[Federal Register Volume 60, Number 144 (Thursday, July 27, 1995)]
[Rules and Regulations]
[Pages 38500-38502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18438]



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DEPARTMENT OF THE INTERIOR
30 CFR Part 935


Ohio Regulatory Program

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

ACTION: Notice of decision.

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SUMMARY: OSM is announcing its decision on initial enforcement of 
underground coal mine subsidence control and water replacement 
requirements in Ohio. Amendments to the Surface Mining Control and 
Reclamation Act of 1977 (SMCRA) and the implementing Federal 
regulations require that underground coal mining conducted after 
October 24, 1992: promptly repair or compensate for subsidence-caused 
material damage to noncommercial buildings and to occupied residential 
dwellings and related structures and promptly replace drinking, 
domestic, and residential water supplies that have been adversely 
affected by underground coal mining. After consultation with Ohio and 
consideration of public comments, OSM has decided that initial 
enforcement in Ohio will be accomplished through State enforcement.

EFFECTIVE DATE: July 27, 1995.

FOR FURTHER INFORMATION CONTACT:
Beverly C. Brock, Acting Director, Columbus Field Office, Office of 
Surface Mining Reclamation and Enforcement, Eastland Professional 
Plaza, 4480 Refugee Road, 2nd Floor, Columbus, Ohio 43232, Telephone: 
(614) 866-0578.

SUPPLEMENTARY INFORMATION:

A. The Energy Policy Act

    Section 2504 of the Energy Policy Act of 1992, Pub. L. 102-486, 106 
Stat. 2776 (1992) added new section 720 to SMCRA. Section 720(a)(1) 
requires that all underground coal mining operations promptly repair or 
compensate for subsidence-caused material damage to noncommercial 
buildings and to occupied residential dwellings and related structures. 
Repair of damage includes rehabilitation, restoration, or replacement 
of the structures identified in section 720(a)(1), and compensation 
must be provided to the owner in the full amount of the reduction in 
value of the damaged structures as a result of subsidence. Section 
720(a)(2) requires prompt replacement of certain identified water 
supplies if those supplies have been adversely affected by underground 
coal mining operations.
    These provisions requiring prompt repair or compensation for damage 
to structures, and prompt replacement of water supplies, went into 
effect upon passage of the Energy Policy Act on October 24, 1992. As a 
result, underground coal mine permittees in States with OSM-approved 
regulatory programs are required to comply with these provisions for 
operations conducted after October 24, 1992.

B. The Federal Regulations Implementing the Energy Policy Act

    On March 31, 1995, OSM promulgated regulations at 30 CFR Part 817 
to implement the performance standards of sections 720(a) (1) and (2) 
of SMCRA (60 FR 16722).
    30 CFR 817.121(c)(2) requires in part that:

    The permittee must promptly repair, or compensate the owner for, 
material damage resulting from subsidence caused to any non-
commercial building or occupied residential dwelling or structure 
related to thereto that existed at the time of mining. * * * The 
requirements of this paragraph apply only to subsidence-related 
damage caused by underground mining activities conducted after 
October 24, 1992.

    30 CFR 817.41(j) requires in part that:

    The permittee must promptly replace any drinking, domestic or 
residential water supply that is contaminated, diminished or 
interrupted by underground mining activities conducted after October 
24, 1992, if the affected well or spring was in existence before the 
date the regulatory authority received the permit application for 
the activities causing the loss, contamination or interruption.

