COALEX REPORT 185

	Coalex Report 185
This is the Office of Surface Mining's library of COALEX Research Reports. COALEX is a database of mining and reclamation information, including the Surface Mining Law and regulations, maintained in LEXIS-NEXIS -- a commercial, on-line research service. These reports have been compiled under a cooperative agreement between the Office of Surface Mining and the Interstate Mining Compact Commission, which represents most U.S. coal producing states. The following report includes an analysis of a specific issue requested by a state regulatory authority with responsibility for carrying out the Surface Mining Law. Copies of the research reports and attachments are available to the public, upon request. For additional information, or to obtain copies of the listed attachments, contact Ron Tarquinio by phone at (202) 208-2882 or by e-mail at rtarquin@osmre.gov.
                   

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 self-bonding 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 self-bonding 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. 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

ALABAMA
1.   Has self-bonding: YES.
2.   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.
3.   Currently using self-bonding: NO.
4.   Comments: Only two applications for self-bonding were ever submitted to the
     Commission. Both were later withdrawn at the company's request.


ARKANSAS
1.   Has self-bonding: YES.
2.   Cite: Regulation Sec. 806.11 Form of the Performance Bond (1987).
3.   Currently using self-bonding: YES; 1 company.
4.   Comments: Self-bonding is seldom requested.


ILLINOIS
1.   Has self-bonding: NO. 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.
2.   Cite: N/A.
3.   Currently using self-bonding: N/A.
4.   Comments: N/A.


INDIANA [from COALEX]
1.   Has self-bonding: YES. 
2.   Cite: Statute Sec. 13-4.1-6.3 Self-Bonding (1988).
3.   Currently using self-bonding: Unknown.
4.   Comments: Unknown.


KENTUCKY [from COALEX]
1.   Has self-bonding: NO. 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.
2.   Cite: N/A.
3.   Currently using self-bonding: N/A.
4.   Comments: N/A.


LOUISIANA [from COALEX]
1.   Has self-bonding: NO. OSM disapproved the state self-bonding regulations in 1980. A
     revised definition of "self-bonding" was proposed in 1990 and is awaiting OSM approval.
2.   Cite: N/A.
3.   Currently using self-bonding: N/A.
4.   Comments: N/A.


NEW MEXICO
1.   Has self-bonding: YES. 
2.   Cite: Regulation Sec. 14-23; CSMC Rule 80-1; Amendment No. 3; (1984).
3.   Currently using self-bonding: YES; 3 companies/8 permits.
4.   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. Self-bonds save the companies a
     considerable amountof money.


OHIO
1.   Has self-bonding: YES.
2.   Cite: Regulation Sec. 1501:13-7-04 Self-Bonding (1988).
3.   Currently using self-bonding: NO.
4.   Comments: No self-bonding application has been approved yet.


OKLAHOMA [from COALEX]
1.   Has self-bonding: YES.
2.   Cite: Regulation Sec. 800.23 Self-bonding (1988).
3.   Currently using self-bonding: Unknown.
4.   Comments: Unknown.


PENNSYLVANIA
1.   Has self-bonding: YES.
2.   Cite: 25 Pa Code Ch. 86, Secs. 86.142 Definitions and 86.159 Self-bonding (1990).
3.   Currently using self-bonding: NO.
4.   Comments: Very few companies can qualify. Those who can are financially secure enough
     to obtain surety bonds.


TENNESSEE 
1.   Has self-bonding: NO.
2.   Cite: N/A.
3.   Currently using self-bonding: N/A.
4.   Comments: N/A.


TEXAS
1.   Has self-bonding: YES.
2.   Cite: Regulation Sec. 806.309 Terms and Conditions of the Bond (recently promulgated).
3.   Currently using self-bonding: YES; 3 companies.
4.   Comments: Texas is participating in a joint OSM and Industry Task Force to evaluate self-bonding rules applicable to public electric utilities.


VIRGINIA
1.   Has self-bonding: NO.
2.   Cite: N/A.
3.   Currently using self-bonding: N/A.
4.   Comments: N/A.


WEST VIRGINIA
1.   Has self-bonding: YES.
2.   Cite: Regulation Sec. 38-2-11. Insurance and Bonding.
3.   Currently using self-bonding: YES; 4 companies.
4.   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]
1.   Has self-bonding: YES.
2.   Cite: Regulation Chap. XII Self-Bonding Program. Secs. 1-7.
3.   Currently using self-bonding: Unknown.
4.   Comments: Unknown.


TABLE OF FINDINGS

STATE
HAS SELF-BINDING?

NOW IN USE?
NO. COMPANIES
STATUTE/REG. SEC.

ALABAMA
Has self-binding? YES
Now in use? NO
No. Companies: NONE
Statute/Reg. Sec.: 880-X-9


ARKANSAS
Has self-binding? YES
Now in use? YES
No. Companies: ONE
Statute/Reg. Sec.: 806.11


ILLINOIS
Has self-binding? NO
Now in use? N/A
No. Companies: N/A
Statute/Reg. Sec.: N/A


INDIANA
Has self-binding? YES
Now in use? UNKNOWN
No. Companies: UNKNOWN
Statute/Reg. Sec.: 13-4.1-6.3


KENTUCKY
Has self-binding? NO 
Now in use? N/A
No. Companies: N/A 
Statute/Reg. Sec.: N/A    


LOUISIANA
Has self-binding? NO 
Now in use? N/A
No. Companies: N/A 
Statute/Reg. Sec.: N/A


NEW MEXICO
Has self-binding? YES
Now in use? YES
No. Companies: THREE (8 Permits)
Statute/Reg. Sec.: 14-23


OHIO
Has self-binding? YES
Now in use? No
No. Companies: None
Statute/Reg. Sec.: 1501:13-7-04


OKLAHOMA
Has self-binding? YES
Now in use? UNKNOWN
No. Companies: UNKNOWN
Statute/Reg. Sec.: 800.23


PENNSYLVANIA
Has self-binding? YES
Now in use? NO
No. Companies: NONE
Statute/Reg. Sec.: 86.159


TENNESSEE
Has self-binding? NO 
Now in use? N/A
No. Companies: N/A  
Statute/Reg. Sec.: N/A


TEXAS
Has self-binding? YES
Now in use? YES
No. Companies: THREE
Statute/Reg. Sec.: 806.309


VIRGINIA
Has self-binding? NO 
Now in use? N/A
No. Companies: N/A
Statute/Reg. Sec.: N/A    


WEST VIRGINIA
Has self-binding? YES
Now in use? YES
No. Companies: FOUR
Statute/Reg. Sec.: 38-2-11


WYOMING
Has self-binding? YES
Now in use? UNKNOWN
No. Companies: UNKNOWN
Statute/Reg. Sec.: Ch XII


LIST OF CONTACTS

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
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 Department
2040 South Pacheco
Santa Fe, NM 87505
505-827-5990


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
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 



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: 
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.


Survey conducted by: Gregory Conrad
Additional research by: Joyce Zweben Scall
(Home Page)
Office of Surface Mining
1951 Constitution Ave. N.W.
Washington, D.C. 20240
202-208-2719
getinfo@osmre.gov