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Montana 1998 Oversight Report |
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Annual Evaluation Summary Report
of
MONTANA
Evaluation Year 1998
(October 1, 1997 to September 30 , 1998)
(October 1998)
Abandoned Mine Lands Program
I. Introduction ........................................................................................................ 1
II. Noteworthy Accomplishments ............................................................................. 2
III. Public Participation .............................................................................................. 3
IV. Status of Approved Reclamation Plan .................................................................. 3
V. On-Site Evaluation of Reclamation Projects ......................................................... 3
VI. Fiscal and Administrative Controls........................................................................ 4
VII. Summary of Reclamation Activities ...................................................................... 4
1. Administrative Planning .......................................................................... 4
VIII. Emergency Investigations ..................................................................................... 7
Regulatory Program
I. Introduction ........................................................................................................ 13
II. Overview of Coal Mining Industry ....................................................................... 13
III. Overview of Public Participation in the Program .................................................. 14
IV. Major Accomplishments/Issues/Innovations ......................................................... 15
V. Success in Achieving the Purposes of SMCRA .................................................... 15
A. Off-site Impacts ........................................................................................ 15
B. Bond Releases .......................................................................................... 16
VI. OSM Assistance .................................................................................................. 17
VII. General Oversight Topic Reviews ......................................................................... 17
A. State Program Amendments ...................................................................... 17
B. Hydrology Review .................................................................................... 18
C. Hydrologic Standards for Phase IV Bond Release ..................................... 19
D. Contemporaneous Reclamation ................................................................. 20
E. Inspection and Enforcement ...................................................................... 23
F. Grants ...................................................................................................... 24
APPENDIX A - Tables ..................................................................................................... 27
APPENDIX B - State's Comments on Report.................................................................... 28
APPENDIX C - OSM's Response to State Comments........................................................ 29
Part I. Introduction
The Montana Abandoned Mine Land Reclamation (AMLR) program continues to operate under the guidelines of the Surface Mining Control and Reclamation Act (SMCRA), a Programmatic Agreement between the State and the Casper Field Office (CFO) of the Office of Surface Mining (OSM), the Federal Assistance Manual and associated regulations. The CFO conducts oversight activities on the Montana program, and the topics of this report were selected in a shared commitment process with the State. The Montana AMLR program was initiated in 1980 and for the next ten years the State concentrated on eliminating the hazards from past coal mining. In 1990 they certified that all known coal problems had been addressed and were then authorized to begin reclaiming the multitude of high priority non-coal hazards in the State. However, any abandoned coal hazards must still be given priority funding for reclamation when they are discovered. The evaluation methods used to produce this report are based on OSM Directive AML-22 and the Programmatic Agreement. The report covers the period of October 1, 1997 to September 30, 1998.
During this evaluation period the State, through its Mine Waste Cleanup Bureau (MWCB) in the Department of Environmental Quality (DEQ), has obligated the entire annual allocation of funds awarded in grant actions. In addition, Chart #I lists projects that are ready for reclamation if funding were available. To accomplish the reclamation of abandoned mines in an efficient and cost effective method, both design and construction contracts are awarded to the lowest qualified bidder. Construction starts as soon as heavy equipment can be moved to the sites in the spring and continues until severe winter weather makes outside work impractical. The MWCB staff spends most of the construction season in the field coordinating and supervising the reclamation activities. Some reclamation may continue into the winter months but most of the staff time during the winter months is spent coordinating design work and the other activities necessary to get projects ready for the next construction season. Chart #II, "Acres and Hazards" depicts the changes to the Abandoned Mine Land Inventory System during the evaluation period because of the reclamation work accomplished by the State. Chart #III, "Acres and Hazards", shows the work that was completed during the evaluation period and the economic impacts and environmental benefits of this reclamation.
One of the most persistent and difficult problems faced by the MWCB in the AMLR program is the Acid Mine Drainage (AMD) that is prevalent in both coal and non-coal areas. Water draining from some abandoned mines is causing significant pollution of waterways and no cost effective method of abating this problem has been found. The MWCB continues to work closely with the State's two main higher educational institutions, the University of Montana and Montana State University, to find a solution to this problem. One researcher at the University of Montana has developed a gel substance that, in laboratory tests, has done an excellent job of filtering contaminants from polluted water. During this evaluation period, with the assistance of the MWCB, this substance has been field tested and the results were equally as positive as previous laboratory tests. Another encouraging factor is the cost of the product is low enough that individual drainages containing AMD can be treated, and no expensive central filtration plant is necessary. Larger scale field tests are scheduled in the near future and it is hoped that this technology will be the answer to AMD in Montana and possibly other areas of the United States.
