Mr. UDALL, from the committee of conference, submitted the following

   CONFERENCE REPORT

   [To accompany S. 425]

    The committee of conference on the disagreeing votes of the two Houses on
the amendment of the House to the bill (S. 425) to provide for the cooperation
between the Secretary of the Interior and the States with respect to the
regulation of surface mining operations, and the acquisition and reclamation of
abandoned mines, and for other purposes, having met, after full and free
conference, have agreed to recommend and do recommend to their respective Houses
as follows:

    73 And the House agree to the same.

    73 MORRIS K. UDALL, PATSY T. MINK, JOSEPH P. VIGORITO, JOHN MELCHER, TENO
RONCALIO, JOHN F. SEIBERLING, PHILIP E. RUPPE, Managers of the Part of the
House.

    73 HENRY M. JACKSON, LEE METCALF, J. BENNETT JOHNSTON, Jr., FLOYD K.
HASKELL, GAYLORD NELSON, CLIFFORD P. HANSEN, JAMES L. BUCKLEY, Managers on the
Part of the Senate.

    76 main thrust of the program would concern the training of mineral
engineers and scientists.  In conformance with the Senate bill, the definition
of qualifying institutions was broadened to include schools of mines.  An
advisory committee would be given the responsibility of determining whether or
not a college or university has an eligible school of mines, division or
department meeting the criteria set forth in the House amendment.

    76 The conferees also adopted the House provision to protect the owner of
background patents and the generaal requirement that the Secretary make the
results of research available to the public.

    76 2.  Reclamation Program. - The Senate bill included a program to reclaim
previously mined lands to be conducted by the Secretary of Interior and the
Secretary of Agriculture.  The initial authorization for this program was $100
million.

    76 The House amendment included a similar reclamation program to be carried
out by the Secretary of Interior and the Secretary of Agriculture pursuant to
program priorities set out in the House program.  The House amendment included a
$2 00 million authorization and earmarked funds from the miscellaneous
receipts of the Outer Continent Shelf Fund to the extent necessary to make up
the difference between annual appropriations and the $200 million level.

    76 Conferees melded the two program approaches, including the priorities of
the House approach.  The funding difference between the programs was resolved by
adopting a reclamation fee of 35~ per ton for surface mined coal and 25~ per ton
for underground mined coal, or 10% of the value of the coal at the mine
(whichever is lesser) on each ton of coal mined.  Imposition of the reclamation
fee begins on the date of enactment and is to be imposed for a ten-year period
unless extended by Congress.Under the Conference version, 50% of the reclamation
fee revenues derived in any State are to be expended by the Secretary in that
state for the purposes of the title.

    76 3.  Interim Environmental Standards. - The Senate bill did not apply
specific environmental standards to existing mines until 24 months after
enactment.

    76 The House amendment provides that certain environmental standards would
be applicable during an interim period between enactment and implementation of a
State or Federal program.In some cases the interim standards differed from their
counterparts in the permanent program.

    76 The Conferees adopted a simplified version of the House approach by
reducing the number of standards applicable in the interim period.  Moreover,
the particular standards of the interim period are the same as those in the
permanent program in order to provide greater continuity between the interim and
permanent programs.

    76 4.  Implementation Timetable. - The Senate bill and House amendment
contained differing mechanisms to accomplish the implementation of the Act.  The
Senate bill allowed States eighteen months within which to submit regulatory
programs in compliance with the Act to the Secretary.  Pending approval of a
State program (or promulgation of a Federal program for those States not
obtaining approval of submitted programs) any person opening a coal surface
mining operation after the date of enactment of this Act or expending an
existing mine by more than fifteen per centum was required to submit an
application and obtain a permit in compliance with the full standards of the
Act.  Finally, under the Senate bill, no person could operate a coal surface
mine after the twenty-four month period after the date of enactment without a
permit issued pursuant to an approved State program or Federal program, an
exception was made for a person operating a mine at the date of enactment of the
Act.  Such an operation could continue after the expiration of the twenty-four
month period if the operator had filed an application for a permit and was
awaiting administrative action on the application.

