Federal Assistance Manual

The Office of Surface Mining uses this Financial Assistance Manual to show how OSM and its grantees manage Federal grants. This chapter describes OSM's Small Operator Assistance Program grants.

CHAPTER 3-09 SMALL OPERATOR ASSISTANCE PROGRAM (SOAP) GRANTS

• 3-09-00 Purpose and Applicability of this Chapter
• 3-09-05 Background
• 3-09-10 Policy on Eligibility
• 3-09-20 Grant Funding and Amounts
• 3-09-30 Performance Period for SOAP Grants
• 3-09-40 Allowable Scientific and Techinal Services for Operators
• 3-09-50 Allowability of Administrative Costs
• 3-09-60 Unallowable Costs
• 3-09-70 Reimbursements of Federal Funds

3-09-00 Purpose and Applicability of this Chapter

This chapter explains OSM’s rules applicable to all Small Operator Assistance Program (SOAP) grants.

3-09-05 Background

Section 507(c) of SMCRA authorizes the SOAP to enable the State to assist small coal mining operators to get scientific and technical information needed to apply for a SMCRA mining permit. The State uses SOAP grant funds to contract with qualified laboratories and consultants to collect, analyze, and interpret hydrologic and geologic data and produce technical reports

During the initial development of the regulatory program, OSM provided two types of SOAP grants: Administration and Operational. OSM no longer awards SOAP Administration grants. Allowable SOAP administration costs are funded in the regulatory Administration and Enforcement grant, except as noted below in section 3-09-50.

3-09-10 Policy on Eligibility

The State must be administering an approved permanent coal regulatory program to receive a SOAP grant.

3-09-20 Grant Funding and Amounts

1. A State may be reimbursed for up to 100% of the allowable SOAP costs.
2. If Federal funds are insufficient to support total State grant requests, OSM will distribute the available funds between States based on need or on the proportion of each State’s program activity to the total of all SOAP activity nationwide.
3. If funds awarded to a State are insufficient to support operator requests, the State must develop and use a formula to allocate reduced grant awards among operators as required by 30 CFR 795.11(b).

3-09-30 Performance Period for SOAP Grants

1. SOAP operational grants have a three-year performance period. The three-year performance period allows States to start and complete projects within the same grant.
2. States should not obligate a new project into a grant which does not have sufficient time remaining to complete the project.
3. The three-year grant performance period should not be extended.

