRIOR TO COMMENCING MINING ACTIVITIES.
    17     (II)  THE WATER SUPPLY IS NOT WITHIN ONE THOUSAND (1,000)
    18  LINEAR FEET OF THE BOUNDARIES OF THE [LAND AFFECTED OR ACREAGE
    19  ASSIGNED TO THE SURFACE MINING OPERATION UNDER SECTION 4 BY A
    20  PERMIT ISSUED BY THE DEPARTMENT] AREAS BONDED AND AFFECTED BY
    21  COAL MINING OPERATIONS, AREAS OF OVERBURDEN REMOVAL AND STORAGE
    22  AND SUPPORT AREAS EXCEPT FOR HAUL AND ACCESS ROADS.
    23     (III)  THE POLLUTION OR DIMINUTION EXISTED PRIOR TO THE
    24  SURFACE MINING ACTIVITIES AS DETERMINED BY A SURVEY CONDUCTED
    25  PRIOR TO COMMENCING SURFACE MINING ACTIVITIES.
    26     (IV)  THE POLLUTION OR DIMINUTION OCCURRED AS A RESULT OF
    27  SOME CAUSE OTHER THAN THE SURFACE MINING ACTIVITIES.
    28     (V)  THE LANDOWNER, WATER SUPPLY USER OR WATER SUPPLY COMPANY
    29  REFUSED TO ALLOW THE SURFACE MINING OPERATOR OR OWNER ACCESS TO
    30  DETERMINE THE CAUSE OF POLLUTION OR DIMINUTION OR TO REPLACE OR
    19950H1940B3484                 - 13 -

     1  RESTORE THE WATER SUPPLY.
     2     * * *
     3     SECTION 4.  SECTION 4.6(I) OF THE ACT, ADDED OCTOBER 4, 1984
     4  (P.L.727, NO.158), IS AMENDED TO READ:
     5     SECTION 4.6.  REMINING OF PREVIOUSLY AFFECTED AREAS.--* * *
     6     (I)  FOR POLLUTION ABATEMENT AREAS SUBJECT TO A GRANT OF
     7  SPECIAL AUTHORIZATION UNDER THIS SECTION, THE OPERATOR SHALL
     8  COMPLY WITH ALL REQUIREMENTS RELATING TO BONDS SET FORTH IN
     9  SECTION 4, EXCEPT THAT THE CRITERIA AND SCHEDULE FOR RELEASE OF
    10  BONDS SHALL BE AS FOLLOWS:
    11     (1)  UP TO [FIFTY] SIXTY PER CENT OF THE AMOUNT OF BOND IF
    12  THE OPERATOR DEMONSTRATES THAT:
    13     (A)  ALL ACTIVITIES WERE CONDUCTED IN ACCORDANCE WITH ALL
    14  APPLICABLE REQUIREMENTS;
    15     (B)  THE OPERATOR HAS SATISFACTORILY COMPLETED BACKFILLING,
    16  REGRADING AND DRAINAGE CONTROL IN ACCORDANCE WITH THE APPROVED
    17  RECLAMATION PLAN;
    18     (C)  THE OPERATOR HAS PROPERLY IMPLEMENTED EACH STEP OF THE
    19  APPROVED ABATEMENT PLAN;
    20     (D)  THE OPERATOR HAS NOT CAUSED THE BASELINE POLLUTION LOAD
    21  TO BE EXCEEDED [FOR] AT ANY TIME OVER A PERIOD OF A MINIMUM OF
    22  SIX (6) MONTHS PRIOR TO THE SUBMITTAL OF A REQUEST FOR BOND
    23  RELEASE AND UNTIL THE BOND RELEASE IS APPROVED AS SHOWN BY ALL
    24  GROUND AND SURFACE WATER MONITORING; AND
    25     (E)  THE OPERATOR HAS NOT CAUSED OR CONTRIBUTED TO ANY GROUND
    26  OR SURFACE WATER POLLUTION BY REAFFECTING OR MINING THE
    27  POLLUTION ABATEMENT AREA.
    28     (2)  [UP TO AN ADDITIONAL THIRTY-FIVE PER CENT OF THE AMOUNT
    29  OF BOND] AN ADDITIONAL AMOUNT OF BOND BUT RETAINING AN AMOUNT
    30  SUFFICIENT TO COVER THE COST TO THE COMMONWEALTH OF
    19950H1940B3484                 - 14 -