    77 The House amendment, on the other hand, gave the States twenty-four
months within which to submit regulatory programs to the Secretary.  Pending
approval of a State program or the promulgation of a Federal program, all coal
surface mines had to comply with the provisions of a special "interim" period
program, which included environmental standards and a Federal inspection and
enforcement program.  All coal surface mines were required to be in compliance
with a State or Federal program within six months from such approval or
implementation.

    77 The conferees adopted a blend of the two provisions.  In the approved
version, the States are given eighteen months within which to submit programs to
the Secretary.  Pending approval of State programs or implementation of a
Federal program, all coal surface mines are required to comply with an
abbreviated list of environmental standards, including standards relating to
spoil placement, approximate original contour and hydrology.  Coal operators may
obtain variances from these standards according to the permanent variance
provisions of the legislation as set forth in subsection 515(c).  All coal
operators must obtain a permit in compliance with a State or Federal program
within thirty months from the date of enactment of the Act except that coal
surface mine operations existing at the date of enactment for which an
application has been submitted but with respect to which the initial
administrative decision has not been rendered, may continue in operation past
the thirty-month deadline.  As in the House amendment, the Secretary is given
full inspection and enforcement powers during the "interim" period pending
approval of State programs or promulgation of Federal programs.

    77 5.  Variances. - Both the Senate bill and House amendment contained a
variance from the requirement to restore the mined area to the approximate
original contour, but only with respect to socially valuable uses of the
post-mining site.The Senate provisions allowed a variance from approximate
original control for mountain-top removal operations and required that the
affected area be shaped in such a way as to promote controlled internal
drainage.  The House amendment included broader exemptions to regrading,
backfilling, spoil placement and revegetation under steep slope requirements.

    77 The conferees merged the provisions of the House amendment and the Senate
bill.  Under the new provision, a variance from the approximate original contour
standard is limited to mountain-top removal operations including reshaping and
drainage requirements.  In addition, the House criteria limiting the post-mining
land uses qualifying for the variance to industrial, commercial (including
commercial agricultural), residential or public facility (including recreational
facilities) developments were adopted.  Plans for such development are to
demonstrate feasibility of the proposed project as well as appropriate site
engineering and the House amendment requirement that the variance would be
reviewed within three years was approved.

    78 6.  Enforcement. - The Senate bill and House amendment contained similar
enforcement provisions which made available to the Secretary and State
regulatory authorities an array of sanctions and procedures for violations of
the Act and of permits.  The House amendment required cease and desist orders
upon the existence of certain conditions or practices or violations of the Act
or permit which created imminent dangers to the public health or safety or posed
a threat of significant, imminent harm or damage to land, air or water
resources.The Senate bill made such cease and desist orders under similar
conditions discretionary.  The House amendment, contrary to the Senate bill,
also made available to the Secretary the full range of enforcement sanctions and
provisions against coal operators pending the development of approved State
programs pursuant to the Act.

    78 The conferees elected to adopt the approach of the House amendment and to
combine all enforcement provisions in one section.

    78  7.  Designation of Areas Unsuitable for Surface Coal Mining. - Both the
Senate bill and House amendment provide for the establishment of a process by
which the regulatory authority could designate land areas as unsuitable for the
surface mining of coal.  In addition to the prohibition of surface mining which
may result from the operation of the designation process, certain outright
prohibitions were included in the Senate bill and House amendment.Thus both the
Senate bill and the House amendment would prohibit new surface coal mining
operations on lands within the National Park System, the National Wilderness
Preservation System, and the House amendment contained additional bans
applicable to the National Forest System (including national grasslands) and
alluvial valley floors.

