OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 1 of 9

COALEX STATE COMPARISON REPORT - 185

May 1991

Interstate Mining Compact

459 B Carlisle Drive

Herndon, Virginia 22090

TOPIC: SELF-BONDING

INQUIRY: Please conduct a survey of the states to determine which state programs use selfbonding as an alternative bonding system. Include copies of the state statutes and regulations.

List the state contacts.

SEARCH RESULTS: A survey of 15 states was conducted, using a questionnaire and

supplemented by COALEX Library research. The survey asked the following questions:

1. Does your state program contain authority for the use of self-bonding? If not, has your

state program ever contained such authority ? Why did you decide to remove the selfbonding provisions?

2. Citation for relevant statutes and regulations.

3. Are you currently using self-bonding for any companies in your state? If so, how many

companies?

4. Provide comments on the value and success of your state's self-bonding program as an

alternative bonding system.

The results of the survey follow. A Table summarizing the findings, a list of the state contacts,

and copies of the statutes, regulations, policies or procedures are attached.

TABLE OF RESPONSES

ALABAMA

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?No

No. of companies: None

Statute/Regulation cite: Regulation Chap. 880-X-9. Bond and Insurance Requirements for

Surface Coal Mining and Reclamation Operations; Form, Conditions

and Terms of Performance Bonds and Liability Insurance.
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 2 of 9

Comments: Only two applications for self-bonding were ever submitted to the

Commission. Both were later withdrawn at the company's request.

ARKANSAS

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?

Yes

No. of companies: One

Statute/Regulation cite: Regulation Sec. 806.11 Form of the Performance Bond (1987).

Comments: Self-bonding is seldom requested.

ILLINOIS

QUESTIONS RESPONSES

Has self-bonding? No

Currently using selfbonding?No

No. of companies: N/A

Statute/Regulation cite: N/A

Comments: The self-bonding provision was removed because it was incompatible

with the state act. The bonding requirements of the current state act

are based on the requirements of previous Illinois reclamation

regulatory programs which have been highly successful.

INDIANA [from COALEX]

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?

Unknown

No. of companies: Unknown

Statute/Regulation cite: Statute Sec. 13-4.1-6.3 Self-Bonding (1988).

Comments: N/A

KENTUCKY [from COALEX]

QUESTIONS RESPONSES

Has self-bonding? No

Currently using selfbonding?

N/A

No. of companies: N/A
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 3 of 9

Statute/Regulation cite: N/A

Comments: Kentucky deleted self-bonding as an option in 1982, in response to

OSM findings that the state's definition was inconsistent with the

federal definition.

LOUISIANA [from COALEX]

QUESTIONS RESPONSES

Has self-bonding? No

Currently using selfbonding?

N/A

No. of companies: N/A

Statute/Regulation cite: N/A

Comments: OSM disapproved the state self-bonding regulations in 1980. A

revised definition of "self-bonding" was proposed in 1990 and is

awaiting OSM approval.

NEW MEXICO

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?

Yes

No. of companies: Three companies (eight permits)

Statute/Regulation cite: Regulation Sec. 14-23; CSMC Rule 80-1; Amendment No. 3 (1984).

Comments: We have had self-bonding since 1987. Total amount of self-bonds is

currently $64,402,200. We have not had any bad experiences. Selfbonds save the companies a considerable amount of money.

OHIO

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?

No

No. of companies: None

Statute/Regulation cite: Regulation Sec. 1501:13-7-04 Self-Bonding (1988).

Comments: No self-bonding application has been approved yet.

OKLAHOMA {from COALEX]

QUESTIONS RESPONSES

Has self-bonding? Yes
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 4 of 9

Currently using selfbonding?

Unknown

No. of companies: Unknown

Statute/Regulation cite: Regulation Sec. 800.23 Self-bonding (1988).

Comments: N/A

PENNSYLVANIA

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?No

No. of companies: None

Statute/Regulation cite: 25 Pa Code Ch. 86, Secs. 86.142 Definitions and 86.159 Selfbonding (1990).

Comments: Very few companies can qualify. Those who can are financially

secure enough to obtain surety bonds.

TENNESSEE

QUESTIONS RESPONSES

Has self-bonding? No

Currently using selfbonding?

N/A

No. of companies: N/A

Statute/Regulation cite: N/A

Comments: N/A

TEXAS

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?

Yes

No. of companies: Three companies

Statute/Regulation cite: Regulation Sec. 806.309 Terms and Conditions of the Bond (recently

promulgated).

Comments: Texas is participating in a joint OSM and Industry Task Force to

evaluate self-bonding rules applicable to public electric utilities.

VIRGINIA

QUESTIONS RESPONSES
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 5 of 9

Has self-bonding? No

Currently using selfbonding?

N/A

No. of companies: N/A

Statute/Regulation cite: N/A

Comments: N/A

WEST VIRGINIA

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?

Yes

No. of companies: Four companies

Statute/Regulation cite: Regulation Sec. 38-2-11. Insurance and Bonding.

Comments: The program seems to be working satisfactorily. There has been no

occasion to forfeit or collect the bond on a self-bonded permittee.