3-09-40 Allowable Scientific and Technical Services for Operators

1. SOAP program services are limited to those authorized by SMCRA and the Environmental Protection Act of 1992 and included in State program regulations.
2. Costs must be allowable under OMB Circular A-87, “Cost Principles for State, Local, and Indian Tribal Governments”.
3. Only some of the services necessary to meet all permit requirements are allowable as SOAP costs.
4. The following services may be allowable if they are required by the State Regulatory Authority (RA) in order to apply for a permit.
1. Determination of the Probable Hydrologic Consequences (PHC) of the proposed operation upon the quality and quantity of surface and ground water under seasonal flow conditions for the proposed permit and adjacent areas, including the following.
1. Gathering baseline ground water and surface water information.
1. Sample collection, field measurements and laboratory analyses.
2. Seasonal flow and quality analyses.
3. Inventory of ground water wells and usage and surface water usage in the permit and adjacent areas by contacting local, State or Federal agencies and a representative portion of local residents or property' owners.
4. Field reconnaissance of the site.
2. Well drilling for ground water baseline data on a case-by-case basis.
3. Engineering analyses and designs necessary to determine the PHC, including those for sediment ponds and diversion ditches, when approved by the OSM Regional/Field Office.
4. Supplemental information if PHC indicates adverse impact to hydrologic balance on or off the proposed site or the presence of acid-forming or toxic-forming material that may result in contamination of surface or ground water supplies.
2. Preparation of impact estimates regarding the quality and quantity of surface and ground water under seasonal conditions using best professional judgment as accepted by the Regulatory Authority (RA) to prepare the following findings.
1. Whether adverse impacts may occur to the hydrologic balance.
2. Whether acid-forming or toxic-forming materials are present that could result in the contamination of surface or ground water supplies.
3. Whether the proposed operation may result in contamination, diminution or interruption of an underground or surface source of water in the proposed permit or adjacent area that is used for domestic, agricultural, industrial or other legitimate purpose. If findings indicate these outcomes are possible, then additional information on water availability and alternate water sources for existing pre-mining and approved post-mining land uses may be collected.
4. Impact of the proposed operation on the following.
1. Sediment yield from the disturbed area.
2. Acidity, total suspended and dissolved solids and other important water quality parameters of a local impact.
3. Flooding or stream flow alteration.
4. Ground water and surface water availability.
5. Other characteristics as required by the RA.
3. Statement of results of test borings or core samplings for overburden geology.
1. Geologic description of permit and adjacent area, including the areal and structural geology and other parameters which influence reclamation, and the occurrence, availability, movement, quantity and quality of potentially impacted surface and ground waters. This information shall be based on:
1. Cross sections, maps and plans, as described in section c below.
2. Geologic literature and practices.
3. Information described in sections b(2) and c below and any additional information required by the RA to protect the hydrologic balance or meet the performance standards.
2. Overburden drilling, sample collection and laboratory analyses from the permit area including either the stratum immediately below the lowest coal seam to be mined or any aquifer below that seam which may be adversely impacted by mining in order to prepare:
1. Logs showing lithologic characteristics including physical properties and thickness of each stratum, and location of ground water.
2. Chemical analyses identifying those strata that may contain acid or toxic-forming and alkalinity-producing materials to determine their content, if found necessary by the RA.
3. Chemical analyses of the coal seam for acid or toxic-forming materials including total sulfur and pyritic sulfur, if found necessary by the RA.

The RA may waive all or part of the sampling requirements based on the availability of equivalent information in a satisfactory form.

3. Development of cross sections, maps, and plans showing:
1. Location and elevation of test borings.
2. Locations and elevations of monitoring stations for baseline ground and surface water data, fish and wildlife and, if required, air quality data.
3. Nature, depth and thickness of any coal seams to be mined, each stratum of the overburden, and the stratum immediately below the lowest coal seam to be mined.
4. All crop lines and strike and dip of coal to be mined within the permit area.
5. Location and extent of known workings of active, inactive or abandoned underground mines in the permit and adjacent area including mine openings to the surface.
6. Location and extent of subsurface water, if encountered, within proposed permit or adjacent area.
7. Location of surface water bodies such as streams, lakes, ponds, springs, constructed or natural drains and irrigation ditches in the proposed permit and adjacent areas.
8. Location and extent of existing or previously surface-mined areas within the proposed permit area.
9. Location and dimensions of existing areas of spoil, waste, and non-coal waste disposal, dams, embankments, other impoundments and water treatment and air pollution control facilities within the proposed permit area.
10. Location and depth, if available, of gas and oil wells in the proposed permit area and water wells in the permit and adjacent area.

These maps, plans and cross sections are developed from information already collected under other allowable SOAP services, information provided with the SOAP application, and information collected by the operator to meet regulatory provisions not covered by SOAP. SOAP pays only for the preparation of the maps and cross sections; it does not pay to collect this information except under other allowable SOAP services as discussed above.

4. Collection of archeological and historic information and preparation of related plans sufficient to describe and identify the following.
1. The nature of cultural, historic and archeological resources listed or eligible for listing on the National Register of Historic Places and known archeological sites within the proposed permit and adjacent area.
2. Important historic and archeological resources that may be eligible for listing in the National Register by collecting additional information, conducting field investigations or other appropriate analyses as required by the RA.
3. Publicly owned parks or any place listed on the National Register that may be adversely impacted. This action may include a plan describing the measures to be used to prevent adverse impacts and minimize adverse impacts where there are valid existing rights or where joint agency approval is required under the coordination provisions of 30 CFR 761.12(f).
5. Pre-blast surveys at the written request of a resident or owner of a dwelling or structure located within 1/2 mile of any part of the permit area.
6. Collection of site-specific fish and wildlife information when such information is necessary to address the respective species or habitats, and the permit or adjacent area is likely to include:
1. Listed or proposed endangered or threatened species of plants or animals or their critical habitats protected under the Endangered Species Act of 1973, as amended, or similar State statutes.
2. Habitats of unusually high value for fish and wildlife such as important streams, wetlands, riparian areas, cliffs supporting raptors, areas offering special shelter or protection, migration routes, or reproduction or wintering areas.
3. Other species or habitats identified through agency consultation as requiring special protection under state or federal law.
7. Preparation of protection and enhancement plans for fish and wildlife habitat, including plans to minimize disturbances and adverse impacts. Plans must comply with the Endangered Species Act and should include protective or enhancement measures used during active mining and reclamation.
8. Information and plans for any other environmental value required by the RA under the Act.