No major issues were noted during this evaluation period and no past unresolved issues are outstanding. The MWCB continues to complete projects in cooperation with the Bureau of Land Management and some Forests in the United States Forest Service system to reduce the cost to all agencies involved in abandoned mine reclamation. The relationship with the State Historic Preservation Office continues to improve over past evaluation periods.
The following is a list of acronyms used in this report:
AML Abandoned Mine Lands
AMLR Abandoned Mine Land Reclamation
MWCB Mine Waste Cleanup Bureau
SMCRA Surface Mining Control and Reclamation Act
OSM Office of Surface Mining
CFO Casper Field Office
AMD Acid Mine Drainage
AMLIS Abondoned Mine Land Inventory System
DEQ Department of Environmental Quality
BLM Bureau of Land Management
SHPO State Historic Preservation Office
Part II. Noteworthy Accomplishments
During this evaluation period final steps were completed to install the cultural resource narratives, maps and overlays developed by the archeologist/historian of the MWCB staff, on the internet so the general public will have access to this information. The documentation recorded consists of descriptions, histories and detailed maps of AML sites and the historic mining districts of Montana. Several hundred man hours of concentrated research were necessary to develop the information, and the assistance of a private contractor and the Montana State Library were enlisted to place it on the internet for public use. Additionally, all of the MWCB hardrock mine priority data are included in this web site. The information available includes locations, chemical data from waste rock, surface water quality, underground water quality, and data regarding sedimentation. The information is cross referenced to the wetland data via interactive maps. In the past, each time a State agency or program proposed an action they had to recreate much, if not all, of the scientific baseline information. This web site will save these agencies and programs hundred of thousands of dollars by eliminating the duplication. It will allow all users to instantly and directly access all available information as a baseline for whatever undertaking that is being considered. This site can be accessed at http://www.deq.state.mt.us/mtmines2/inmines.htm.
Another noteworthy accomplishment during the evaluation period was the interagency cooperation on the Park Mine/Indian Creek reclamation project. The Park Mine was reclaimed by the MWCB and included the construction of an on-site waste repository. Concurrently the BLM and U.S. Forest Service contracted with the same construction firm the MWCB was using to remove mine waste from Indian Creek. This creek flows from the Park Mine and carried the waste material down to the BLM and Forest Service land. The waste was transported back to the Park Mine repository and incorporated for disposal. This was an excellent example of interagency cooperation resulting is substantial cost savings to both the BLM and Forest Service. Both agencies were able to avoid costs associated with construction of individual repositories and the mobilization of heavy equipment.
Part III. Public Participation
The Montana AML Plan requires that the public be afforded the opportunity to offer comments on abandoned mine reclamation projects. The MWCB considers the public an important component of the reclamation program, and conducts a public meeting at the community nearest each project. The meetings are well publicized and are held in the evenings to allow maximum participation. The overall plan for the project area, construction design, maps, overlays and aerial photographs are available at the public meeting. Individuals may submit comments in writing, or meet with project managers at any time prior to completion of the comment period on a project. Project managers also meet with affected landowners to explain the project in detail, and keep them informed of the progress throughout the construction phase. Work plans are often altered to conform with comments received from landowners and the general public.
Part IV. Status of the Approved Reclamation Plan
No Plan amendments were initiated during this evaluation period and none are planned for the foreseeable future.
Part V. On-Site Evaluation of Reclamation Projects
Three completed projects were selected for this portion of the oversight evaluation. They were the Curlew Mine, Maxville Tailings, and the Park Mine. The completion of the first phase of the Comet Mine was also visited, but Phase II is expected to start in the spring of 1999, so it is not considered a completed project. Part of the Curlew Mine reclamation was completed in 1996 and the rest in 1997. The Park Mine was initiated in 1997 and completed in 1998. The Maxville Tailings project was completed in 1997. All of these sites involved the removal and encapsulation of toxic tailings and they are located in mountainous areas which are difficult to access.
