Greg Conrad \<gconrad@imcc.isa.us\>

01/29/2007 09:45 AM

To

Group Ow-Docket@EPA

cc

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Subject

Docket ID No. EPA-HQ-OW-2006-0771

Attached please find the comments of the Interstate Mining Compact
Commission concerning a notice published by the Environmental Protection
Agency on December 21, 2006 at 71 Fed. Reg. 76645, which invited
comments on EPA\'s final 2006 Effluent Guidelines Program Plan under the
Clean Water Act. Should you have any questions or require additional
information, please do not hesitate to contact me.

Gregory E. Conrad

Executive Director

Interstate Mining Compact Commission

445-A Carlisle Drive

Herndon, VA 20170

Phone: (703) 709-8654

Fax: (703) 709-8655

E-mail: gconrad@imcc.isa.us

January 29, 2007

Water Docket

U.S. Environmental Protection Agency

Mailcode 4203M

1200 Pennsylvania Avenue, NW

Washington, DC 20460

RE: Docket ID No. EPA-HQ-OW-2006-0771

To Whom It May Concern:

This letter and the attachments represent the comments of the Interstate
Mining Compact Commission concerning a notice published by the U.S.
Environmental Protection Agency (EPA) on December 21, 2006 at 71 Fed.
Reg. 76645 inviting comments on the agency's final 2006 Effluent
Guidelines Program Plan under the Clean Water Act. The Interstate Mining
Compact Commission (IMCC) is a multi-state governmental organization
representing the interests of its 24 member states concerning natural
resource development and environmental protection. Most of the IMCC
member states operate regulatory programs under the Clean Water Act
(CWA) pursuant to EPA-delegated authority, as well as programs under the
Surface Mining Control and Reclamation Act (SMCRA), for which the U.S.
Office of Surface Mining has oversight authority.

IMCC submitted extensive comments on EPA's draft 2006 Effluent
Guidelines Program Plan on November 9, 2005. A copy of those comments is
attached for your reference. We were disappointed that EPA did not elect
to immediately initiate rulemaking to revise its effluent limitations
for manganese (Mn) in the coal mining point source category at 40 CFR
434 in light of our comments. Pursuant to the approach described in our
comments, the applicability of the manganese effluent limits would be
adjusted based on the impacted watershed, the quality of the receiving
stream and the treatment technology employed. By so adjusting the
applicability of the effluent limitation, we assert that those
discharges which pose a hazard to human health or the environment will
be afforded the necessary environmental protection required under the
CWA, while adverse effects and potential hazards that arise from some
treatment technologies related to Mn will be reduced or prevented. We
also assert that under our approach, the states and industry will
recognize program and treatment efficiencies that will reduce costs
while ensuring adequate environmental protection, as envisioned under
the 304(m) planning process.

We were, however, encouraged by EPA's finding on page 76656 of the
Federal Register notice of December 21 that, while EPA does not have
sufficient information at this time to evaluate the merits of the
factors cited by IMCC in its comments, "because of the potential for
encouraging proper wastewater treatment, EPA will conduct a detailed
study of the coal mining effluent guidelines in the 2007 and 2008 annual
reviews." EPA also notes that it "will focus on issues related to
manganese limits and pollutants not currently regulated by these
regulations" and "will re-evaluate these effluent guidelines taking into
account, among other things, treatment technologies, toxicity of
discharges, cost impacts to the industry, and bond requirements." These
are all issues that IMCC identified in its comments as justification for
revising the current effluent guidelines for manganese. IMCC believes
that they are, in fact, deserving of further attention and consideration
by EPA as it studies the manganese limit for potential adjustment.\
\
EPA also noted in its Federal Register notice of December 21 that it has
made available a draft scope of work for the detailed study referenced
above and that it was seeking comments on this document. We have
reviewed the "Draft Detailed Study Plan for the Coal Mining Point Source
Category (Part 434)" dated August 24, 2006 and offer the following
comments.

It appears that, in addition to focusing on the manganese effluent
limit, the study will also consider whether EPA should initiate a
rulemaking to establish more stringent limitations for other metals and
other dissolved inorganic pollutants such as sulfates, chlorides and
TDS. We do not believe that there a sufficient basis for EPA to spend an
inordinate amount of time and money in this study focusing on effluent
limitations other than manganese. While sulfates and chlorides were
raised by one commenter as potentially problematic, the amount of data
and information supporting an adjustment to the manganese limit makes
the case for this constituent being the primary focus of the study.
While on this subject, we note that in Table 5 of the draft study plan
on page 6, only sodium and chloride are listed for possible pollutant
load analyses. Is the absence of TDS in Table 5 intentional?

One of the key subjects of the study will be performance bonding
requirements under the Surface Mining Control and Reclamation Act
(SMCRA). Attached to these comments is a recent study conducted by the
Interstate Mining Compact Commission concerning financial assurance
mechanisms employed by state regulatory authorities as part of their
approved programs under SMCRA. The study also addresses financial
assurance mechanisms employed in state programs that regulate the mining
of noncoal minerals. You may find this study helpful in gaining an
overview of how state programs address bonding, especially where
long-term treatment scenarios are involved. A list of key contact
persons is also included in the report.

In Table 4 of the draft study plan (page 4), it is stated that the SMCRA
technology- based limit for sulfates is 3500 mg/l. We are uncertain what
the basis is for this limit. Is it specific to a particular state
program?

On page 7 of the draft study plan, a study question is listed as
follows: "How many mines are closing from the expense of post-mining
treatment for manganese removal?" It is important to clarify that it is
the potential long-term treatment for manganese following the cessation
of mining that is problematic, thereby causing some operators to cease
reclamation and forfeit bonds rather than incurring the cost of this
long-term treatment obligation.

Table 7 on page 9 should include as a source of GIS data Virginia's
Department of Mines, Minerals and Energy. Also, on page 12 in the last
line of Attachment A, the reference should be to the "Department" of
Mines, Minerals and Energy" -- not the "Division". That line should also
reflect the fact that DMME has SMCRA data in electronic format.

We are hopeful that EPA will move forward expeditiously with the study
and that the study will indeed support our request that the current
effluent limit for manganese be revised in accordance with our proposed
approach. We welcome the opportunity to work with EPA and its contractor
on this study. Please let us know how we may of assistance.

Sincerely,

Gregory E. Conrad

Executive Director

cc\. All Commissioners

Attachments

Contact Information:

Phone: (703) 709-8654

E-mail: <gconrad@imcc.isa.us>

Fax: (703) 709-8655

November 9, 2005

Water Docket

U.S. Environmental Protection Agency

Mailcode 4101T

1200 Pennsylvania Avenue, NW

Washington, DC 20460

RE: Docket ID No. OW-2004-0032

To Whom It May Concern:

This letter and the attachments represent the comments of the Interstate
Mining Compact Commission concerning a notice published by the U.S.
Environmental Protection Agency (EPA) on August 29, 2005 at 70 Fed. Reg.
51042 requesting input on the agency's preliminary 2006 Effluent
Guidelines Program Plan under the Clean Water Act. The Interstate Mining
Compact Commission (IMCC) is a multi-state governmental organization
representing the interests of its 22 member states concerning natural
resource development and environmental protection. Many of the IMCC
member states operate regulatory programs under the Clean Water Act
(CWA) pursuant to EPA-delegated authority, as well as programs under the
Surface Mining Control and Reclamation Act (SMCRA), for which the U.S.
Office of Surface Mining has oversight authority.

As we will discuss in greater detail, we specifically request that EPA
revisit its effluent limitations for manganese (Mn) in the coal mining
point source category at 40 CFR 434. Pursuant to our approach, the
applicability of the manganese effluent limits would be adjusted based
on the impacted watershed, the quality of the receiving stream and the
treatment technology employed. By so adjusting the applicability of the
effluent limitation, we assert that those discharges which pose a hazard
to human health or the environment will be afforded the necessary
environmental protection required under the CWA, while adverse effects
and potential hazards that arise from some treatment technologies
related to Mn will be reduced or prevented. We also assert that under
our approach, the states and industry will recognize program and
treatment efficiencies that will reduce costs while ensuring adequate
environmental protection, as envisioned under the 304(m) planning
process.

On page 51046 of EPA's August 20 Federal Register notice, the agency
spells out four factors that it will consider in its annual review of
effluent guidelines under sections 301(d), 304(b), 304 (g) and 307(b) of
the CWA.

These factors include: 1) the amount and toxicity of the pollutants in
an industrial category's discharge and the extent to which these
pollutants pose a hazard to human health or the environment; 2) the cost
and performance of an applicable and demonstrated technology, process
change or pollution prevention alternative than can effectively reduce
the pollutants remaining in the industrial category's wastewater and,
consequently, substantially reduce the hazard to human health or the
environment associated with the pollutant discharge; 3) the
affordability or economic achievability of the technology, process
change, or pollution prevention measures identified using the second
factor; and 4) implementation and efficiency considerations and
recommendations from stakeholders. We believe our proposed approach
addresses each of these factors and provides a substantial and credible
basis for EPA to revise its existing effluent guidelines for manganese
in the coal mining point source category.

When EPA first promulgated the Mn effluent guideline limitation in the
1970s, the agency had limited data and information before it on which to
establish the limit. "The discharge criteria were not selected to
satisfy perceived downstream requirements nor because such low limits
were necessary for trace metal removal . . . ." (Kleinmann and Watzlaf,
p. 307 (1988)) Most parties agree that, in light of the data and
information gained over the past 25 years from regulating and treating
Mn, a different approach is in order -- one that recognizes the variety
in both the nature of the watershed and the appropriate, cost-effective
treatment technologies.

We understand it was asserted by some that the Mn limit was at least
partially set as a "surrogate" for other metal parameters in mine
drainage. When the coal mining point source effluent limits were
originally promulgated, data pertaining to dissolved metals in mining
discharges, other than iron, were scarce. We understand that EPA decided
to regulate Mn at least in part based on the belief that if other
potentially toxic metals were present, the treatment techniques
necessary to control Mn would also remove those other metals. Since that
time, significant amounts of data have been collected by the states,
industry and EPA which we assert indicate no widespread toxicity
problems with other unregulated metals from most surface and underground
mining operations. The data have also demonstrated that toxicity levels
from Mn are typically not an issue, except in rare, worst-case Mn
concentrations. For example, Dr. Richard Grippo of Arkansas State
University compared toxicity levels for iron and manganese and found the
manganese toxicity level to be more than 100 times higher than the iron
toxicity level (i.e. 96^th^ LC50 for brook trout was 269 mg/l for Mn and
1.9 mg/l for Fe). As a result, at least one of the intended purposes for
limiting Mn as stringently as it was has proven unnecessary. Further,
studies indicate that Mn in and of itself is not harmful to aquatic life
at levels above those set by the current effluent limit. As EPA is
aware, many researchers have studied this issue and documented such
findings. References to some of this research are attached to this
letter, including Gonzalez, Grippo and Dunson (1990); Kleinmann and
Watzlaf (1988); and Robbins (1992, 1995, 1997). In addition, a CD
containing the proceedings from the Office of Surface Mining's Manganese
Workshop held on May 18, 2005 in Pittsburgh is attached, which includes
presentations by Dr. Kleinmann, Dr. Grippo and others.

Another major reason for adjusting the Mn limit is the fact that it is
often necessary for mining operators to drastically over-treat water in
order to remove Mn to the current regulatory limits. There are some
cases where the only parameter out of compliance at mining operations is
Mn; in these cases, alkaline additions and ongoing chemical treatment
are necessary for no reason other than to try to regulate the Mn levels.
There have been numerous incidents where over-dosages or spills of the
highly soluble reagents commonly used in these situations have caused
fish kills and other significant stream damage. It makes little sense to
add chemicals that can and do damage the environment in an effort to
remove a dissolved constituent such as Mn that is not harming aquatic
life. In the end, there is little or no environmental gain from the
investment of dollars in over-designed treatment technologies. In fact,
there is often only environmental harm.

A September 2000 study by the Pennsylvania Department of Environmental
Protection of annual treatment costs for active and reclaimed surface
mine sites (both prior to the enactment of the Surface Mining Control
and Reclamation Act in 1977 and thereafter when Pennsylvania received
primacy) showed that, of the total calculated annual treatment costs of
\$14.027 million, the sites where Mn treatment is required accounted for
\$9.893 million. The study included 272 active and passive mine drainage
treatment systems with median manganese concentrations greater than 5.0
mg/l, of which 148 had manganese concentrations greater than iron
concentrations in the raw water.

On some of these surface mine sites, the manganese and iron
concentrations were nearly equivalent, but on other sites there was a
significant difference between the concentrations of these two metal
ions. For example, the highest median manganese concentration for a
passive treatment system on a primacy permit site was 107.0 mg/l, which
also had a median iron concentration of 98.65 mg/l. However, the highest
median manganese concentration for an active chemical treatment system
on a primacy permit site was 147.5 mg/l, with a corresponding median
iron concentration of only 0.30 mg/l. On two other active and passive
treatment system sites, the median manganese concentrations were 5.56
mg/l and 5.86 mg/l respectively, while the corresponding median iron
concentrations were only 0.30 and 0.02 mg/l.

We realize that there is also a water-use-based reason for limiting Mn,
due to its ability to cause staining of laundry, plumbing fixtures, etc.
This, however, is not sufficient justification for the current limits.
In many of the mining regions of the country, this water use concern is
inapplicable; the mining operations are in remote areas and the types of
stream uses affected by the "staining" problem are minimal. What does
often exist, however, is abundant aquatic life with naturally
reproducing populations of desirable species, such as trout. These real
stream uses are often harmed, not helped, by the current Mn limits.

Our experience over the past 25 years with the Mn limit also
demonstrates that the existing standard discourages certain
environmentally beneficial treatment technologies, particularly passive
treatment. Conventional manganese treatment requires a high pH
environment and often a pH greater than 10 is required for rapid
manganese oxidation. The required high pH environment leads to both
environmental and economical problems. The high pH environment leads to
redissolving previously precipitated aluminum hydroxides and treatment
ponds may require the addition of acid to lower pH to within the range
of the pH effluent standard (pH between 6 and 9). In some instances,
manganese removal creates an environmentally hazardous condition by
requiring coal operators to store acid tanks at remote treatment sites
to acidify the treated water to meet the pH effluent standard. In
addition to the environmental problems, research reveals that manganese
treatment often results in a doubling or tripling of treatment costs.