WYOMING [from COALEX]

QUESTIONS RESPONSES

Has self-bonding? Yes

Currently using selfbonding?

Unknown

No. of companies: Unknown

Statute/Regulation cite: Regulation Chap. XII Self-Bonding Program. Secs. 1-7.

Comments: N/A

LIST OF CONTACTS

STATE CONTACT INFO

ALABAMA Carla D. Lightsey

Alabama Surface Mining Commission

P.O. Box 2390

Jasper, AL 35502-2390

205-221-4130

ARKANSAS Art Ritchie, Engineering Supervisor

Arkansas Department of Pollution Control and Ecology

8001 National Drive

P.O. Box 8913

Little Rock, AR 72219-8913
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 6 of 9

501-562-6533

ILLINOIS Don Pflederer

Illinois Department of Mines and Minerals

Land Reclamation Division

300 West Jefferson Street

P.O. Box 10137

Springfield, IL 62791-0197

217-782-4970

INDIANA Michael Sponsler, Director

Division of Reclamation

Department of Natural Resources

P.O. Box 147

210 W. Main Street

Jasonville, IN 47438

812-665-2207

KENTUCKY Carl Campbell

Department for Surface Mining and Reclamation Enforcement

No. 2 Hudson Hollow

Frankfort, KY 40601

502-564-6940

LOUISIANA Anthony J. Duplechin, Geologist Supervisor

Injection and Mining Division

Office of Conservation

P.O. Box 94275

Baton Rouge, LA 70804

504-342-5515

MARYLAND Anthony F. Abar, Director

Maryland Bureau of Mines

160 South Water Street

Frostburg, MD 21532

301-689-8150

NEW MEXICO Barry Bailey, Operations Manager

Energy, Minerals and Natural Resources

2040 South Pacheco

Santa Fe, NM 87505 505-827-

5990

Department

OHIO Jean Backs

Division of Reclamation

Department of Natural Resources

1855 Fountain Square Court, Bldg. H

Columbus, OH 43224

614-265-7070

OKLAHOMA James Hamm
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 7 of 9

Oklahoma Department of Mines

4040 N. Lincoln

Oklahoma City, OK 73105

405-521-3859

PENNSYLVANIA Ernest Giovanetti, Director

Bureau of Mining and Reclamation

Department of Environmental Resources

209 Executive House Bldg.

P.O. Box 2357

Harrisburg, PA 17105-2357

717-787-5103

TENNESSEE Carl Tenut, Director

Division of Surface Mining

Department of Environment and Conservation

2700 Middlebrook Pike, Suite 220

Knoxville, TN 37921

615-594-6035

TEXAS Melvin B. Hodgkiss, Director

Surface Mining and Reclamation Division

Railroad Commission of Texas

P.O. Drawer 12967

Austin, TX 78711-2967

512-463-6901

VIRGINIA Benny Wampler, Ass't Director

Department of Mines, Minerals and Energy

P.O. Drawer 900

Big Stone Gap, VA 24219

703-523-8145

WEST VIRGINIA Stephen C. Keen, Director

Mines and Minerals Section

Division of Energy

Department of Commerce, Labor and Environmental Resources

10 McJunkin Road

Nitro, WV 25143

304-558-3500

WYOMING Rick Chancellor

Department of Environmental Quality

122 West 25th Street

Herschler Bldg.

Cheyenne, WY 82002

307-777-7756
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 8 of 9

ATTACHMENTS

ALABAMA:

Regulation Chap. 880-X-9. Bond and Insurance Requirements for Surface Coal Mining and

Reclamation Operations; Form, Conditions and Terms of Performance Bonds and Liability

Insurance.

ARKANSAS:

Regulation Sec. 806.11 Form of the Performance Bond (1987).

INDIANA:

Statute Sec. 13-4.1-6.3 Self-Bonding (1988).

KENTUCKY:

1. 47 FR 21404 (May 18, 1982) [Excerpts].

2. 45 FR 69940 (October 22, 1980) [Excerpts].

LOUISIANA:

1. 45 FR 58576 (September 4, 1980) [Excerpts].

2. 55 FR 42207 (October 18, 1990) [Excerpts].

3. Regulation Sec. 206.11 Form of the Performance Bond (1980).

NEW MEXICO:

Regulation Sec. 14-23; CSMC Rule 80-1; Amendment No. 3; Dated 3/5/84.

OHIO:

Regulation Sec. 1501:13-7-04 Self-Bonding (1988) and accompanying procedures.

OKLAHOMA:

Regulation Sec. 800.23 Self-bonding (1988).

PENNSYLVANIA:

25 Pa Code Ch. 86, Secs. 86.142 Definitions and 86.159 Self-bonding (1990).

TEXAS:
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

U.S. Department of the Interior

Search conducted by: Gregory Conrad (IMCC)

Additional research conducted by Joyce Zweben Scall

Page 9 of 9

Regulation Sec. 806.309 Terms and Conditions of the Bond (recently promulgated).

WEST VIRGINIA:

Regulation Sec. 38-2-11. Insurance and Bonding.

WYOMING:

Regulation Chap. XII Self-Bonding Program. Secs. 1-7.