[Federal Register Volume 61, Number 14 (Monday, January 22, 1996)]
[Proposed Rules]
[Pages 1551-1556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-648]



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DEPARTMENT OF THE INTERIOR
30 CFR Part 914

[SPAT No. IN-134-FOR; Amendment No. 95-12]


Indiana 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 
Indiana regulatory program (hereinafter the ``Indiana program'') under 
the Surface Mining Control and Reclamation Act of 1977 (SMCRA). The 
proposed amendment consists of revisions to the Indiana Surface Coal 
Mining and Reclamation Act (ISMCRA) as enacted by the Indiana General 
Assembly (1995) in Senate Enrolled Act 125 (SEA 125). The proposed 
amendment concerns the submittal of affected area status reports and 
performance bonding. The amendment is intended to revise the Indiana 
program to be consistent with SMCRA and to incorporate State 
initiatives.

DATES: Written comments must be received by 4:00 p.m., e.s.t., February 
21, 1996. If requested, a public hearing on the proposed amendment will 
be held on February 13, 1996. Requests to speak at the hearing must be 
received by 4:00 p.m., e.s.t., on February 6, 1996.

ADDRESSES: Written comments and requests to speak at the hearing should 
be mailed or hand delivered to Mr. Roger W. Calhoun, Director, 
Indianapolis Field Office, at the address listed below.
    Copies of the Indiana 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 requester may receive one free copy of 
the proposed amendment by contacting OSM's Indianapolis Field Office.

Roger W. Calhoun, Director, Indianapolis Field Office, Office of 
Surface Mining Reclamation and Enforcement, Minton-Capehart Federal 
Building, Room 301, Indianapolis, Indiana 46204, Telephone: (317) 226-
6700.
Indiana Department of Natural Resources, 402 West Washington Street, 
Room C256, Indianapolis, Indiana 46204, Telephone: (317) 232-1547.

FOR FURTHER INFORMATION CONTACT:
Roger W. Calhoun, Director, Indianapolis Field Office, Telephone: (317) 
226-6700.

SUPPLEMENTARY INFORMATION:

I. Background on the Indiana Program

    On July 29, 1982, the Secretary of the Interior conditionally 
approved the Indiana program. Background information on the Indiana 
program, including the Secretary's findings, the disposition of 
comments, and the conditions of approval can be found in the July 26, 
1982, Federal Register (47 FR 32107). Subsequent actions concerning the 
conditions of approval and program amendments can be found at 30 CFR 
914.10, 914.15, and 914.16.

II. Description of the Proposed Amendment

    By letter dated September 11, 1995 (Administrative Record No. IND-
1510), Indiana submitted a proposed amendment to its program pursuant 
to SMCRA. Indiana submitted the proposed amendment at its own 
initiative. SEA 125 amends ISMCRA by adding new sections and revising 
existing sections, concerning affected area status reports and 
performance bonding, to recodified Indiana Code (IC) 14-8 and 14-34. 
The recodification of the current provisions of ISMCRA is proposed in 
Indiana's Regulatory Program Amendment No. 95-10, and it 

[[Page 1552]]
will be discussed in a separate proposed rule.
A. Indiana Proposes to Add the Following Four Definitions at Recodified 
IC 14-8 [previously IC 13-4.1-1-3]
1. IC 14-8-2-42.5  Definition of Collateral
    ``Collateral'', for purposes of IC 14-34-7, has the meaning set 
forth in IC 14-34-7-0.5.
2. IC 14-8-2-49.5  Definition of Comparative Balance Sheet
    ``Comparative balance sheet'', for purposes of IC 14-34-7, has 
the meaning set forth in IC 14-34-7-0.6.
3. IC 14-8-2-49.6  Definition of Comparative Income Statement
    ``Comparative income statement'', for purposes of IC 14-34-7, 
has the meaning set forth in IC 14-34-7-0.7.
4. IC 14-8-2-274.5  Definition of Surface Mining Control and 
Reclamation Act
    ``Surface Mining Control and Reclamation Act'', for purposes of 
IC 14-34-7, has the meaning set forth in IC 14-34-7-2.5.

B. IC 14-34-5-10  Affected Area Status Reports

    Indiana proposes to amend recodified IC 14-34-5-10 [previously IC 
13-4.1-5-7] to read as follows.

