COALEX REPORT 249

	Coalex Report 249

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 Inquiry Report - 249
March, 1993

Anthony F. Abar, Director
Maryland Bureau of Mines
160 S. Water Street
Frostburg, Maryland 21532

TOPIC: INITIATION OF OPERATIONS

INQUIRY: SMCRA Sec. 506(c) and 30 CFR 773.19(e) require the permittee to commence
operations within three years of the issuance of the permit, with extensions allowed under certain
circumstances. Is there any information in the preambles to the federal regulations or in the
legislative history of SMCRA that discusses why three years was selected as the running time for
the permit?

SEARCH RESULTS: Using the COALEX Library and other material available in LEXIS a limited
amount of material on point was identified. These are listed below. Copies are attached.

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

SMCRA:
Section 406(c) in earlier versions. Becomes: 506(c) in SMCRA.

CFR:
786.11(b) Permit terms. 43 FR at 41720 (September 18, 1978). Proposed rules. 
Becomes: 786.25(b) Permit terms. 44 FR 14902 (March 13, 1979). Final rules. 
Becomes: 773.19(e).


LEGISLATIVE HISTORY
1974 version of bill states that operations must be initiated within three years of issuance of
permit. Extensions are not possible.


1977 version of SMCRA allows for extensions of time under certain circumstances.


SENATE REPORT No. 95, 95th Cong, 1st Sess 74 (May 10, 1977) (S. 7). Section-by-Section
Analysis: Title IV; Section 406 Permits.
"To assure that no one will be locked into outdated reclamation requirements because permits
are taken out and renewed without operations being undertaken, subsection (c) provides that
permits will terminate if the permittee has not begun operations within 3 years of the issuance of
the permit unless otherwise provided in the permit.

   [Additional sections of House Report No. 218, 95th Cong, 1st Sess (April 22, 1977) are included
for background.]


REGULATORY HISTORY
43 FR at 41720 (SEPTEMBER 18, 1978). Proposed rules. 786.11 Permit terms. [Excerpts.] 
"Under Subsection 786.11(b), a permit would terminate if mining has not commenced within
three years after issuance. The regulatory authority could extend the time period, if the opening
of the operation were delayed by conditions beyond the control of the operator. Notice of such
extensions are to be made to the public. For certain synthetic fuels facilities or major electric
generating plants, surface coal mining operations would be deemed to have started at the time of
the construction of those facilities. These provisions are required by Section 506(c) of the Act."


44 FR 14902 (MARCH 13, 1979). Permanent program preamble - Final rules. 786.25 Permit
terms. [Excerpt.]
   Included for background: refers to proposed rules, above.


48 FR 44344 (SEPTEMBER 28, 1983). Final rule. 773.19(e) Initiation of operations.
"Section 506(c) of the Act specifies that the 3-year period, as established in Section 773.19(e),
begins with issuance of a permit although there can be reasonable extensions of time due to
litigation, substantial economic loss, or conditions beyond the control, and without the fault or
negligence of the permittee.

"This flexibility recognizes the longer start-up times required for coal liquefaction and gasification
projects."


ATTACHMENTS
A.   CONFERENCE COMMITTEE, S. 425, 93rd Cong., 2d Sess. (December 5, 1974). Sec. 506 
     Permits.
B.   CONFERENCE COMMITTEE, H.R. 2, 95th Cong., 1st Sess. (July 12, 1977). Sec. 506. 
     Permits.
C.   SENATE REPORT No. 95, 95th Cong, 1st Sess 74 (May 10, 1977) (S. 7). Section-by-Section Analysis: Title IV; Section 406 Permits.
D.   43 FR at 41720 (SEPTEMBER 18, 1978). Proposed rules. 786.11 Permit terms. [Excerpts.] 
E.   44 FR 14902 (MARCH 13, 1979). Permanent program preamble - Final rules. 786.25
     Permit terms. [Excerpt.]
F.   48 FR 44344 (SEPTEMBER 28, 1983). Final rule. 773.19(e) Initiation of operations.


Research conducted by: Joyce Zweben Scall

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