The design of AML projects is contracted to private engineering firms and the State has had very good success with the adequacy of the project design received from these firms. MWCB project managers work closely with the contract engineers during the winter months to design future projects so they will achieve efficient, cost effective reclamation that incorporates the desires of the landowners and the general public. Because of this close coordination, most of the pre-project budget estimates are closely aligned with the final project cost. However, with the competition that exists in the construction business some of the actual bids for construction work have been somewhat lower than the engineering estimates. Engineering cost estimates are based on industry standards for various types of work and the equipment required to complete each job. Almost every project that involves the removal of a tailings pile, or other large earth moving jobs, requires a change order to the original contract. The volume of material to be moved can only be estimated during the project planning stage, but at project completion exact volumes of material moved can be obtained. These change orders are usually not significant in cost, and they were the only ones necessary on the three completed projects visited.
Part VI. Fiscal and Administrative Controls
The financial oversight for this evaluation period consisted of a review of drawdowns, timeliness of grant applications and reports, professional services and contract selection process, and the status of audits. On several occasions Montana was late in submitting cost reports and grant closeout material. This problem was finally referred to the Montana State auditors. All overdue reports and grant material have now been received, and the CFO will continue to monitor for late reports.
Montana has a current U.S. Treasury agreement regarding drawdowns and therefore no drawdown analysis is necessary. The review of contracting procedures confirmed that advertising, solicitation and other policies were adequate, and that competition for contracts is apparent. The last completed A-128 audit was for the two year period ending on June 30, 1996. There were no findings and no questioned costs in this report. Currently, an A-133 audit is being completed in Montana.
Part VII. Summary of Reclamation Activities
1. Administrative Planning-- Three important aspects of administrative planning are project eligibility, lien application and maintenance of the inventory system. Documentation of the eligibility of each project is submitted to the CFO with the request for authorization to proceed with reclamation activities. This documentation is signed by the attorney for the AML program and a copy is also placed in each State project file. No problems with project eligibility for Montana AML projects have been noted. Lien status is well documented in each project file, as are statutory exemptions from lien placement. Any AML project that may be lienable is appraised before and after construction to determine any increase in value attributable to the reclamation. No liens were placed on any AML site during this evaluation period. The MWCB has had some problems in making computer connections with the Abandoned Mine Land Inventory System (AMLIS) in OSM Headquarters, and inventory maintenance has been somewhat slow. The use of a faster computer in a sister agency has allowed the State to correct this problem and compatible equipment has been ordered to allow full time inventory maintenance by the MWCB. Inventory work is generally slow during the construction season because all personnel are in the field with the construction projects. During the winter the information from the construction season is entered in AMLIS as well as any data that may have been collected on newly discovered abandoned mine sites..
2. Acid Mine Drainage-- AMD is found throughout the State in both coal and non-coal abandoned mines. The MWCB is able to eliminate or control most of the AMD from the non-coal mines, but the AMD that is found in the Belt Coal Field continues to be a problem. The reclamation of the abandoned mines in the Belt area has been completed but the water draining from the mines continues to pollute the drainage system of the area. The conventional technology that is available at present to take care of AMD is much too costly for the limited funding that Montana receives. As mentioned above in Part I of this report, the MWCB is working with the two major universities in Montana to find a solution to the AMD problem that will be within the funding limits of their AML program. Testing of the gel product will continue, and if results remain favorable, a solution to a major water pollution problem associated with abandoned mine lands may be totally eliminated. In the meantime the MWCB continues to attempt to control the AMD situation through conventional methods of constructed wetlands and revegetation of AMD producing mines with high water uptake plants to reduce pollution into the drainage systems.
3. Western Mine Restoration Partnership-- As a result of funding through the Western Mine Restoration Partnership, the State of Montana is now in the process of reclaiming the Pony Mine and Mill Site. The site is located adjacent to the town of Pony, Montana, in Madison County. At this site tailings that are heavily laden with cyanide have been left inundated in an old tailings pond. The water had to be evaporated from the pit, and the pit itself will serve as the repository for the tailings once they are cleaned to remove the contaminants. The mill site consists of approximately 10 acres and the pit covers about seven acres of the total site. In addition to funding obtained through the Western Mine Restoration Partnership, financial assistance for the project has been received from the Environmental Protection Agency, Montana Governor's Emergency Account and the Montana Environmental Quality Protection Fund.