     1  REESTABLISHING VEGETATION IF COMPLETED BY A THIRD PARTY IF THE
     2  OPERATOR DEMONSTRATES THAT:
     3     (A)  THE OPERATOR HAS REPLACED TOPSOIL, COMPLETED FINAL
     4  GRADING, PLANTING AND ACHIEVED SUCCESSFUL REVEGETATION IN
     5  ACCORDANCE WITH THE APPROVED RECLAMATION PLAN;
     6     (B)  THE OPERATOR HAS NOT CAUSED OR CONTRIBUTED TO ANY GROUND
     7  OR SURFACE WATER POLLUTION BY REAFFECTING OR MINING THE
     8  POLLUTION ABATEMENT AREA; AND
     9     (C)  THE OPERATOR HAS ACHIEVED THE ACTUAL IMPROVEMENT OF THE
    10  BASELINE POLLUTION LOAD DESCRIBED IN THE ABATEMENT PLAN AND
    11  SHOWN BY ALL GROUND AND SURFACE WATER MONITORING FOR THE PERIOD
    12  OF TIME PROVIDED IN THE ABATEMENT PLAN, OR HAS ACHIEVED ALL OF
    13  THE FOLLOWING: (I) AT A MINIMUM, HAS NOT CAUSED THE BASELINE
    14  POLLUTION LOAD TO BE EXCEEDED AS SHOWN BY ALL GROUND AND SURFACE
    15  WATER MONITORING FOR A PERIOD OF TWELVE (12) MONTHS [FROM THE
    16  DATE OF INITIAL BOND RELEASE PURSUANT TO CLAUSE (1)] PRIOR TO
    17  THE DATE OF APPLICATION FOR BOND RELEASE AND UNTIL THE BOND
    18  RELEASE IS APPROVED PURSUANT TO CLAUSE (2) OR FROM THE DATE OF
    19  DISCONTINUANCE OF TREATMENT PURSUANT TO SUBSECTION (G); (II)
    20  CONDUCTED ALL MEASURES PROVIDED IN THE ABATEMENT PLAN AND ANY
    21  ADDITIONAL MEASURES SPECIFIED BY THE DEPARTMENT IN WRITING AT
    22  THE TIME OF INITIAL BOND RELEASE PURSUANT TO CLAUSE (1); (III)
    23  CAUSED AESTHETIC OR OTHER ENVIRONMENTAL IMPROVEMENTS OR THE
    24  ELIMINATION OF PUBLIC HEALTH AND SAFETY PROBLEMS BY REMINING AND
    25  REAFFECTING THE POLLUTION ABATEMENT AREA; AND (IV) STABILIZED
    26  THE POLLUTION ABATEMENT AREA.
    27     (3)  THE REMAINING AMOUNT OF BOND IF THE OPERATOR
    28  DEMONSTRATES THAT:
    29     (A)  THE OPERATOR HAS NOT CAUSED THE BASELINE POLLUTION LOAD
    30  TO BE EXCEEDED FROM THE TIME OF BOND RELEASE PURSUANT TO CLAUSE
    19950H1940B3484                 - 15 -

     1  (2) OR, IF TREATMENT HAS BEEN INITIATED ANY TIME AFTER SUCH
     2  RELEASE, FOR A PERIOD OF FIVE (5) YEARS FROM THE DATE OF
     3  DISCONTINUANCE OF TREATMENT PURSUANT TO SUBSECTION (G); AND
     4     (B)  THE APPLICABLE LIABILITY PERIOD SECTION 4(D) OF THIS ACT
     5  HAS EXPIRED.
     6     * * *
     7     SECTION 5.  SECTIONS 4.8, 4.12, 4.13 AND 18(A.1), (A.2)(1)     <--
     8  AND (A.4) AND 4.13 OF THE ACT, ADDED DECEMBER 18, 1992            <--
     9  (P.L.1384, NO.173), ARE AMENDED TO READ:
    10     SECTION 4.8.  GOVERNMENT-FINANCED RECLAMATION CONTRACTS
    11  AUTHORIZING INCIDENTAL AND NECESSARY EXTRACTION OF COAL OR
    12  AUTHORIZING REMOVAL OF COAL REFUSE.--(A)  NO PERSON MAY ENGAGE
    13  IN [COAL] EXTRACTION OF COAL OR IN REMOVAL OF COAL REFUSE
    14  PURSUANT TO A GOVERNMENT-FINANCED RECLAMATION CONTRACT WITHOUT A
    15  VALID SURFACE MINING PERMIT ISSUED PURSUANT TO THIS ACT UNLESS
    16  SUCH PERSON AFFIRMATIVELY DEMONSTRATES THAT HE IS ELIGIBLE TO
    17  SECURE SPECIAL AUTHORIZATION PURSUANT TO THIS SECTION TO ENGAGE
    18  IN A GOVERNMENT-FINANCED RECLAMATION CONTRACT AUTHORIZING
    19  INCIDENTAL AND NECESSARY [COAL] EXTRACTION OF COAL OR
    20  AUTHORIZING REMOVAL OF COAL REFUSE. THE DEPARTMENT SHALL
    21  DETERMINE ELIGIBILITY BEFORE ENTERING INTO A GOVERNMENT-FINANCED
    22  RECLAMATION CONTRACT AUTHORIZING INCIDENTAL AND NECESSARY [COAL]
    23  EXTRACTION OF COAL OR AUTHORIZING REMOVAL OF COAL REFUSE. THE
    24  DEPARTMENT MAY PROVIDE THE SPECIAL AUTHORIZATION AS PART OF THE
    25  GOVERNMENT-FINANCED RECLAMATION CONTRACT: PROVIDED, THAT THE
    26  CONTRACT CONTAINS AND DOES NOT VIOLATE THE REQUIREMENTS OF THIS
    27  SECTION. THE DEPARTMENT SHALL NOT BE REQUIRED TO GRANT A SPECIAL
    28  AUTHORIZATION TO ANY ELIGIBLE PERSON. THE DEPARTMENT MAY,
    29  HOWEVER, IN ITS DISCRETION, GRANT A SPECIAL AUTHORIZATION
    30  ALLOWING INCIDENTAL AND NECESSARY [COAL] EXTRACTION OF COAL OR
    19950H1940B3484                 - 16 -