The table below shows the results of a bench test performed by the U.S.
Office of Surface Mining on mine drainage emanating from a recently
forfeited mine site. A cold acidity titration was performed to different
pH endpoints until iron and manganese effluent standards were satisfied.
This experiment showed that a treatment pH of 7.7 is required to achieve
pH, aluminum, and iron effluent limits and a treatment pH of 10.4 is
required to achieve manganese effluent limits. The 2.7 unit increase in
pH required for manganese treatment resulted in a doubling of annual
reagent cost. The results show the annual sodium hydroxide cost for
treating each gallon per minute worth of flow for all effluent standards
other than manganese was \$330 while manganese treatment resulted in an
annual cost of \$651. Therefore if this discharge typically flows at 100
gpm, the annual chemical costs for meeting all effluent standards except
manganese would be \$33,000, however, the annual cost would increase to
\$65,100 to satisfy the manganese standard. Further testing on this
water showed the volume of sludge produced also doubled when manganese
was treated. As is often the case, the treatment of manganese
significantly increases the annual chemical and sludge removal costs.

**Bench Test Results at a Pennsylvania Bond Forfeiture Site (OSM,
2004)**

![](media/image1.wmf)

> In the mid 1980's, passive treatment technology emerged and provided
> coal

operators, state regulatory agencies, watershed groups and others with
an alternative to chemical treatment for treating mine drainage. Unlike
conventional treatment, passive treatment does not require the
continuous replenishment of treatment chemical, as mine water is
typically directed into limestone-based treatment systems, including
aerobic wetlands and anoxic limestone drains. Many coal operators opt
toward passive treatment since annual chemical costs are eliminated.
Many regulatory agencies and citizens prefer that coal operators use
passive treatment to eliminate the environmental and human health hazard
associated with the chemicals used in conventional treatment. The U.S.
Bureau of Mines showed that wetlands can aid in manganese removal and
published a wetland sizing criteria for Mn of 0.5 g/m^2^/day. (Hedin,
Nairn and Kleinmann (1994)) This sizing criterion often results in an
unreasonably large wetland, which consequently eliminates the use of
passive treatment for manganese treatment. For example, an aerobic
wetland of 1.07 acres would be required to treat a 100 gpm discharge
with 40 mg/l iron, while a wetland of 11.8 acres would be required to
treat 40 mg/l of manganese for the same discharge. The total cost to
construct the 1.07 acre system for iron would be \$48,000, while the
total cost to construct the 11.8 acre system to include adequate space
for manganese removal would be \$540,000. In the rolling hills of
Appalachia, these acreages of flat ground for wetlands construction are
often nonexistent. The large land requirement coupled with limited
success for passively treating for manganese results in the elimination
of the use of passive treatment technology to meet the current Mn
effluent limit on discharges. If the manganese standard were more
flexible, environmentally friendly treatment technologies, like passive
treatment, could be used at mine sites to reliably treat for iron,
aluminum, and pH problems.

We believe that there are several cost and program efficiencies that
will be recognized under a revised Mn effluent limit. Perhaps the most
dramatic is the impact on bonding. Pursuant to section 509 of SMCRA,
coal operators are required to post "a bond for performance payable, as
appropriate, to the United States or to the State, and conditional upon
faithful performance of all the requirements of \[the\] Act and the
permit." The amount of the bond depends upon the reclamation
requirements of the approved permit and "shall reflect the probable
difficulty of reclamation giving consideration to such factors as
topography, geology of the site, hydrology, and revegetation potential."
To the extent that EPA's current Mn effluent limit requires long-term
treatment scenarios (as it often does), mine operators must have
sufficient reclamation bonds in place to insure that the treatment will
continue for the extended period of time. If the treatment costs are
exorbitant, it may be impossible to obtain adequate bonds in the first
instance, or the costs associated with obtaining adequate bonds upon
determination of the need for long-term treatment during the course of
the permit term could be so high as to result in bond forfeitures. In
these latter scenarios, the state regulatory authority will be faced
with the reclamation responsibility, thereby adding to the legacy of
abandoned mines

One proposed solution to the existing Mn standard is to adjust its
application based upon the nature of the watershed that is being
impacted and the treatment system being employed. Under this approach, a
variety of scenarios would dictate the appropriate regulatory standard
-- be it a revised Mn limit or the use of a best management practice
(BMP) in lieu thereof. The classes of watersheds we have in mind include
streams with no degradation (often referred to as Tier 3 streams or
watersheds); high quality streams (Tier 2); and impaired streams (Tier
1). Impaired (or degraded) streams are included on the 303(d) listing
maintained by EPA and the states and will often be associated with
abandoned mines. Each of the above stream or watershed classifications
would then be matched with a mine type or treatment system, including
such categories as new mines, remining sites, abandoned mine land (AML)
sites, and watershed projects. Treatment systems would include passive
treatment; surface mine treatment systems; and deep mine treatment
systems.

Under this approach, where a new mine is being developed in a
non-degraded watershed (Tier 3 stream), a higher standard would apply.
However, at the opposite end of the spectrum are situations where a
state regulatory authority or watershed group is undertaking a project
using some combination of federal and private funding to restore a dead
stream. In this instance, it makes little sense to apply the existing Mn
standard given the quality of the receiving stream and nature of the
reclamation project. Similarly, where a remining operation is
re-disturbing a previously mined area that may also qualify as an AML
site under SMCRA and where the watershed is listed on the 303(d) list,
the Mn standard is also inappropriate. Under this scenario, a more
appropriate regulatory standard would be to employ a BMP, such as a
passive treatment system, in lieu of the current Mn standard.

We believe there is a range of activity that will define the applicable
regulatory standard. With appropriate guidance, state regulatory
authorities will be able to exercise their discretion to apply the
standard that makes the most sense under the circumstances, thereby
ensuring protection of the environment while recognizing treatment and
program cost efficiencies. We welcome the opportunity to explore this
approach in greater detail with EPA and to discuss the type of guidance
that may be necessary to insure its implementation. And as EPA explores
the potential for adjusting the effluent limitation standard for Mn in
light of the above information and data, we suggest that the agency
seriously reconsider whether it makes sense to continue using a
surrogate-based approach that has dominated this standard in the past.
We believe that based on the experience of the states over the past 25
years in reviewing and approving permits under their approved regulatory
programs pursuant to both SMCRA and CWA, there is substantial evidence
to support revising this effluent guideline.

We appreciate the opportunity to submit these comments and stand
prepared to work with EPA and others to advance our suggested approach.

Sincerely,

Gregory E. Conrad

Executive Director

cc\. All Commissioners

Attachments

Contact Information:

Phone: (703) 709-8654

E-mail: <gconrad@imcc.isa.us>

Fax: (703) 709-8655

LIST OF REFERENCES -- Manganese

Gonzalez, R. J., R.S. Grippo & W.A. Dunson (1990). The disruption of
sodium balance in brook charr, *Salvelinus fontinalis* (Mitchell), by
manganese and iron. *Journal of Fish Biology,* Volume 37, pp 765-774.

Grippo, R.S., & W.A. Dunson (1996). The body ion loss biomarker. 1.
Interactions between trace metals and low pH in reconstituted coal
mine-polluted water. *Environmental Toxicology and Chemistry.* Volume
15, Number 11, pp 1955-1963.

Grippo, R.S., & W.A. Dunson (1996). The body ion loss biomarker. 2.
Field validation in coal mine-polluted streams. *Environmental
Toxicology and Chemistry.* Volume 15, Number 11, pp 1964-1972.

Hedin, R.S., R.W. Nairn and R.L.P. Kleinmann (1994). Passive Treatment
of Coal Mine Drainage; U.S. Bureau of Mines Information Circular No.
IC-9389. Pittsburgh, PA; U.S. Department of the Interior.

Kleinmann, R.L.P. and G.R. Watzlaf (1988). Should the Effluent Limits
for Manganese Be Modified? U.S. Bureau of Mines Information Circular No.
IC-9184. Proceedings from the 1988 Mine Drainage and Surface Mine
Reclamation Conference sponsored by the American Society for Surface
Mining and Reclamation, Pittsburgh, PA, April, 1988.

Lasier, P.J., P.V. Winger, & K.J. Bogenrieder (2000). Toxicity of
manganese to Ceriodaphnia and Hyalella azteca. *Archives of
Environmental Contamination and Toxicology*, Volume 30, Number 38, pp
298-304.

Reimer, P.S. (1999). Environmental Effects of Manganese and Proposed
Freshwater Guidelines to Protect Aquatic Life in British Columbia.
*Masters Thesis, Department of Chemical & Bio-Resource Engineering,
University of British Columbia.*

Robbins, E.I., J.P. D'Agostino, J. Ostwald, D.S. Fanning, V. Carter & R.
Van Hoven (1992). Manganese nodules and microbial oxidation of manganese
in the Hunter Meadows wetland, Virginia, USA. *Catena Supplement, Dutch
Soils Journal,* Volume 21, pp 1-23.

Robbins, E.I., A.W. Norden (1994). Microbial oxidation of iron and
manganese in wetlands and creeks of Maryland, Virginia, Delaware, and
Washington, D.C. in Chiang, S.H., ed., *Pittsburgh Coal Conference
Proceedings, Coal -- Energy and the Environment,* Volume 2, pp
1154-1159.

Robbins, E.I., J.E. Anderson, M.H. Podwysocki, H.M. Edenborn, J.
Eggleston, D. Growitz, R.L. Kleinmann, A.W. Norden, M. Passmore, B.J.
Prugh, M.R. Stanton, Jr., P.C. Sweet & T.M. Vandyke (1995). Red slime,
oily films, and black rocks -- Sensing the iron bacteria that make
neutral streams look acid, in Carter, L., ed., *USGS McKelvey Forum on
Energy and the Environment: U.S. Geological Survey Circular 1108,* p.
109-111.

Robbins, E.I., R.R. Maggard, E.J. Kirk, H.E. Belkin & H.T. Evans, Jr.
(1997). Manganese removal by chemical and microbial oxidation and the
effect on benthic macroinvertebrates at a coal mine in Wayne County,
western West Virginia, *Proceedings, Eighteenth Annual West Virginia
Surface Mine Drainage Task Force Symposium, Morgantown, West Virginia,
April 15-16, 1997.*

Stubblefield, W.A., S.F. Brinkman, P.H. Davies, T.D. Garrison, J.R.
Hockett, &. M.W. McIntrye (1997). Effects of water hardness on the
toxicity of manganese to developing brown trout (*Salmo Trutta*).
*Environmental Toxicology and Chemistry*, Volume 16, Number 10, pp
2082-2089.

