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[Federal Register Volume 62, Number 164 (Monday, August 25, 1997)]
[Proposed Rules]
[Pages 44924-44925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22415]

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DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation and Enforcement

30 CFR Part 946

[VA-110-FOR]

Virginia Regulatory Program

AGENCY: Office of Surface Mining Reclamation and Enforcement (OSM), 
Interior.

ACTION: Proposed rule; public comment period and opportunity for public 
hearing.

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SUMMARY: OSM is announcing receipt of a proposed amendment to the 
Virginia regulatory program (hereinafter referred to as the Virginia 
program) under the Surface Mining Control Reclamation Act of 1977 
(SMCRA). The proposed amendment changes the Virginia Coal Surface 
Mining Control and Reclamation Act to add ``letter of credit'' as an 
acceptable form of collateral bond to satisfy the performance bonding 
requirements of the Virginia Act. The amendment is intended to revise 
the State program to be consistent with the Federal regulations.

DATES: Written comments must be received by 4:00 p.m., on September 24, 
1997. If requested, a public hearing on the proposed amendment will be 
held on September 19, 1997. Requests to speak at the hearing must be 
received by 4:00 p.m., on September 9, 1997.

ADDRESSES: Written comments and requests to speak at the hearing should 
be mailed or hand delivered to Mr. Robert A. Penn, Director, Big Stone 
Gap Field Office at the first address listed below.
    Copies of the Virginia program, the proposed amendment, a listing 
of any scheduled public hearings, and all written comments received in 
response to this document will be available for public review at the 
addresses listed below during normal business hours, Monday through 
Friday, excluding holidays. Each requestor may receive one free copy of 
the proposed amendment by contacting OSM's Big Stone Gap Field Office.

Office of Surface Mining Reclamation and Enforcement, Big Stone Gap 
Field Office, 1941 Neeley Road, Suite 201, Compartment 116, Big Stone 
Gap, Virginia 24219, Telephone: (703) 523-4303, or
Virginia Division of Mined Land Reclamation, P.O. Drawer 900, Big Stone 
Gap, Virginia 24219, Telephone: (703) 523-8100.

FOR FURTHER INFORMATION CONTACT: Mr. Robert A. Penn, Director, Big 
Stone Gap Field Office, Telephone: (703) 523-4303.

SUPPLEMENTARY INFORMATION:

I. Background on the Virginia Program

    On December 15, 1981, the Secretary of the Interior conditionally 
approved the Virginia program. Background information on the Virginia 
program, including the Secretary's findings, the disposition of 
comments, and the conditions of approval can be found in the December 
15, 1981, Federal Register (46 FR 61085-61115). Subsequent actions 
concerning the conditions of approval and program amendments can be 
found at 30 CFR 946.12, 946.13, 946.15, and 946.16.

II. Discussion of the Proposed Amendment

    By letter dated July 31, 1997 (Administrative Record No. VA-921), 
the Virginia Department of Mines, Minerals and Energy (DMME) stated 
that the Virginia legislature has amended, effective July 1, 1997, the 
Virginia Coal Surface Mining Control and Reclamation Act at Section 
45.1-241(c). The amendment adds ``letter of credit'' as an acceptable 
form of collateral bond that the DMME may accept to satisfy the 
performance bonding requirements of the Virginia Act.
    The amended statute specifies qualifying criteria that are intended 
to be effectively consistent with the letter of credit criteria 
contained in the Federal regulations at 30 CFR 800.21(b). The amendment 
also imposes conditions upon a letter of credit that are intended to be 
consistent with the Federal regulations at 30 CFR 800.16.
    The proposed amendments are as follows:
    Section 45.1-241(c) is amended by adding the following language to 
the existing language:

    The Director may also accept a letter of credit on certain 
designated funds issued by a financial institution authorized to do 
business in the United States. Each letter of credit can only be 
issued up to the amount which can be insured by the FDIC. Any letter 
of credit issued by a non-Virginia lending institution shall be 
confirmed by an approved Virginia lending institution. The letters 
of credit shall be irrevocable, unconditional, shall be payable to 
the Department upon demand, and shall afford to the Department 
protection equivalent to a corporate surety's bond. The issuer of 
the letter of credit shall give prompt notice to the permittee and 
the Department of any notice received or action filed alleging the 
insolvency or bankruptcy of the issuer, or alleging any violations 
of regulatory requirements which could result in suspension or 
revocation of the issuer's

[[Page 44925]]

charter or license to do business. In the event the issuer becomes 
unable to fulfill its obligations under the letter of credit for any 
reason, the issuer shall immediately notify the permittee and the 
Department. Upon the incapacity of an issuer by a reason of 
bankruptcy, insolvency or suspension or revocation of its charter or 
license, the permittee shall be deemed to be without proper 
performance bond coverage and shall promptly notify the Department, 
and the Department shall then issue a notice to the permittee 
specifying a reasonable period, which shall not exceed ninety days, 
to replace the bond coverage. If an adequate bond is not posted by 
the end of the period allowed, the permittee shall cease coal 
extraction and coal processing operations and shall immediately 
begin to conduct reclamation operations in accordance with the 
reclamation plan. Coal extraction and coal processing operations 
shall not resume until the Department has determined that an 
acceptable bond has been posted. If an acceptable bond has not been 
posted by the end of the period allowed, the Department may suspend 
the permit until acceptable bond is posted. The letter of credit 
shall be provided on the form and format established by the 
Director. Nothing herein shall relieve the permittee of 
responsibility under the permit or the issuer of liability on the 
letter of credit.