     1  ALLOWING REMOVAL OF COAL REFUSE PURSUANT TO A GOVERNMENT-
     2  FINANCED RECLAMATION CONTRACT IN ACCORDANCE WITH THIS SECTION.
     3     (B)  ONLY ELIGIBLE PERSONS MAY SECURE SPECIAL AUTHORIZATION
     4  TO ENGAGE IN INCIDENTAL AND NECESSARY [COAL] EXTRACTION OF COAL
     5  OR TO ENGAGE IN REMOVAL OF COAL REFUSE PURSUANT TO A GOVERNMENT-
     6  FINANCED RECLAMATION CONTRACT. A PERSON IS ELIGIBLE TO SECURE A
     7  SPECIAL AUTHORIZATION IF HE CAN DEMONSTRATE, AT A MINIMUM, TO
     8  THE DEPARTMENT'S SATISFACTION THAT:
     9     (1)  THE CONTRACTOR OR ANY RELATED PARTY OR SUBCONTRACTOR
    10  WHICH WILL ACT UNDER ITS DIRECTION HAS NO HISTORY OF PAST OR
    11  CONTINUING VIOLATIONS WHICH SHOW THE CONTRACTOR'S LACK OF
    12  ABILITY OR INTENTION TO COMPLY WITH THE ACTS OR THE RULES AND
    13  REGULATIONS PROMULGATED THEREUNDER, WHETHER OR NOT SUCH
    14  VIOLATION RELATES TO ANY ADJUDICATED PROCEEDING, AGREEMENT,
    15  CONSENT ORDER OR DECREE, OR WHICH RESULTED IN A CEASE ORDER OR
    16  CIVIL PENALTY ASSESSMENT. FOR THE PURPOSES OF THIS SECTION, THE
    17  TERM "RELATED PARTY" SHALL MEAN ANY PARTNER, ASSOCIATE, OFFICER,
    18  PARENT CORPORATION, AFFILIATE OR PERSON BY OR UNDER COMMON
    19  CONTROL WITH THE CONTRACTOR.
    20     (2)  THE PERSON HAS SUBMITTED PROOF THAT ANY VIOLATION
    21  RELATED TO THE MINING OF COAL BY THE CONTRACTOR OR ANY RELATED
    22  PARTY OR SUBCONTRACTOR WHICH WILL ACT UNDER ITS DIRECTION OF ANY
    23  OF THE ACTS, RULES, REGULATIONS, PERMITS OR LICENSES OF THE
    24  DEPARTMENT HAS BEEN CORRECTED OR IS IN THE PROCESS OF BEING
    25  CORRECTED TO THE SATISFACTION OF THE DEPARTMENT, WHETHER OR NOT
    26  THE VIOLATION RELATES TO ANY ADJUDICATED PROCEEDING, AGREEMENT,
    27  CONSENT ORDER OR DECREE OR WHICH RESULTED IN A CEASE ORDER OR
    28  CIVIL PENALTY ASSESSMENT. FOR PURPOSES OF THIS SECTION, THE TERM
    29  "RELATED PARTY" SHALL MEAN ANY PARTNER, ASSOCIATE, OFFICER,
    30  PARENT CORPORATION, SUBSIDIARY CORPORATION, AFFILIATE OR PERSON
    19950H1940B3484                 - 17 -

     1  BY OR UNDER COMMON CONTROL WITH THE CONTRACTOR.
     2     (3)  THE PERSON HAS SUBMITTED PROOF THAT ANY VIOLATION BY THE
     3  CONTRACTOR OR BY ANY PERSON OWNED OR CONTROLLED BY THE
     4  CONTRACTOR OR BY A SUBCONTRACTOR WHICH ACTS UNDER ITS DIRECTION
     5  OF ANY LAW, RULE OR REGULATION OF THE UNITED STATES OR ANY STATE
     6  PERTAINING TO AIR OR WATER POLLUTION HAS BEEN CORRECTED OR IS IN
     7  THE PROCESS OF BEING SATISFACTORILY CORRECTED.
     8     (4)  THE PERSON OR ANY RELATED PARTY OR SUBCONTRACTOR WHICH
     9  WILL ACT UNDER THE DIRECTION OF THE CONTRACTOR HAS NO
    10  OUTSTANDING UNPAID CIVIL PENALTIES WHICH HAVE BEEN ASSESSED FOR
    11  VIOLATIONS OF EITHER THIS ACT OR THE ACT OF JUNE 22, 1937
    12  (P.L.1987, NO.394), KNOWN AS "THE CLEAN STREAMS LAW," IN
    13  CONNECTION WITH EITHER SURFACE MINING OR RECLAMATION ACTIVITIES.
    14     (5)  THE PERSON OR ANY RELATED PARTY OR SUBCONTRACTOR WHICH
    15  WILL ACT UNDER THE DIRECTION OF THE CONTRACTOR HAS NOT BEEN
    16  CONVICTED OF A MISDEMEANOR OR FELONY UNDER THIS ACT OR THE ACTS
    17  SET FORTH IN SUBSECTION (E) AND HAS NOT HAD ANY BONDS DECLARED
    18  FORFEITED BY THE DEPARTMENT.
    19     (C)  ANY ELIGIBLE PERSON WHO PROPOSES TO ENGAGE IN [COAL]
    20  EXTRACTION OF COAL OR IN REMOVAL OF COAL REFUSE PURSUANT TO A
    21  GOVERNMENT-FINANCED RECLAMATION CONTRACT MAY REQUEST AND SECURE
    22  SPECIAL AUTHORIZATION FROM THE DEPARTMENT TO CONDUCT SUCH
    23  ACTIVITIES UNDER THIS SECTION. THE DEPARTMENT MAY ISSUE THE
    24  SPECIAL AUTHORIZATION AS PART OF THE GOVERNMENT-FINANCED
    25  RECLAMATION CONTRACT: PROVIDED, THAT THE CONTRACT CONTAINS AND
    26  DOES NOT VIOLATE THE REQUIREMENTS OF THIS SECTION. A SPECIAL
    27  AUTHORIZATION CAN ONLY BE OBTAINED IF A CLAUSE IS INSERTED IN A
    28  GOVERNMENT-FINANCED RECLAMATION CONTRACT AUTHORIZING SUCH
    29  EXTRACTION OF COAL OR AUTHORIZING REMOVAL OF COAL REFUSE AND THE
    30  PERSON REQUESTING SUCH AUTHORIZATION HAS AFFIRMATIVELY
    19950H1940B3484                 - 18 -