    78 The conferees adopted certain of the statutory prohibitions (e.g., lands
within the National Park System, National Wildlife Refuge System, National
Wilderness System), and modified others, (rejected the prohibition applicable to
national grasslands but retained a ban on National Forests).  The blanket
prohibition on mining on alluvial valley floors which had been included in the
House amendment was modified to apply only to alluvial valley floors, which the
regulatory authority found to be significant for present or potential farming or
ranching operations.

    78 In general, the conferees approved the House approach to the designation
process which provides that where reclamation pursuant to the Act is not
feasible, designation is mandatory.  The conferees also approved language to
clarify the intention that a State is not required to review all lands within
its jurisdiction, but, rather, that the designation process is to be invoked
upon petition pursuant to the section's requirements.  A designation of
unsuitability will not affect existing operations or operations for which there
are substantial legal and financial commitments in existence prior to September
1, 1974.

    78 8.  Special Bituminous Coal Mines. - The Senate bill exempted "open pit"
coal mines from regulation under the Act and directed the Secretary to conduct a
study of such operations and report to Congress with the recommendations
regarding environmental controls appropriate to such operations.  The definition
of open pit included concepts of: relation of size of excavation to acreage
disturbed; movement of mining downward as provided for across large areas;
duration of operation on same relative limited site; practicality of meeting
reclamation standards; and existence of a practical alternative method of
mining.

    79 The House amendment included a provision addressing "special-bituminous
coal mines" which were defined as operations that would result in excess of 900
feet deep according to existing mine plans, were in existence at least 10 years
prior to the date of enactment and met several other criteria.  Such mines were
not exempted from the Act, but the Secretary was authorized to allow appropriate
variation from certain requirements dealing with spoil handling, regrading to
approximate original contour, and drainage.

    79 The conferees adopted the basic approach of the House provision and
included the regulation of such mines under the provisions of the Act but
provided authority for the secretary to issue special environmental provisions
as may be necessary.  The approved provision includes from both the Senate bill
and the House amendment to define eligibility under this section.  The conferees
expressed their concern that this section not be used so that eligibility would
become the rule rather than the exception and specifically intend that it only
apply to existing mine pits which have been producing coal in commercial
quantities since January 1, 1972.

    79 9.  Anthracite Coal Mines. - The Senate bill contained no special
provisions concerning anthracite mining in Pennsylvania.  The House amendment
contained an exemption for anthracite coal mines.  The exemption required the
Secretary to issue separate regulations for such mines in lieu of the bill's
interim performance standards, the permit application and approval requirements,
and the permanent enforcement standards.  Performance bond limits and
liabilities were also to be adjusted by the Secretary.  All other provisions of
the Act were to apply.  It is understood that the only anthracite mines
qualifying under this provision were those in Pennsylvania.

    79 The conferees adopted the House approach, but reduced the exempted
provisions to environmental protection performance standards and permit approval
or denial provisions.  It is the understanding of the Conferees that if the
State fails to enforce its regulatory program for anthracite coal mines, the
Secretary is authorized to take over the enforcement of the special anthracite
regulations as well as the provisions of the Act which are not exempted.

    79  10.  Designation of Areas as Unsuitable for Mining of Minerals Other
Than Coal. - The Senate bill contained no provision relating to mining of
minerals other than coal.

    79 The House amendment included a separate title which authorizes the
Secretary to designate certain areas unsuitable for mining of minerals other
than coal.  Upon the request of the governor of any State, or petition of any
citizen which contains allegations of fact with supporting evidence, the
Secretary shall review a proposed area for designation.  The House amendment
provided that an area may be designated if it is of a predominantly urban or
suburban nature, the mineral estate of which remains in the public domain, or
where mining operations would result in damage to important historic or
environmental values.

    80 The conferees adopted a modified version of the House provision.  This
provision does not authorize designations based on historic or environmental
values.  Under the version adopted by the Conferees, an area may be designated
unsuitable for non-coal surface mining if the lands involved are either used for
residential or related purposes, or if mining operations would have an adverse
impact on lands used primarily for such purposes.