3-09-50 Allowability of Administrative Costs

1. Administrative costs (personnel, travel, supplies, notifications, and indirect costs) charged to the SOAP operational grant are strictly limited. Costs of planning, training and outreach, as defined in this section may be allowed. Costs for training and outreach are subject to maximum spending limits set out below (3-09-50E). Each of the following three conditions must also be met.
1. Costs must be necessary and reasonable to meet the objectives in SMCRA.
2. Costs must be specifically identified in the State's grant application or amendment application.
3. Personnel costs must be documented by records of specific planning, training, or outreach events. They may not be charged based on a budget estimate or proration.
2. Planning activities are limited to compiling and evaluating available hydrologic and geologic information and developing specifications, work statements or monitoring plans for the work to be performed at each site. Planning activities are allowable costs for either the program administrator or laboratory under contract, depending on how these activities are accomplished.
3. Training includes services that teach qualified small coal operators how to prepare permit applications and how to comply with the SMCRA regulatory program.
4. Outreach includes activities to ensure that qualified small coal operators are aware of the assistance available under SOAP.
5. Costs for training and outreach in a SOAP operational grant must be incidental to project costs. Training and outreach costs are limited to 1% of the total estimated project costs in the grant application or $2,000, whichever is greater. Supplies (i.e., educational pamphlets, brochures, literature. posters, etc.) are limited to 5% of the costs allowed for training and outreach. The following examples illustrate these limits.

Example 1: Total project costs in grant application are $500,000. Training and outreach costs cannot exceed $5,000, bringing the total grant to $505.000. Supplies are limited to $250 of the $5000 total for training and outreach.

Example 2: Total project costs in grant application are $100,000. Training and out-reach cannot exceed $2,000, bringing the total grant to $102,000. Supplies are limited to $100 of the $2000 total for training and outreach.

6. Additional technical services specified by State law or regulation and in accord with 30 CFR 795 are allowed.

3-09-60 Unallowable Costs

Federal funds appropriated for the purpose of SOAP, as mandated by the narrow statutory authorization in SMCRA, are linked precisely to baseline information and reports needed to satisfy hydrologic and geologic permitting requirements for an approval of a permit application by that State regulatory authority. The following items are unallowable costs under the SOAP operational grant.

1. Expenses incurred by the regulatory authority to administer the SOAP are not allowable, except certain planning, training, and outreach activities as described above (in 3-09-50). SOAP administrative costs are funded out of the regulatory program grant.
2. Exploratory test drilling, core drilling or observation well drilling that may be needed to define the extent of coal or for sampling overburden materials is not allowable.
3. Collecting data from local or regional sites in advance of receiving applications for assistance is not allowable.
4. Interest penalties associated with late payments for contractual work with laboratories are not allowable.

3-09-70 Reimbursements of Federal Funds

Reimbursements are funds expended from a SOAP operational grant which are recovered by a State. States are required to identify and collect funds previously expended for an operator if the operator subsequently exceeds the tonnage limit which makes them eligible for SOAP assistance. OSM defines SOAP reimbursements as program income to be expended using the addition option. This option authorizes States to add all reimbursements they collect to the funds awarded by OSM in an open SOAP grant and to expend them for the purposes of the SOAP.

For more information contact grants@osmre.gov