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OSM Seal 1998 Arkansas
Annual Oversight Report
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Annual Evaluation Report



for the

Regulatory and Abandoned Mine Land Reclamation Programs

Administered by the State

of

Arkansas

for

Evaluation Year 1998

(October 1, 1997 through September 30, 1998)

TABLE OF CONTENTS

I. Introduction 1

II. Overview of Coal Mining Industry 2

III. Overview of Public Participation in the Program 2

IV. Major Accomplishments/Issues in the Arkansas Program 3

A. Regulatory Program 3

B. Abandoned Mine Land Reclamation Program 4

V. Success in Achieving the Purposes of SMCRA 5

A. Off-Site Impacts 5

B. Reclamation Success 5

C. Customer Service 6

VI. OSM Assistance 6

VII. General Oversight Topic Reviews 7

Appendix A: Tabular Summaries of Data 10

TABLE 1 11

TABLE 2 12

TABLE 3 13

TABLE 4 14

TABLE 5 15

TABLE 6 16

TABLE 7 17

TABLE 8 18

TABLE 9 19

TABLE 10 20

Appendix B: State Comments on Report 21

I. Introduction

The Surface Mining Control and Reclamation Act of 1977 created the Office of Surface Mining in the Department of the Interior. SMCRA provides authority to OSM to oversee the implementation of and provide Federal funding for State regulatory programs that have been approved by OSM as meeting the minimum standards specified by SMCRA. This report contains summary information regarding the Arkansas program and the effectiveness of the Arkansas program in meeting the applicable purposes of SMCRA as specified in Section 102. The evaluation period covered by this report is October 1, 1997 to September 30, 1998.

OSM continued to implement the new oversight policy initiated in the 1996 evaluation year. The primary focus of the new policy is an on-the-ground results-oriented strategy that evaluates the end result of State program implementation, i.e., the success of the State programs in ensuring that areas off the minesite are protected from impacts during mining, and that areas on the minesite are contemporaneously and successfully reclaimed after mining activities are completed. The new policy emphasizes a shared commitment between OSM and the States to ensure the success of SMCRA through the development and implementation of a performance agreement. Also, the new policy continued to encourage public participation as part of the revised oversight strategy. Besides the primary focus of evaluating end results, the oversight guidance makes clear OSM's responsibility to conduct inspections to monitor the State's effectiveness in ensuring compliance with SMCRA's environmental protection standards.

Oversight is a continuous and ongoing process. To further the idea of continuous oversight, this annual report is structured to report on OSM's and Arkansas' progress in conducting evaluations and completing oversight activities. It also reports accomplishments during the evaluation period. Detailed background information and comprehensive reports for the program elements evaluated during the period are available for review and copying at the Office of Surface Mining, Tulsa Field Office, 5100 E. Skelly Drive, Suite 470, Tulsa, Oklahoma 74135-6547.

The following acronyms are used in this report:

ADPCE Arkansas Department of Pollution Control and Ecology

AEA Alternative Enforcement Action

AMD Acid Mine Drainage

AML Abandoned Mine Land

AMLR Abandoned Mine Land Reclamation

CFR Code of Federal Regulations

EY Evaluation Year

NOV Notice of Violation

NRCS National Resource Conservation Service

OSM Office of Surface Mining

SMCRA Surface Mining Control and Reclamation Act of 1977

SMRD Surface Mining Reclamation Division [Arkansas]

PA Arkansas/OSM Performance Agreement

TFO Tulsa Field Office

TIPS Technical Information Processing System

II. Overview of Coal Mining Industry

Arkansas has reserves of bituminous, semianthracite, and lignite coal. The original bituminous and semianthracite coal reserves were estimated at approximately 2.2 billion tons, half of which is recoverable. Prior to the 1950's, much of the coal was mined by underground mining methods. Since then, most Arkansas coal has been mined by area surface mining methods. Remining, especially surface mining methods to remove coal left in pillars in old underground mines and removing coal from old coal mine waste piles, has been common. Lignite, potentially a major energy resource in Arkansas, was mined in southern Arkansas before the Civil War and used as a fuel by local industries. The Arkansas lignite deposits are estimated as high as 9 billion tons. In 1988, an exploratory operation confirmed that Arkansas lignite could be used in the State's coal-fired energy plants. As yet, the lignite field has not been developed. In 1997, the 4 coal-producing operations in the State produced approximately 19,288 tons of bituminous coal using conventional methods. Permitted acreage was 1,395 acres. In 1998, the number of producing operations permitted acreage remained essentially static. Because coal operations in Arkansas are small and the demand for coal unsteady, the industry employs fewer than 25 on a daily basis.