4. National Historic Preservation Act-- The MWCB continues to administer their reclamation program in full compliance with the National Historic Preservation Act. Historically, the MWCB has done more than any other State or Federal agency to protect and enhance the legacy of mining in Montana. A contract is entered into with a qualified firm to survey each project area for cultural resources prior to any ground disturbance on the site. The results of the survey are coordinated with OSM, the SHPO and the Advisory Council on Historic Preservation. The Montana AML program has assisted in the repair of a museum, moved artifacts from mine sites to museums, preserved historic mine sites, erected interpretative signs at mine sites and deposited an abundance of data in the State historic records. As mentioned in Part II above, the archeologist for the MWCB has written narratives and mapped most of the individual sites, historic mining districts and mining landscapes in the State.
These have all been placed on the internet for public use, and the MWCB will coordinate with the Montana State Library to ensure that the information is maintained and up to date.
5. Coal Outcrop Fires-- During this evaluation period three coal outcrop fires were extinguished in Montana. The first fire was extinguished in April of 1998 in the Dunn Mountains. This fire started a small range fire during the summer of 1997, and the surface cracks were continually expanding. The fire started in a coal outcrop on the side of a slope that was so steep that workers all had to wear safety harnesses and be roped to emplacements at the top of the slope. Vehicular access could only be attained at the top of the slope. Since heavy equipment could not get to this fire, the contractor exercised ingenuity and pumped water and grout 230 feet down to the fire through an eight inch tremie tube. Fire cracks totaling 825 feet in length were flushed with approximately 7,500 gallons of water to flush out the burning fines and define hot zones. These cracks were then grouted to completely smother the fire.
The second fire extinguished was the Pfister Fire which was burning along a dry coulee, and extensive earthwork was required to complete the project. The burning coal was dug out and cooled with approximately 300,000 gallons of water to extinguish the fire. A heavy layer of soil was then placed on top to ensure that all possibility of continued burning was removed. The final excavation was 177 feet long, 2 to 16 feet deep and the coal seam was 5 to 6 feet thick. The project was completed in July of 1998.
The Section 26 Fire was located about one mile from the Pfister Fire and over 100 feet of trenching through solid sandstone was required to get down to the coal seam. The seam was 30 feet below the surface and from 10 to 15 feet thick, and was comprised of very hard coal. The same general tactic that was used to successfully reclaim the Pfister Fire and other outcrop fires extinguished in the past three years was employed again. The Section 26 Fire was more difficult and costly to reclaim because it was located in very rough terrain, which made heavy equipment operation difficult. As the burning coal was exposed by the excavator it was watered down to cool it, and it was then covered with soil to smother any remaining possibility of fire. Approximately 700,000 gallons of water were required to wet the burning coal as it was excavated. This fire was extinguished in August of 1998.
Two additional outcrop fires located in this same general area were also investigated, but funding was not available in the FY98 Coal Outcrop Fire Grant to reclaim them. This grant was originally approved for a total of $25,000 and another $23,000 was amended into it. A total of $48,000 was available to extinguish the above referenced fires and the cost to do the job was $54,558.62. This means that $6,558.62 had to be extracted from a very tight State budget to cover the costs that the grant did not cover. Neither of the two outcrop fires presently burning are considered to be threatening life or property but, as has been the case with some of the previous outcrop fires, this can change very rapidly. The coal smoulders underground until the heat and dryness of the soil causes surface cracks. This allows oxygen to come into contact with the smouldering coal and flames are ignited. Dry vegetation and the ever-present wind then combine to provide an extremely dangerous situation for the downwind inhabitants and environment. All of these fires are believed to have been started by a forest and grass fire that swept through the area in 1983.
The two additional fires will be addressed under the FY99 Coal Outcrop Fire Grant if sufficient funding is available to award the grant.
