[Federal Register Volume 63, Number 92 (Wednesday, May 13, 1998)]
[Rules and Regulations]
[Pages 26451-26454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12646]


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DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation and Enforcement

30 CFR Part 920

[MR-041-FOR]


Maryland Regulatory Program

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

ACTION: Final rule; approval of amendment.

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SUMMARY: OSM is approving a proposed amendment to the Maryland 
regulatory program (hereinafter referred to as the ``Maryland 
program'') under the Surface Mining Control and Reclamation Act of 1977 
(SMCRA). Maryland proposed revisions to its regulations pertaining to 
bonding. The amendment is intended to revise the Maryland program to be 
consistent with the corresponding Federal regulations and SMCRA.

EFFECTIVE DATE: May 13, 1998.

FOR FURTHER INFORMATION CONTACT: George Rieger, Program Manager, OSM, 
Appalachian Regional Coordinating Center, 3 Parkway Center, Pittsburgh, 
PA 15220. Telephone: (412) 937-2153.

SUPPLEMENTARY INFORMATION:
I. Background on the Maryland Program.
II. Submission of the Proposed Amendment.
III. Director's Findings.
IV. Summary and Disposition of Comments.
V. Director's Decision.
VI. Procedural Determinations.

I. Background on the Maryland Program

    On December 1, 1980, the Secretary of the Interior conditionally 
approved the Maryland program. Background information on the Maryland 
program, including the Secretary's findings, the disposition of 
comments, and the

[[Page 26452]]

conditions of approval can be found in the December 1, 1980, Federal 
Register (45 FR 79449). Subsequent actions concerning conditions of 
approval and program amendments can be found at 30 CFR 920.12, 920.15, 
and 920.16.

II. Submission of the Proposed Amendment

    By letter dated March 6, 1997 (Administrative Record No, MD-
552.18), Maryland submitted a proposed amendment to its program 
pursuant to SMCRA in response to required amendments at 30 CFR 920.16 
(h), (i), (j), and (n). Maryland is revising the Code of Maryland 
Regulations (COMAR) at section 26.20.14.01B--Performance Bonds. 
Specifically, Maryland proposes to require that a performance bond be 
conditioned upon the permittee faithfully performing every requirement 
of Subtitle 5 of the Annotated Code of Maryland, the Regulatory 
Program, the permit, and the reclamation plan. Maryland is also 
formally submitting an actuarial study which reviews the adequacy of 
its alternative bonding system.
    OSM announced receipt of the proposed amendment in the March 25, 
1997, Federal Register (62 FR 14079), and in the same document opened 
the public comment period and provided an opportunity for a public 
hearing on the adequacy of the proposed amendment. The public comment 
period closed on April 24, 1997. OSM reopened the public comment period 
on April 6, 1998 (63 FR 16730) and clarified that Maryland's 
alternative bonding system was originally submitted with the 
understanding that it would cover acid mine drainage. Further, Maryland 
submitted additional changes to its program at COMAR 26.20.14.03 and 
26.20.14.04 which pertain to performance bond requirements. In 1991, 
OSM approved changes to former COMAR 08.13.09.15C (now 26.20.14.03) and 
COMAR 08.13.09.15D (now 26.20.14.04) [56 FR 63649, December 5, 1991]. 
However, Maryland subsequently chose not to promulgate these approved 
changes. Instead, it now proposes to readopt the language at these 
sections. The comment period closed on April 21, 1998.

III. Director's Findings

    Set forth below, pursuant to SMCRA and the Federal regulations at 
30 CFR 732.15 and 732.17, are the Director's findings concerning the 
proposed amendment. Revisions not specifically discussed below concern 
nonsubstantive wording changes and paragraph notations to reflect 
organizational changes resulting from this amendment.
    1. COMAR 26.20.14.01B--Performance Bonds. Maryland is proposing to 
require that performance bonds be payable to the State, on forms 
provided by the Bureau of Mines, and conditioned on the permittee 
faithfully performing every requirement of Environmental Article, Title 
15, Subtitle 5, Annotated Code of Maryland, the Regulatory Program, the 
permit, and the reclamation plan. The Director finds that the proposed 
revision is no less effective than the Federal regulation at 30 CFR 
800.11(a) and he is removing the required amendment at 30 CFR 
920.16(h).
    2. COMAR 26.20.14.03--Performance Bonds (formerly 08.13.09.15C). 
Maryland is proposing to require that the amount of the performance 
bond be based upon the estimated cost to perform the reclamation 
required to achieve compliance with the regulatory program and the 
requirements of the permit in the event of a forfeiture. In addition, a 
separate bond for revegetation in the amount of $600 per acre of 
affected land and a general bond in the amount of $1500 per acre for 
the approved open acre limit is established. The Director finds that 
the proposed revision is no less effective than the Federal regulation 
at 30 CFR 800.14(b).
    3. COMAR 26.20.14.04--Performance Bonds (formerly 08.13.09.15D). 
Maryland is proposing to require that the amount of the performance 
bond be adjusted as acreage in the permit area is revised, methods of 
mining operation change, standards of reclamation change, or when the 
cost of reclamation or restoration work changes. The Director finds 
that the proposed revision is no less effective than the Federal 
regulation at 30 CFR 800.15(a) and he is removing the required 
amendment at 30 CFR 920.16(j).
    4. Actuarial Study. Maryland is formally submitting ``Actuarial 
Analysis of the Alternative Bonding System for Surface Mine 
Reclamation'' prepared by Arthur Andersen LLP (Administrative Record 
No. MD-552-12). The analysis concluded that Maryland's bonding system 
appears to be solvent on a short term basis. Short term solvency was 
defined as ``the ability to pay for all currently outstanding known 
reclamations plus one average cost reclamation project.'' The analysis 
also concluded that Maryland's long term solvency based on its current 
rate structure is adequate until 1999, at which time rates may have to 
be adjusted for inflation. Long term solvency was defined as the 
ability of the fund to collect sufficient revenue to pay for 
reclamation costs incurred in the future. Several recommendations were 
made concerning fund caps, bond amounts, contingency reserves, and 
catastrophe plans. OSM reviewed the document and concluded that the 
study was comprehensive and closely aligned with OSM's bonding guidance 
document, ``Alternative Bonding Systems: An Analytical Approach and 
Identified Factors to Consider for Evaluating Alternative Bonding 
Systems.'' Maryland's alternative bonding system was originally 
submitted with the understanding that it would cover acid mine 
drainage. Maryland has since adopted a policy that will limit the 
liability of the alternative bonding system by increasing the 
permittee's individual bond amount where unanticipated acid mine 
drainage develops on a site. The Director is approving Maryland's 
alternative bonding system based on the results of the actuarial study. 
Maryland's bonding system achieves the objectives of and is no less 
effective than the Federal regulations at 30 CFR 800.11(e). He is 
removing the required amendments at 30 CFR 920.16(i) and (n).

