OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Joyce Zweben Scall Page 1 of 3

COALEX STATE INQUIRY REPORT - 322

April 1995

Michael Sponsler

Division of Reclamation

Department of Natural Resources

PO Box 147

201 W. Main Street

Jasonville, Indiana 47438

TOPIC: SETTLEMENT OF CIVIL PENALTIES

INQUIRY: Can a civil penalties case be settled by having the violator perform 

reclamation or other remedial work or must a monetary penalty be paid? Please locate 

any material that addresses this issue. 

SEARCH RESULTS: Using LEXIS, an OSM Directive and a number of relevant Interior 

Administrative Decisions were identified. Copies of these materials are attached. 

INTERIOR ALJ CONSENT DECISIONS

The settlement agreements in the consent decisions listed below include requirements 

to complete the outlined remedial work in a timely and satisfactory manner in return for 

a reduction of the civil penalties. In some cases, the penalties are reduced to zero.

TARHEEL ENERGY, INC. v OSM, Docket Nos. NX 7-191-R, NX 88-45-R (1988).

TRIPLE I COAL CO. v OSM, Docket No. NX 7-37-P (1988).

GEORGE LAMBERT v OSM, Docket Nos. NX 7-7-p, NX 7-42-R (1988).

GREATER WISE, INC. v OSM, Docket Nos. NX 88-15-R, NX 88-19-P (1988).

B & B CONSTRUCTION v OSM, Docket No. NX 7-83-R (1988).

AMERICAN STANDARD COAL DOCKS, INC. v OSM, Docket No. NX 7-165-R 

(1988).

GAINSBORO PORT AUTHORITY v OSM, Docket No. NX 7-167-R (1988).
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Joyce Zweben Scall Page 2 of 3

FAULKNER CONSTRUCTION CO v OSM, Docket Nos. NX 7-26-R, NX 7-27-R, NX 7-

28-R (1987).

BUD COAL CO., INC. v OSM, Docket No. NX 5-138-R (1987).

UNITED ENERGY CORP. v OSM, Docket No. NX 6-27-P (1986).

SHANNOPIN MINING CO. v OSM, Docket No. CH 1-92-R (1981).

KEM COAL CO. v OSM, Docket No. NX 0-170-P (1980).

ADDITIONAL INTERIOR DECISION

J & M COAL CO. v OSM, 122 IBLA 90, IBLA 89-504 (1992).

HEADNOTES:

"A letter from counsel for OSM to an operator that...(3) invites the operator to contact 

him after completion of reclamation if it is still interested in settlement, creates no basis 

on which the operator may reasonable rely that OSM agreed that the civil penalties for 

the NOV's would be settled when reclamation was completed."

OSM DIRECTIVE

OSM DIRECTIVE, Subject No. CAA-2-2, Transmittal No. 485, "Settlement 

Guidelines" (Issued 9/26/89).

"This directive establishes [OSMRE] guidelines regarding the settlement of debts 

incurred as a result of civil penalty fines or AML fees under [SMCRA]."

"Settlement" is defined as: "The resolution of a debt either through payment in full, a 

payment agreement, a compromise agreement, or termination of the debt."

Under "Compromise of Debt" [accepting less than the full amount of the claim], the 

Guidelines state:

"Only those cases in which abatement has been performed or is scheduled to be 

performed through an approved abatement plan, or performance has been ruled not 

feasible, will be considered for compromise."

ATTACHMENTS

A. TARHEEL ENERGY, INC. v OSM, Docket Nos. NX 7-191-R, NX 88-45-R (1988). 

B. TRIPLE I COAL CO. v OSM, Docket No. NX 7-37-P (1988). 

C. GEORGE LAMBERT v OSM, Docket Nos. NX 7-7-p, NX 7-42-R (1988). 

D. GREATER WISE, INC. v OSM, Docket Nos. NX 88-15-R, NX 88-19-P (1988). 

E. B & B CONSTRUCTION v OSM, Docket No. NX 7-83-R (1988). 
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Joyce Zweben Scall Page 3 of 3

F. AMERICAN STANDARD COAL DOCKS, INC. v OSM, Docket No. NX 7-165-R 

(1988). 

G. GAINSBORO PORT AUTHORITY v OSM, Docket No. NX 7-167-R (1988). 

H. FAULKNER CONSTRUCTION CO. v OSM, Docket Nos. NX 7-26-R, NX 7-27-R, 

NX 7-28-R (1987). 

I. BUD COAL CO., INC. v OSM, Docket No. NX 5-138-R (1987). 

J. UNITED ENERGY CORP. v OSM, Docket No. NX 6-27-P (1986). 

K. SHANNOPIN MINING CO. v OSM, Docket No. CH 1-92-R (1981). 

L. KEM COAL CO. v OSM, Docket No. NX 0-170-P (1980). 

M. J & M COAL CO. v OSM, 122 IBLA 90, IBLA 89-504 (1992). 

N. OSM DIRECTIVE, Subject No. CAA-2-2, Transmittal No. 485, "Settlement 

Guidelines" (Issued 9/26/89).