**Coal Programs Under Title V of SMCRA**

**State Survey Responses**

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| ru |                                                                 |
| st |                                                                 |
| fu |                                                                 |
| nd |                                                                 |
| s; |                                                                 |
| u  |                                                                 |
| se |                                                                 |
| of |                                                                 |
| c  |                                                                 |
| or |                                                                 |
| po |                                                                 |
| ra |                                                                 |
| te |                                                                 |
| g  |                                                                 |
| ua |                                                                 |
| ra |                                                                 |
| nt |                                                                 |
| ee |                                                                 |
| s) |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | None                                                            |
| te |                                                                 |
| ** | None                                                            |
|    |                                                                 |
| AL | All Colorado bonds are calculated on a task-by-task basis,      |
|    | using industry standard cost estimating techniques. This has    |
| AR | been the case for many years, and we do not intend to change    |
|    | this practice                                                   |
| CO |                                                                 |
|    | We are a conventional bonding system.                           |
| IL |                                                                 |
|    | None in regard to systems of bonding with exception of a        |
| IN | revision to the Bond Pool statute. Indiana's Bond Pool covers   |
|    | Phase II and Phase III only. Phase I must still be guaranteed   |
| KY | through a conventional method. The revision to the statute      |
|    | strengthened Indiana's program as it provides an avenue to      |
| MD | remove a company from the Bond Pool if they do not aggressively |
|    | pursue bond release.                                            |
| ND |                                                                 |
|    | Kentucky primarily relies on the use of conventional bonds. The |
| NM | state also has a bond pool and accepts cash and letters of      |
|    | credit. Consideration is also being given to potentially        |
|    | allowing the creation of Trust Funds in order to manage the     |
|    | long-term financial obligations created by AMD.                 |
|    |                                                                 |
|    | Maryland is in the early stages of revising their coal mining   |
|    | bonds. We maintain an alternative bonding system utilizing a    |
|    | per acre bond and a Bond Supplement Fund that is funded by a    |
|    | \$0.10 per ton fee. The Fund cap is set at \$750,000. There are |
|    | 63 active coal mining permits in Maryland. We are considering a |
|    | bond requirement based upon the worst-case volume of material   |
|    | that would have to be moved to backfill a permit in addition to |
|    | a flat rate bond for support area and revegetation. If          |
|    | implemented, it won't be a total full cost bond, but it will    |
|    | increase the bond amount on those permits that have a higher    |
|    | reclamation liability and significantly reduce the liability to |
|    | the Supplement Fund in the event of forfeiture. Maryland will   |
|    | not consider self-bonding.                                      |
|    |                                                                 |
|    | North Dakota recently added rules that allow letters of credit  |
|    | as the financial instrument to back a collateral bond.          |
|    | Previously, we only accepted cash deposits and certificates of  |
|    | deposit as the collateral. We also accept surety and self       |
|    | bonds.                                                          |
|    |                                                                 |
|    | No adjustments made.                                            |
+----+-----------------------------------------------------------------+
| OH | Revised statutory language is being reviewed to move from       |
|    | Alternative Bonding system with a bond pool to a revised bond   |
| OK | mechanism including optional "full cost bonding" as well as a   |
|    | bond pool mechanism. Also, we are revising the Letter of Credit |
| PA | language to provide a longer period of notification prior to    |
|    | expiration. A bill will be proposed shrotly which would change  |
| TX | the existing Ohio bond pool system. Key provisions are as       |
|    | follows:                                                        |
| UT |                                                                 |
|    | -   The bond pool is optional. For those who choose not to      |
|    |     participate, full cost bonding will be required using the   |
|    |     OSM bond calculation procedure to determine the bond amount |
|    |     and they will not pay any severance tax toward the bond     |
|    |     pool. For those who choose to participate the severance tax |
|    |     will be 14 cents per ton.                                   |
|    |                                                                 |
|    | -   A one-time 5 million dollar general fund appropriation is   |
|    |     proposed that will clean up the backlog of sites where      |
|    |     insufficient funds have been available to reclaim.          |
|    |                                                                 |
|    | -   Bond pool membership will be restricted to companies that   |
|    |     have paid severance tax for a 5-year period.                |
|    |                                                                 |
|    | -   The bond pool will not cover coal preparation plants that   |
|    |     are not associated with an active permit. These items will  |
|    |     require full cost bond.                                     |
|    |                                                                 |
|    | -   The bond pool will not cover long-term acid mine drainage   |
|    |     treatment or water supply replacement requirements. The     |
|    |     statute will provide for a trust fund system to assure      |
|    |     discharge treatment.                                        |
|    |                                                                 |
|    | -   The bond pool will not cover subsidence repair as this will |
|    |     be covered by an insurance policy, as Illinois requires.    |
|    |                                                                 |
|    | -   Current Ohio law does not allow bond adjustment. The bill   |
|    |     proposes to allow bond adjustment for bond pool permits in  |
|    |     those circumstances only where a failure to abate cessation |
|    |     order has been issued for non-contemporaneous reclamation.  |
|    |                                                                 |
|    | -   The bill proposes to give the agency a priority lien in     |
|    |     front of all other creditors in the event of bankruptcy.    |
|    |                                                                 |
|    | -   A coal bond advisory board is proposed comprised of 2       |
|    |     persons from industry, 2 from the state and an independent  |
|    |     CPA.                                                        |
|    |                                                                 |
|    | -   A severance tax credit is proposed for an operator who      |
|    |     reclaims a bond-forfeited site in the amount of the         |
|    |     construction estimate the agency would have spent to        |
|    |     reclaim the site.                                           |
|    |                                                                 |
|    | None                                                            |
|    |                                                                 |
|    | The cost of two recent bond forfeiture sites is significantly   |
|    | higher than the full cost bond amount. We investigated to       |
|    | determine the reason for the difference, have reported that to  |
|    | the Mining and Reclamation Advisory Board and have sought the   |
|    | MRAB's advice on how to fine tune our bonding methodology to    |
|    | prevent future occurrences. We anticipate receiving the MRAB's  |
|    | advice on April 27, 2006 and will then decide what refinements  |
|    | to make. Pennsylvania is also developing a "blanket bond" for   |
|    | surface coal mining that would allow a permittee to post one    |
|    | bond to cover all of its surface coal mine permits instead of   |
|    | having individual bonds posted for individual surface coal mine |
|    | permits.                                                        |
|    |                                                                 |
|    | No adjustments have been made and none are contemplated at this |
|    | time.                                                           |
|    |                                                                 |
|    | Utah now requires that surety bonds must have an A.M. Best's    |
|    | Key Rating Guide rating of A- or greater. All surety companies  |
|    | must be continuously listed on the U.S. Department of Treasury  |
|    | Circular 570.                                                   |
+----+-----------------------------------------------------------------+
| VA | None                                                            |
|    |                                                                 |
| WV | HB 3033 (2005 Regular Session) required the agency to consider  |
|    | and make determinations concerning the feasibility of certain   |
|    | financial assurance mechanisms (full cost bonding for land      |
|    | reclamation, water quality trust fund, water treatment bonds)   |
|    | for reclamation of a coal mine site and the impacts of such     |
|    | mechanisms on the fiscal stability of the Special Reclamation   |
|    | Fund (SRF). The evaluation of the financial assurance           |
|    | mechanisms is a work in progress. It appears any bonding        |
|    | mechanism could need a fund to address situations where the     |
|    | calculated costs of reclamation are inadequate or the bond      |
|    | amount is uncollectible.                                        |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 2) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| pa |                                                                 |
| rt |                                                                 |
| ic |                                                                 |
| ul |                                                                 |
| ar |                                                                 |
| ch |                                                                 |
| al |                                                                 |
| le |                                                                 |
| ng |                                                                 |
| es |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| fa |                                                                 |
| ci |                                                                 |
| ng |                                                                 |
| in |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| s  |                                                                 |
| ta |                                                                 |
| te |                                                                 |
| wi |                                                                 |
| th |                                                                 |
| re |                                                                 |
| ga |                                                                 |
| rd |                                                                 |
| to |                                                                 |
| b  |                                                                 |
| on |                                                                 |
| di |                                                                 |
| ng |                                                                 |
| re |                                                                 |
| qu |                                                                 |
| ir |                                                                 |
| em |                                                                 |
| en |                                                                 |
| ts |                                                                 |
| f  |                                                                 |
| or |                                                                 |
| s  |                                                                 |
| ur |                                                                 |
| fa |                                                                 |
| ce |                                                                 |
| co |                                                                 |
| al |                                                                 |
| mi |                                                                 |
| ni |                                                                 |
| ng |                                                                 |
| op |                                                                 |
| er |                                                                 |
| at |                                                                 |
| io |                                                                 |
| ns |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | None                                                            |
| te |                                                                 |
| ** | Shift from surety bonds to Letters of Credit since only small   |
|    | operators are mining.                                           |
| AL |                                                                 |
|    | Routine challenges occur as we negotiate permit-specific bond   |
| AR | amount requirements with permittees. Negotiations must          |
|    | reconcile the regulatory requirement for adequate bond with the |
| CO | permittee's need to maintain an amount that is reasonable and   |
|    | affordable.                                                     |
| IL |                                                                 |
|    | It has become difficult for a company to obtain a surety bond   |
| IN | for coal mining operations. In the past five + years, we have   |
|    | moved away from surety bond to letters of credit and CD's for   |
| KY | bonding small areas. In the past three years, we have seen a    |
|    | move by the big company toward self bonding. However, a         |
| MD | majority of the bonds held are surety bonds.                    |
|    |                                                                 |
| ND | Industry continues to give the indication it is difficult to    |
|    | obtain bonds. Surety companies are very concerned with LLC      |
| NM | Corporations and several levels of ownership. This issue has    |
|    | delayed transfer or renewal applications in the past and puts   |
|    | the RA in a position in which enforcement action may be         |
|    | necessary.                                                      |
|    |                                                                 |
|    | Variability in the bonding market.                              |
|    |                                                                 |
|    | Maryland has statutory bond minimums and no maximums.           |
|    | Therefore, the RA can increase bond amounts as necessary to     |
|    | insure adequate funds for reclamation. This process has been    |
|    | done on individual permits occasionally but generally per acre  |
|    | bond amounts are set industry wide. Political pressure could be |
|    | placed on the RA that could be somewhat problematic but would   |
|    | not likely stop the increase.                                   |
|    |                                                                 |
|    | The high cost of surety bonds is the biggest issue; however, a  |
|    | small company could not recently find a surety to issue them a  |
|    | reclamation bond for a new permit area. That company had to     |
|    | furnish a collateral bond backed by a letter of credit.         |
|    |                                                                 |
|    | No significant challenges.                                      |
+----+-----------------------------------------------------------------+
| OH | Surety companies are hesitant to write reclamation bonds;       |
|    | operators are forced to seek alternative bonding. Overall, bond |
| OK | amounts and supplemental severance tax are currently            |
|    | insufficient to cover liabilities to the state. Industry will   |
| PA | not accept full cost bonding for all operations.                |
|    |                                                                 |
| TX | None, although more assistance for small to mid-sized operators |
|    | would be helpful.                                               |
| UT |                                                                 |
|    | Convincing permittees that are no longer mining to post the     |
| VA | additional bond to provide for the perpetual treatment of their |
|    | post mining discharge. We are hearing from operators that it is |
| WV | still difficult for them to obtain surety bonds.                |
|    |                                                                 |
|    | No particular challenges.                                       |
|    |                                                                 |
|    | An operator notified the state of Utah that their surety is no  |
|    | longer interested in providing reclamation bonds for mining     |
|    | companies. The surety will maintain their bond but will cancel  |
|    | the bond if any change or "rider" is requested. The operator    |
|    | emphasized "any". This position reflects a new level of         |
|    | inflexibility by bonding companies.                             |
|    |                                                                 |
|    | The availability of surety bonds.                               |
|    |                                                                 |
|    | -   Accomplishing land reclamation and water treatment at       |
|    |     revoked sites with available funding.                       |
|    |                                                                 |
|    | -   Imposition of water quality standards on the agency at      |
|    |     revoked sites.                                              |
|    |                                                                 |
|    | -   Determining the amount of full cost bond for any given      |
|    |     mining permit. Some of the methods to consider in           |
|    |     determining "full cost bond" amounts are the OSM handbook,  |
|    |     a revised matrix from the WV mining rules, and historic     |
|    |     costs for the Special Reclamation Program to reclaim        |
|    |     revoked sites. Another complication in ascertaining a full  |
|    |     cost bond amount is the fact that the costs for water       |
|    |     treatment are often difficult to estimate due to the broad  |
|    |     ranges of water flow, concentrations of pollutants,         |
|    |     duration, and other factors that influence water discharges |
|    |     associated with some mining operations.                     |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 3) |                                                                 |
| *A |                                                                 |
| re |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| ex |                                                                 |
| pe |                                                                 |
| ri |                                                                 |
| en |                                                                 |
| ci |                                                                 |
| ng |                                                                 |
| su |                                                                 |
| re |                                                                 |
| ty |                                                                 |
| c  |                                                                 |
| om |                                                                 |
| pa |                                                                 |
| ni |                                                                 |
| es |                                                                 |
| r  |                                                                 |
| eq |                                                                 |
| ui |                                                                 |
| ri |                                                                 |
| ng |                                                                 |
| n  |                                                                 |
| ew |                                                                 |
| or |                                                                 |
| ad |                                                                 |
| di |                                                                 |
| ti |                                                                 |
| on |                                                                 |
| al |                                                                 |
| co |                                                                 |
| ll |                                                                 |
| at |                                                                 |
| er |                                                                 |
| al |                                                                 |
| in |                                                                 |
| c  |                                                                 |
| on |                                                                 |
| ju |                                                                 |
| nc |                                                                 |
| ti |                                                                 |
| on |                                                                 |
| wi |                                                                 |
| th |                                                                 |
| su |                                                                 |
| re |                                                                 |
| ty |                                                                 |
| bo |                                                                 |
| nd |                                                                 |
| s? |                                                                 |
| If |                                                                 |
| s  |                                                                 |
| o, |                                                                 |
| wh |                                                                 |
| at |                                                                 |
| t  |                                                                 |
| yp |                                                                 |
| es |                                                                 |
| of |                                                                 |
| co |                                                                 |
| ll |                                                                 |
| at |                                                                 |
| er |                                                                 |
| al |                                                                 |
| (  |                                                                 |
| i. |                                                                 |
| e. |                                                                 |
| ca |                                                                 |
| sh |                                                                 |
| or |                                                                 |
| ca |                                                                 |
| sh |                                                                 |
| eq |                                                                 |
| ui |                                                                 |
| va |                                                                 |
| le |                                                                 |
| nt |                                                                 |
| s; |                                                                 |
| in |                                                                 |
| ve |                                                                 |
| st |                                                                 |
| me |                                                                 |
| nt |                                                                 |
| -g |                                                                 |
| ra |                                                                 |
| de |                                                                 |
| r  |                                                                 |
| at |                                                                 |
| ed |                                                                 |
| s  |                                                                 |
| ec |                                                                 |
| ur |                                                                 |
| it |                                                                 |
| ie |                                                                 |
| s; |                                                                 |
| i  |                                                                 |
| nt |                                                                 |
| er |                                                                 |
| es |                                                                 |
| ts |                                                                 |
| in |                                                                 |
| re |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| nd |                                                                 |
| pe |                                                                 |
| rs |                                                                 |
| on |                                                                 |
| al |                                                                 |
| p  |                                                                 |
| ro |                                                                 |
| pe |                                                                 |
| rt |                                                                 |
| y) |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Do not know this answer.                                        |
| te |                                                                 |
| ** | No.                                                             |
|    |                                                                 |
| AL | We hear that such arrangements are occurring with some          |
|    | permittees and their surety companies, but we do not become     |
| AR | involved in this transaction. Permittees are obtaining required |
|    | bonds.                                                          |
| CO |                                                                 |
+----+-----------------------------------------------------------------+
| IL | I have been told that where a surety bond is used, the surety   |
|    | company has increased the collateral requirements. However, we  |
| IN | are not directly involved with the bonding agreements between   |
|    | coal companies and surety companies.                            |
| KY |                                                                 |
|    | We are not aware but this is a matter that would be between the |
| MD | surety and the permittee.                                       |
|    |                                                                 |
| NM | Based on comments from industry, surety companies are requiring |
|    | additional collateral. We are not certain specifically what     |
| ND | types of collateral they may be requiring.                      |
|    |                                                                 |
| OH | We do not have direct contact with the sureties regarding       |
|    | collateral. However, operators have indicated to us that their  |
| OK | sureties generally require between 25 to 80% collateralization  |
|    | with the norm closer to 80%. Some have indicated their sureties |
| PA | require 100%.                                                   |
|    |                                                                 |
| TX | Surety bonds have been a very small part of NM's coal financial |
|    | assurance for a while. The last two bonds were released in 2004 |
| UT | when those mines reached final bond release. Late last year, a  |
|    | new mine obtained a surety bond for its first 5-year term,      |
| VA | which covers mostly facility construction. That mine is paying  |
|    | high premiums and will likely convert to self-bond to meet the  |
| WV | higher bonding requirements for actual mining disturbance. We   |
|    | are not aware of any collateral requirements from surety        |
|    | companies.                                                      |
|    |                                                                 |
|    | The mining companies are dealing with this issue on a           |
|    | case-by-case basis. It is our understanding that some surety    |
|    | companies have required the mining companies to provide         |
|    | collateral in order to have a surety bond issued.               |
|    |                                                                 |
|    | Operators complain of such things as posting collateral in the  |
|    | amount of the bond. No personal knowledge of requirements.      |
|    |                                                                 |
|    | No. N/A                                                         |
|    |                                                                 |
|    | Do not have any information on this point.                      |
|    |                                                                 |
|    | None, to my knowledge.                                          |
|    |                                                                 |
|    | Utah is not aware of any of these changes.                      |
|    |                                                                 |
|    | Have heard of these items being required, but do not have any   |
|    | specific information.                                           |
|    |                                                                 |
|    | The agency is aware of sureties requiring additional collateral |
|    | for surety bonds, but is uncertain of the details.              |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 4) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| pe |                                                                 |
| rc |                                                                 |
| en |                                                                 |
| ta |                                                                 |
| ge |                                                                 |
| of |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| s  |                                                                 |
| ta |                                                                 |
| te |                                                                 |
| 's |                                                                 |
| o  |                                                                 |
| ut |                                                                 |
| st |                                                                 |
| an |                                                                 |
| di |                                                                 |
| ng |                                                                 |
| b  |                                                                 |
| on |                                                                 |
| di |                                                                 |
| ng |                                                                 |
| o  |                                                                 |
| bl |                                                                 |
| ig |                                                                 |
| at |                                                                 |
| io |                                                                 |
| ns |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| m  |                                                                 |
| et |                                                                 |
| u  |                                                                 |
| si |                                                                 |
| ng |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| f  |                                                                 |
| ol |                                                                 |
| lo |                                                                 |
| wi |                                                                 |
| ng |                                                                 |
| i  |                                                                 |
| ns |                                                                 |
| tr |                                                                 |
| um |                                                                 |
| en |                                                                 |
| ts |                                                                 |
| or |                                                                 |
| me |                                                                 |
| ch |                                                                 |
| an |                                                                 |
| is |                                                                 |
| ms |                                                                 |
| :* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| AL | **Traditional Surety Bonds:**                                   |
|    |                                                                 |
| AR | 55%                                                             |
|    |                                                                 |
| CO | 48%                                                             |
|    |                                                                 |
| IL | 73%                                                             |
|    |                                                                 |
| IN | 69.63%                                                          |
|    |                                                                 |
| KY | 24%                                                             |
|    |                                                                 |
| MD | 80%                                                             |
|    |                                                                 |
| ND | Approximately 40% of bonds are surety; 40% CD's; and 20%        |
|    | Letters of Credit. Some companies use a combination of all      |
| NM | three.                                                          |
|    |                                                                 |
| OH | 37.3%                                                           |
|    |                                                                 |
| OK | 1%                                                              |
|    |                                                                 |
| PA | 30%                                                             |
|    |                                                                 |
| TX | 90%                                                             |
|    |                                                                 |
| UT | 66%                                                             |
|    |                                                                 |
| VA | 6.5%                                                            |
|    |                                                                 |
| WV | 90%                                                             |
|    |                                                                 |
| AL | 91.21%                                                          |
|    |                                                                 |
| CO | 85%                                                             |
|    |                                                                 |
| IL | **Corporate Guarantees:**                                       |
|    |                                                                 |
| IN | **Self Bonds: Parent Guarantees: Third-Party Guarantees:**      |
|    |                                                                 |
| ND | 2%                                                              |
|    |                                                                 |
| NM | 3% (All include a parent guarantee)                             |
|    |                                                                 |
| TX | 1.5% 20.83% 2.80%                                               |
|    |                                                                 |
| VA | 57% 1%                                                          |
|    |                                                                 |
| WV | 57.3%                                                           |
|    |                                                                 |
|    | 35% 22%                                                         |
|    |                                                                 |
|    | 16.5% (Self bonds with Third-Party Guarantee: 73.5%)            |
|    |                                                                 |
|    | 5.72% 0.12%                                                     |
|    |                                                                 |
|    | 11% (Includes parent guarantors)                                |
+----+-----------------------------------------------------------------+
| AL | **Collateral Only:** **Please specify the nature thereof:**     |
|    |                                                                 |
| CO | 43% Cash, Certificates of Deposit (CD's), Bank Letters of       |
|    | Credit (LOC)                                                    |
| IL |                                                                 |
|    | 21% 16% = CD; 5% = Cash                                         |
| IN |                                                                 |
|    | 5.16% CD's, LOC and Cash. The use of LOC's is increasing,       |
| ND | however,                                                        |
|    |                                                                 |
| NM | many banks will not write because of our specific requirements. |
|    |                                                                 |
| OH | 13%                                                             |