Part VIII. Emergency Investigations
One emergency investigation was undertaken during this evaluation period. It was located in the city of Red Lodge, Montana, and was in the back yard of a private residence. Although a part of the city is undermined, a 1927 map on file with the city indicated that there was no mining within six blocks of the residence. An old map from the 1907 era was found and it showed a vertical shaft exactly where a depression had been backfilled several times in the yard. When the surface slumped again, the back deck of the residence settled, and a crack was found in the house foundation, the MWCB was notified. The residence is located adjacent to a school and children often play in the yard. The depression was drilled and the presence of the shaft was confirmed. A log bulkhead had been constructed about 30 feet below the surface when the shaft was originally closed and it had been backfilled to the surface. The shaft was grouted with a total of 62.2 cubic yards of grout that stabilized the gravel walls and supported the sagging bulkhead. Old drill logs indicate that there are two minable seams of coal approximately 200 and 400 feet below the surface, and it is suspected that the shaft went to the 400 foot level. However, only 85 feet of open shaft was left to be filled below the bulkhead during this project. The project eliminated a safety hazard that could very well have taken the life of anyone on or around the depression if the bulkhead had collapsed. The attached Chart #4 on Emergency Projects gives additional information regarding this emergency project.
Additional AML Projects That Are Construction Ready If Funding Were Available
Project Cost Economic Impact Environmental Benefit
| Cumberland Project | $.15 million | Income: 3.0 million Employment: 11 | 5 Acres reclaimed |
| Wicks project | $1.8 million | Income: 4.5 million Employment: 140 | Toxic soil removed. 25 acres reclaimed |
| Alta Project | $2.3 million | Income: 5.75 million Employment: 179 | AMD removed. 15 acres reclaimed |
| Emery Project | $.5 million | Income: 1.25 million Employment: 39 | 18 acres reclaimed |
| Apex Project | $.8 million | Income: 2 million Employment: 62 | 3 acres reclaimed |
| Comet Phase II Project | $1.5 million | Income 3.75 million Employment: 107 | 15 acres reclaimed |
| Gregory Project | $.8 million | Income: 2 million Employment: 62 | 6 acres reclaimed |
| Neilhart Tailings Project | $1.0 million | Income: 2.5 million Employment: 78 | 5 acres reclaimed |
| Shoeshoe Project | $.75 million | Income: 1.88 million Employment: 58 | 20 acres reclaimed |
| Garnet Gold Project | $.25 million | Income: .63 million Employment: 19 | 5 acres reclaimed |
| Great Republic Project | $.4 million | Income: 1 million Employment: 31 | 5 acres reclaimed |
| Washington Mine Project | $1.6 million | Income: 4 million Employment: 124 | 10 acres reclaimed |
| Champion Mine Project | $.46 million | Income: 1.15 million Employment: 35 | 5 acres reclaimed |
| Lily-Orphan Boy Mine | $.35 million | Income: .88 million Employment: 27 | 1 acre reclaimed |
| Forest Rose Project | $.8 million | Income: 2 million Employment: 62 | 10 acres reclaimed |
| Buckeye Project | $.35 million | Income: .88 million Employment: 27 | 2 acres reclaimed |
| Total | $13.81 million | Income: 42.84 million Employment: 1071 | Restoration of land Public safety |
| HAZARD | OCT 1, 1997 STATUS(1) | FY98 AMLIS ADDITION | RECLAIMED IN FY98 | OCT 1,1999 STATUS |
| BE Bench | 0 | 0 | 0 | 0 |
| CS Clogged Stream | 26.5 | 0 | 1.4 | 25.1 |
| CSL Clogged Stream Lands | 109.9 | 0 | 5 | 104.9 |
| DH Dangerous Highwalls | 0 | 0 | 0 | 0 |
| DI Dangerous Impoundments | 0 | 0 | 0 | 0 |
| DP Ind/Res Waste | 0 | 0 | 0 | 0 |
| DPE Dangerous Pile & Embk | 294.7 | 0 | 0 | 294.7 |
| DS Dangerous Slides | 0 | 0 | 0 | 0 |
| EF Equip/Facil | 0 | 0 | 0 | 0 |