III. Overview of Public Participation in the Program

The State allows public participation in a number of ways including commenting on permit and major revision applications and State rule making. The public can also participate in the informal and formal review process of many State decisions related to permitting and inspection and enforcement matters. The public can further participate in the State inspection and enforcement process through bond releases and citizen's request for inspections.

OSM held one public meeting in Arkansas during the evaluation period. The meeting was held in Ft. Smith, Arkansas, located on the western end of the active coal field. ADPCE, NRCS, and one AML contractor were represented at the meeting. All three entities requested a higher AML funding for Arkansas.

The only other comment received was a question on the intended effectiveness of OSM's enforcement efforts when it projected assessing no civil penalties during the upcoming fiscal year.

During the evaluation period, the State had input from one member of the public. A landowner on the one bond release application the State received initially protested the release request, then verbally withdrew his request. OSM attempted to contact the landowner to ascertain his perspective on the State's handling of his comments. OSM provided him with TFO's phone and fax number as well as mailing address.

IV. Major Accomplishments/Issues in the Arkansas Program

A. Regulatory Program

The joint ADPCE/OSM AMD Team continued the AMD study initiated during the previous evaluation period. Acid generating Title V sites were identified. As this evaluation period closes, the AMD Team is working toward improved permitting procedures addressing identification of potentially Acid-/Toxic- Forming Materials, and Acid-/Toxic- Forming Materials Handling Plans. This team will continue working on the AMD issue during the 1999 evaluation period.

During EY 1997, OSM found that ADPCE had not incorporated into its revegetation rules cover standards necessary for the appropriate evaluation of Phase II and Phase III bond release applications. To address the program deficiency, the State submitted and later withdrew a formal program amendment [AR-031-FOR] during EY 1998. Concurrent with the State's withdrawal of AR-031-FOR it submitted a new formal program amendment [AR-032-FOR] addressing concerns OSM raised with the State's original submission. ADPCE worked very closely with OSM in the preparation of AR-032 FOR. OSM anticipates that the needed rule changes will be approved during the next evaluation period.

The State also submitted a formal program amendment [AR-030-FOR] in response to a 30 CFR 732 letter it received in the previous evaluation period. AR-030-FOR addressed revisions in the State's definition of siltation structures, requirements for maps and plans, changed "Soil Conservation Service" to the agency's new name "Natural Resources Conservation Service", postmining rehabilitation of sedimentation ponds, diversions, impoundments, and treatment facilities, disposal of excess spoil, backfilling and grading requirements, prime farmland, and operations on steep slopes. OSM anticipates that a final rule Federal Register Notice will be published early in EY 1999.

The formal program amendment, AR-027-FOR, Arkansas previously submitted on its own initiative was approved by OSM's Director during the evaluation period. The amendment revised State rules to address changes in Federal rules on remining, subsidence damage, compensation, and water replacement. Corrections and other revisions to several Arkansas rules were also made. Arkansas promulgated the revised rules, which took effect in December 1997.

ADPCE completed reclamation on 114 acres using collected bond funds. All forfeiture reclamation completed during the evaluation period was accomplished on the Sugarloaf site. At the close of EY 1998, Arkansas has reclaimed 284 acres of the 434 disturbed acres at Sugarloaf. Three other forfeited sites await completion of reclamation activities.

OSM anticipates ADPCE's successful implementation of its approved program throughout EY 1999.

B. Abandoned Mine Land Reclamation Program

ADPCE is the agency designated by the State to administer the Abandoned Mine Land Reclamation Program. It operated in EY 1998, with a grant of $1.50 million and 6.3 staff members. Project selection has been based on a system that considers protection of the public health, safety and general welfare, and property from extreme danger of adverse affects of coal mining practices. ADPCE solicited citizen input for projects selected for construction. Priority selection complied with Section 403 of SMCRA. No program deficiencies were noted during this evaluation period.

In EY 1998, ADPCE's construction of AML projects consisted of its annual appropriation plus carry-over projects started in previous years. Most planning and design is done with in-house staff. Projects selected for construction met eligibility requirements under the approved AML program. The majority of health and safety features on approved projects were open strip pits with dangerous high walls and associated water impoundments that are located near the general public. Where possible, the pits were filled in with mine spoil and the high walls reclaimed to eliminate the hazard. ADPCE involved the general public and local citizens in project selection before construction was initiated. No citizen complaints were received.

ADPCE followed standard construction practices using State approved contracting procedures. Inspection of projects indicated ADPCE completed projects on time with no significant problems. There were four projects completed for a total of 281 acres, 5,870 linear feet of highwall, and 1 vertical opening closed this EY. Since program approval, ADPCE has reclaimed 2,448 acres of abandoned mine land.