|    |                                                                 |
| OK | 5.4% Most are in the form of cash deposits but we have accepted |
|    | one LOC                                                         |
| PA |                                                                 |
|    | 42% LOC                                                         |
| TX |                                                                 |
|    | 3% CD's                                                         |
| UT |                                                                 |
|    | 0.5% Escrow Account Deposited Monthly                           |
| WV |                                                                 |
|    | 17% CD's, LOC, Cash, US Treasuries                              |
| PA |                                                                 |
|    | 3.5% LOC                                                        |
| IN |                                                                 |
|    | 10% Irrevocable LOC's - 5%; Government Securities - 4%;         |
| KY |                                                                 |
|    | Real Property - 1%                                              |
| OH |                                                                 |
|    | 2% CD's and Cash                                                |
| VA |                                                                 |
|    | **Trust Funds:** **Please specify the nature thereof:**         |
|    |                                                                 |
|    | 8% Various Investments (Stocks/Bonds)                           |
|    |                                                                 |
|    | **Bond Pools:**                                                 |
|    |                                                                 |
|    | 5%                                                              |
|    |                                                                 |
|    | 5%                                                              |
|    |                                                                 |
|    | 66%                                                             |
|    |                                                                 |
|    | 57.20%                                                          |
+----+-----------------------------------------------------------------+
| AR | **Other:** **Please specify the nature thereof:**               |
|    |                                                                 |
| CO | 52% Irrevocable Letter of Credit                                |
|    |                                                                 |
| KY | 3% Letters of Credit (LOC's)                                    |
|    |                                                                 |
| NM | 15% LOC's, CD's and Cash                                        |
|    |                                                                 |
| OH | 42% LOC's                                                       |
|    |                                                                 |
| OK | 1% LOC's                                                        |
|    |                                                                 |
| PA | 0.5% Irrevocable LOC's                                          |
|    |                                                                 |
| VA | 10% State Financial Guarantees (Remining Incentive & Conversion |
|    |                                                                 |
| WV | Assistance).                                                    |
|    |                                                                 |
|    | 3.07% LOC's, Cash, CD's, Actual Cost Bond -- 42.80%             |
|    |                                                                 |
|    | 2% LOC's                                                        |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 5) |                                                                 |
| *W |                                                                 |
| ha |                                                                 |
| t, |                                                                 |
| if |                                                                 |
| an |                                                                 |
| y, |                                                                 |
| a  |                                                                 |
| dj |                                                                 |
| us |                                                                 |
| tm |                                                                 |
| en |                                                                 |
| ts |                                                                 |
| ha |                                                                 |
| ve |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| ma |                                                                 |
| de |                                                                 |
| to |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| bo |                                                                 |
| nd |                                                                 |
| c  |                                                                 |
| al |                                                                 |
| cu |                                                                 |
| la |                                                                 |
| ti |                                                                 |
| on |                                                                 |
| me |                                                                 |
| th |                                                                 |
| od |                                                                 |
| ol |                                                                 |
| og |                                                                 |
| y? |                                                                 |
| If |                                                                 |
| n  |                                                                 |
| on |                                                                 |
| e, |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| fa |                                                                 |
| ci |                                                                 |
| ng |                                                                 |
| a  |                                                                 |
| ny |                                                                 |
| pa |                                                                 |
| rt |                                                                 |
| ic |                                                                 |
| ul |                                                                 |
| ar |                                                                 |
| ch |                                                                 |
| al |                                                                 |
| le |                                                                 |
| ng |                                                                 |
| es |                                                                 |
| wi |                                                                 |
| th |                                                                 |
| re |                                                                 |
| ga |                                                                 |
| rd |                                                                 |
| to |                                                                 |
| th |                                                                 |
| is |                                                                 |
| ma |                                                                 |
| tt |                                                                 |
| er |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Periodic adjustments of cost factors due to inflation.          |
| te |                                                                 |
| ** | None. No.                                                       |
|    |                                                                 |
| AL | None. See response to \# 2.                                     |
|    |                                                                 |
| AR | None. No.                                                       |
|    |                                                                 |
| CO | None. No.                                                       |
|    |                                                                 |
| IL | Kentucky requires the submittal of supplement bonds in          |
|    | situations of extending contemporaneous reclamation relative to |
| IN | highwall backfilling and grading. This instrument, termed       |
|    | "supplemental assurance" assesses an additional bond            |
| KY | requirement of \$50,000 per 1,500 linear feet of highwall       |
|    | extending beyond the allowed initial 1,500 feet of exposed      |
| MD | highwall.                                                       |
|    |                                                                 |
| ND | As indicated in \# 1 above, we are considering a calculation    |
|    | method based on the total void of the pit(s) when liability     |
| NM | would be the greatest. This method will provide a figure of the |
|    | total cubic yards of material that would have to be moved to    |
| OH | reclaim. We would likely still bond support area and            |
|    | revegetation at a flat per acre rate based on our AML           |
| OK | reclamation cost experiences.                                   |
|    |                                                                 |
|    | In 1985, North Dakota adopted procedures and guidelines for     |
|    | calculating the worst-case reclamation condition for a permit   |
|    | area or mine. The variable costs associated with these          |
|    | guidelines are updated each year by the Reclamation Division    |
|    | and sent to the mining companies. If hourly rates increase more |
|    | than a couple percent in a given year, we require companies to  |
|    | increase the bond amount. Also, if more than one permit is      |
|    | issued for a particular mine, we allow a bond area to include   |
|    | more than one permit at a time.                                 |
|    |                                                                 |
|    | Based on questions raised by one of the large mining companies  |
|    | in the state, we are presently reviewing the methods we use to  |
|    | calculate hourly equipment rates. However, it does not appear   |
|    | we will be making any significant changes to the methods used   |
|    | for calculating the hourly rates for the types of equipment     |
|    | that would be used to reclaim a mine in the event of bond       |
|    | forfeiture.                                                     |
|    |                                                                 |
|    | None. No.                                                       |
|    |                                                                 |
|    | None. No changes have been made to the calculation method       |
|    | because the bond rate is flat \$2500 per acre set by the        |
|    | legislature.                                                    |
|    |                                                                 |
|    | None, other than keeping up with current equipment operating    |
|    | costs.                                                          |
+----+-----------------------------------------------------------------+
| PA | Pennsylvania assesses its Bond Rate Guidelines annually based   |
|    | on the prior year's reclamation contract amounts. Changes in    |
| TX | the reclamation contract amounts affects the Bond Rate          |
|    | Guidelines. Some items have increased.                          |
| UT |                                                                 |
|    | No adjustments have been made to our bond calculation           |
| VA | methodology. However, one of our calculation methods, the       |
|    | "worst case pit" bonding method, presents the following         |
| WV | challenges:                                                     |
|    |                                                                 |
|    | requires detailed reclamation cost accounting, not flexible to  |
|    | mine plan changes and when major compliance issues arise may    |
|    | result in inadequate bond amounts, until adjusted.              |
|    |                                                                 |
|    | Utah has a prescribed reclamation cost estimate methodology.    |
|    | The bond calculations are reviewed at least at the permit       |
|    | midterm and escalated for five years. Bond re-calculations are  |
|    | done when there is a need, such as adding a new surface         |
|    | facility.                                                       |
|    |                                                                 |
|    | The escalation factor was recently revised -- i.e. the          |
|    | Historical Cost Index. The revision entails reviewing           |
|    | "reclamation only" historical costs from the Means Historical   |
|    | Cost Index.                                                     |
|    |                                                                 |
|    | None                                                            |
|    |                                                                 |
|    | The tax used to supplement the Special Reclamation Fund was     |
|    | increased to provide funding for the inventory of post 1977     |
|    | revoked sites.                                                  |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 6) |                                                                 |
| *  |                                                                 |
| Wi |                                                                 |
| th |                                                                 |
| re |                                                                 |
| ga |                                                                 |
| rd |                                                                 |
| to |                                                                 |
| bo |                                                                 |
| nd |                                                                 |
| re |                                                                 |
| le |                                                                 |
| as |                                                                 |
| e, |                                                                 |
| wh |                                                                 |
| at |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| pa |                                                                 |
| rt |                                                                 |
| ic |                                                                 |
| ul |                                                                 |
| ar |                                                                 |
| ch |                                                                 |
| al |                                                                 |
| le |                                                                 |
| ng |                                                                 |
| es |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| fa |                                                                 |
| ci |                                                                 |
| ng |                                                                 |
| in |                                                                 |
| th |                                                                 |
| is |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| a? |                                                                 |
| Ha |                                                                 |
| ve |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| d  |                                                                 |
| ev |                                                                 |
| el |                                                                 |
| op |                                                                 |
| ed |                                                                 |
| a  |                                                                 |
| ny |                                                                 |
| ty |                                                                 |
| pe |                                                                 |
| of |                                                                 |
| gu |                                                                 |
| id |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| on |                                                                 |
| th |                                                                 |
| is |                                                                 |
| t  |                                                                 |
| op |                                                                 |
| ic |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | None                                                            |
| te |                                                                 |
| ** | None. No.                                                       |
|    |                                                                 |
| AL | Bond release proceeds without difficulty. Act/Regs, and we have |
|    | a Bond Release Guidelines.                                      |
| AR |                                                                 |
|    | None                                                            |
| CO |                                                                 |
|    | Indiana has had a standardized process for all Phases of bond   |
| IL | release for a number of years and terminated jurisdiction on    |
|    | nearly 9,000 acres in 2004.                                     |
| IN |                                                                 |
|    | Kentucky is not encountering any real or unusual challenges     |
| KY | relative to bond release. We have a standardized bond release   |
|    | process that has been established in a guidance document.       |
| MD |                                                                 |
|    | We have not experienced any difficulties in this area.          |
+----+-----------------------------------------------------------------+
| ND | Since we allow the bond amount to be set based on the           |
|    | worst-case reclamation condition, we have not been receiving    |
| NM | all that many bond release applications for reclaimed lands at  |
|    | the active mines. Hardly any partial bond release applications  |
| OH | are filed and final bond release is delayed until a larger      |
|    | tract, such as an entire quarter section, is eligible for       |
| OK | release. Partial bond release for inactive mines is more        |
|    | common.                                                         |
| PA |                                                                 |
|    | Following a legislative study on bond release in North Dakota,  |
| TX | a few of the notice requirements associated with bond release   |
|    | applications were eliminated from the state reclamation law to  |
| UT | encourage companies to file more bond releases.                 |
|    |                                                                 |
| VA | Bond releases have been managed smoothly with few problems. The |
|    | biggest challenge has been meeting vegetation standards during  |
| WV | years of little or no precipitation. Several years ago, New     |
|    | Mexico developed flexible criteria for revegetation success     |
|    | that has aided some mines in reaching final bond release        |
|    | despite drought years. NM Faces some frustration, however, with |
|    | persuading companies to come in for bond releases when they are |
|    | eligible. If they have corporate guarantees or self-bonds, they |
|    | have little incentive to do so.                                 |
|    |                                                                 |
|    | Current challenges are related to adverse water quality issues  |
|    | on reclaimed sites. Ohio has included in regulation the         |
|    | requirement for operators to "take all measures necessary to    |
|    | obtain a bond release on sites". This includes the requirements |
|    | to submit necessary release paperwork. This allows the required |
|    | submission of bond release documents that previously would lag  |
|    | behind the actual reclamation work. Ohio has procedural         |
|    | directives.                                                     |
|    |                                                                 |
|    | We have bond release guidelines that have been used in Oklahoma |
|    | for about 10 years.                                             |
|    |                                                                 |
|    | Nothing new.                                                    |
|    |                                                                 |
|    | Some permittees with self bonds and/or using the "worst case    |
|    | pit" bonding method have become apathetic towards seeking       |
|    | reclamation bond releases because there is no monetary          |
|    | incentive in doing so. To overcome this situation, we have      |
|    | (since about 5 years ago), required that the submission of bond |
|    | release applications be made part of the reclamation plan       |
|    | timetable, which is a condition of the approved mining permit.  |
|    | This allows failure to submit bond release applications within  |
|    | specified time frames to become a violation of the permit.      |
|    |                                                                 |
|    | More recently, we revised our annual permit fee structure to    |
|    | include an annual fee of \$3.00 for each acre bonded on         |
|    | December 31^st^ of each year. It is our goal to gradually shift |
|    | all of the annual mined acreage fee collections to this bonded  |
|    | acreage fee, thereby creating an incentive for mining companies |
|    | to more aggressively seek release of reclamation bond.          |
|    |                                                                 |
|    | Utah has a guidance document for bond releases.                 |
|    |                                                                 |
|    | Getting permittees to submit bond release requests. VA has      |
|    | developed a guidance document.                                  |
|    |                                                                 |
|    | One challenge to bond release is the circumstances where land   |
|    | reclamation is completed but ongoing water treatment            |
|    | obligations preclude release. The agency is exploring and in    |
|    | some instances utilizing escrow accounts or other financial     |
|    | assurance mechanisms to address compliance with Clean Water Act |
|    | requirements in efforts to release the SMCRA reclamation bond.  |
|    | Vegetative cover and capability of meeting post mining land use |
|    | continue to be issues.                                          |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 7) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| t  |                                                                 |
| yp |                                                                 |
| es |                                                                 |
| of |                                                                 |
| in |                                                                 |
| no |                                                                 |
| va |                                                                 |
| ti |                                                                 |
| ve |                                                                 |
| ap |                                                                 |
| pr |                                                                 |
| oa |                                                                 |
| ch |                                                                 |
| es |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| u  |                                                                 |
| nd |                                                                 |
| er |                                                                 |
| ta |                                                                 |
| ki |                                                                 |
| ng |                                                                 |
| in |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| ar |                                                                 |
| ea |                                                                 |
| of |                                                                 |
| r  |                                                                 |
| ec |                                                                 |
| la |                                                                 |
| ma |                                                                 |
| ti |                                                                 |
| on |                                                                 |
| b  |                                                                 |
| on |                                                                 |
| di |                                                                 |
| ng |                                                                 |
| (  |                                                                 |
| i. |                                                                 |
| e. |                                                                 |
| s  |                                                                 |
| eg |                                                                 |
| re |                                                                 |
| ga |                                                                 |
| ti |                                                                 |
| ng |                                                                 |
| o  |                                                                 |
| bl |                                                                 |
| ig |                                                                 |
| at |                                                                 |
| io |                                                                 |
| ns |                                                                 |
| (s |                                                                 |
| ho |                                                                 |
| rt |                                                                 |
| v. |                                                                 |
| lo |                                                                 |
| ng |                                                                 |
| te |                                                                 |
| rm |                                                                 |
| ); |                                                                 |
| u  |                                                                 |
| se |                                                                 |
| of |                                                                 |
| mu |                                                                 |
| lt |                                                                 |
| ip |                                                                 |
| le |                                                                 |
| in |                                                                 |
| st |                                                                 |
| ru |                                                                 |
| me |                                                                 |
| nt |                                                                 |
| s; |                                                                 |
| ma |                                                                 |
| tc |                                                                 |
| hi |                                                                 |
| ng |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| l  |                                                                 |
| ev |                                                                 |
| el |                                                                 |
| of |                                                                 |
| ri |                                                                 |
| sk |                                                                 |
| to |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| a  |                                                                 |
| pp |                                                                 |
| ro |                                                                 |
| pr |                                                                 |
| ia |                                                                 |
| te |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| ss |                                                                 |
| ur |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| ve |                                                                 |
| hi |                                                                 |
| cl |                                                                 |
| e) |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | None                                                            |
| te |                                                                 |
| ** | None                                                            |
|    |                                                                 |
| AL | See above responses. Standard bonding is used in Colorado.      |
|    |                                                                 |
| AR | None. However, a permittee is free to post any combination of   |
|    | bonding instruments.The Indiana Bond Pool is a mixing of        |
| CO | multiple instruments. Other multiple instruments are always     |
|    | available to utilize should the permittee wish to do so.        |
| IL |                                                                 |
|    | None. However, Kentucky is examining the possibility of         |
| IN | creating Trust Funds as an option to managing long-term AMD     |
|    | problems.                                                       |
| KY |                                                                 |
|    | See \# 1 and \# 5.                                              |
| MD |                                                                 |
|    | None                                                            |
| NM |                                                                 |
|    | North Dakota only allows self-bonds to cover up to 90% of the   |
| ND | reclamation liability at a particular mine. The other 10% must  |
|    | be in the form of a surety or collateral bond. We assume it     |
| OH | will take a long time to collect on a self-bond and funds from  |
|    | the 10% surety or collateral bond should be more readily        |
| OK | available to address short-term reclamation and environmental   |
|    | issues in the event of forfeiture.                              |
| PA |                                                                 |
|    | Ohio attempted to establish a system where the cost of Phase I  |
| TX | was covered by full cost bonding and Phase II and III was       |
|    | covered by a bond pool The industry would not accept the        |
| UT | system.                                                         |
|    |                                                                 |
| VA | None                                                            |
|    |                                                                 |
| WV | The most recent innovation is the development of a "blanket     |
|    | bond" that an operator could elect to use to cover all of the   |
|    | operator's permitted surface coal mines.                        |
|    |                                                                 |
|    | None                                                            |
|    |                                                                 |
|    | Utah is willing to discuss reclamation bonding issues as they   |
|    | arise and advise permittees that multiple instruments, for      |
|    | example, are acceptable.                                        |
|    |                                                                 |
|    | None                                                            |
|    |                                                                 |
|    | The agency examines the capability of a transferee to assume    |
|    | long-term environmental liabilities. In some instances if the   |
|    | transferee appears to lack the capability, escrow accounts to   |
|    | assure satisfaction of the long term environmental liabilities  |
|    | are established.                                                |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 8) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| p  |                                                                 |
| ro |                                                                 |
| te |                                                                 |
| ct |                                                                 |
| io |                                                                 |
| ns |                                                                 |
| h  |                                                                 |
| as |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| s  |                                                                 |
| ta |                                                                 |
| te |                                                                 |
| e  |                                                                 |
| na |                                                                 |
| ct |                                                                 |
| ed |                                                                 |
| or |                                                                 |
| a  |                                                                 |
| do |                                                                 |
| pt |                                                                 |
| ed |                                                                 |
| to |                                                                 |
| a  |                                                                 |
| vo |                                                                 |
| id |                                                                 |
| ba |                                                                 |
| nk |                                                                 |
| ru |                                                                 |
| pt |                                                                 |
| cy |                                                                 |
| su |                                                                 |
| re |                                                                 |
| ty |                                                                 |
| pr |                                                                 |
| ob |                                                                 |
| le |                                                                 |
| ms |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | None                                                            |
| te |                                                                 |
| ** | None                                                            |
|    |                                                                 |
| AL | Both bond amounts and instrument efficacy are monitored         |
|    | frequently. Financial notices are monitored. Dialogue           |
| AR | maintained with permittee.                                      |
|    |                                                                 |
| CO | None. Action would be through the Illinois Department of        |
|    | Insurance.                                                      |
| IL |                                                                 |
|    | Sureties must be recognized by the Treasurer of Indiana as      |
| IN | holding a certificate of authority from the United States       |
|    | Department of Treasury as an acceptable surety on federal       |
| KY | bonds.                                                          |
|    |                                                                 |
| MD | AM Best for ratings. Also Kentucky Department of Insurance      |
|    | provides notification to the department when a surety's ratings |
| NM | drop to a level that necessitates bond replacement.             |
|    |                                                                 |
| ND | We've not adopted any policy on this matter. To date, it has    |
|    | not been a problem in Maryland. However it is something that    |
| OH | should be reviewed and consideration given to how other states  |
|    | are addressing this matter.                                     |
| OK |                                                                 |
|    | None                                                            |
| PA |                                                                 |
|    | No special provisions have been adopted by the coal regulatory  |
| TX | authority. We rely on the State Insurance Department to take    |
|    | steps to avoid these types of problems.                         |
| UT |                                                                 |
|    | None                                                            |
| VA |                                                                 |
|    | None                                                            |
|    |                                                                 |
|    | None                                                            |
|    |                                                                 |
|    | None                                                            |
|    |                                                                 |
|    | Utah now requires that surety bonds must have an A.M. Best's    |
|    | Key Rating Guide rating of A- or greater. All surety companies  |
|    | must be continuously listed on the U.S. Department of Treasury  |
|    | Circular 570.                                                   |
|    |                                                                 |
|    | The VA DMME has formed a bond forfeiture review team. When a    |
|    | site appears to b in the initial stages of possible bond        |
|    | forfeiture, the review team conducts a site visit to gather     |
|    | information about the causes of the possible forfeiture and     |
|    | explores ideals of how to help the operator avoid bond          |
|    | forfeiture.                                                     |
+----+-----------------------------------------------------------------+
| WV | The Special Reclamation Fund finances the reclamation at        |
|    | revoked permit sites. The SRF is funded by bond forfeitures,    |
|    | civil penalties and tax on tonnage. At a revoked site covered   |
|    | by a "bankrupt surety", as with all revoked sites, the SRF      |
|    | funds the reclamation work at these sites. The WVDEP is         |
|    | authorized to seek recovery of reclamation costs in excess of   |
|    | the bond amount collected from the permittee or other           |
|    | responsible party.                                              |
+----+-----------------------------------------------------------------+