    A permittee must submit to the department an annual report that 
reflects the status of the permittee's mining and reclamation 
activities for each permit. The form, content, and date of filing of 
the report required by this section shall be prescribed by rule 
adopted under IC 4-22-2.

C. Indiana Proposes to Add the Following New Sections Pertaining to 
General Requirements of Performance Bonding at Recodified IC 14-34-6 
[Previously IC 13-4.1-6]

1. IC 14-34-6-14.3
    The director may release the bond, deposit, or letter of credit 
covering an area that has not been disturbed by surface coal mining 
activities. A release under this subsection is not subject to the 
public notice and hearing requirements set forth in sections 7 
through 14 of this chapter.
2. IC 14-34-6-14.6
    (a) This section applies when an applicant or permittee submits 
a bond, deposit, or letter of credit covering an area that: (1) has 
been disturbed by surface coal mining activities; and (2) is covered 
by another bond, deposit, or letter of credit previously submitted 
by another permittee.
    (b) Except as provided in subsection (c), in a situation 
described in subsection (a): (1) The bond, deposit, or letter of 
credit previously submitted shall be released when the director 
accepts the bond deposit or letter of credit submitted by the 
applicant or permittee; and (2) the bond, deposit, or letter of 
credit submitted by the applicant or permittee: (A) is subject to 
the standards set forth in sections 7 through 14 of this chapter; 
and (B) may not be released under section 14.3 of this chapter.
    (c) If two (2) or more persons who are applicants or permittees 
each file a bond, deposit, or letter of credit covering the same 
area, the persons may enter into a written agreement that allocates 
responsibility among the persons for the reclamation of the area.
    If the agreement is approved by the director, the agreement 
governs the respective responsibilities of the persons for the 
reclamation of the area.

D. Indiana Proposes To Add the Following Definition Sections Pertaining 
to Self-Bonding at Recodified IC 14-34-7 [Previously IC 13-4.1-6.3]

1. IC 14-34-7-0.5  Definition of Collateral
    As used in this chapter, ``collateral'' means the actual or 
constructive deposit, as appropriate, with the director of one (1) 
or more of the following types of property in support of a self-
bond:
    (1) A perfected, first-lien security interest in favor of the 
department of natural resources in real property located in Indiana 
that meets the requirements of this chapter.
    (2) Securities backed by the full faith and credit of the United 
States government, or state government securities, that are: (A) 
acceptable to; (B) endorsed to the order of; and (C) placed in the 
possession of; the director.
    (3) Personal property that is located in Indiana and owned by 
the applicant, the market value of which is more than one million 
dollars ($1,000,000) per property unit.
2. IC 14-34-7-0.6  Definition of Comparative Balance Sheet
    As used in this chapter, ``comparative balance sheet'' means 
item accounts from a number of the operator's successive yearly 
balance sheets arranged side by side in a single statement.
3. IC 14-34-7-0.7  Definition of Comparative Income Statement
    As used in this chapter, ``comparative income statement'' means 
an operator's income statement amounts for a number of successive 
yearly periods arranged side by side in a single statement.
4. IC 14-34-7-2.5  Definition of Surface Mining Control and Reclamation 
Act
    As used in this chapter, ``Surface Mining Control and 
Reclamation Act'' means the federal Surface Mining Control and 
Reclamation Act of 1977 (30 U.S.C. 1201 through 1328).

E. IC 14-34-7-1  Definition of Liabilities

    Indiana proposes to amend recodified IC 14-34-7-1 [previously IC 
13-4.1-6.3-5] by adding the following exclusion statement to the end of 
the definition.

    The term does not include amounts that are required to be 
recorded for financial accounting purposes under Statement of 
Financial Accounting Standards number 106 issued by the Financial 
Accounting Standards Board and effective December 1990.

F. Indiana Proposes To Amend Recodified IC 14-34-7-4 [Previously IC 13-
4.1-6.3-2, 3, 4, and 8] by Revising Existing Subsections as Follows

1. IC 14-34-7-4(b) [Was IC 13-4.1-6.3-3]  Definition of Current 
Liabilities
    (b) As used in this section, ``current liabilities'' means: (1) 
obligations that are reasonably expected to be paid or liquidated 
within one (1) year or within the normal operating cycle of the 
business; plus (2) dividends payable on preferred stock within: (A) 
one (1) quarter, if declared; or (B) one (1) year, if a pattern of 
declaring dividends each quarter is apparent from past business 
practice.
2. IC 14-34-7-4(d) [Was IC 13-4.1-6.3-8]  Conditions For Self-Bonding
    a. At subsection (d), the language ``Subject to subsection (f)'' 
was added at the beginning of the introductory sentence and the 
language ``at the time the self-bond is accepted'' was added at the end 
of this sentence.
    b. New paragraphs (3) through (6) were added to IC 14-34-7-4(d) to 
read as follows:

    (3) The applicant is not subject to any outstanding cessation 
order issued under IC 13-4.1-11-5 (before its repeal), IC 14-34-15-
6, or the Surface Mining Control and Reclamation Act.
    (4) The applicant does not owe any civil penalties under IC 13-
4.1-12 (before its repeal), IC 14-34-16, or the Surface Mining 
Control and Reclamation Act.
    (5) The applicant does not owe any fees under this article, IC 
13-4.1 (before its repeal), or the Surface Mining Control and 
Reclamation Act, and is not delinquent in the payment of any fees or 
civil penalties.
    (6) The applicant's permit has never been suspended under this 
article or IC 13-4.1 (before its repeal), and the applicant is not 
listed on the Applicant Violator System (AVS).

    c. IC 14-34-7-4(d)(7). Existing IC 13-4.1-6.3-8(3) was redesignated 
as IC 14-34-7-4(d)(7) and the introductory sentence was revised by 
changing the work ``show'' to ``demonstrate,'' by changing the word 
``meets'' to ``satisfies,'' and by adding the phrase ``at least'' 
before the word ``one.'' The following subparagraphs were also revised.
    The following additional requirement was added at IC 14-34-7-
4(d)(7)(A).


[[Page 1553]]

    The applicant must identify the rating service used by the 
applicant and provide any additional relevant information concerning 
how the serve arrived at the specific ratings.

    The following additional requirement was added at IC 14-34-7-
4(d)(7)(B).

    The ratio requirements set forth in this clause must be met for 
the year immediately preceding the application, and must be 
documented for the four (4) years preceding the application. An 
explanation shall be included for any year in which the ratios of 
the applicant did not meet the requirements set forth in this 
clause. The failure of an applicant to meet the ratio requirements 
set forth in this clause for any of the four (4) years preceding the 
application does not necessarily disqualify an applicant for self-
bonding under this chapter.

    The following additional requirement was added at IC 14-34-7-
4(d)(7)(C).

    The ratio requirements set forth in this clause must be met for 
the applicant's fiscal year immediately preceding the application, 
and must be documented for the four (4) years preceding the 
application. An explanation shall be included for any year in which 
the rations of the applicant did not meet the requirements set forth 
in this clause. The failure of an applicant to meet the ration 
requirements set forth in this clause for any of the four (4) years 
preceding the application does not necessarily disqualify an 
applicant for self-bonding under this chapter.

    d. IC 14-34-7-4(d)(8). Existing IC 13-4.1-6.3-8(4) was redesignated 
as IC 14-34-7-4(d)(8). New subparagraphs (C) and (D) were added and 
existing subparagraph (C) was redesignated (E). New subparagraphs (C) 
and (D) read as follows.

    (C) Comparative financial data from a five (5) year period, that 
must include a comparative income statement and a comparative 
balance sheet.
    (D) A statement listing: (i) every lien filed against any assets 
of the applicant in any jurisdiction in the United States for an 
amount that is more than two percent (2%) of the applicant's net 
worth; (ii) every action pending against the applicant; (iii) every 
judgment rendered against the applicant within the seven (7) years 
preceding the application that remains unsatisfied and for an amount 
that is more than two percent (2%) of the applicant's net worth; and 
(iv) any petitions or actions in bankruptcy against the applicant, 
including actions for reorganization.

    3. IC 14-34-7-4(e), (f), and (g). Additional requirements for self-
bonding were added at new subsections (e), (f), and (g).

    (e) If an applicant submits financial information to demonstrate 
that the applicant satisfies the criteria set forth in subsection 
(d)(7)(B) or (d)(7)(C), the two (2) ratios set forth in subsection 
(d)(7)(B) or (d)(7)(C) shall be calculated with the proposed self-
bond amount included in the current liabilities or total liabilities 
for the year of the application. The operator may deduct from the 
total liabilities the costs currently accrued for reclamation that 
appear on the balance sheet current in the year of the application.
    (f) Notwithstanding subsection (d)(7), the director may not 
accept a self-bond from an applicant unless the financial ratios of 
the applicant are at least as favorable as those listed for the 
medium performers in the Dun and Bradstreet listing of Industry 
Norms and Key Business Ratios.
    (g) Each lien, action, and petition listed under subsection 
(d)(8)(E) must be identified by the named parties, the jurisdiction 
in which the matter was filed, the case number, and the final 
disposition or the current status of any action still pending.