     1  DEMONSTRATED TO THE DEPARTMENT'S SATISFACTION THAT HE HAS
     2  SATISFIED THE PROVISIONS OF THIS SECTION. A SPECIAL
     3  AUTHORIZATION SHALL ONLY BE GRANTED BY THE DEPARTMENT PRIOR TO
     4  THE COMMENCEMENT OF [COAL] EXTRACTION OF COAL OR COMMENCEMENT OF
     5  REMOVAL OF COAL REFUSE ON A PROJECT AREA. IN ORDER TO BE
     6  CONSIDERED FOR A SPECIAL AUTHORIZATION BY THE DEPARTMENT, AN
     7  ELIGIBLE PERSON MUST DEMONSTRATE AT A MINIMUM THAT:
     8     (1)  THE PRIMARY PURPOSE OF THE OPERATION TO BE UNDERTAKEN IS
     9  THE RECLAMATION OF ABANDONED MINE LANDS.
    10     (2)  THE EXTRACTION OF COAL WILL BE INCIDENTAL AND NECESSARY,
    11  OR THE REMOVAL OF COAL REFUSE WILL BE REQUIRED, TO ACCOMPLISH
    12  THE RECLAMATION OF ABANDONED MINE LANDS PURSUANT TO A
    13  GOVERNMENT-FINANCED RECLAMATION CONTRACT.
    14     (3)  INCIDENTAL AND NECESSARY [COAL] EXTRACTION OF COAL OR IN
    15  REMOVAL OF COAL REFUSE WILL BE CONFINED TO THE PROJECT AREA
    16  BEING RECLAIMED.
    17     (4)  ALL [COAL] EXTRACTION OF COAL OR IN REMOVAL OF COAL
    18  REFUSE AND RECLAMATION ACTIVITY UNDERTAKEN PURSUANT TO A
    19  GOVERNMENT-FINANCED RECLAMATION PROJECT WILL BE ACCOMPLISHED
    20  PURSUANT TO:
    21     (I)  THE APPLICABLE ENVIRONMENTAL PROTECTION PERFORMANCE
    22  STANDARDS PROMULGATED IN THE RULES AND REGULATIONS RELATING TO
    23  SURFACE COAL MINING LISTED IN THE GOVERNMENT-FINANCED
    24  RECLAMATION CONTRACT; AND
    25     (II)  ADDITIONAL CONDITIONS INCLUDED IN THE GOVERNMENT-
    26  FINANCED RECLAMATION CONTRACT BY THE DEPARTMENT.
    27     (D)  THE CONTRACTOR WILL PAY ANY APPLICABLE PER-TON
    28  RECLAMATION FEE ESTABLISHED BY THE UNITED STATES OFFICE OF
    29  SURFACE MINING RECLAMATION AND ENFORCEMENT (OSMRE) FOR EACH TON
    30  OF COAL EXTRACTED PURSUANT TO A GOVERNMENT-FINANCED RECLAMATION
    19950H1940B3484                 - 19 -