Alternative OSM Enforcement Decisions

    30 CFR 843.25 provides that by July 31, 1995, OSM will decide, in 
consultation with each State regulatory authority with an approved 
program, how enforcement of the new requirements will be accomplished. 
As discussed in the April 7, 1995, Federal Register (60 FR 17741) and 
as reiterated below, enforcement could be accomplished through the 30 
CFR Part 732 State program amendment process, or by State, OSM, or 
joint State and OSM enforcement of the requirements.
    (1) State program amendment process. If the State's promulgation of 
regulatory provisions that are counterpart to 30 CFR 817.41(j) and 
817.121(c)(2) is imminent, the number and extent of underground mines 
that have operated in the State since October 24, 1992, is low, the 
number of complaints in the State concerning section 720 of SMCRA is 
low, or the State's investigation of subsidence-related complaints has 
been thorough and complete so as to assure prompt remedial action, then 
OSM could decide not to directly enforce the Federal provisions in the 
State. In this situation, the State would enforce its State statutory 
and regulatory provisions once it has amended its program to be in 
accordance with the revised SMCRA and to be consistent with the revised 
Federal regulations. This program revision process, which is addressed 
in the Federal regulations at 30 CFR Part 732, is commonly referred to 
as the State program amendment process.
    (2) State enforcement. If the State has statutory or regulatory 
provisions in place that correspond to all of the requirements of the 
above-described Federal regulations at 30 CFR 817.41(j) and 
817.121(c)(2) and the State has authority to implement its statutory 
and regulatory provisions for all underground mining activities 
conducted after October 24, 1992, then the State would enforce its 
provisions for these operations.
    (3) Interim direct OSM enforcement. If the State does not have any 
statutory or regulatory provisions in place that correspond to the 
requirements of the Federal regulations at 30 CFR 817.41(j) and 
817.121(c)(2), then OSM would enforce in their entirety 30 CFR 
817.41(j) and 817.121(c)(2) for all underground mining activities 
conducted in the State after October 24, 1992.
    (4) State and OSM enforcement. If the State has statutory or 
regulatory provisions in place that correspond to some but not all of 
the requirements of the Federal regulations at 30 CFR 817.41(j) and 
817.121(c)(2) and the State has authority to implement its provisions 
for all underground mining activities conducted after October 24, 1992, 
then the State would enforce its provisions for these operations. OSM 
would then enforce those provisions of 30 CFR 817.41(j) and 
817.121(c)(2) that are not covered by the State provisions for these 
operations.
    If the State has statutory or regulatory provisions in place that 
correspond to some but not all of the requirements of the Federal 
regulations at 30 CFR 817.41(j) and 817.121(c)(2) and if the State's 
authority to enforce its provisions applies to operations conducted on 
or after some date later than October 24, 1992, the State would enforce 
its provisions for these operations on and after the provisions' 
effective date. OSM would then enforce 30 CFR 817.41(j) and 
817.121(c)(2) to the extent the State statutory and 

[[Page 38501]]
regulatory provisions do not include corresponding provisions 
applicable to all underground mining activities conducted after October 
24, 1992; and OSM would enforce those provisions of 30 CFR 817.41(j) 
and 817.121(c)(2) that are included in the State program but are not 
enforceable back to October 24, 1992, for the time period from October 
24, 1992, until the effective date of the State's rules.
    As described in items (3) and (4) above, OSM could directly enforce 
in total or in part the applicable Federal regulatory provisions until 
the State adopts and OSM approves under 30 CFR Part 732, the State's 
counterparts to the required provisions. However, as discussed in item 
(1) above, OSM could decide not to initiate direct Federal enforcement 
but rather to rely instead on the 30 CFR Part 732 State program 
amendment process.
    In those situations where OSM determined that direct Federal 
enforcement was necessary, the ten-day notice provisions of 30 CFR 
843.12(a)(2) would not apply. That is, when on the basis of a Federal 
inspection OSM determined that a violation of 30 CFR 817.41(j) or 
817.121(c)(2)( existed, OSM would issue a notice of violation or 
cessation order without first sending a ten-day notice to the State.
    Also under direct Federal enforcement, the provisions of 30 CFR 
817.121(c)(4) would apply. This regulation states that if damage to any 
noncommercial building or occupied residential dwelling or structure 
related thereto occurs as a result of earth movement within an area 
determined by projecting a specified angle of draw from the outermost 
boundary of any underground mine workings to the surface of the land 
(normally a 30 degree angle of draw), a rebuttable presumption exists 
that the permittee caused the damage.
    Lastly, under direct Federal enforcement, OSM would also enforce 
the new definitions at 30 CFR 701.5 of ``drinking, domestic or 
residential water supply,'' ``material damage,'' ``non-commercial 
building,'' ``occupied dwelling and structures related thereto,'' and 
``replacement of water supply'' that were adopted with the new 
underground mining performance standards.
    OSM would enforce 30 CFR 817.41(j), 817.121(c) (2) and (4), and 30 
CFR 701.5 for operations conducted after October 24, 1992.