III. Public Comment Procedures

    In accordance with the provisions of 30 CFR 732.17(h), OSM is now 
seeking comment on whether the amendments proposed by Virginia satisfy 
the applicable program approval criteria of 30 CFR 732.15. If the 
amendments are deemed adequate, they will become part of the Virginia 
program.

Written Comments

    Written comments should be specific, pertain only to the issues 
proposed in this rulemaking, and include explanations in support of the 
commenter's recommendations. Comments received after the time indicated 
under DATES or at locations other than the Big Stone Gap Field Office 
will not necessarily be considered in the final rulemaking or included 
in the Administrative Record.

Public Hearing

    Persons wishing to comment at the public hearing should contact the 
person listed under FOR FURTHER INFORMATION CONTACT by close of 
business on September 9, 1997. If no one requests an opportunity to 
comment at a public hearing, the hearing will not be held.
    Filing of a written statement at the time of the hearing is 
requested as it will greatly assist the transcriber. Submission of 
written statements in advance of the hearing will allow OSM officials 
to prepare adequate responses and appropriate questions.
    The public hearing will continue on the specified date until all 
persons scheduled to comment have been heard. Persons in the audience 
who have not been scheduled to comment, and who wish to do so, will be 
heard following those scheduled. The hearing will end after all persons 
scheduled to comment and persons present in the audience who wish to 
comment have been heard.

Public Meeting

    If only one person requests an opportunity to comment at a hearing, 
a public meeting, rather than a public hearing, may be held. Persons 
wishing to meet with OSM representatives to discuss the proposed 
amendments may request a meeting at the Big Stone Gap Field Office by 
contacting the person listed under FOR FURTHER INFORMATION CONTACT. All 
such meetings will be open to the public and, if possible, notices of 
meetings will be posted in advance at the locations listed under 
ADDRESSES. A written summary of each public meeting will be made part 
of the Administrative Record.
    Any disabled individual who has need for a special accommodation to 
attend a public hearing should contact the individual listed under FOR 
FURTHER INFORMATION CONTACT.

IV. Procedural Determinations

Executive Order 12866

    This rule is exempted from review by the Office of Management and 
Budget (OMB) under Executive Order 12866 (Regulatory Planning and 
Review).

Executive Order 12988

    The Department of the Interior has conducted the reviews required 
by section 3 of Executive Order 12988 (Civil Justice Reform) and has 
determined that, to the extent allowed by law, this rule meets the 
applicable standards of subsection (a) and (b) of that section. 
However, these standards are not applicable to the actual language of 
State regulatory programs and program amendments since each such 
program is drafted and promulgated by a specific State, not by OSM. 
Under sections 503 and 505 of SMCRA (30 U.S.C. 1253 and 1255) and 30 
CFR 730.11, 732.15 and 732.17(h)(10), decisions on proposed State 
regulatory programs and program amendments submitted by the States must 
be based solely on a determination of whether the submittal is 
consistent with SMCRA and its implementing Federal regulations and 
whether the other requirements of 30 CFR Parts 730, 731, and 732 have 
been met.

National Environmental Policy Act

    No environmental impact statement is required for this rule since 
section 702(d) of SMCRA [30 U.S.C. 1292(d)] provides that agency 
decisions on proposed State regulatory program provisions do not 
constitute major Federal actions within the meaning of section 
102(2)(C) of the National Environmental Policy Act (42 U.S.C. 
4332(2)(C)).

Paperwork Reduction Act

    This rules does not contain information collection requirements 
that require approval by OMB under the Paperwork Reduction Act (44 
U.S.C. 3507 et. seq.).

Regulatory Flexibility Act

    The Department of the Interior has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
The State submittal which is the subject of this rule is based upon 
counterpart Federal regulations for which an economic analysis was 
prepared and certification made that such regulations would not have a 
significant economic effect upon a substantial number of small 
entities. Accordingly, this rule will ensure that existing requirements 
previously promulgated by OSM will be implemented by the State. In 
making the determination as to whether this rule would have a 
significant economic impact, the Department relied upon the data and 
assumptions for the counterpart Federal regulations.

Unfunded Mandates

    This rule will not impose a cost of $100 million or more in any 
given year on any governmental entity or the private sector.

List of Subjects in 30 CFR Part 946

    Intergovernmental relations, Surface mining, Underground mining.

    Dated: August 8, 1997.
Allen D. Klein,
Regional Director, Appalachian Regional Coordinating Center.
[FR Doc. 97-22415 Filed 8-22-97; 8:45 am]
BILLING CODE 4310-05-M
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