     1  PROJECT.
     2     (E)  PRIOR TO COMMENCING [COAL] EXTRACTION OF COAL OR
     3  COMMENCEMENT OF REMOVAL OF COAL REFUSE PURSUANT TO A GOVERNMENT-
     4  FINANCED RECLAMATION PROJECT, THE CONTRACTOR SHALL FILE WITH THE
     5  DEPARTMENT A PERFORMANCE BOND PAYABLE TO THE COMMONWEALTH AND
     6  CONDITIONED UPON THE CONTRACTOR'S PERFORMANCE OF ALL THE
     7  REQUIREMENTS OF THE GOVERNMENT-FINANCED RECLAMATION CONTRACT,
     8  THIS ACT, "THE CLEAN STREAMS LAW," THE ACT OF JANUARY 8, 1960
     9  (1959 P.L.2119, NO.787), KNOWN AS THE "AIR POLLUTION CONTROL
    10  ACT," THE ACT OF SEPTEMBER 24, 1968 (P.L.1040, NO.318), KNOWN AS
    11  THE "COAL REFUSE DISPOSAL CONTROL ACT," WHERE APPLICABLE, THE
    12  ACT OF NOVEMBER 26, 1978 (P.L.1375, NO.325), KNOWN AS THE "DAM
    13  SAFETY AND ENCROACHMENTS ACT," AND, WHERE APPLICABLE, THE ACT OF
    14  JULY 7, 1980 (P.L.380, NO.97), KNOWN AS THE "SOLID WASTE
    15  MANAGEMENT ACT." AN OPERATOR POSTING A BOND SUFFICIENT TO COMPLY
    16  WITH THIS SECTION SHALL NOT BE REQUIRED TO POST A SEPARATE BOND
    17  FOR THE PERMITTED AREA UNDER EACH OF THE ACTS HEREINABOVE
    18  ENUMERATED. FOR GOVERNMENT-FINANCED RECLAMATION CONTRACTS OTHER
    19  THAN A NO-COST RECLAMATION CONTRACT, THE CRITERIA FOR
    20  ESTABLISHING THE AMOUNT OF THE PERFORMANCE BOND SHALL BE THE
    21  ENGINEERING ESTIMATE, DETERMINED BY THE DEPARTMENT, OF MEETING
    22  THE ENVIRONMENTAL OBLIGATIONS ENUMERATED ABOVE[: PROVIDED,
    23  HOWEVER, THAT]. THE PERFORMANCE BOND WHICH IS PROVIDED BY THE
    24  CONTRACTOR UNDER A CONTRACT OTHER THAN A GOVERNMENT-FINANCED
    25  RECLAMATION CONTRACT SHALL BE DEEMED TO SATISFY THE REQUIREMENTS
    26  OF THIS SECTION PROVIDED THAT THE AMOUNT OF THE BOND IS
    27  EQUIVALENT TO OR GREATER THAN THE AMOUNT DETERMINED BY THE
    28  CRITERIA SET FORTH IN THIS SUBSECTION. FOR NO-COST RECLAMATION
    29  PROJECTS IN WHICH THE RECLAMATION SCHEDULE IS SHORTER THAN TWO
    30  (2) YEARS THE BOND AMOUNT SHALL BE A PER ACRE FEE, WHICH IS
    19950H1940B3484                 - 20 -

     1  EQUAL TO THE DEPARTMENT'S AVERAGE PER ACRE COST TO RECLAIM
     2  ABANDONED MINE LANDS; PROVIDED, HOWEVER, FOR COAL REFUSE REMOVAL
     3  OPERATIONS, THE BOND AMOUNT SHALL ONLY APPLY TO EACH ACRE
     4  AFFECTED BY THE COAL REFUSE REMOVAL OPERATIONS. FOR LONG-TERM,
     5  NO-COST RECLAMATION PROJECTS IN WHICH THE RECLAMATION SCHEDULE
     6  EXTENDS BEYOND TWO (2) YEARS, THE DEPARTMENT MAY ESTABLISH A
     7  LESSER BOND AMOUNT [FOR LONG-TERM, NO-COST RECLAMATION PROJECTS
     8  IN WHICH THE RECLAMATION SCHEDULE EXTENDS BEYOND TWO (2) YEARS].
     9  IN THESE CONTRACTS, THE DEPARTMENT MAY IN THE ALTERNATIVE
    10  ESTABLISH A BOND AMOUNT WHICH REFLECTS THE COST OF THE
    11  PROPORTIONATE AMOUNT OF RECLAMATION WHICH WILL OCCUR DURING A
    12  PERIOD SPECIFIED. [THE PERFORMANCE BOND WHICH IS PROVIDED BY THE
    13  CONTRACTOR UNDER A FEDERALLY FINANCED OR STATE-FINANCED
    14  RECLAMATION CONTRACT SHALL BE DEEMED TO SATISFY THE REQUIREMENTS
    15  OF THIS SECTION: PROVIDED, THAT THE AMOUNT OF SUCH BOND IS
    16  EQUIVALENT TO OR GREATER THAN THE AMOUNT DETERMINED BY THE
    17  CRITERIA SET FORTH IN THIS SUBSECTION.]
    18     (F)  THE DEPARTMENT SHALL INSERT IN GOVERNMENT-FINANCED
    19  RECLAMATION CONTRACTS CONDITIONS WHICH PROHIBIT COAL EXTRACTION
    20  PURSUANT TO GOVERNMENT-FINANCED RECLAMATION IN AREAS SUBJECT TO
    21  THE RESTRICTIONS OF SECTION 4.2 EXCEPT AS SURFACE COAL MINING IS
    22  ALLOWED PURSUANT TO THAT SECTION.
    23     (G)  ANY PERSON ENGAGING IN [COAL] EXTRACTION OF COAL
    24  PURSUANT TO A NO-COST GOVERNMENT-FINANCED RECLAMATION CONTRACT
    25  AUTHORIZED UNDER THIS SECTION WHO AFFECTS A PUBLIC OR PRIVATE
    26  WATER SUPPLY BY CONTAMINATION OR DIMINUTION SHALL RESTORE OR
    27  REPLACE THE AFFECTED SUPPLY WITH AN ALTERNATE SUPPLY ADEQUATE IN
    28  QUANTITY AND QUALITY FOR THE PURPOSES SERVED.
    29     (H)  EXTRACTION OF COAL OR REMOVAL OF COAL REFUSE PURSUANT TO
    30  A GOVERNMENT-FINANCED RECLAMATION CONTRACT CANNOT BE INITIATED
    19950H1940B3484                 - 21 -