G. IC 14-34-7-4.1  Replacement of Self-Bonds

    Indiana proposes to add the following new requirements for 
replacement of self-bonds at IC 14-34-7-4.1

    (a) Before January 1, 1996, all self-bonds in effect on July 1, 
1995, must be replaced in one (1) of the following ways: (1) The 
self-bond may be replaced by another form of bond allowed under IC 
13-4.1-6. (2) The self-bonded permittee may reapply for self-bonding 
under this chapter.
    (b) If the application of a permittee submitted under subsection 
(a)(2) is not accepted, the permittee must replace its self-bond 
with another form of bond allowed under IC 14-34-6.

H. IC 14-34-7-5  Corporate Guarantee

    Indiana proposes to amend recodified IC 14-34-7-5 [previously IC 
13-4.1-6.3-9] as follows.
    1. New subsection (a) is added.

    (a) A written guarantee accepted under this section is referred 
to as a ``corporate guarantee''.

    2. Existing subsection (a) is redesignated as subsection (b), and 
the language ``at the time the self-bond is accepted'' is added after 
the word ``if.'' Also, subsection (b)(2) is revised by changing the 
word ``meets'' to ``satisfies,'' and replacing the reference to section 
4(d)(4) with a reference to section 4(d)(8).
    3. Existing subsection (b) is redesignated as subsection (c). 
Subsection (c)(1) is revised by adding the language ``complete the 
reclamation plan'' after the first reference to ``the guarantor 
shall.'' Subsection (c)(3) is revised by replacing the language ``The 
cancellation'' with the language ``A notice of cancellation of a 
corporate guarantee.'' Also at subsection (c)(3)(A), Indiana is 
requiring that for a replacement bond to be suitable, it must be 
allowed under IC 13-4.1-6 (before its repeal) or IC 14-34-6.

I. IC 14-34-7-7  Indemnity Agreement Conditions

    Indiana proposes to amend recodified IC 14-34-7-7 [previously IC 
13-4.1-6.3-11] as follows.
    1. The introductory sentence is revised by removing the language 
``subject to the following'' and adding the requirement that the 
indemnity agreement be submitted to the director. A second sentence 
requiring the indemnity agreement to meet the following requirements is 
added.
    2. A new subsection IC 14-34-7-7(1) is added as follows.

    (1) The indemnity agreement must provide in express terms that 
the persons or parties bound by the agreement are liable to the 
director for all costs incurred by the director: (A) in pursuing 
forfeiture of any self-bonds posted by the permittee for whom the 
indemnity agreement was submitted; and (B) in reclaiming those areas 
at which the permittee for whom the indemnity agreement was 
submitted retains excess monetary liability to the director under IC 
14-34-6-16(c).

    3. Existing subsections IC 14-34-7-7(1), (2), and (3) are 
redesignated IC 14-34-7-7(2), (3), and (4), respectively, with only 
minor language changes made to clarify the existing provisions.
    4. Existing subsection IC 14-34-7-7(4) is redesignated IC 14-34-7-
7(5), and the language ``in default'' is removed and replaced with the 
language ``as to which a bond has been forfeited for failure to 
reclaim.''
    5. A new subsection IC 14-34-7-7(6) is added as follows.

    (6) All bonds and guarantees must be indemnified corporately and 
personally by all principals.

J. IC 14-34-7-7.1  Use of Collateral to Support a Self-Bond

    Indiana proposes to add the following new section at IC 14-34-7-
7.1.