    80 11.  Employment Impact and Worker Assistance. - The Senate bill and the
House amendment contained very similar provisions to provide for extended
unemployment assistance and economic relief for individuals who lost their jobs
through the administration and enforcement of this Act.  The purpose of such a
provision was to cushion any regional or community impacts in high density
mining areas such as rural Appalachia.  These provisions have been opposed by
the Administration as inflationary.

    80 In an effort to reduce the possible cost of the employment provisions,
the Conferees modified the employment assistance provision.  The new proposed
Section 708 is substantially the same as the provisions included in S. 3267,
"Standby Energy Emergency Authorities Act." The provisions of S. 3267 were
developed jointly by minority and majority staff of both houses, representatives
of the White House, Office of Management and Budget, Labor Department and the
Federal Energy Office.

    80 This provision requires the Secretary of Labor to make grants, in
accordance with regulations prescribed by him, to States to provide cash
benefits to any individual who loses his job in the coal mining industry as
direct result of the closure of a mine which closed as a direct result of the
administration and enforcement of the Act and who is not eligible for
unemployment assistance or who has exhausted his rights to such assistance.

    80 12.  Alaska Study. - The Senate bill included no special provision
regarding surface coal mining in Alaska.

    80 The House amendment directed the Secretary of Interior, through the
National Academy of Sciences-National Academy of Engineering, to conduct a study
to promulgate a set of surface coal mining regulations best suited to govern
such operations given the special physical and climatic locations of such mines.
Until the Secretary made his report to Congress and promulgated regulations
resulting from such a study, the provisions of the Act would not apply.

    80 The conferees adopted the House approach of directing that a study be
made, but further provided that provisions of the Federal Act are to apply
during the study period.  However, if the Secretary finds that the suspension of
specific provisions of the Act are necessary to insure continuation of an
existing mining operation, then such suspension is authorized after public
notice and hearing.

    80 13.Studies. - The Senate bill included several programs to study coal
surface and open pit mining, other minerals mining impacts, as well as
technologies and resource recovery matters.  The Chairman of the Council on
Environmental Quality, the National Academy of Sciences and the National Academy
of Engineering were to have participated in this program.The House amendment
authorized the Secretary to conduct research and demonstration projects into
alternative coal mining technologies relating to underground mining and safety;
a study of Alaskan surface mining, and reclamation of surface mined areas
reaearch and development.

    81 These various alternatives were reduced by Conferees to a single effort
directing the Chairman of CEQ to contract with the National Academy of Sciences
and the National Academy of Engineering for an in-depth study involving surface
and open pit mining for minerals other than coal.

    81 This study, with an authorization of $500,000 merged features of both
Senate and House bills.

    81 14.  Indian Lands. - The Senate bill provided for a study of the question
of regulating surface coal mining on Indian lands.  The House amendment
contained a separate title addressing regulation of surface coal mining on
Indian lands.  Under this provision, Indian tribes were to be treated as are
States under the Act in that a tribe could elect to become the regulatory
authority for the purposes of enforcement of the Act or could choose to allow
the Secretary to administer the program for the tribe.

    81 The conferees chose to provide for a study of the issues involved in
implementing a full regulatory program on Indian lands rather than adopting a
regulatory scheme which could be implemented by the tribe under the approved
provision.  The Secretary is to submit his report by January 1, 1976, along with
proposed legislation designed to allow tribes to assume regulatory authority
over a surface mining regulatory program.  The provision approved by the
conferees also requires operations on Indian lands to comply with requirements
at least as stringent as the full program's provisions by 30 months after
enactment.  These are the same time periods as are applicable for non-Indian
lands.  The Secretary is to enforce these provisions as well as incorporate such
standards into existing and new leases.

    81 15.  Surface Owner Protection. - Both the House and the Senate recognized
the special peculiarities that obtain where coal deposits have been reserved to
the United States when title to the surface rights has been issued to patentees.