***State Contacts Submitting Responses:***

**Alabama**

Randall Johnson

Phone: 205-331-4130

randy.johnson@asmc.alabama.gov

**Arkansas**

James F. Stephens

Phone: 501-682-0807

stephens@adeq.state.ar.us

**Colorado**

David Berry

Phone: 303-866-4938

david.berry@state.co.us

**Illinois**

Scott Fowler

Phone: 217-782-4970

sfowler@dnrmail.state.il.us

**Indiana**

Bruce Stevens

Phone: 812-665-2207

bstevens@dnr.in.gov

**Kentucky**

Paul Ehret

Phone: 502-564-2320

paul.ehret@ky.gov

**Maryland**

John Carey

Phone: 301-689-6764, x206

jcarey@allconet.org

**North Dakota**

Jim Deutsch

Phone: 701-328-2251

jdeutsch@state.nd.us

**New Mexico**

Bill Brancard

Phone: 505-476-3405

bill.brancard@state.nm.us

**Ohio**

Tom Hines and Bonding Staff

Phone: 614-265-1047

Tom.Hines@dnr.state.oh.us

**Oklahoma**

Rick Bullard and Rhonda Dossett

Phone: (Rick) 405-427-3859, x47; (Rhonda) 918-485-3999

Rick.Bullard@mines.state.ok.us / rhondadossett@valornet.com

**Pennsylvania**

Joe Pizarchik

Phone: 717-787-5015

jpizarchik@state.pa.us

**Texas**

Melvin B. Hodgkiss

Phone: 512-463-6901

melvin.hodgkiss@rrc.state.tx.us

**Utah**

Pamela Grubaugh-Littig

Phone: 801-538-5268

pamgrubaughlittig@utah.gov

**Virginia**

Butch Lambert

Phone: 276-523-8286

butch.lambert@dmme.virginia.gov

**West Virginia**

Russ Hunter

Phone: 304-926-0490 or (direct dial) 304-926-0499, x1537

**Noncoal Regulatory Programs**

**State Survey Responses**

+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 1) |                                                                 |
| *  |                                                                 |
| Do |                                                                 |
| es |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| s  |                                                                 |
| ta |                                                                 |
| te |                                                                 |
| ha |                                                                 |
| ve |                                                                 |
| a  |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| ss |                                                                 |
| ur |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| r  |                                                                 |
| eq |                                                                 |
| ui |                                                                 |
| re |                                                                 |
| me |                                                                 |
| nt |                                                                 |
| f  |                                                                 |
| or |                                                                 |
| n  |                                                                 |
| on |                                                                 |
| co |                                                                 |
| al |                                                                 |
| mi |                                                                 |
| ni |                                                                 |
| ng |                                                                 |
| a  |                                                                 |
| nd |                                                                 |
| re |                                                                 |
| cl |                                                                 |
| am |                                                                 |
| at |                                                                 |
| io |                                                                 |
| n? |                                                                 |
| *  |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Yes                                                             |
| te |                                                                 |
| ** | Yes                                                             |
|    |                                                                 |
| AL | Yes                                                             |
|    |                                                                 |
| AR | Yes                                                             |
|    |                                                                 |
| CO | Yes                                                             |
|    |                                                                 |
| KY | Yes                                                             |
|    |                                                                 |
| MD | Yes, financial security is required before any permit can be    |
|    | issued. The requirement can be found in 23-2715 of              |
| NM | Environmental Conservation Law, Article 23, Title 27 -- NYS     |
|    | Mined Land Reclamation Law.                                     |
| NY |                                                                 |
|    | Yes                                                             |
| NC |                                                                 |
|    | Currently, other than sand and gravel mining, there is no       |
| ND | significant noncoal mining in North Dakota. Although there is a |
|    | general state law that requires sand and gravel pits to be      |
| OH | reclaimed following a reclamation plan agreed to by the         |
|    | landowner, these mines do not have to be permitted or bonded.   |
| OK |                                                                 |
|    | Yes, currently it is a flat \$1,000/acre but legislation is     |
| PA | proposed to reduce it to \$500/acre and establish a bond pool   |
|    | for the balance based upon a severance tax contribution.        |
| UT |                                                                 |
|    | Yes                                                             |
|    |                                                                 |
|    | Yes, full cost bonding.                                         |
|    |                                                                 |
|    | Yes. The "Utah Mined Land Reclamation Act" was passed in 1975   |
|    | and required the reclamation of mining operations. Reclamation  |
|    | bonds were required for large mining operations but not for the |
|    | small mines (less than 5 acres of disturbance). The act was     |
|    | amended by the 2003 Legislature to require all mining           |
|    | operations to furnish reasonable surety to guarantee that the   |
|    | land affected is reclaimed. Rules have also been put in place   |
|    | (effective February 23, 2006) that require all large mines,     |
|    | small mines and exploration projects to post a reclamation      |
|    | surety with the Division prior to commencement of operations.   |
|    | Since these are new rules, we are still in the process of       |
|    | getting bonds on many of the smaller mines.                     |
+----+-----------------------------------------------------------------+
| VA | Yes                                                             |
|    |                                                                 |
| WV | Yes. West Virginia has a financial assurance requirement for    |
|    | noncoal mining and reclamation. For operations with less than 5 |
|    | years without a serious violation under previous WV mining      |
|    | laws, the operator shall post a bond. For operations with more  |
|    | than 5 years without a serious violation under previous WV      |
|    | mining laws, the operator is required to enter into the Bond    |
|    | Pooling Fund.                                                   |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 2) |                                                                 |
| *  |                                                                 |
| If |                                                                 |
| s  |                                                                 |
| o, |                                                                 |
| wh |                                                                 |
| at |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| as |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| c  |                                                                 |
| ov |                                                                 |
| er |                                                                 |
| ed |                                                                 |
| by |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| r  |                                                                 |
| eq |                                                                 |
| ui |                                                                 |
| re |                                                                 |
| me |                                                                 |
| nt |                                                                 |
| (  |                                                                 |
| i. |                                                                 |
| e. |                                                                 |
| en |                                                                 |
| ti |                                                                 |
| re |                                                                 |
| pe |                                                                 |
| rm |                                                                 |
| it |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| a; |                                                                 |
| pr |                                                                 |
| op |                                                                 |
| os |                                                                 |
| ed |                                                                 |
| af |                                                                 |
| fe |                                                                 |
| ct |                                                                 |
| ed |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| a; |                                                                 |
| ha |                                                                 |
| ul |                                                                 |
| ro |                                                                 |
| ad |                                                                 |
| s; |                                                                 |
| pr |                                                                 |
| oc |                                                                 |
| es |                                                                 |
| si |                                                                 |
| ng |                                                                 |
| or |                                                                 |
| s  |                                                                 |
| to |                                                                 |
| ck |                                                                 |
| pi |                                                                 |
| le |                                                                 |
| ar |                                                                 |
| ea |                                                                 |
| s) |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Affected area (excluding haul roads and including processing    |
| te | and stockpiles).                                                |
| ** |                                                                 |
|    | Proposed 5 year affected area, haul roads, and both processing  |
| AL | and stockpile areas.                                            |
|    |                                                                 |
| AR | All disturbed areas including demolition, backfill/grading,     |
|    | waste pile reclamation, heap detox, growth medium application,  |
| CO | revegetation. (Generally not water treatment.)                  |
|    |                                                                 |
| KY | Entire permit area.                                             |
|    |                                                                 |
| MD | Affected lands which would include mining areas and all other   |
|    | lands affected by or incidental to the mining operation.        |
| NM |                                                                 |
|    | Entire permit area.                                             |
| NY |                                                                 |
|    | All areas that will be affected by mining and require           |
| NC | reclamation. This includes haul roads, processing areas,        |
|    | stockpile areas, etc.                                           |
| OH |                                                                 |
|    | Total proposed affected area.                                   |
| OK |                                                                 |
|    | Acres proposed to be affected. Ohio does not have regulatory    |
| PA | jurisdiction over processing or stockpile areas. Jurisdiction   |
|    | over roads varies depending on how it is used.                  |
| UT |                                                                 |
|    | The entire permit area.                                         |
|    |                                                                 |
|    | The permit area is covered.                                     |
|    |                                                                 |
|    | The areas covered by the reclamation surety include:            |
|    |                                                                 |
|    | -   All surface and subsurface areas affected or to be affected |
|    |     by the mining operations including but not limited to       |
|    |     private on-site ways, roads, railroads; land excavations;   |
|    |     drill sites and workings; refuse banks or spoil piles;      |
|    |     evaporation or settling ponds; stockpiles; leaching dumps;  |
|    |     placer areas; tailings ponds or dumps; work, parking,       |
|    |     storage, and waste discharge areas.                         |
|    |                                                                 |
|    | -   All mining disturbances regardless of discrepancies in the  |
|    |     map and legal description, unless explicitly and clearly    |
|    |     identified as EXCLUDED on maps, and legal descriptions      |
|    |     included in the approved NOI.                               |
+----+-----------------------------------------------------------------+
| VA | All areas currently affected by the operation, plus an estimate |
|    | of the additional area to be disturbed in the next year.        |
| TX |                                                                 |
|    | The availability of surety bonds.                               |
| WV |                                                                 |
|    | Bond or contribution to the Bond Pooling Fund is posted for     |
|    | disturbed acres and the estimated number of acres to be         |
|    | disturbed in the upcoming year. The financial assurance covers  |
|    | the mining area, preparation and processing areas, storage      |
|    | areas, haulroads, roads, trails, drainage structures and spoil  |
|    | areas.                                                          |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 3) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| t  |                                                                 |
| yp |                                                                 |
| es |                                                                 |
| of |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| as |                                                                 |
| su |                                                                 |
| ra |                                                                 |
| nc |                                                                 |
| e, |                                                                 |
| if |                                                                 |
| an |                                                                 |
| y, |                                                                 |
| do |                                                                 |
| es |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| s  |                                                                 |
| ta |                                                                 |
| te |                                                                 |
| r  |                                                                 |
| eq |                                                                 |
| ui |                                                                 |
| re |                                                                 |
| f  |                                                                 |
| or |                                                                 |
| mi |                                                                 |
| ni |                                                                 |
| ng |                                                                 |
| r  |                                                                 |
| ec |                                                                 |
| la |                                                                 |
| ma |                                                                 |
| ti |                                                                 |
| on |                                                                 |
| o  |                                                                 |
| bl |                                                                 |
| ig |                                                                 |
| at |                                                                 |
| io |                                                                 |
| ns |                                                                 |
| a  |                                                                 |
| nd |                                                                 |
| wh |                                                                 |
| at |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| re |                                                                 |
| la |                                                                 |
| ti |                                                                 |
| ve |                                                                 |
| p  |                                                                 |
| er |                                                                 |
| ce |                                                                 |
| nt |                                                                 |
| ag |                                                                 |
| es |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | **Traditional Surety Bonds:**                                   |
| te |                                                                 |
| ** | 60%                                                             |
|    |                                                                 |
| AL | 83.3%                                                           |
|    |                                                                 |
| AR | 51%                                                             |
|    |                                                                 |
| CO | 50%                                                             |
|    |                                                                 |
| KY | 40%                                                             |
|    |                                                                 |
| MD | Yes, 9.6%                                                       |
|    |                                                                 |
| NM | 48%                                                             |
|    |                                                                 |
| NY | Yes, \~20%                                                      |
|    |                                                                 |
| NC | 40% (Est.)                                                      |
|    |                                                                 |
| OH | 89%                                                             |
|    |                                                                 |
| OK | 77%                                                             |
|    |                                                                 |
| PA | Yes. 24% of the number of reclamation bonds currently held are  |
|    | sureties. This represents 76% of the total dollar amount held   |
| UT | in reclamation bonds.                                           |
|    |                                                                 |
| VA | 2%                                                              |
|    |                                                                 |
| WV | Yes                                                             |
+----+-----------------------------------------------------------------+
| AL | **Collateral:** **Please Designate:**                           |
|    |                                                                 |
| AR | ***Cash or Cash Equivalents (Cash or CE);***                    |
|    |                                                                 |
| CO | ***Investment-Grade Rated Securities (Invest.);***              |
|    |                                                                 |
| KY | ***Interests in Real or Personal Property (Property);***        |
|    |                                                                 |
| MD | ***Water Rights (Water)***                                      |
|    |                                                                 |
| NM | 40% 38% Cash or CE; 2% Invest.                                  |
|    |                                                                 |
| NY | 3.1% 3.1% Cash or CE.                                           |
|    |                                                                 |
| OH | 27% 20% Certificates of Deposit (CD's), 7% Cash; One Permit     |
|    | Invest.;                                                        |
| OK |                                                                 |
|    | 0% Property; One Permit Water.                                  |
| PA |                                                                 |
|    | 25% Cash or CE.                                                 |
| UT |                                                                 |
|    | 42% Letters of Credit (LOC's) from a Bank. 18% Cash or CE.      |
| VA |                                                                 |
|    | Yes, 11.9% 7.4% Cash or CE; 4.5% Property; 0% Water; (No to     |
| WV | Invest.).                                                       |
|    |                                                                 |
| OH | 48% Traditional Surety Bonds; 26% CD's; 26% LOC's;              |
|    |                                                                 |
| VA | .02% Certified Bank Check; .006% Cash.                          |
|    |                                                                 |
| WV | 40% (Est.) Cash or CE.                                          |
|    |                                                                 |
|    | 10% 1% Cash or CE.                                              |
|    |                                                                 |
|    | 22% 4% CD's, Cash; 18% LOC's.                                   |
|    |                                                                 |
|    | Yes Cash or CE. The Division holds Cash, Cd's, LOC's and an     |
|    | Escrow                                                          |
|    |                                                                 |
|    | Account. Approximately 64% of the number of bonds fits this     |
|    |                                                                 |
|    | category. This represents about 14.32% of the total dollar amt. |
|    | held.                                                           |
|    |                                                                 |
|    | 2% 2% Cash or CE.                                               |
|    |                                                                 |
|    | Yes Cash or CE.                                                 |
|    |                                                                 |
|    | **Bond Pools:**                                                 |
|    |                                                                 |
|    | The aggregate/industrial mineral program does not have a        |
|    | dedicated bond pool. However, severance taxes are transferred   |
|    | to a bond pool account on an annual basis that are used to      |
|    | reclaim both coal and noncoal forfeiture sites.                 |
|    |                                                                 |
|    | 96%                                                             |
|    |                                                                 |
|    | Yes                                                             |
+----+-----------------------------------------------------------------+
| NM | **Trust Fumds:**                                                |
|    |                                                                 |
| CO | Yes, 13.4%                                                      |
|    |                                                                 |
| NM | **Corporate Guarantees:** **Please Designate --**               |
|    |                                                                 |
| NC | ***Self Bonds***: ***Parent Guarantees: 3^rd^-Party             |
|    | Guarantees:***                                                  |
| UT |                                                                 |
|    | 1% 1%                                                           |
| AR |                                                                 |
|    | Yes, 65.1% 65.1%                                                |
| CO |                                                                 |
|    | Yes \~\<1% Bank Guarantees                                      |
| NM |                                                                 |
|    | Yes                                                             |
| NC |                                                                 |
|    | **Other:** **Please Specify:**                                  |
| OH |                                                                 |
|    | 13.6% Irrevocable Letter of Credit                              |
| PA |                                                                 |
|    | 21% Letters of Credit                                           |
| WV |                                                                 |
|    | Yes Insurance (0%)                                              |
|    |                                                                 |
|    | Yes Assignment of Savings Account/Certificate of Deposit        |
|    | (\~50%)                                                         |
|    |                                                                 |
|    | And Irrevocable Standby Letters of Credit (\~30%)               |
|    |                                                                 |
|    | 20% (Est.) Letters of Credit                                    |
|    |                                                                 |
|    | \<.01% Payment in lieu of bond, aka state bonding.              |