     1  WITHOUT THE CONSENT OF THE SURFACE OWNER FOR RIGHT OF ENTRY AND
     2  CONSENT OF THE MINERAL OWNER FOR EXTRACTION OF COAL. NOTHING IN
     3  THIS SECTION SHALL PROHIBIT THE DEPARTMENT'S ENTRY ONTO LAND
     4  WHERE SUCH ENTRY IS NECESSARY IN THE EXERCISE OF POLICE POWERS.
     5     Section 4.12.  [Payment in Lieu of Bond.--(a)  The
     6  Environmental Quality Board shall publish proposed regulations
     7  within one hundred eighty (180) days of the effective date of
     8  this act which shall constitute an interim program allowing
     9  certain mine operators proposing to remine abandoned mine lands
    10  to be eligible to make payments to the department in lieu of the
    11  bond required by this act. The department shall review operator
    12  requests to participate in the program on a case-by-case basis
    13  and shall allow operator participation in the payment-in-lieu-
    14  of-bond program only when the payment-in-lieu-of-bond special
    15  account in the Remining Environmental Enhancement Fund is equal
    16  to or exceeds the total reclamation obligation of the
    17  Commonwealth which would be incurred under the payment-in-lieu-
    18  of-bond program if all participants failed to complete their
    19  reclamation obligations.] Financial Guarantees to Insure
    20  Reclamation; Payments to the Remining Financial Assurance
    21  Fund.--(a)  The department is authorized under this section to
    22  establish programs to provide financial guarantees TO INSURE      <--
    23  RECLAMATION for qualified operators who reclaim abandoned mine
    24  lands through remining and to assess and collect payments from
    25  qualified operators who choose to purchase such financial
    26  guarantees. The financial guarantees are to be supported by a
    27  special account in the Remining Financial Assurance Fund. The
    28  department shall determine the total amount of financial
    29  guarantees that can be supported by the special account based on
    30  loss reserves established by the application of the historical
    19950H1940B3484                 - 22 -

     1  rate of mine operator bond forfeitures plus a reasonable margin
     2  of safety. The department shall establish underwriting methods
     3  which are in keeping with the intent of this section. In
     4  promulgating proposed and final regulations, the Environmental
     5  Quality Board shall consider various factors, including, but not
     6  limited to, site eligibility, such as environmental hazards,
     7  safety hazards and the availability of coal reserves and
     8  operator eligibility, such as financial tests and criteria for
     9  participation in the program, including an operator's operating
    10  ratio, long-term financial stability, denial of coverage by
    11  surety bond companies, financial ratio, compliance history,
    12  length of time in business and any other factors indicative of
    13  an operator's ability to complete reclamation and payments into
    14  the fund under the program. [Payments] REQUIREMENTS FOR MAKING    <--
    15  PAYMENTS into the fund shall be [equal to at least fifty dollars  <--
    16  ($50) per acre per year in the interim program and may be
    17  modified by final] ESTABLISHED IN regulations promulgated by the  <--
    18  Environmental Quality Board in order to assure the financial
    19  stability of the [payment-in-lieu-of-bond] financial guarantees
    20  program and to provide adequate funds in case of forfeiture but
    21  will require no collateralization.
    22     (b)  Premium payments will be deposited into the Remining
    23  [Environmental Enhancement] FINANCIAL ASSURANCE Fund and will be  <--
    24  reserved in a special account to be used in case of operator
    25  forfeiture. When the special account becomes actuarially sound,
    26  excess payments may be used pursuant to section 18(a.1) and
    27  (a.2).
    28     (c)  Payments under this subsection shall excuse the operator
    29  from the requirement to post a bond under this act with respect
    30  to the remining permit for which payment is made.
    19950H1940B3484                 - 23 -

     1     (d)  The [payment-in-lieu-of-bond] financial guarantees
     2  program may be discontinued immediately and notice published in
     3  the Pennsylvania Bulletin if twenty-five per cent or greater of
     4  the outstanding bond obligation for the [payment-in-lieu-of-
     5  bond] financial guarantees program is subject to forfeiture. The
     6  special account established in the Remining [Environmental        <--
     7  Enhancement] FINANCIAL ASSURANCE Fund for the [payment-in-lieu-   <--
     8  of-bond] financial guarantees program shall be the sole source
     9  of funds underwriting the [payment-in-lieu-of-bond] financial
    10  guarantees program, and the Commonwealth shall not be obligated
    11  to expend any funds beyond the amount of the special account.
    12     Section 4.13.  Reclamation Bond Credits.--(a)  A bond credit,
    13  financially backed by a special account for that purpose
    14  established in section 18(a.2), in the form of a bond letter,
    15  may be issued by the department to a licensed mine operator for
    16  voluntary reclamation of abandoned mine lands as approved by the
    17  department. The department shall in determining whether or not
    18  to issue a bond credit:
    19     (1)  Where a coal mining activity permit is not required,
    20  require a licensed mine operator to submit a proposal to the
    21  department to reclaim a specific area, together with the
    22  estimated cost of the reclamation based on current bonding
    23  rates.
    24     (2)  Review the proposal and find in writing that the
    25  operator's estimated cost of reclamation is accurate and that
    26  the proposed location of the project is acceptable to the
    27  department.
    28     (3)  Not issue any bond credits to an operator if any one or
    29  more of the following apply:
    30     (i)  the operator has not fully completed reclamation of the
    19950H1940B3484                 - 24 -