    81 Undoubtedly, underground coal mining operations often cause some
disruption to the surface.But contemplated surface mining operations,
particularly in the West where coal of as much as 100 feet in thickness may lie
as many as 80 feet underneath the surface of the land, may in the opinion of the
conferees result in a massive upheaval of the surface land.

    81 The Senate bill dealt with this problem by prohibiting any leasing of
Federal coal lying under land not owned by the United States.  The House
amendment instead provided that such coal could be leased but not without the
consent of the surface owner.  The conferees agreed that neither approach was
wholly right.  Just as there should not be an absolute prohibition to
development of a natural resource belonging to all the citizens of the Nation,
particularly when there is an energy crisis, so there ought not to be an
opportunity for an individual owning land to reap a windfall in order to obtain
his consent.

    82 Section 716 of the conference report includes a moratorium, but for a
short period only, from the date of enactment of the bill until February 1976.
And it embodies the House concept of surface owner consent, but with a carefully
drafted definition of what a "surface owner" is.  He must not only hold title to
the land, but also, for at least three years before granting consent to a
surface mining operation, must have his principal place of residence on the
land, or personally farm or ranch the land affected by the mining operation, or
receive directly a "significant portion" of his income from such farming.  The
conferees do not intend by this to impose an arbitrary or mechanical formula for
determining what is "significant." This should be construed in terms of the
importance of the amount to the surface owner's income.  Significant is not
intended to be measured by a fixed percentage of income.  For example, where a
person's gross income is relatively small, a loss of but a fraction thereof may
be significant.By so defining "surface owner," the conferees seek to prevent
speculators purchasing land only in the hope of reaping a windfall profit simply
because Federal coal deposits lie underneath the land.

    82 At the same time, so that there will not be any undue locking up of
Federal coal, generous compensation is guaranteed to the surface owner, based
not only upon the market value of the property but also the costs of dislocation
and relocation, loss of income and other values and damages.

    82 The procedure for obtaining surface owner consent is intended to assure
that the surface owner will be dealing solely with the Secretary in deciding
whether or not to give his consent to surface coal mining.  Penalties would be
assessed to discourage the making of "side deals" in order to circumvent the
strict provisions governing surface owner consent.

    82 Finally, section 716 established as one criterion for Federal coal
leasing "that the Secretary shall, in his discretion but to the maximum extent
practicable" refrain from leasing Federal coal underlying lands held by surface
owners.  In implementing this policy, the Secretary should consider economic as
well as physical conditions in determining what is "practicable."

    82 II.  COMMENTS REGARDING SPECIFIC PROVISIONS

    82 1.  Nondegradation Issue. - Both the House and Senate bills fully
recognize that surface coal mining causes significant disruption of the
environment while it is taking place.While the bill requires that land which
cannot be reclaimed should not be surface-mined, it is not intended that all
surface coal mining be forbidden.  Therefore, the language of section 102(a)
which refers to a "nationwide program to prevent the adverse effects to society
and the environment" is not intended to mean that all surface mining be banned.

    82 2.  Office of Surface Mining Reclamation. - Title II establishes the
Office of Surface Mining and Enforcement within the Department of Interior.  The
language of this new title is based on very similar language of both the Senate
bill and the House amendment.

    83 In order to provide the Secretary administrative discretion, the
conferees did not adopt the House provision directing the placement of the
office under the Assistant Secretary for Land and Water.  The conferees believe,
however, that it would be unwise to place the office under an Assistant
Secretary whose program responsibilities include agencies whose missions could
conflict with the responsibilities of the office.

    83 In order to assist in getting the office established and underway
expeditiously, authority is granted to borrow on a reimbursable or other basis
personnel from within the Department or from other Federal agencies.Such
utilization of personnel might result in a delegation of authority to them, but
in these instances, responsibility for those aspects of the program are to
remain within the newly created office.

