PRINTER'S NO. 53

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 50 Session of 1987


        INTRODUCED BY PETRARCA, J. L. WRIGHT, SWEET, DISTLER, VAN HORNE,
           FARGO, HALUSKA, TRELLO, PRESTON, BELFANTI, STABACK,
           CAPPABIANCA, BURD, CARLSON AND BALDWIN, JANUARY 28, 1987

        REFERRED TO COMMITTEE ON MINES AND ENERGY MANAGEMENT,
           JANUARY 28, 1987

                                     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," providing for the
     7     establishment of an emergency bond fund to reclaim certain
     8     surface mined lands; and further providing for the
     9     obligations of operators.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Section 4 of the act of May 31, 1945 (P.L.1198,
    13  No.418), known as the Surface Mining Conservation and
    14  Reclamation Act, is amended by adding subsections to read:
    15     Section 4.  Mining Permit; Reclamation Plan; Bond.--* * *
    16     (e.2)  (1)  Within thirty (30) days of the effective date of
    17  this act, the department shall establish an emergency bond fund
    18  for the purpose of reclaiming any surface mined lands which may
    19  be abandoned after the effective date of this act and on which
    20  the per-acre performance bond required by subsection (d) and


     1  established by department regulations has not been posted due to
     2  circumstances set forth in subsection (e.3). The department
     3  shall collect from the following classes of licensed surface
     4  mine operators a fee of one dollar ($1) for each ton of coal
     5  extracted from surface mining operations for which the
     6  department's per-acre bond has not been posted due to
     7  circumstances set forth in subsection (e.3):
     8     A.  licensed surface mine operators who submit to the
     9  department three letters of rejection from three separate
    10  bonding companies licensed to do business in this Commonwealth,
    11  stating that the operator has been denied a bond and the grounds
    12  for rejection, and
    13     B.  licensed surface mine operators whose bonds are canceled
    14  due to the insolvency or bankruptcy of any insurance company or
    15  surety company licensed to do business in this Commonwealth.
    16     (2)  The department shall deposit such moneys into the
    17  emergency bond fund. The department may establish such
    18  recordkeeping and reporting requirements as may be necessary for
    19  the purpose of implementing this subsection. Each operator
    20  affected by this subsection shall remit such moneys to the
    21  department within forty-five (45) days following the sale of the
    22  tonnage on which the fee has been levied. The collection and
    23  deposit of such moneys shall continue until the fund has reached
    24  a level that equals the number of acres for which no per-acre
    25  bond has been posted multiplied by the per-acre bonding
    26  requirement as established by rules and regulations of the
    27  department.
    28     (e.3)  If the bonds of any surface coal mine operator are
    29  canceled due to the insolvency or bankruptcy of any insurance
    30  company or surety company authorized to do business in this
    19870H0050B0053                  - 2 -

     1  Commonwealth, and if replacement bonds from any other company
     2  are unavailable to such operator, even though the operator
     3  possesses sufficient financial resources to otherwise qualify
     4  for a bond, or if the operator has received the letters of
     5  rejection provided for in subsection (e.2), the operator shall
     6  so notify the department in writing. Notice to the department in
     7  the case of an operator who has received the letters of
     8  rejection provided for in subsection (e.2) shall contain the
     9  letters of rejection and such other information as the
    10  Environmental Quality Board may, by regulation, prescribe. In
    11  lieu of the per-acre bond required by this section, the
    12  operator's reclamation obligation for each site for which a
    13  permit has been applied shall be secured by the fund provided
    14  for in subsection (e.2) until such time as said site has been
    15  reclaimed or until an original or replacement bond, as the case
    16  may be, has been obtained by the operator: Provided, however,
    17  That no permit shall be issued under this subsection unless the
    18  operator has filed with the department the minimum ten thousand
    19  dollar ($10,000) bond for the entire permit area, as required by
    20  subsection (d). At such time as the operator has satisfied a
    21  reclamation obligation secured by the fund provided for in
    22  subsection (e.2), the department shall release to the operator
    23  the fees collected, in whole or in part, according to the bond
    24  release schedule provided for in subsection (g). Any operator
    25  whose bond obligation is met by this subsection and whose permit
    26  application has been approved shall, throughout the term of the
    27  permit, undertake all reasonable actions to obtain an original
    28  or replacement bond, as the case may be, for said site. The
    29  Environmental Quality Board may adopt regulations which require
    30  the operator to demonstrate, from time to time, that he has made
    19870H0050B0053                  - 3 -

     1  such reasonable attempts to obtain an original or replacement
     2  bond.
     3     (e.4)  In collecting the fees provided for in subsection
     4  (e.2) and in securing reclamation obligations pursuant to
     5  subsection (e.3), the department shall maintain a separate
     6  record for each operator. The fees paid by an operator may be
     7  used only to secure the reclamation obligations of said
     8  operator.
     9     * * *
    10     Section 2.  This act shall take effect immediately.














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