     1  site to the standards set forth in the approved reclamation plan
     2  for the site;
     3     (ii)  the operator, any related party or any person who is
     4  directed or controlled by the operator or directs or controls
     5  the operator bears any reclamation responsibility under Federal
     6  or State law for an area proposed to be reclaimed, including,
     7  but not limited to, obligations pursuant to a mining permit,
     8  reclamation pursuant to section 18 or reclamation pursuant to
     9  any contract with the department, including abandoned mine land
    10  reclamation contracts; or
    11     (iii)  any other requirement of this section has not been
    12  met.
    13     (b)  An operator may apply bond credits which have been
    14  issued to him by the department against any reclamation bond
    15  obligation selected by the operator on unmined or previously
    16  mined areas except as specified in this section.
    17     (c)  The department may approve utilization of a bond credit
    18  in combination with conventional collateral or surety
    19  agreements.
    20     (d)  The department may require as a condition of granting
    21  the bond credit that the operator post a contract performance
    22  bond to insure that the operator completes the reclamation
    23  proposed to result in the bond credit. The performance bond is
    24  to be at least in an amount necessary to ensure reclamation of
    25  those areas proposed to be reclaimed and shall be released by
    26  the department upon completion of the work described in the
    27  approved reclamation plan.
    28     (e)  Bond credits are [not] transferable[.] to another
    29  qualified operator approved by the department.
    30     (f)  The special account established in the Remining
    19950H1940B3484                 - 25 -

     1  Financial Assurance Fund for the bond credit program shall be
     2  the sole source of funds underwriting the bond credit program,
     3  and the Commonwealth shall not be obligated to expend any funds
     4  beyond the amount of the special account.
     5     (g)  Bond credits earned by a qualified operator may be used
     6  on a single permit or on multiple permits, whichever the
     7  operator chooses. A bond credit may be used two times; however,
     8  the bond credit cannot be used a second time until the
     9  department releases the bond credit from its first use. Any bond
    10  credit that is not used within five years from the date that it
    11  is earned or released will expire, including bond credits that
    12  have been transferred.
    13     SECTION 6.  SECTION 18 HEADING, (A.1), (A.2)(1) AND (A.4) OF   <--
    14  THE ACT, AMENDED OR ADDED DECEMBER 18, 1992 (P.L.1384, NO.173)
    15  ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO
    16  READ:
    17     SECTION 18.  SURFACE MINING CONSERVATION AND RECLAMATION       <--
    18  FUND; REMINING ENVIRONMENTAL ENHANCEMENT FUND; REMINING
    19  FINANCIAL ASSURANCE FUND; DEPARTMENT AUTHORITY FOR AWARDING OF    <--
    20  GRANTS.--* * *
    21     (A.1)  (1)  THERE IS HEREBY CREATED A SPECIAL FUND IN THE
    22  STATE TREASURY TO BE KNOWN AS THE "REMINING ENVIRONMENTAL
    23  ENHANCEMENT FUND." THE SECRETARY OF ENVIRONMENTAL RESOURCES IS
    24  AUTHORIZED TO TRANSFER AT THE COMMENCEMENT OF EACH FISCAL YEAR A
    25  TOTAL OF ONE MILLION DOLLARS ($1,000,000) INTO THE REMINING
    26  ENVIRONMENTAL ENHANCEMENT FUND AGGREGATED FROM THE FOLLOWING
    27  SOURCES:
    28     (I)  LICENSE AND PERMIT FEES EXCEPT RECLAMATION FEES PAID TO
    29  THE DEPARTMENT UNDER THIS ACT PURSUANT TO THE DEPARTMENT'S
    30  ALTERNATE BONDING PROGRAM.
    19950H1940B3484                 - 26 -

     1     (II)  FINES AND PENALTIES COLLECTED UNDER THIS ACT.
     2     (III)  FEES, FINES AND PENALTIES COLLECTED PURSUANT TO
     3  SECTION 315 OF "THE CLEAN STREAMS LAW," INCLUDING FINES AND
     4  PENALTIES FROM MINING OPERATIONS COLLECTED UNDER SECTION 605 OR
     5  OTHER PROVISIONS OF THAT ACT.
     6     (IV)  FEES, FINES AND PENALTIES COLLECTED PURSUANT TO THE ACT
     7  OF SEPTEMBER 24, 1968 (P.L.1040, NO.318), KNOWN AS THE "COAL
     8  REFUSE DISPOSAL CONTROL ACT."
     9     (V)  FEES, FINES AND PENALTIES COLLECTED PURSUANT TO THE ACT
    10  OF APRIL 27, 1966 (1ST SP.SESS., P.L.31, NO.1), KNOWN AS "THE
    11  BITUMINOUS MINE SUBSIDENCE AND LAND CONSERVATION ACT," NOT
    12  INCLUDING FUNDS RECEIVED PURSUANT TO SECTION 6(A) OF THAT ACT.
    13     (2)  ALL MONEYS PLACED IN THE REMINING [RECLAMATION]
    14  ENVIRONMENTAL ENHANCEMENT FUND AND THE INTEREST IT ACCRUES ARE
    15  HEREBY APPROPRIATED UPON AUTHORIZATION BY THE GOVERNOR TO THE
    16  DEPARTMENT FOR THE COSTS OF OPERATING A REMINING AND RECLAMATION
    17  INCENTIVE PROGRAM, INCLUDING DESIGNATING AREAS SUITABLE FOR
    18  RECLAMATION BY REMINING AND ESTABLISHING AND OPERATING A
    19  REMINING OPERATOR'S ASSISTANCE PROGRAM, BUT NOT INCLUDING A BOND
    20  CREDIT OR [PAYMENT-IN-LIEU-OF-BOND] FINANCIAL GUARANTEES
    21  PROGRAM.
    22     (A.2)  (1)  THERE IS HEREBY CREATED A SPECIAL FUND IN THE
    23  STATE TREASURY TO BE KNOWN AS THE "REMINING FINANCIAL ASSURANCE
    24  FUND." THE GOVERNOR IS AUTHORIZED TO TRANSFER UP TO FIVE MILLION
    25  DOLLARS ($5,000,000) FROM THE ALLOTMENT SET FORTH IN SECTION
    26  16(A)(1) OF THE ACT OF JANUARY 19, 1968 (1967 P.L.996, NO.443),
    27  KNOWN AS "THE LAND AND WATER CONSERVATION AND RECLAMATION ACT,"
    28  TO THE REMINING FINANCIAL ASSURANCE FUND FOR THE PURPOSES OF THE
    29  REMINING FINANCIAL ASSURANCE FUND. ALL MONEYS PLACED IN THE
    30  REMINING FINANCIAL ASSURANCE FUND ARE HEREBY APPROPRIATED UPON
    19950H1940B3484                 - 27 -