    83 Concern has been expressed that the establishment of a new office at the
Federal level implicitly requires a similar entity in every State in order to
manage the State program.  This is not the case.  It should be noted that many
States already have a particular governmental unit regulating surface coal
mining industry.  The conferees believe that some aspects of the regulatory
program might be carried out on the State level by more than one agency,
especially where States with surface coal mining agencies have another agency
which regulates surface impacts of underground mines.

    83 3.  Abandoned Mine Reclamation Fund. - Title IV establishes an abandoned
mine reclamation program.  The primary purpose of this program is to provide
authority to the Secretary of Interior to reclaim previously mined, abandoned,
and inadequately reclaimed lands, correct water pollution problems from past
coal mine operations, and remedy surface impacts from underground mines.

    83 Priorities for the implementation of this program are established.  The
first priority is the protection of the health and safety of the public.  It is
intended that projects to correct such hazards to the public as the
stabilization of mine waste embankments or waste piles are to be included among
the first projects undertaken.

    83 A rural lands program administered by the Secretary of Agriculture is
authorized for reclamation of private farm lands.  The conferees agreed that
this program should be implemented through the Soil Conservation Service.  While
the Soil Conservation Service may want to integrate such projects on a watershed
or drainage area basis in order to enhance program effectiveness, it is not
intended that such an approach and its planning process slow down reclamation or
deny work in those areas or instances where the landowners are willing to
participate but the watershed planning is not completed.  It is also intended
that the rural lands program will be coordinated with the reclamation program
implemented by the Department of Interior.

    83 The reclamation program authorized for the Department of Interior
provides mechanisms for bringing lands into public ownership prior to
reclamation and then utilizing such lands for various purposes which may require
a change in ownership.

    83 The Secretary of the Interior is given authority to reclaim lands to be
used for the purposes of housing for miners, mining related employees or persons
displaced by natural disasters or catastrophic failures.  Reclamation work in
this instance includes the construction of on-and off-site public facilities
necessary to support such housing.  For the purposes of this section, the term
public facilities includes those public works needed for supporting housing
(on-and off-lands developed for housing sites), including roads, water, sewers,
education, health or other municipal facilities; supporting services and
equipment required.  Such facilities, works and services may be temporary or
permanent.Through this program, the Secretary may provide aid to communities
undergoing rapid growth due to the opening of coal mines and coal related
operations such as power plants and coal conversion facilities.  Employment in
all such activities is considered to be coal related.  In carrying out this
work, the Secretary may contract with other Federal or state agencies, including
the Regional Commissions, established under Federal statute for developmental
purposes.  The Secretary is also given authority to contract for plans,
technical assistance and demonstrations.  Existing applicable Federal standards
for the design and construction of such facilities should, in general, be
followed by the Secretary where appropriate, however, the Secretary may fund
innovative projects meeting the identified needs.

    84 The conferees added section 408 authorizing the Secretary to transfer
funds to other appropriate Federal agencies (such as the Corps of Engineers or
Environmental Protection Agency) in order to carry out the reclamation
activities.  It was recognized that this authority might be desirable since such
agencies have appropriate program responsibilities and expertise, such as
reducing sediment and other pollution from entering reservoirs, navigable
waterways as well as in acid mine drainage control.

    84 The reclamation program is supported by a reclamation fee which,
depending on the value of the coal will be no greater than 25 cents per ton of
coal mined with underground methods and 35 cents per ton of coal mined by
surface mining methods.  The differential fee was adopted recognizing the
differing costs in meeting various health and safety objectives mandated by law.

    84 It is estimated that the reclamation fee adopted by the conferees would
yield approximately $1 65 million per year based on the most recent annual coal
statistics concerning tonnage, method of mining and average value at the mine.
The fee is quite small relative to the current prices of coal.  When
translated into power cost per kilowatt hour (assuming conservative figures of
10,000 BTU/lb and a conversion rate of 10,000 BTU/kwh) it is less than 0.015
cents per kwhr of electricity.  For consumers utilizing from 250 to 750 kwhr per
month, this represents an increase of 4-12 cents per month on their utility
bill.  The conferees do not consider this small increase a burden on current
coal consumers or inflationary in nature.