    (a) If an application for self-bonding is rejected based on the 
information required by section 4 of this chapter or limitations set 
forth in section 4 of this chapter, the applicant may offer 
collateral (as defined in section 0.5 of this chapter) and an 
indemnity agreement to support the applicant's self-bond 
application. An indemnity agreement offered under this subsection is 
subject to the requirements of section 7 of this chapter.
    (b) The following information must be provided about collateral 
offered under subsection (a) to support a self-bond: (1) The value 
of the property. The property must be valued at the difference 
between the fair market value of the property and reasonable 
expenses the department anticipates incurring in selling the 
property. The fair market value must be determined by an appraiser 
proposed by the applicant. The director may reject an appraiser 
proposed by the applicant. An appraisal of property must 

[[Page 1554]]
be performed expeditiously and a copy of the appraisal must be 
furnished to the director and the applicant. The applicant must pay 
the cost of the appraisal. (2) A description of the property, 
indicating that the property is satisfactory for deposit under this 
section, and a statement of: (A) all liens, encumbrances, or adverse 
judgments imposed on the property; and (B) any pending litigation 
relating to the property.
    (c) The director has full discretion in accepting collateral 
offered under subsection (a) to support a self-bond.
    (d) Real property offered as collateral under subsection (a) may 
not include lands that are in the process of being mined or 
reclaimed or lands that are the subject of an application under this 
chapter. The operator may offer land that was formerly subject to a 
bond if the bond has been released.
    (e) Securities offered as collateral under subsection (a) may 
include only securities that meet the definition of collateral set 
forth in section 0.5 of this chapter.
    (f) Personal property offered as collateral under subsection (a) 
must be in the possession of the operator, must be unencumbered, and 
may not include the following: (1) Property that is already being 
used as collateral. (2) Goods that the operator sells in the 
ordinary course of business (3) Fixtures. (4) Certificates of 
deposit that are not federally insured or that are issued by a 
depository that is unacceptable to the director.
    (g) Evidence of ownership of property offered as collateral 
under subsection (a) must be submitted in one(1) of the following 
forms: (1) If the property offered is real property, the interest of 
the applicant must be evidenced by a title certificate or similar 
evidence of title and encumbrance prepared by an abstract office 
that is: (A) authorized to transact business in Indiana; and (B) 
satisfactory to the director. (2) If the property offered is a 
security, the operator's interest must be evidenced by possession of 
the original or a notarized copy of the certificate or a certified 
statement of account from a brokerage house. (3) If the property 
offered is personal property, evidence of ownership must be 
submitted in a form that: (A) is satisfactory to the director; and 
(B) affirmatively establishes unencumbered title to the property of 
the operator.
    (h) An applicant that offers personal property as collateral 
under subsection (a), in addition to submitting the evidence 
required by subsection (g), must satisfy the financial requirements 
set forth in section 4(d)(7)(B) and 4(d)(7)(C) of this chapter.
    (i) If the director accepts personal property from an applicant 
as collateral under subsection (a), the director shall require the 
following: (1) Quarterly and annual maintenance reports prepared by 
the applicant. (2) A perfected, first lien security interest in the 
property in favor of the department of natural resources. The 
security interest must be perfected through: (A) the filing of a 
financing statement; or (B) surrender of possession of the 
collateral to the department under subsection (k).
    (j) If the director accepts personal property from an applicant 
as collateral under subsection (a), the director may require 
quarterly or annual inspections of the personal property by a 
qualified representative of the department.
    (k) If the director accepts personal property form an applicant 
as collateral under subsection (a), the director shall, as 
applicable, require: (1) possession by the department of the 
personal property; or (2) a mortgage or security agreement executed 
by the applicant in favor of the department.
    (l) The property interest conveyed under subsection (k) vests in 
the department to secure the right and power to sell or otherwise 
dispose of the property by public or private proceedings so as to 
ensure reclamation of the affected lands in accordance with the 
reclamation plan.
    (m) A mortgage executed under subsection (k)(2) must be executed 
and recorded so as to be first in time and constitute notice of the 
interest of the department in the property to any prospective 
subsequent purchaser of the property.
    (n) Any income received from the collateral during the period 
when the collateral is in the possession of the department shall be 
remitted to the applicant.
    (o) If collateral is left in the possession of the applicant, 
the security agreement executed under subsection (k)(2) must require 
that, upon default, the applicant shall assemble the collateral and 
make it available to the department at a place designated by the 
department that is reasonably convenient to both parties. All costs 
of transporting and assembling the collateral shall be borne by the 
applicant.
    (p) With the consent of the director, an applicant may 
substitute other property for any property accepted and held as 
collateral under this section. Property may be substituted under 
this subsection only if: (1) all the information required concerning 
property originally submitted as collateral is provided concerning 
the proposed substitute collateral; and (2) all requirements of this 
section are met with respect to the proposed substitute collateral 
so that all obligations relating to mining operations are secured 
under all period of time.
    (q) If collateral is posted under subsection (a) to support a 
self-bond, the applicant shall: (1) notify all persons that have an 
interest in the collateral of the posting of the collateral and of 
all other actions affecting the collateral; and (2) provide copies 
of the notices provided under subdivision (1) to the director.