     1  AUTHORIZATION BY THE GOVERNOR TO THE DEPARTMENT FOR THE PURPOSE
     2  OF:
     3     (I)  PROVIDING FINANCIAL ASSURANCE FOR THE RECLAMATION BOND
     4  CREDIT PROGRAM SET FORTH IN SECTION 4.13.
     5     (II)  PROVIDING FINANCIAL ASSURANCE FOR THE [PAYMENT-IN-LIEU-
     6  OF-BOND] FINANCIAL GUARANTEES PROGRAM SET FORTH IN SECTION 4.12.
     7  INTEREST WHICH ACCRUES FROM THE REMINING FINANCIAL ASSURANCE
     8  FUND SHALL BE TRANSFERRED INTO THE LAND AND WATER DEVELOPMENT
     9  SINKING FUND ESTABLISHED IN SECTION 10 OF "THE LAND AND WATER
    10  CONSERVATION AND RECLAMATION ACT" AND SHALL BE USED FOR THE
    11  PURPOSES ESTABLISHED THEREIN.
    12     * * *
    13     (A.4)  PRIORITY FOR PARTICIPATION IN THE REMINING
    14  ENVIRONMENTAL ENHANCEMENT FUND AND THE REMINING FINANCIAL
    15  ASSURANCE FUND SHALL BE GIVEN TO LICENSED MINE OPERATORS
    16  [PROPOSED] PROPOSING REMINING WITHIN AREAS DESIGNATED SUITABLE
    17  FOR RECLAMATION BY REMINING.
    18     * * *
    19     (J)  THE DEPARTMENT MAY, UPON WRITTEN APPLICATION, AWARD       <--
    20  GRANTS FROM THE SURFACE MINING CONSERVATION AND RECLAMATION
    21  FUND, FROM FUNDS THE DEPARTMENT RECEIVES FROM THE UNITED STATES
    22  OR FROM ANY OTHER FUND AVAILABLE FOR APPROVED ABANDONED MINE
    23  PURPOSES AUTHORIZED BY THIS SUBSECTION. THE DEPARTMENT MAY
    24  COOPERATE WITH AND MAKE GRANTS TO MUNICIPALITIES, MUNICIPAL
    25  AUTHORITIES AND APPROPRIATE NONPROFIT ORGANIZATIONS. THE
    26  PURPOSES OF THE GRANTS SHALL BE CONSISTENT WITH ALL APPLICABLE
    27  FEDERAL AND STATE REQUIREMENTS RELATED TO THE SOURCE OF THE
    28  FUNDS. A GRANT AWARDED UNDER THIS SUBSECTION SHALL BE SUBJECT TO
    29  SUCH TERMS AND CONDITIONS ESTABLISHED BY THE DEPARTMENT.
    30     (J)  THE DEPARTMENT MAY, UPON WRITTEN APPLICATION, AWARD
    19950H1940B3484                 - 28 -

     1  GRANTS TO MUNICIPALITIES, MUNICIPAL AUTHORITIES AND APPROPRIATE
     2  NONPROFIT ORGANIZATIONS FROM THE SURFACE MINING CONSERVATION AND
     3  RECLAMATION FUND AND FROM FUNDS THE DEPARTMENT RECEIVES FROM THE
     4  UNITED STATES FOR APPROVED ABANDONED MINE PURPOSES AUTHORIZED BY
     5  THIS SUBSECTION. THE PURPOSES OF THE GRANTS SHALL BE CONSISTENT
     6  WITH ALL APPLICABLE FEDERAL AND STATE REQUIREMENTS RELATED TO
     7  THE SOURCE OF THE FUNDS. A GRANT AWARDED UNDER THIS SUBSECTION
     8  SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS ESTABLISHED BY
     9  THE DEPARTMENT.
    10     Section 2 6 7.  This act shall take effect in 60 days.         <--














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