|    |                                                                 |
|    | Yes General obligation bonds of the state, and of any county or |
|    |                                                                 |
|    | municipality, Certificates of Deposit, Escrow Accounts.         |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 4) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| is |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| am |                                                                 |
| ou |                                                                 |
| nt |                                                                 |
| p  |                                                                 |
| er |                                                                 |
| ac |                                                                 |
| re |                                                                 |
| re |                                                                 |
| qu |                                                                 |
| ir |                                                                 |
| ed |                                                                 |
| u  |                                                                 |
| nd |                                                                 |
| er |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| ss |                                                                 |
| ur |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| pr |                                                                 |
| oc |                                                                 |
| ed |                                                                 |
| ur |                                                                 |
| e? |                                                                 |
| (  |                                                                 |
| If |                                                                 |
| a  |                                                                 |
| ra |                                                                 |
| te |                                                                 |
| s  |                                                                 |
| tr |                                                                 |
| uc |                                                                 |
| tu |                                                                 |
| re |                                                                 |
| ap |                                                                 |
| pl |                                                                 |
| ie |                                                                 |
| s, |                                                                 |
| pl |                                                                 |
| ea |                                                                 |
| se |                                                                 |
| sp |                                                                 |
| ec |                                                                 |
| if |                                                                 |
| y. |                                                                 |
| )* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | A flat rate of \$2,500 per acre.                                |
| te |                                                                 |
| ** | We have a list of cost factors to be used to calculate the bond |
|    | (attached).                                                     |
| AL |                                                                 |
|    | Bonds are calculated on a task-by-task basis using industry     |
| AR | standard cost estimating methodologies, as with coal permits.   |
|    |                                                                 |
| CO | \$100 - \$500 per acre (usually \$500 per acre).                |
|    |                                                                 |
| KY | \$1,250 per acre.                                               |
|    |                                                                 |
| MD |                                                                 |
+----+-----------------------------------------------------------------+
| NM | We do not use a per acre calculation. The amount of financial   |
|    | assurance must be sufficient to assure that the approved        |
| NY | reclamation plan can be completed by the State or a third party |
|    | contractor.                                                     |
| NC |                                                                 |
|    | Minimum of \$5,000 per acre. No specified amount in law or      |
| OH | regulations, depends on geology, geography, type of mining and  |
|    | reclamation. Recently raised from \$3,000 per acre.             |
| OK |                                                                 |
|    | See attached bond calculation worksheet and schedule of costs.  |
| PA |                                                                 |
|    | \$10,000 minimum bond plus \$1,000/acre for new acres. Old      |
| UT | acres are @ \$500/acre with a \$2,000 minimum bond.             |
|    |                                                                 |
| VA | \$500 to \$1,000 per acre, based on the type of mineral mined.  |
|    |                                                                 |
| WV | The estimated full cost of completing the reclamation.          |
|    |                                                                 |
|    | The amount per acre required by our program varies with each    |
|    | plan. The bond is a reflection of amount of work required to    |
|    | reclaim the site to the level of the approved reclamation plan. |
|    |                                                                 |
|    | \$1,000 per acre surety bond or other financial guarantee (cash |
|    | or CD). Then, mandatory participation in the bond pool after 5  |
|    | years of successful operations in the state. \$50 per acre      |
|    | initial payment into the bond pool for each acre estimated to   |
|    | be affected in the next year. \$12.50 per affected acre for     |
|    | each year thereafter until the total payment per acre reaches   |
|    | \$500. The payments are fully refundable on release.            |
|    |                                                                 |
|    | For bonds, the minimum is \$1,000 per acre, with a total        |
|    | minimum of \$10,000 per permit. For contributors to the Bond    |
|    | Pooling Fund, the initial contribution is \$50 per acre and an  |
|    | additional \$12.50 per acre thereafter until a total of \$1,000 |
|    | is posted. Bond or contribution to the Bond Pooling Fund is     |
|    | posted for disturbed acres and the estimated number of acres to |
|    | be disturbed in the upcoming year.                              |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 5) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| t  |                                                                 |
| yp |                                                                 |
| es |                                                                 |
| of |                                                                 |
| c  |                                                                 |
| al |                                                                 |
| cu |                                                                 |
| la |                                                                 |
| ti |                                                                 |
| on |                                                                 |
| m  |                                                                 |
| et |                                                                 |
| ho |                                                                 |
| do |                                                                 |
| lo |                                                                 |
| gi |                                                                 |
| es |                                                                 |
| do |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| em |                                                                 |
| pl |                                                                 |
| oy |                                                                 |
| f  |                                                                 |
| or |                                                                 |
| d  |                                                                 |
| et |                                                                 |
| er |                                                                 |
| mi |                                                                 |
| ni |                                                                 |
| ng |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| re |                                                                 |
| qu |                                                                 |
| ir |                                                                 |
| ed |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| ss |                                                                 |
| ur |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| am |                                                                 |
| ou |                                                                 |
| nt |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Acreage only.                                                   |
| te |                                                                 |
| ** | We review the costs for third party contract reclamation under  |
|    | the coal AML program and make adjustments as necessary.         |
| AL |                                                                 |
|    | Bonds are calculated on a task-by-task basis using industry     |
| AR | standard cost estimating methodologies, as with coal permits.   |
|    |                                                                 |
| CO | New companies are \$500 per acre. No bond required for          |
|    | companies with good compliance record. Existing companies "may" |
| KY | be assessed a bond from \$100 - \$500 per acre based on job     |
|    | site specifics.                                                 |
+----+-----------------------------------------------------------------+
| MD | In as much as the per acre rate is already insufficient, the    |
|    | maximum amount is applied in all cases.                         |
| NM |                                                                 |
|    | The operator must submit a detailed cost estimate. The estimate |
| NY | is reviewed by the agency's engineer who can accept, reject or  |
|    | revise the estimate.                                            |
| NC |                                                                 |
|    | We have developed work sheets based on RS Means and others to   |
| OH | come up with a figure that is consisted with the number         |
|    | mentioned above.                                                |
| OK |                                                                 |
|    | See attached bond calculation worksheet and schedule of costs.  |
| PA |                                                                 |
|    | Old Acres: \$500 x \# of acres = Bond with \$2,000 minimum      |
| UT | bond.                                                           |
|    |                                                                 |
| VA | New Acres: \$1,000 x \# of acres = Bond with \$10,000 minimum   |
|    | bond.                                                           |
| WV |                                                                 |
|    | Actual cost estimates in addition to the total acreage          |
|    | disturbed.                                                      |
|    |                                                                 |
|    | The bonding guidelines were developed a few decades ago.        |
|    |                                                                 |
|    | RS Means Heavy Construction Data and DataQuest Blue Book are    |
|    | used as a guide in costing out activities needed to reclaim a   |
|    | site. The Caterpillar Handbook is used to obtain equipment      |
|    | specifications. The bond is calculated based on: the amount of  |
|    | material to be moved to bring the site back to approximate      |
|    | original contour, removal of facilities, recontouring of dumps, |
|    | replacing growth medium, and the amount of work required to     |
|    | reclaim access roads. Costs for seeding, supervision, and       |
|    | contingencies are also included. The extent of the reclamation  |
|    | efforts for the site is determined by the activities dictated   |
|    | by the approved reclamation plan. These costs are then          |
|    | escalated for a five-year period to cover anticipated cost of   |
|    | living increases. The site and the plan are reviewed every five |
|    | years to assure that the plan and the bond are still            |
|    | appropriate.                                                    |
|    |                                                                 |
|    | \$1,000 per acre if a new operator in the first 5 years, which  |
|    | is released after 5 years. Then, \$50 per acre for the first    |
|    | year and \$12.50 per acre for each successive year in the bond  |
|    | fund.                                                           |
|    |                                                                 |
|    | Not based upon the actual cost of reclamation. The rates are    |
|    | calculated on a per-acre basis.                                 |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 6) |                                                                 |
| *  |                                                                 |
| To |                                                                 |
| wh |                                                                 |
| at |                                                                 |
| ex |                                                                 |
| te |                                                                 |
| nt |                                                                 |
| h  |                                                                 |
| as |                                                                 |
| R  |                                                                 |
| EL |                                                                 |
| EA |                                                                 |
| SE |                                                                 |
| of |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| ss |                                                                 |
| ur |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| o  |                                                                 |
| bl |                                                                 |
| ig |                                                                 |
| at |                                                                 |
| io |                                                                 |
| ns |                                                                 |
| be |                                                                 |
| en |                                                                 |
| an |                                                                 |
| i  |                                                                 |
| ss |                                                                 |
| ue |                                                                 |
| f  |                                                                 |
| or |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| st |                                                                 |
| at |                                                                 |
| e? |                                                                 |
| DO |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| ha |                                                                 |
| ve |                                                                 |
| pr |                                                                 |
| oc |                                                                 |
| ed |                                                                 |
| ur |                                                                 |
| es |                                                                 |
| or |                                                                 |
| gu |                                                                 |
| id |                                                                 |
| el |                                                                 |
| in |                                                                 |
| es |                                                                 |
| in |                                                                 |
| p  |                                                                 |
| la |                                                                 |
| ce |                                                                 |
| ad |                                                                 |
| dr |                                                                 |
| es |                                                                 |
| si |                                                                 |
| ng |                                                                 |
| r  |                                                                 |
| el |                                                                 |
| ea |                                                                 |
| se |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Not an issue yet. Yes we have procedures or guidelines in place |
| te | addressing release.                                             |
| ** |                                                                 |
|    | Not an issue. Yes.                                              |
| AL |                                                                 |
|    | Bond release proceeds without difficulty. Act/Regs, but no      |
| AR | guidelines.                                                     |
|    |                                                                 |
| CO | No issues with release. Yes, there are guidelines for release.  |
|    |                                                                 |
| KY | Release has not been an issue. We have guidelines in place that |
|    | are used in the review of bond release.                         |
| MD |                                                                 |
+----+-----------------------------------------------------------------+
| NM | FA release is governed by our statute and rules which allow a   |
|    | permittee to apply once a year for a partial or final release.  |
| NY | The release can cover any portion of the reclamation plan that  |
|    | has been completed (no "phases"). The agency must conduct an    |
| NC | inspection which is open to the public. The public may file     |
|    | written objections and request a public hearing. A portion of   |
| OH | the FA must be maintained for 12 years after final seeding,     |
|    | unless there is a post-mining land use that does not require    |
| OK | revegetation.                                                   |
|    |                                                                 |
| PA | Release of financial assurance has not really been an issue in  |
|    | NYS. We have procedures and guidelines for the release of       |
| UT | bonds.                                                          |
|    |                                                                 |
| VA | Partial or full release allowed after \~80% groundcover         |
|    | permanently established; recalculate bond based on remaining    |
| WV | affected and to be affected acreage -- operator can substitute  |
|    | bond at proper amount.                                          |
|    |                                                                 |
|    | Procedures are in place; the problem lies with the financial    |
|    | institution releasing monies prior to the state releasing       |
|    | liability. Operators can also obtain "pit floor bond releases"  |
|    | for portions of the pit where they have reached their final pit |
|    | depth even though they still use that portion of the pit for    |
|    | storage, transportation, reclamation of the highwall, etc. That |
|    | portion of the permit area then becomes unbonded even though it |
|    | is still being used and has not met the final reclamation plan  |
|    | status as a water body (usually).                               |
|    |                                                                 |
|    | N/A                                                             |
|    |                                                                 |
|    | Has not been an issue.                                          |
|    |                                                                 |
|    | Generally bond release has not been much of an issue for us. As |
|    | long as things are well documented we have no problem in        |
|    | releasing bonds. This includes partial release as well as full  |
|    | release. We have developed a bond release application form that |
|    | must be filled out when applying for bond release. This form    |
|    | helps ensure that the operator has met the required reclamation |
|    | obligations. Once an application for release is filed, the      |
|    | Division conducts an on site inspection to verify that          |
|    | reclamation has been completed.                                 |
|    |                                                                 |
|    | Has not been an issue. Yes, VA has procedures or guidelines.    |
|    | Upon implementation of the post mining land use and a minimum   |
|    | of 2 growing seasons for vegetated areas.                       |
|    |                                                                 |
|    | Release of bonds or contributions to the Bond Pooling Fund has  |
|    | not been an issue. The new bonding requirements have only been  |
|    | in effect since 2000. Incremental and/or total release is       |
|    | allowed.                                                        |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 7) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| is |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| ex |                                                                 |
| pe |                                                                 |
| ri |                                                                 |
| en |                                                                 |
| ce |                                                                 |
| wi |                                                                 |
| th |                                                                 |
| re |                                                                 |
| ga |                                                                 |
| rd |                                                                 |
| to |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| av |                                                                 |
| ai |                                                                 |
| la |                                                                 |
| bi |                                                                 |
| li |                                                                 |
| ty |                                                                 |
| of |                                                                 |
| su |                                                                 |
| re |                                                                 |
| ty |                                                                 |
| b  |                                                                 |
| on |                                                                 |
| ds |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Only well capitalized companies can easily obtain a surety      |
| te | bond. Occasionally a small operator can obtain a small bond of  |
| ** | \$25,000 or less.                                               |
|    |                                                                 |
| AL | Major companies are not having any problems obtaining surety    |
|    | bonds.                                                          |
| AR |                                                                 |
|    | Market has tightened, but permittees seem to be getting bonds,  |
| CO | or other acceptable instruments.                                |
|    |                                                                 |
| KY | To my knowledge there has not been a problem with surety bonds. |
|    |                                                                 |
| MD | For the larger companies the surety bond does not yet seem to   |
|    | be a big problem. For the smaller or mid size companies surety  |
| NM | bonds became very difficult to obtain 10 years ago. Most all of |
|    | them rely on Letters of Credit.                                 |
| NY |                                                                 |
|    | Surety bonds have become less available and far more expensive. |
| NC | As a result, we rarely see new surety bonds and a number of     |
|    | operators, particularly large operators, are replacing their    |
| OH | surety bonds with other forms of financial assurance.           |
|    |                                                                 |
| OK | It has been cyclical. The number of companies writing bonds has |
|    | decreased in the last 3-4 years. In NYS, there are only 2       |
| PA | companies currently writing bonds.                              |
|    |                                                                 |
| UT | Availability of bonds diminishing and requests from bonding     |
|    | companies to cancel existing bonds increasing.                  |
| VA |                                                                 |
|    | Only a handful of surety companies write reclamation bonds in   |
| WV | the State of Ohio.                                              |
|    |                                                                 |
|    | Surety Companies have shown a reluctance to bond marginal       |
|    | financial operators.                                            |
|    |                                                                 |
|    | Some operators complain of the expense.                         |
|    |                                                                 |
|    | The Utah rules require that corporate surety bonds can only be  |
|    | issued from a company with a rating of A- or better as listed   |
|    | in A.M. Best's Key Rating Guide. This of course limits the      |
|    | companies that can be used for acquiring a surety bond. It      |
|    | appears that our operators are having more difficulty in        |
|    | obtaining surety bonds. Our ratio of surety bonds versus cash   |
|    | bonds is gradually shifting towards cash bonds. This is         |
|    | especially true for the small mines, which generally end up     |
|    | posting some type of cash bond such as a CD or Letter of        |
|    | Credit. The larger mines seem to be able to acquire surety      |
|    | bonds.                                                          |
|    |                                                                 |
|    | There is a limited availability, but limited need.              |
|    | Participation in the bond pool is mandatory after 5 years of    |