K. IC 14-34-7-8  Information Requirements for Self-Bonding

    Indiana proposes to revise recodified IC 14-34-7-8 [previously IC 
13-4.11-6.3-12] as follows.


    The director shall require self-bonded applicants and corporate 
guarantors to submit: (1) an update of the information required 
under section 4(d)(7), 4(d)(8), and 4(f) of this chapter within 
ninety (90) days after the close of each fiscal year; and (2) 
information required under section 4(d)(8)(B) of this chapter on a 
quarterly basis not later than sixty (60) days after the end of each 
quarter; following the issuance of the self-bond or corporate 
guarantee.

L. IC 14-34-7-9  Requirements for a Change in Financial Conditions

    Indiana proposes to revise recodified IC 14-34-7-9 [previously IC 
13-4.1-6.3-13] by changing the referenced section 4(d)(3) to sections 
4(d)(7) and (4)(f) and by replacing the word ``not'' with the words 
``no longer.''

M. IC 14-34-7-10  Self-Bonding Report Requirements

    Indiana proposes to add the following new section at IC 14-34-7-10.


    (a) An applicant shall submit, in addition to the financial 
information required under section 4 of this chapter, a report 
prepared by a qualified independent public accounting consultants 
selected from a list of public accounting consultants approved by 
the director. The director shall consider the information in the 
report when deciding whether to accept the self-bond of an 
applicant.
    (b) The director may also require reports described in 
subsection (a) after the director accepts the applicant's self-bond, 
but not more than one (1) time every three (3) years while the self-
bond is posted, except as provided in subsection (d).
    (c) A consultant who prepares a report under this section must: 
(1) verify that the financial information required under section 4of 
this chapter was prepared in accordance with generally accepted 
accounting principles; (2) verify that the accounting principles 
referred to in subdivision (1) were applied consistently for each 
year of the period for which the information is submitted; (3) state 
the amount of, and reason for, any restatement of the financial 
information referred to in subdivision (1) that is necessary to meet 
the requirements of subdivision (2); and (4) state whether any 
information reviewed during the preparation of the report would lead 
the consultant to conclude that the applicant would not meet the 
requirements of section 4 of this chapter at the end of each of the 
three (3) fiscal years ending after the calendar month in which the 
report is completed.
    (d) If the consultant who prepares a report under this section 
is unable to provide the information required by subsection (c)(4), 
the applicant for whom the report is prepared shall submit an 
updated report annually.
    (e) An applicant shall submit a report required under this 
section not later than ninety (90) days after the director notifies 
the applicant or permittee that the report is required.
    (f) If an applicant fails to submit a report required under 
subsection (a), the director shall refuse to accept the self-bond of 
the applicant until the applicant files the report.
    (g) If a permittee who has posted a self-bond under this chapter 
fails to submit a report required under subsection (b), the director 
may require the permittee to post an alternate form of bond not 
later than ninety (90) days after the deadline for the submission of 
the report.

[[Page 1555]]


N. IC 14-34-7-11  Self-Bond Coverage Requirements

    Indiana proposes to add the following new section at IC 14-34-7-11.

    (a) The director may not accept an applicant's self-bond under 
this chapter in an increment unless, when the self-bond is initially 
approved under this chapter, the total area of the increment is one 
hundred percent (100%) self-bonded.
    (b) When a self-bond is initially accepted from a permit 
applicant under this chapter, the self-bond may cover areas subject 
to the permit on which, as of July 1, 1995, grading has been 
deferred.
    (c) After a self-bond is accepted under this chapter: (1) 
coverage under the self-bond continues on any areas subject to a 
grading deferral that is in existence on July 1, 1995, if the 
grading deferral is subsequently extended beyond its original term; 
but (2) an area subject to the permit as to which a grading deferral 
is granted after July 1, 1995, may not be covered by self-bonding.
    (d) An area described in subsection (c)(2): (1) must be covered 
by another form of bond allowed under IC 14-34-6; and (2) may not be 
covered by the surface coal mine reclamation bond pool established 
by IC 14-34-8.