| GHE Hazard Gas/Explosive | 0 | 0 | 0 | 0 |
| GO Gobs | 0 | 0 | 0 | 0 |
| H highwalls | 0 | 0 | 0 | 0 |
| HEF Hazard Eqpt & Facility | 708 | 0 | 4 | 704 |
| HR Haul Road | 0 | 0 | 0 | 0 |
| HWB Hazard Water Body | 8 | 0 | 0 | 8 |
| IRW Indust/Resid Waste | 690.7 | 0 | 21 | 669.7 |
| MO Mine Opening | 0 | 0 | 0 | 0 |
| P Portal | 197 | 0 | 2 | 195 |
| PI Pits | 0 | 0 | 0 | 0 |
| PWAI Poll ut Water Agri&Ind | 0 | 0 | 0 | 0 |
| PEHC Pollut H20 Humn Cons | 0 | 0 | 0 | 0 |
| S Subsidence | 0.1 | 0 | 0 | 0.1 |
| SA Spoil Area | 0 | 0 | 0 | 0 |
| SB Surface Burning | 0 | 0 | 0 | 0 |
| SP Slump | 0 | 0 | 0 | 0 |
| UMF Underground Mine Fire | 35 | 0 | 0 | 35 |
| VO Vertical Opening | 85 | 0 | 0 | 85 |
| WA Water Problems | 0 | 0 | 0 | 0 |
1. AMLIS keywork
2. A "snapshot" of the status at the beginning of the year
3. PAD additions, by keyword, during the year
4. Reclamation accomplishments-GPRA requirement
5. A "snapshot" of the status at the beginning of FY99
Project Name Project Cost Economic Impacts Environmental Benefit
| Nellie Grant Mine | $620,000 | Income: $1.1 million Employment: 34 | CS, CSL, and IRW hazard cleanup. |
| Nancy Lee Mine and Mill | $990,000 | Income: $2.5 million Employment: 78 | CS, CSL, HEF, IRW and P hazard reclamation |
| Park Mine | $1,922,868 | Income: $4.6 million Employment: 148 | CS, CSL, IRW, and P hazard reclamation |
| Brophy Mine | $123,473.61 | Income: $.28 million Employment: 12 | CS, CSL, P, VO, HEF, and DH hazard reclamation |
| Comet Mine, Phase I | $1,133,758 | Income: $2.6 million Employment: 82 | CS, IRW, DPE, DH, and CSL hazard reclamation |
| Empire Mine | $314,353 | Income: $.63 million Employment: 32 | P, DH, DPE, CS, and CSL hazard reclamation |
Investigation Notification CFO Response Reclamation Const. Start Completion
Project Name Date Date to CFO Time (Days) Cost Date Date
| Red Lodge Subsidence Emergency Project | 7/6/98 | 7/8/98 | Two days | $35,970.33 | 8/8/98 | 8/16/98 |
I. Introduction
The Surface Mining Control and Reclamation Act of 1977 (SMCRA) created the Office of Surface Mining Reclamation and Enforcement (OSM) in the Department of the Interior. SMCRA provides authority to OSM to oversee the implementation of and provide Federal funding for State regulatory and abandoned mine land programs that have been approved by OSM as meeting the minimum standards specified by SMCRA. This report contains summary information regarding the Montana programs and the effectiveness of the Montana programs in meeting the applicable purposes of SMCRA as specified in section 102. This report covers the period of October 1, 1997 to September 30, 1998. Detailed background information and comprehensive reports for the program elements evaluated during the period are available for review and copying at the Casper, Wyoming, OSM Office.
The following list of acronyms are used in this report:
CFO Casper Field Office
CO Cessation Order
EPA Environmental Protection Agency
EY Evaluation Year
GIS Geographic Information System
MOU Memorandum of Understanding
MT-DEQ Montana Department of Environmental Quality
NOV Notice of Violation
OSM Office of Surface Mining Reclamation and Enforcement
RSI Random Sample Inspection
SMCRA Surface Mining Control and Reclamation Act of 1977
TDS Total Dissolved Solids
II. Overview of the Montana Coal Mining Industry
Montana's demonstrated coal reserve base is approximately 120 billion tons, or about 24.6 percent of the total U.S. reserve base. Of the 15 major coal-producing states, Montana ranks first in coal resources and reserves. Coal fields are found throughout the State, but most are located east of the Continental Divide. Of the 17 coal fields in the State, three (Fort Union, Powder River, and Bull Mountains) currently have producing mines. Montana coal ranges in rank from lignite to high volatile A bituminous, with most of the coal currently mined being sub-bituminous.