C. Enforcement in Ohio

Ohio Program Activity, Requirements, and Enforcement

    By letter to Ohio dated December 15, 1994, OSM requested 
information that would be useful in determining how to implement 
section 720(a) of SMCRA and the implementing Federal regulations in 
Ohio (Administrative Record No. OH-2073). By letter dated January 18, 
1995, Ohio responded to this request (Administrative Record No. OH-
2085).
    Ohio provided a list of permitted underground coal mining 
operations. There are eighteen active underground coal mines in Ohio. 
The term ``active underground coal mines'' includes coal mines that are 
currently producing coal. The term also includes coal mines that are 
not currently producing coal but are being inspected by Ohio at the 
same rate as those mines that are producing coal. Thus, the number of 
mines actually producing coal varies and is usually much lower than 
eighteen. (Administrative Record Number OH-2090). Ohio indicated that 
existing program provisions at Ohio Revised Code sections 1513.162 and 
the Ohio Administrative Code sections 1501:13-1-02(S), 1501:13-9-04(P), 
and 1501:13-12-03 (C), (D), (E), (F), (H), and (I) are the State's 
authority for enforcement of water replacement and subsidence related 
structural damage. Ohio explained that it has enforced these State 
program provisions requiring replacement of water supplies impacted by 
underground mining operations since 1977 and enforced State program 
provisions requiring repair or compensation for subsidence related 
structural damage since 1988. Ohio has distributed Division Policy 
Procedures addressing subsidence related water replacement at PPD 
Underground 93-2, subsidence related damages to structures at PPD 
Underground 90-2 and 90-3.
    By letter dated February 1, 1995 (Administrative Record Number OH-
2090), Ohio provided information concerning complaints related to 
underground mining operations in Ohio. Ohio has investigated 26 citizen 
complaints alleging water supply loss or contamination as a result of 
underground mining operations conducted after October 24, 1992. To 
date, Ohio has made a determination on six of the complaints that water 
loss was not mining related and on six of the complaints that water 
loss was mining related. Fourteen complaints are still being 
investigated. Twelve of the 14 are related to water supplies associated 
with one underground coal mining operation and are not subsidence 
related. Ohio also stated that there is only one pending complaint 
related to structure damage from subsidence.
    On June 2, 1995, OSM met with the Ohio Division of Reclamation to 
discuss the enforcement scheme to be followed in Ohio. Ohio stated that 
counterparts to 30 CFR 817.41(j) and 817.121(c)(2) are fully provided 
for in the Ohio program and that the appropriate enforcement scheme for 
Ohio is State enforcement of the approved Ohio program (Administrative 
Record Number OH-2131).
    Comments. On April 7, 1995, OSM published in the Federal Register 
(60 FR 17741) an opportunity for a public hearing and a request for 
public comment to assist OSM in making its decision on how the 
underground coal mine subsidence control and water replacement 
requirements should be implemented in Ohio. The comment period closed 
on May 8, 1995. Because OSM did not receive a request for one, OSM did 
not hold a public hearing. OSM received comments from one party in 
response to its notice (Administrative Record Number OH-2141).
    The party commented that the enforcement alternatives incorporating 
total or partial direct interim Federal enforcement (items (3) and (4) 
in section I.B. above) have no statutory basis in SMCRA and are not 
consistent with Congress' intent in creating section 720 of SMCRA. The 
party also commented that the waiving of ten-day notice procedures 
under direct Federal enforcement is not consistent with Federal case 
law. OSM does not agree with the commenter's assertions, and it 
addressed similar comments in the March 31, 1995, Federal Register (60 
FR 16722, 16742-16745). These concerns about direct Federal enforcement 
are moot issues in Ohio because the Regional Director has decided, as 
set forth below, not to implement an enforcement alternative including 
direct Federal enforcement.
    Director's Decision. Based on the information discussed above, the 
Director has decided that enforcement of the underground coal mine 
subsidence control and water replacement requirements in Ohio will be 
accomplished by State enforcement of the Ohio program. The Director has 
made this decision after soliciting public comment (one comment was 
received) and providing opportunity for public hearing (no requests for 
a hearing were received), and considering information provided by Ohio 
by letters dated January 18, 1995, and February 1, 1995, and in 
discussions held with Ohio on June 2, 1995. The Director would like 

[[Page 38502]]
to clarify the meaning of subsection (E) of OAC 1501:13-12-03. This 
subsection states that any agreement between the operator and the 
structure owner takes precedence over 1501:13-12-03. This section 
appears to conflict with the requirements of section 720(a)(1) of 
SMCRA, which requires repair or compensation of damaged structures 
without regard to private agreements (see 60 FR 16722, 16735; March 31, 
1995). When OSM approved this subsection in 1991, OSM asked for 
clarification from Ohio about this subsection. Ohio clarified this 
subsection to mean that the agreement must at a minimum require repair 
or compensation for subsidence damage of a protected structure and that 
anything less than this would be considered no agreement between the 
parties (56 FR 52469, 52470-71; October 21, 1991). Therefore, this 
subsection is in accordance with section 720(a)(1) of SMCRA. The 
Director has concluded that Ohio law at ORC 1513.162 and rules at OAC 
1501:13-1-02(S); 1501:13-9-04(P); and 1501:13-12-03 (C); (D); (E) as 
clarified in 56 FR 52469 (October 21, 1991); (F); (H); and (I) 
authorize enforcement of provisions of the Energy Policy Act of 1992 in 
Ohio from October 24, 1992.
    If circumstances within Ohio change significantly, the Director may 
reassess this decision. Formal reassessment of this decision would be 
addressed by Federal Register notice.

    Dated: July 20, 1995.
David G. Simpson,
Acting Regional Director, Appalachian Regional Coordinating Center.
[FR Doc. 95-18438 Filed 7-26-95; 8:45 am]
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