COALEX REPORT 50

	Coalex Report 50

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 - 50 
August 21, 1985

Libby Maumenee
Assistant Attorney General
Department of Natural Resources
Tawes Office Bldg., C-4
580 Taylor Avenue
Annapolis,  Maryland 21401

TOPIC: BOND RELEASE (Addendum to COALEX STATE INQUIRY - 39)

INQUIRY: COALEX STATE INQUIRY - 39 dealt with an operator's liability after the bond release. 
Several cases dealing with this issue were identified.  In ALTERNATE FUELS INC. v CLARK (1985),
ALJ Morehouse granted temporary relief to Alternate Fuels pending a decision on the merits.  The
purpose of this Report is to update the previous Report with ALJ Storehouse's recent decision.

SEARCH RESULT: See below.

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

   ALTERNATE FUELS, INC. v OSM, No. TV 5-23-R (July 11, 1985).  Alternate Fuels operated a 53
acre mining operation in Kansas.  In December, 1982, Alternate applied to the Kansas Mined
Land Conservation and Reclamation Board for release of its bond.  At the hearing for final bond
release, OSM opposed the release of the reclamation bond, alleging violations of OSM's interim
regulations.  Notwithstanding OSM's opposition, the Kansas Board released the final portion of the
bond.  OSM made no attempt to appeal the decision.  Some twenty months after the bond
release, an OSM inspector visited the site and issued a "ten-day notice" to the Kansas Board
alleging violations at the site.  The Kansas Board stated that it lacked statutory authority to take
any action with respect to Alternate since final and complete bond release had been approved. 
OSM then issued a NOV to Alternate.

   ALJ Morehouse vacated the NOV on estoppel principles.  Kansas was operating under an OSM-approved program.  Furthermore, OSM took part in the final bond release proceeding and made
no attempt to prevent the bond release approved by the Kansas Board.  Judge Morehouse
rejected OSM's contention that its jurisdiction to enforce the requirements of SMCRA and thus the
operator's liability could extend indefinitely.  Noting that the matter had already been decided by
the Kansas Board, Judge Morehouse vacated the notice of violation.


ATTACHMENT
Alternative Fuels.  Inc. v OSM, No. TV 5-23-R (July 11, 1985).


Search conducted by: Michele Manning

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