V. Success in Achieving the Purposes of SMCRA as Measured by the Number of Observed Off-site Impacts and the Number of Acres Meeting the Performance Standards at the Time of Bond Release

To further the concept of reporting end results, the findings from performance standard and public participation evaluations are being collected for a national perspective in terms of the number and extent of observed off-site impacts and the number of acres that have been mined and reclaimed, which meet the bond release requirements for the various phases of reclamation and the effectiveness of customer service provided by the State. Individual topic reports are available in the Tulsa Field Office that provide additional details on how the following evaluations and measurements were conducted.

A. Off-Site Impacts

Using both State and Federal inspections, eight off-site impacts were observed from 237 opportunities for observations. An observation is defined as an inspection, either State or Federal, partial or complete. When a Federal observation led to a State observation, the observation was counted only once; no bond forfeiture sites were included; and all observations were those that resulted in an NOV. Seven of the eight off-site impacts identified were impacts to water with minor impact. One of the eight off-site impacts was a continuing impact to the hydrologic system from an abandoned interim site. The conclusion is that off-site impacts from coal mining and reclamation in Arkansas were minimal in EY 1998.

B. Reclamation Success

One formal bond release application request for a Phase II and Phase III release was considered by the State during the evaluation period. A final determination to approve or deny the request was pending at the close of EY 1998. During the previous evaluation period, OSM identified one problem in the State's bond release procedures in that ADPCE does not have approved cover standards and statistical evaluation methods for evaluating vegetation success. The State has submitted rule revisions to address the issue. OSM's approval of this program amendment is pending.

During the evaluation period the State informally released one bond. The reclamation performance bond for a 1,500 ton exploratory permit was released to the permittee. The State did not go through its approved bond release process. Basic backfilling and grading was not completed prior to the release of the bond. OSM took enforcement action in an attempt to achieve complete reclamation.

OSM is evaluating reclamation success by comparing the number of acres released in comparison with acres disturbed. At the end of EY 1997, Arkansas had 1,116.29 disturbed acres with an additional 14 acres disturbed during EY 1998. No Phase I, II, or III bond release applications were received, approved, or denied by ADPCE during the evaluation period. (See Table 5, Appendix A).

C. Customer Service

Customer service topics for this year's review included handling of citizen's complaints, permitting actions, bond releases, land unsuitable petitions, and administrative and judicial reviews. The only category that generated activity to review was bond releases. During the review period, the State reviewed a request for a Phase II and Phase III bond release. A final decision on approving or denying the release request was pending as of the close of the evaluation.

Since a final decision was still pending on the release action that was reviewed, a final conclusion on the State's handling of public notification and input could not be made. Based on the State rules in effect at the time, two deficiencies were noted. Both were judged as minor and did not adversely prejudice any interested party. One party, the surface owner, expressed an interest in the bond release process. Based on documentation in the State files, the surface owner was afforded adequate opportunity under the State's approved program to participate and his objections were handled in an appropriate manner. OSM provided the surface owner with an opportunity to express his perception of the State's bond release procedures. As of the close of the evaluation, he had not provided any.

VI. OSM Assistance

As part of OSM's continuing national emphasis on AMD, OSM assisted the State in implementing the AMD plan previously developed by a joint ADPCE/OSM team. The AMD plan has the dual goals of preventing AMD from future coal extraction and the cleanup of AMD impacts from previous coal mining activities. During EY 1998, OSM assisted the State in implementing its AMD plan and provided technical assistance as sites identified as potential AMD producers were reviewed. During the next evaluation period, OSM will continue to provide technical assistance to the State as plans are developed for the mitigation of potential impacts from AMD and as possible changes in ADPCE's permitting procedures are made to prevent future AMD.

In addition to TIPS training, OSM provided ADPCE with training in erosion and sediment control, enforcement procedures, blasting and inspection of blasting operations, inspection of mining operations, and soils and revegetation of disturbed areas. OSM provided one half of ADPCE's administrative and enforcement budget for its approved regulatory program. OSM provided 100 percent funding for ADPCE's AMLR program (See Table 9, Appendix A).

VII. General Oversight Topic Reviews

OSM intends the oversight reviews and reports be used as a basis for continuing joint efforts in assisting the State in meeting its regulatory responsibilities. Detailed background information and comprehensive reports for the program elements evaluated during the period are available for review and copying at the Office of Surface Mining, Tulsa Field Office, 5100 E. Skelly Drive, Suite 470, Tulsa, Oklahoma 74135-6547.

Mine-site Evaluation: During EY 1998, TFO conducted 7 complete inspections on Arkansas mines. All inspections were conducted jointly with ADPCE. One TDN was issued that was followed by a Federal NOV. Abatement was pending at the close of the evaluation year. In addition to OSM's usual complete oversight inspections, special focus inspections were preformed emphasizing hydrologic structures and sediment control plus contemporaneous reclamation. Two concerns were identified as a result of OSM's inspections.