    84 4.  Interim Environmental Standards. - Section 502 incorporates by
reference seven of the permanent environmental standards to be applicable in the
interim period to all surface coal mining operations.  One of these standards
pertains to the use of mine waste impoundments to dispose of wastes from both
underground and surface mines and coal processing plants.  The balance of the
standards represent other key provisions of the permanent program pertaining to
surface coal mining operations: post-mining land use objectives, regrading to
approximate original contour, steep slope requirements including limitation of
spoil placement on downslopes, segregation and preservation of topsoil,
protection of the hydrologic balance, and revegetation requirements.

    85 The conferees believe that the application of these standards to existing
mining operations will remedy much of the environmental degradation resulting
from current coal surface mining practices and provide a fair basis for
transition into the full range of requirements in the permanent program.

    85 The incorporation of the requirements of the interim standards into
existing operations within the regulatory time period is practical mechanism for
assuring compliance without raising the possibility of unwarranted hardship on
the operator.  The approved language provides that operators are to be given a
"reasonable time" to remedy conditions which are violative of the Act, and thus
as an operator may have to accomplish significant adjustments in his operations
to achieve initial compliance, a reasonable time may be a more lengthy period
than would be the case after the Act is fully implemented.  Similarly, where an
operator is attempting to obtain a variance under the Act to allow the
continuation of a particular operation, it is not the intention of the Congress
that the operation be interrupted if action on the variance application is not
taken prior to the implementation of the Interior standards.  In such an event,
the determination of a reasonable time for the operator to comply should take
into account the administration capabilities of the implementation of new
regulations and the operator acting in good faith should not be unfairly
penalized.

    85 5.  Application Fee. - The requirements in section 507(a) and in section
530(b) of the Act that applications for mining and reclamation permits or coal
exploration permits be accompanied by a fee as determined by the regulatory
authority and based as nearly as possible upon the actual or anticipated cost of
reviewing, administering and enforcing such permits are intended to eventually
permit both Senate and Federal regulatory programs to be self-funding.It may,
however, be unduly burdensome to require the total amount of the fee to be paid
immediately.  Therefore, it is the intent of the conferees that the regulatory
authority develop procedures for the purpose of spreading the cost of the
reclamation fee over the term of the permit.

    85 6.  Valid Existing Rights. - The language "subject to valid existing
rights" in Section 522(e) is intended to make clear that the prohibition of
strip mining on the national forests is subject to previous state court
interpretation of valid existing rights.  The language of 522(e) is in no way
intended to affect or abrogate any previous state court decisions.For example,
in West Virginia's Monongahela National Forest, strip mining of privately owned
coal underlying federally owned surface has been prohibited as a result of U.S.
vs. Polino (133 F.S., 722, 1955).  In this case the court held that "stripping
was not authorized by mineral reservation in a deed executed before the practice
was adopted in the county where the land lies, unless the contract expressly
grants stripping rights by use of direct or clearly equivalent words.  The party
claiming such rights must show usage or custom at the time and place where the
contract is to be executed and must show that such rights were contemplated by
the parties." The phrase "subject to valid existing rights" is thus in no way
intended to open up national forest lands to strip mining where previous legal
precedents have prohibited stripping.

    86 Section 522 provides for the establishment of a process for designating
lands unsuitable for surface coal mining while title VI grants authority to the
Secretary to prohibit mining operations for minerals or materials other than
coal on Federal lands.  Designation of an area of Federal lands in Alaska under
this provision or under title VI will not affect such land's availability for
selection by the State of Alaska under the Alaska Statehood Act or by Alaska
Natives under the Alaska Native Claims Settlement Act.