Coal mining began in Montana over 100 years ago. Early coal production was almost entirely from underground mines and was used by smelters, railroads, and for domestic purposes by early settlers of the State. Early underground production ranged from a few hundred thousand tons to peaks of as high as five million tons during World Wars I and II. Larger surface mining techniques after WWII boosted production to a record of nearly 42 million tons in 1994.
Annual production for 1997 was approximately 40.7 million tons, all of which came from surface mines. An average price per ton of Montana coal for calendar year 1997 was $7.44, making the value of this years production at just over $300 million. The coal industry also generates approximately $40 million in severance taxes and approximately $285 million in Federal and State royalties for Montana annually.
Nearly all of Montana's coal production is used in coal-fired electrical generation facilities to produce electrical power; however, small amounts continue to be used for heating and other domestic uses on a limited regional basis.
There are currently 12 active surface mines and one underground mine (during this EY, the Montana Department of Environmental Quality (MT-DEQ) canceled the underground permit as the mine was shut down), with a total direct industry employment at of 900 to 1000 people in the State. Montana's surface mining industry furnishes some of the highest paying and most sought after jobs in the State. This mine total includes one Indian Lands surface mine located on the Crow Ceded Strip adjacent to the northern boundary of the Crow Reservation which is jointly administered by OSM and the MT-DEQ under and MOU.
Mine size within the State ranges from 10 acres to nearly 24,000 acres. A total of approximately 61,000 acres are currently permitted in the State. Approximately 25,500 acres of the 61,000 acres permitted have been disturbed and 9,100 of these disturbed acres have been backfilled, graded, topsoiled, and permanently seeded to reclamation standards.
III. Overview of Public Participation in the Program
Casper Field Office (CFO) staff have reviewed the Montana program with respect to opportunities for and participation in, the public review of permitting activities by the MT-DEQ. The CFO review indicates that opportunities for public involvement in mine permitting under the Montana program exist at the following levels of their permanent program: 1) all new applications, major revisions, or amendments, 2) permit renewals, 3) permit transfers, 4) applications for extensions of time to commence mining, and 5) bond release applications. While public involvement is not available for new prospecting permit applications, renewals, amendments, or transfers, there are provisions in the Montana program for public notice and comment at bond release time.
Public notice requirements for the program actions listed above, consist at a minimum of having the applicant place an advertisement in a newspaper of general circulation in the locality of the proposed activity for at least once per week for 2-4 weeks (depending on permitting activity) followed by a 30-60 day comment period. Any comments received or requests for an informal hearing must be formally addressed on the record.
A sample of the five permitting actions requiring public participation were reviewed by personnel from the CFO. In all samples reviewed, all the required publications were documented and of sufficient content to meet the requirements of the Montana program.
IV. Major Accomplishments / Issues / Innovations
The Montana program is making innovative strides in the future of its permit approval process. Utilizing software and hardware provided by OSM, MT-DEQ staff have developed a process for correlating environmental factors with plant groupings for use in coal mine reclamation plan evaluation and permitting. Detailed permit-scale digital data on premine vegetation, soils, range sites and topography were generated from a specific mine in southeastern Montana and entered into a vector-based geographic information system (GIS); this information was processed and analyzed for spatial correlations using raster-based techniques. Results document the strong correlations between specific plant communities and steepness of slope, soil texture, soil depth and range site.
This process will have application for evaluating and delimiting root zone and reclaimed landscape parameters necessary for establishment and persistence of specific plant communities; streamline and expedite mine permit application and permit revision review and decision processes, and; provide additional rationale for decisions regarding post-mine topography, soil depth and texture, and range sites and their synergistic relationship to the required habitat type reconstruction for wildlife and livestock.
V. Success in Achieving the Purposes of SMCRA
A. Off-Site Impacts
For the purpose of oversight, an off-site impact is defined as anything resulting from a surface coal mining and reclamation activity or operation that causes a negative effect on people, land, water, or structures. The State program must regulate or control the mining or reclamation activity or result of the activity causing an off-site impact. In addition, the impact on the resource must be substantiated as being related to a mining and reclamation activity, and must be outside the area authorized by the permit for conducting mining and reclamation activities.