|    | successful operation in the state.                              |
|    |                                                                 |
|    | Not aware of any problems.                                      |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 8) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| sp |                                                                 |
| ec |                                                                 |
| if |                                                                 |
| ic |                                                                 |
| ch |                                                                 |
| al |                                                                 |
| le |                                                                 |
| ng |                                                                 |
| es |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| fa |                                                                 |
| ci |                                                                 |
| ng |                                                                 |
| wi |                                                                 |
| th |                                                                 |
| r  |                                                                 |
| es |                                                                 |
| pe |                                                                 |
| ct |                                                                 |
| to |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| ss |                                                                 |
| ur |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| in |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| st |                                                                 |
| at |                                                                 |
| e? |                                                                 |
| *  |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Some operators mine illegally when they cannot easily call      |
| te | their insurance company to get a surety bond. A lot of the      |
| ** | small operators don't have the cash to use in place of a surety |
|    | bond.                                                           |
| AL |                                                                 |
|    | Small companies have a hard time with having the collateral for |
| AR | a bond to get a letter of credit or a certificate of deposit.   |
|    |                                                                 |
| CO | Routine challenges occur as we negotiate permit-specific bond   |
|    | amount requirements with permittees. Negotiations must          |
| KY | reconcile the regulatory requirement for adequate bond, with    |
|    | the permittee's need to maintain an amount that is reasonable   |
| MD | and affordable.                                                 |
|    |                                                                 |
| NM | Have not really had any challenges in this arena.               |
|    |                                                                 |
| NY | Our biggest problem in noncoal is the bond rate and the         |
|    | political battle in raising that. Letters of Credit have eased  |
| NC | the surety bond issues; that is not a major factor for us at    |
|    | present. Also the consolidation of mid size companies into      |
| OH | international companies has eased the burden that bonding was   |
|    | having several years ago.                                       |
|    |                                                                 |
|    | Financial assurance now requires greater resources and          |
|    | expertise from the agency. Since many operators, particularly   |
|    | large operators, can no longer obtain a single surety bond for  |
|    | a mine, they often employ a package of different financial      |
|    | assurance mechanisms including some that are relatively new or  |
|    | labor intensive. Trust funds require negotiation of trust       |
|    | agreements, guarantees require an understanding of financial    |
|    | statements and collateral requires significant due diligence.   |
|    | And each of these mechanisms requires monitoring. Our rules     |
|    | allow us to hire contractors and charge the operator; we have   |
|    | used this authority to employ appraisers, environmental         |
|    | consultants, lawyers and economists.                            |
|    |                                                                 |
|    | We are currently raising the bond amounts from a traditional    |
|    | \$3,000 per acre to a minimum of \$5,000. We are trying to      |
|    | phase in the requirements in order to help the small operators  |
|    | comply. The larger companies do not have too much difficulty in |
|    | complying with the new requirements. Our biggest problem is     |
|    | trying to get reclamation accomplished at sites where the state |
|    | has claimed the financial assurance and the amounts are too low |
|    | to perform the required reclamation.                            |
|    |                                                                 |
|    | Unless operator has cash/collateral equal to the bond amount    |
|    | requested, he will not qualify for surety bonds or letters of   |
|    | credit as risk considered too high (new operators can't get     |
|    | bonds as they have not generated income yet to reduce risk).    |
|    |                                                                 |
|    | -   Tracking liability lies with the state on CD's and Letters  |
|    |     of Credit. Banks are sometimes paying out on a bond         |
|    |     instrument without agency consent, even though the state's  |
|    |     name is on the instrument as a conditional beneficiary. The |
|    |     accounting procedure required by the Treasurer has become   |
|    |     an administrative burden for the agency.                    |
+----+-----------------------------------------------------------------+
| OK | -   The bond rate is low -- \$500 - 1,000 per acre -- and the   |
|    |     bond pool is shared with the coal program that uses most of |
| PA |     the money, therein delaying reclamation of noncoal sites.   |
|    |                                                                 |
| UT | We need more sureties that will post bonds for our operators.   |
|    |                                                                 |
| VA | Updating the 20+ year old bond guidelines. The adjustment could |
|    | result in significant work load increase and significant bond   |
| WV | increases.                                                      |
|    |                                                                 |
|    | Our biggest challenge seems to be getting the necessary         |
|    | paperwork filled out by the operators and the financial         |
|    | institutions. We have recently developed new forms that are     |
|    | helping with this. We have occasionally had circumstances where |
|    | the financial institution that supplied a bond has gone         |
|    | bankrupt or has lost its ability to be listed on the U.S.       |
|    | Department of the Treasury Circular 570. When this occurs the   |
|    | operator is given 120 days to replace the bond. Because our     |
|    | rules for bonding small mines have only just been implemented   |
|    | we are now facing the challenge of getting all of our small     |
|    | mines bonded.                                                   |
|    |                                                                 |
|    | Collection of debts for funds spent from the bonding pool to    |
|    | reclaim sites. Operators are usually bankrupt, and the          |
|    | reclamation debt is a lower priority lien.                      |
|    |                                                                 |
|    | The bonding rate and contribution to the Bond Pooling Fund is   |
|    | very inadequate to cover the cost of reclamation.               |
+----+-----------------------------------------------------------------+
| ** |                                                                 |
| 9) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| t  |                                                                 |
| yp |                                                                 |
| es |                                                                 |
| of |                                                                 |
| in |                                                                 |
| no |                                                                 |
| va |                                                                 |
| ti |                                                                 |
| ve |                                                                 |
| ap |                                                                 |
| pr |                                                                 |
| oa |                                                                 |
| ch |                                                                 |
| es |                                                                 |
| a  |                                                                 |
| re |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| c  |                                                                 |
| on |                                                                 |
| si |                                                                 |
| de |                                                                 |
| ri |                                                                 |
| ng |                                                                 |
| wi |                                                                 |
| th |                                                                 |
| r  |                                                                 |
| es |                                                                 |
| pe |                                                                 |
| ct |                                                                 |
| to |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| ss |                                                                 |
| ur |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| (  |                                                                 |
| i. |                                                                 |
| e. |                                                                 |
| s  |                                                                 |
| eg |                                                                 |
| re |                                                                 |
| ga |                                                                 |
| ti |                                                                 |
| ng |                                                                 |
| ri |                                                                 |
| sk |                                                                 |
| (s |                                                                 |
| ho |                                                                 |
| rt |                                                                 |
| v. |                                                                 |
| lo |                                                                 |
| ng |                                                                 |
| te |                                                                 |
| rm |                                                                 |
| ); |                                                                 |
| u  |                                                                 |
| se |                                                                 |
| of |                                                                 |
| d  |                                                                 |
| ed |                                                                 |
| ic |                                                                 |
| at |                                                                 |
| ed |                                                                 |
| t  |                                                                 |
| ru |                                                                 |
| st |                                                                 |
| fu |                                                                 |
| nd |                                                                 |
| s; |                                                                 |
| u  |                                                                 |
| se |                                                                 |
| of |                                                                 |
| mu |                                                                 |
| lt |                                                                 |
| ip |                                                                 |
| le |                                                                 |
| in |                                                                 |
| st |                                                                 |
| ru |                                                                 |
| me |                                                                 |
| nt |                                                                 |
| s; |                                                                 |
| ma |                                                                 |
| tc |                                                                 |
| hi |                                                                 |
| ng |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| l  |                                                                 |
| ev |                                                                 |
| el |                                                                 |
| of |                                                                 |
| ri |                                                                 |
| sk |                                                                 |
| to |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| a  |                                                                 |
| pp |                                                                 |
| ro |                                                                 |
| pr |                                                                 |
| ia |                                                                 |
| te |                                                                 |
| me |                                                                 |
| ch |                                                                 |
| an |                                                                 |
| is |                                                                 |
| m; |                                                                 |
| ph |                                                                 |
| as |                                                                 |
| ed |                                                                 |
| bo |                                                                 |
| nd |                                                                 |
| in |                                                                 |
| g) |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | None.                                                           |
| te |                                                                 |
| ** | We have incremental bonding available.                          |
|    |                                                                 |
| AL | With few exceptions, standard bonding is used.                  |
|    |                                                                 |
| AR | None.                                                           |
|    |                                                                 |
| CO | We limit the number of acres disturbed to try to phase in the   |
|    | project to limit the liability of reclamation.                  |
| KY |                                                                 |
|    | We have implemented a number of approaches in recent years,     |
| MD | based in part on the rule changes described below. These        |
|    | include accepting different types of financial assurance        |
| NM | mechanisms (e.g. trust funds), approving multiple mechanisms at |
|    | a single mine, and lessening the reliance on guarantees         |
| NY | (through a cap and over time). As we implement these approaches |
|    | we will likely see ways to improve them.                        |
|    |                                                                 |
|    | We are currently employing multiple instruments, phased         |
|    | bonding, segregation of risks and encouraging concurrent        |
|    | reclamation.                                                    |
+----+-----------------------------------------------------------------+
| NC | None.                                                           |
|    |                                                                 |
| OH | None in the noncoal program. Ohio currently allows multiple     |
|    | bonding instruments.                                            |
| OK |                                                                 |
|    | None.                                                           |
| UT |                                                                 |
|    | While we accept a number of different types of bonds in Utah,   |
| VA | our rules are somewhat prescriptive as to the types of bonds    |
|    | that are allowed. We do work closely with the operators to      |
| WV | determine the amount of area that needs to be covered under the |
|    | bond at any given time (phased bonding). Another thing that we  |
|    | have recently done includes, hiring a private consultant to     |
|    | conduct a quality control review of the reclamation bonds for   |
|    | the minerals mined in the state. This review helped us identify |
|    | areas for improvement and ways to strengthen our position with  |
|    | respect to financial assurance. We also require a reclamation   |
|    | contract for each mine to be put in place that ties the bond to |
|    | reclamation of the site. We have also been working on MOU's     |
|    | with land management agencies that will help define how we will |
|    | administer the bonds.                                           |
|    |                                                                 |
|    | None.                                                           |
|    |                                                                 |
|    | We are considering proposing legislation that would require a   |
|    | financial assurance mechanism that would cover the actual cost  |
|    | of reclamation. The exact type of mechanism has not yet been    |
|    | determined.                                                     |
+----+-----------------------------------------------------------------+
| *  |                                                                 |
| *1 |                                                                 |
| 0) |                                                                 |
| *  |                                                                 |
| Wh |                                                                 |
| at |                                                                 |
| a  |                                                                 |
| dj |                                                                 |
| us |                                                                 |
| tm |                                                                 |
| en |                                                                 |
| ts |                                                                 |
| to |                                                                 |
| yo |                                                                 |
| ur |                                                                 |
| re |                                                                 |
| gu |                                                                 |
| la |                                                                 |
| to |                                                                 |
| ry |                                                                 |
| p  |                                                                 |
| ro |                                                                 |
| gr |                                                                 |
| am |                                                                 |
| ha |                                                                 |
| ve |                                                                 |
| y  |                                                                 |
| ou |                                                                 |
| un |                                                                 |
| de |                                                                 |
| rt |                                                                 |
| ak |                                                                 |
| en |                                                                 |
| (  |                                                                 |
| or |                                                                 |
| co |                                                                 |
| ns |                                                                 |
| id |                                                                 |
| er |                                                                 |
| ed |                                                                 |
| un |                                                                 |
| de |                                                                 |
| rt |                                                                 |
| ak |                                                                 |
| in |                                                                 |
| g) |                                                                 |
| in |                                                                 |
| t  |                                                                 |
| he |                                                                 |
| ar |                                                                 |
| ea |                                                                 |
| of |                                                                 |
| f  |                                                                 |
| in |                                                                 |
| an |                                                                 |
| ci |                                                                 |
| al |                                                                 |
| a  |                                                                 |
| ss |                                                                 |
| ur |                                                                 |
| an |                                                                 |
| ce |                                                                 |
| ?* |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+
| *  | **Response**                                                    |
| *S |                                                                 |
| ta | Adjustments to the regulatory program must be made through the  |
| te | legislature. That is a difficult task. No adjustments have been |
| ** | sought.                                                         |
|    |                                                                 |
| AL | A couple of years ago, we explored the possibility of a bond    |
|    | pool. However the state's economic position was not conducive   |
| AR | for the legislature to provide the required start-up funding    |
|    | from general revenue.                                           |
| CO |                                                                 |
|    | Standard methodologies used.                                    |
| KY |                                                                 |
|    | None.                                                           |
| MD |                                                                 |
|    | We floated the concept of a bond pool in which all operators    |
| NM | would participate by paying annual fees based upon acreage. The |
|    | industry fought against the concept and prevented legislation   |
|    | from being submitted.                                           |
|    |                                                                 |
|    | Our agency made a number of changes to our financial assurance  |
|    | rules in 2003. Added to the list of available financial         |
|    | assurance mechanisms were trust funds and insurance. Guarantees |
|    | are now limited to no more than 75% of the financial assurance  |
|    | obligation for a facility. The requirements for using           |
|    | collateral were clarified and expanded. For reclamation plans   |
|    | that are scheduled to last more than 5 years, the operator may  |
|    | use a net present value calculation for the financial assurance |
|    | amount.                                                         |
+----+-----------------------------------------------------------------+
| NY | We have increased the bond amounts per acre in the last two     |
|    | years. We have created and mandated the use of worksheets by    |
| NC | staff to come up with bond amounts that can be justified. We    |
|    | have crafted guidelines that allow an independent third party   |
| OH | to provide an alternate reclamation cost estimate if the        |
|    | permittee disagrees with the department's cost estimation.      |
| OK |                                                                 |
|    | Open to new ideas and innovative approaches to assist operators |
| UT | in securing financial assurance and ensuring that such          |
|    | assurances remain in place until the obligation is satisfied    |
| VA | (reclamation).                                                  |
|    |                                                                 |
| WV | Proposing all collateral posted be made "Payable to the State   |
|    | of Ohio".                                                       |
|    |                                                                 |
|    | None.                                                           |
|    |                                                                 |
|    | Until just recently, bonds for small mines were not required.   |
|    | Now that we have rules in place that require small mines to     |
|    | post bonds we are facing a challenge to get them all bonded.    |
|    | The minerals program recently hired a part-time bond            |
|    | coordinator who is responsible to coordinate with the operators |
|    | and the financial institutions so that all of our mines can     |
|    | achieve compliance.                                             |
|    |                                                                 |
|    | None, other than a clarification of administrative procedures   |
|    | by regulation in 2003.                                          |
|    |                                                                 |
|    | We are considering proposing legislation that would require a   |
|    | financial assurance mechanism that would cover the actual cost  |
|    | of reclamation. The exact type of mechanism has not yet been    |
|    | determined.                                                     |
+----+-----------------------------------------------------------------+