    86  7.  Designation of Federal Lands as Unsuitable for Surface Mining. -
Section 522(b) directs the Secretary of the Interior to review the Federal lands
to determine whether there are areas which are unsuitable for surface coal
mining on Federal lands until this review is completed.

    86 8.  Special Bituminous Coal Mines. - Section 527 provides for the
adjustment of several environmental standards for a limited number of existing
mine pits in the United States.  The Conferees agreed that there were probably a
few "open-pit" type coal mines in the Western States which would be unduly
burdened by meeting all of the environmental standards as proposed in the bill.
In particular, a special provision was included in the House bill which was
designed to allow special regulations to be applicable to the "big-pit" mine pit
at the Kemmerer mine.  The conferees redrafted this section so that it would be
applicable to other mines which have the very unusual characteristics of the
"big-pit" at Kemmerer.

    86 The specific environmental standards that are affected by Section 527 are
those related to: spoil handling, regarding to approximate original contour,
elimination of depressions capable of collecting water, and creation of
impoundments.  It is thought that some mine pits, because of their setting,
design and duration of existing operation are sufficiently committed to a mode
of operation which makes adjustment to the basic standards in the act difficult.
A judgment was made that in these limited cases, such pits could continue with
their basic mode of operation, meeting the special requirements of this section
and all other requirements of the act.

    86 The compromise language was carefully drawn to apply to pits which were
operational prior to January 1, 1972.  New mine pits, those opened or re-started
after January 1, 1972, must be designed or adjusted to meet the basic
environmental standards of the Act.  This applies even in those same settings
where existing pits may be determined eligible for the special standards.  In
other words, specific pits, not entire operations which may cover thousands of
acres are eligible under this section.  Similarly, in determining the
practicability of existing pits to adjust to meet the basic environmental
standards of the Act, the Secretary should ascertain that the long-range plan of
the pit is such that adjustment cannot be made to bring the operation in
conformance with the Act.  In some instances, it would seem probable that the
reworking of old pits or combination of existing pits on a mined site would
provide an opportunity for a mining operation adjustment to meet the basic
provisions of the Act and the eligibility for exceptions should be so
conditioned.

    87 9.  Alaska Study. - Section 711 recognized that the physical setting of
the far north coal fields in Alaska may require special provisions for
environmental control which are not required in the coal fields in the 48
contiguous states.  Similarly, some of the specific provisions agreed to by the
conferees may need to be adjusted in order to allow operations within the
environmental objectives and intent of this legislation.

    87 The Secretary is directed to contract with the National Academy of
Sciences-National Academy of Engineering for a study to determine if additional
or different environmental protection provisions are needed.  The Academies
offer an opportunity for an independent analysis of this problem and will be
able to combine appropriate engineering and environmental capability for the
effort.

    87 10.  Funding. - The conferees adopted the general House approach to
funding the administration of the State and Federal regulatory programs.  The
funding of the interim program provides reimbursement to the states of costs
incurred in implementing and enforcing the interim environmental protection
standards.  Contract authority is provided to the Secretary of the Interior in
order to assure that funds are available upon enactment so program
implementation is not delayed.  The funds provided the states during the interim
program are to be used for improving state regulatory programs and developing
state programs to be submitted under the provisions of the Act.  It is not
intended that these funds be used in such a way as to permit states to reduce
their present level of effort in regulating surface coal mining operations.

    87 MORRIS K. UDALL, PATSY T. MINK, JOSEPH P. VIGORITO, JOHN MELCHER, TENO
RONCALIO, JOHN F. SEIBERLING, PHILIP E. RUPPE, Managers on the Part of the
House.

    87 HENRY M. JACKSON, LEE METCALF, J. BENNETT JOHNSTON, Jr., FLOYD K.
HASKELL, GAYLORD NELSON, CLIFFORD P. HANSEN, JAMES L. BUCKLEY, Managers on the
part of the Senate. e part of the Senate.