IV. Summary and Disposition of Comments

Public Comments

    The Director solicited public comments and provided an opportunity 
for a public hearing on the proposed amendment. No comments were 
received and because no one requested an opportunity to speak at a 
public hearing, no hearing was held.

Federal Agency Comments

    Pursuant to 30 CFR 732.17(h)(11)(i), the Director solicited 
comments on the proposed amendment from various Federal agencies with 
an actual or potential interest in the Maryland program. The U.S. 
Department of Labor, Mine Safety and Health Administration and the U.S. 
Department of the Army, Army Corps of Engineers, concurred without 
comment.

Environmental Protection Agency (EPA)

    Pursuant to 30 CFR 732.17(h)(11)(ii), OSM is required to obtain the 
written concurrence of the EPA with respect to those provisions of the 
proposed program amendment that relate to air or water quality 
standards promulgated under the authority of the Clean Water Act (33 
U.S.C. 1251 et seq.) or the Clean Air Act (42 U.S.C. 7401 et seq.). 
None of the revisions that Maryland proposed to make in this amendment 
pertains to air or water quality standards.

[[Page 26453]]

Therefore, OSM did not request EPA's concurrence.
    The Federal regulations at 30 CFR Part 920, codifying decisions 
concerning the Maryland program, are being amended to implement this 
decision. This final rule is being made effective immediately to 
expedite the State program amendment process and to encourage States to 
bring their programs into conformity with the Federal standards without 
undue delay. Consistency of State and Federal standards is required by 
SMCRA.

V. Director's Decision

    Based on the above findings, the Director approves Maryland's 
proposed amendment as submitted on March 6, 1997. As discussed in 
Finding 1, the Director is removing the required amendment at 30 CFR 
920.16(h). As discussed in Finding 4, the Director is removing the 
required amendments at 30 CFR 920.16 (i) and (n). He is also removing 
the required amendment at 30 CFR 920.16(j) because at COMAR 
26.20.14.04A, Maryland is required to adjust the amount of the 
performance bond liability as acreage in the permit area is revised, as 
discussed in Finding 3.
    The Federal regulations at 30 CFR Part 920, codifying decisions 
concerning the Maryland program, are being amended to implement this 
decision. This final rule is being made effective immediately to 
expedite the State program amendment process and to encourage States to 
bring their programs into conformity with the Federal standards without 
undue delay. Consistency of State and Federal standards is required by 
SMCRA.

VI. 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 subsections (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 rule 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 
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 
corresponding Federal regulations for which an economic analysis was 
prepared and certification made that such regulations would not have a 
significant economic effect upon a submittal 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 corresponding Federal regulations.

Unfunded Mandates

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

List of Subjects in 30 CFR Part 920

    Intergovernmental relations, Surface mining, Underground mining.

    Dated: May 1, 1998.
Ronald C. Recker,
Acting Regional Director, Appalachian Regional Coordinating Center.
    For the reasons set out in the preamble, Title 30, Chapter VII, 
Subchapter T of the Code of Federal Regulations is amended as set forth 
below:

PART 920--MARYLAND

    1. The authority citation for part 920 continues to read as 
follows:

    Authority: 30 U.S.C. 1201 et seq.

    2. Section 920.15 is amended in the table by adding a new entry in 
chronological order by ``Date of Final Publication'' to read as 
follows:


Sec. 920.15  Approval of Maryland regulatory program amendments.

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Original amendment submissions    Date of final                         
             date                  publication      Citation/description
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*                  *                  *                  *              
                  *                  *                  *               
March 6, 1997.................  May 13, 1998.....  COMAR 26.20.14.01B,  
                                                    26.20.14.03,        
                                                    26.20.14.04,        
                                                    Actuarial Study.    
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Sec. 920.16  [Amended]

    3. Section 920.16 is amended by removing and reserving paragraphs 
(h), (i), (j), and (n).

[FR Doc. 98-12646 Filed 5-12-98; 8:45 am]
BILLING CODE 4310-05-M