***State Contacts Submitting Responses:***

**Alabama**

Brian J. Wittwer

Phone: 334-242-8265

Brian.Wittner@DIR.Alabama.Gov

**Arkansas**

James F. Stephens

Phone: 501-682-0807

stephens@adeq.state.ar.us

**Colorado**

David Berry

Phone: 303-866-4938

david.berry@state.co.us

**Kentucky**

Jim McKenzie

Phone: 502-564-2340

Jim.McKenzie@ky.gov

**Maryland**

C. Edmon Larrimore

Phone: 410-537-3557

elarrimore@mde.md.state.us

**New Mexico**

Bill Brancard

Phone: 505-476-3405

bill.brancard@state.nm.us

**New York**

Steven Potter

Phone: 518-402-8072

smpotter@gw.dec.state.ny.us

**North Carolina**

Tracy E. Davis

Phone: 919-733-4574

tracy.davis@ncmail.net

**North Dakota**

Jim Deutsch

Phone: 701-328-2251

jdeutsch@state.nd.us

**Ohio**

Tom Hines and Bonding Staff

Phone: 614-265-1047

Tom.Hines@dnr.state.oh.us

**Oklahoma**

Rick Bullard, Doug Schooley, Rhonda Dossett

Phone: (Rick/Doug) 405-427-3859, x47; (Rhonda) 918-485-3999

Rick.Bullard@mines.state.ok.us / rhondadossett@valornet.com

**Pennsylvania**

Joe Pizarchik

Phone: 717-787-5015

jpizarchik@state.pa.us

**Texas**

Melvin B. Hodgkiss

Phone: 512-463-6901

melvin.hodgkiss@rrc.state.tx.us

**Utah**

Daron R. Haddock

Phone: 801-538-5325

daronhaddock@utah.gov

**Virginia**

Conrad Spangler

Phone: 434-951-6312

conrad.spangler@dmme.virginia.gov

**West Virginia**

Harold M. "Rocky" Parsons, Jr.

Phone: 304-457-4588, x3250

hparsons@wvdep.org