O. IC 14-34-7-12  Self-Bond Phase I Grading Release Requirements

    Indiana proposes to add the following new section at IC 14-34-7-12.

    (a) If a permittee who posted a self-bond under this chapter 
does not file an application for a Phase I grading release with the 
department before the second November 1 after the year in which the 
coal was removed from the site covered by the self-bond, the 
permittee shall replace the self-bond with an alternate form of bond 
within ninety (90) days of the November 1 deadline established under 
this subsection.
    (b) If: (1) a permittee who posted a self-bond under this 
chapter files an application for a Phase I grading release with the 
department before the second November 1 after the year in which the 
coal was removed from the site covered by the self-bond; but (2) the 
application is rejected by the department; the permittee replace the 
self-bond with an alternate form of bond not later than ninety (90) 
days after the denial of the application for a Phase I grading 
release becomes a final order of the department.
    (d) All acreage and structures that are within a permitted area 
and are used to facilitate active mining and reclamation operations 
are exempt from subsection (c). Areas described in this subsection 
include, but are not limited to, the following: (1) Processing 
sites. (2) Tipples. (3) Railroad sidings. (4) Buildings. (5) Haul 
roads. (6) Topsoil stockpiles. (7) Sediment ponds.
    (e) For the purposes of subsection (d), the director shall 
determine what areas are used to facilitate active mining and 
reclamation operations.
    (f) A permittee shall submit annual reports to the department in 
a form that the director considers necessary to facilitate the 
effective monitoring of acres under self-bonding that have been 
affected and reclaimed.
    (g) An area that: (1) is not subject to the time limitations set 
forth in subsection (c); and (2) has been used for the disposal of: 
(A) coal combustion fly or bottom ash; (B) flue gas desulfurization 
byproducts generated by coal combustion units; or (C) coal 
processing wastes; is no longer eligible for self-bonding ten (10) 
years after the disturbance of the area or the self-bonding of the 
area, whichever is later. An alternative from of bond must be posted 
for the area under IC 14-34-6 not later than ninety (90) days after 
the area becomes ineligible for self-bonding under this subsection.
    (h) Whenever an area is determined to be no longer eligible for 
self-bonding, and an alternative form of bond is posted under IC 14-
34-6, the area: (1) is never again eligible for self-bonding; and 
(2) may not be bonded by the surface coal mine reclamation bond pool 
established under IC 13-4.1-6.5-3.

P. IC 14-34-7-13

    Indiana proposes to add the following new section at IC 14-34-7-13.

    For purposes of IC 1-1-1-8, if the amendments to IC 14-34-7-1, 
as amended by SEA 125-1995, are held invalid or otherwise 
unenforceable, the other amendments to IC 14-34-7 made by SEA 125-
1995 are also void.

III. Public Comment Procedures

    In accordance with the provisions of 30 CFR 732.17(h), OSM is 
seeking comments on whether the proposed amendment satisfies the 
applicable program approval criteria of 30 CFR 732.15. If the amendment 
is deemed adequate, it will become part of the Indiana 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 Indianapolis Field Office 
will not necessarily be considered in the final rulemaking or included 
in the Administrative Record.

Public Hearing

    Persons wishing to speak at the public hearing should contact the 
person listed under FOR FURTHER INFORMATION CONTACT by 4:00 p.m., 
e.s.t., on February 6, 1996. The location and time of the hearing will 
be arranged with those persons requesting the hearing. If no one 
requests an opportunity to speak at the 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 speak have been heard. Persons in the audience who 
have not been scheduled to speak, and who wish to do so, will be heard 
following those who have been scheduled. The hearing will end after all 
persons scheduled to speak and persons present in the audience who wish 
to speak have been heard.
    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.

Public Meeting

    If only one person requests an opportunity to speak 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 
amendment may request a meeting 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 at the 
locations listed under ADDRESSES. A written summary of each meeting 
will be made a part of the Administrative Record.

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 12778

    The Department of the Interior has conducted the reviews required 
by section 2 of Executive Order 12778 (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.

[[Page 1556]]


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 
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.

List of Subjects in 30 CFR Part 914

    Intergovernmental relations, Surface mining, Underground mining.

    Dated: January 9, 1996.
Brent Wahlquist,
Regional Director, Mid-Continent Regional Coordinating Center.
[FR Doc. 96-648 Filed 1-19-96; 8:45 am]
BILLING CODE 4310-05-M