COALEX REPORT 322

	Coalex Report 322

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 - 322
April, 1995

Michael Sponsler
Division of Reclamation
Department of Natural Resources
PO Box 147
201 W. Main Street
Jasonville, Indiana 47438

TOPIC: SETTLEMENT OF CIVIL PENALTIES

INQUIRY:  Can a civil penalties case be settled by having the violator perform reclamation or other
remedial work or must a monetary penalty be paid? Please locate any material that addresses this
issue.

SEARCH RESULTS: Using LEXIS, an OSM Directive and a number of relevant Interior Administrative
Decisions were identified. Copies of these materials are attached. 

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

INTERIOR ALJ CONSENT DECISIONS
The settlement agreements in the consent decisions listed below include requirements to complete
the outlined remedial work in a timely and satisfactory manner in return for a reduction of the civil
penalties. In some cases, the penalties are reduced to zero.

TARHEEL ENERGY, INC. v OSM, Docket Nos. NX 7-191-R, NX 88-45-R (1988).

TRIPLE I COAL CO. v OSM, Docket No. NX 7-37-P (1988).

GEORGE LAMBERT v OSM, Docket Nos. NX 7-7-p, NX 7-42-R (1988).

GREATER WISE, INC. v OSM, Docket Nos. NX 88-15-R, NX 88-19-P (1988).

B & B CONSTRUCTION v OSM, Docket No. NX 7-83-R (1988).

AMERICAN STANDARD COAL DOCKS, INC. v OSM, Docket No. NX 7-165-R (1988).

GAINSBORO PORT AUTHORITY v OSM, Docket No. NX 7-167-R (1988).

FAULKNER CONSTRUCTION CO v OSM, Docket Nos. NX 7-26-R, NX 7-27-R, NX 7-28-R (1987).

BUD COAL CO., INC. v OSM, Docket No. NX 5-138-R (1987).

UNITED ENERGY CORP. v OSM, Docket No. NX 6-27-P (1986).

SHANNOPIN MINING CO. v OSM, Docket No. CH 1-92-R (1981).

KEM COAL CO. v OSM, Docket No. NX 0-170-P (1980).


ADDITIONAL INTERIOR DECISION
J & M COAL CO. v OSM, 122 IBLA 90, IBLA 89-504 (1992).
HEADNOTES:
   "A letter from counsel for OSM to an operator that...(3) invites the operator to contact him after
completion of reclamation if it is still interested in settlement, creates no basis on which the
operator may reasonable rely that OSM agreed that the civil penalties for the NOV's would be
settled when reclamation was completed."


OSM DIRECTIVE
OSM DIRECTIVE, Subject No. CAA-2-2, Transmittal No. 485, "Settlement Guidelines" (Issued
9/26/89).
   "This directive establishes [OSMRE] guidelines regarding the settlement of debts incurred as a
result of civil penalty fines or AML fees under [SMCRA]."

   "Settlement" is defined as: "The resolution of a debt either through payment in full, a payment
agreement, a compromise agreement, or termination of the debt."

   Under "Compromise of Debt" [accepting less than the full amount of the claim], the Guidelines
state: "Only those cases in which abatement has been performed or is scheduled to be performed
through an approved abatement plan, or performance has been ruled not feasible, will be
considered for compromise."


ATTACHMENTS
A.   TARHEEL ENERGY, INC. v OSM, Docket Nos. NX 7-191-R, NX 88-45-R (1988).
B.   TRIPLE I COAL CO. v OSM, Docket No. NX 7-37-P (1988).
C.   GEORGE LAMBERT v OSM, Docket Nos. NX 7-7-p, NX 7-42-R (1988).
D.   GREATER WISE, INC. v OSM, Docket Nos. NX 88-15-R, NX 88-19-P (1988).
E.   B & B CONSTRUCTION v OSM, Docket No. NX 7-83-R (1988).
F.   AMERICAN STANDARD COAL DOCKS, INC. v OSM, Docket No. NX 7-165-R (1988).
G.   GAINSBORO PORT AUTHORITY v OSM, Docket No. NX 7-167-R (1988).
H.   FAULKNER CONSTRUCTION CO. v OSM, Docket Nos. NX 7-26-R, NX 7-27-R, NX 7-28-R
     (1987).
I.   BUD COAL CO., INC. v OSM, Docket No. NX 5-138-R (1987).
J.   UNITED ENERGY CORP. v OSM, Docket No. NX 6-27-P (1986).
K.   SHANNOPIN MINING CO. v OSM, Docket No. CH 1-92-R (1981).
L.   KEM COAL CO. v OSM, Docket No. NX 0-170-P (1980).
M.   J & M COAL CO. v OSM, 122 IBLA 90, IBLA 89-504 (1992).
N.   OSM DIRECTIVE, Subject No. CAA-2-2, Transmittal No. 485, "Settlement Guidelines"
     (Issued 9/26/89).


Research conducted by: Joyce Zweben Scall

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