Montana issued 18 Notices of Violation (NOV) and 5 Failure to Abate Cessation Orders (CO) during this evaluation period. In one case, Montana is currently determining if a pattern of violation exists. One show cause hearing and bond forfeiture was initiate during this evaluation period.
The CFO did not issue any enforcement actions (NOV, CO) during this review period. One Ten-Day-Notice was issued. Montana took appropriate action.
A review of each of these inspections and enforcement actions indicate no negative off-site impacts were observed.
B. Bond Releases
OSM evaluated the effectiveness of the State program based on the number of acres that have received bond release (Table 5). The CFO believes this measure does not capture the total effectiveness of the State program due to the type of mining operations, size of mining operation and company policy (not to apply for release until large tracts are eligible for final bond release). The CFO determined that the State program is effective in its goal of having all disturbed lands reclaimed to approved postmining land use; however, there is little motivation for the mining company to seek bond release. Although the number of acres released from bond is relatively small, a substantial amount of reclamation has and is occurring in Montana. Tables 5 and 6 summarize bond release activity within the State. As the Tables demonstrate, there are very few acres released compared to the number of acres reclaimed in any given year.
As part of our 1998 oversight, the Casper Field Office reviewed and reported the status of bond release and reclamation/disturbance mine by mine for the State (Tables 6a and 6b).
These tables illustrate that the ratio of reclamation to disturbed lands varies greatly from mine to mine. As follow-up, the CFO will review the reasons for the variances in greater detail.
VI. OSM Assistance
During the evaluation period OSM provided financial assistance to Montana for their permanent program. Total assistance amounted to approximately $880,000 as well as other technical assistance.
The State received approximately $861,000 in support of permitting, inspection and enforcement and administration of their permanent program through an Administration and Enforcement grant. This represents 83 percent of the total cost of the Montana program.
Seven Montana employees received reclamation and enforcement training from OSM's Office of Technical Training for a cost of $6,600 or 185 man hours of training. Also, five employees received software computer training from OSM's Technical Information Processing System office for an approximate cost of $3,700 or 110 man hours of training.
As part of OSM's continuing electronic permitting initiative, OSM assisted Montana by providing a wide format map scanner for a cost of approximately $10,000. This will increase the State's data base for use in inspections and permitting.
VII. General Oversight Topic Reviews
A. State Program Amendments
A review of all State Program Amendment issues by OSM indicates that there are currently three active formal program amendment packages being reviewed by OSM.. Two of these are in the final stages of review and approval by the Solicitor's Office and should have the final Federal Register approval notice published in early EY99 (November). The other package is awaiting a response from Montana on concerns identified in a July 10, 1997 issue letter to the State.
The only other outstanding issues concerning Montana's program are those identified in the last round of 30 CFR Part 732 issue letters sent to Montana in mid 1996-1997 and a few required amendments resulting from deferrals or disapproval of certain programmatic issues from previous amendment packages.
Montana has compiled a program amendment package that is intended to address all outstanding State program issues. This package is scheduled to go before the November 6, 1998 Board of Environmental Review for their review and approval. Soon after the State rulemaking process is completed (March, 1999), OSM can expect the amendment package to be formally submitted for our review and approval.
B. Hydrology Review
The hydrology review in Montana was designed to specifically address three questions raised in public meetings. Those questions were 1) what are the impacts to surface and ground water from mining in the Colstrip area, 2) are the surface and ground water conditions improving, worsening, or staying the same, and 3) after the collection of decades of water data, has the MT-DEQ identified any trends in the hydrologic reclamation of the areas affected by mining?
During the past evaluation period, the MT-DEQ has made great strides in addressing the hydrologic issues raised by the citizens in the Colstrip, Montana area. Their review of the mining and non-mining related activities in the Colstrip area indicates that a majority of the impacts to the regional hydrology are tied to municipal and industrial impacts from the town of Colstrip and the power plant there, and are not tied to effects from mining.
The mines do have an immediate, but temporary impact on the hydrologic conditions within the permits. Ground water quality and quantity have been disrupted during active mining conditions. However, findings from monitoring wells placed in the backfilled pits indicate a large spike in total dissolved solids (TDS) in the water quality as ground water recovers. As quantity increases, these temporay spikes tend to diminish and move toward pre-mine conditions.
The MT-DEQ has also done considerable work during the last evaluation period in the development of an analytic system that provides the capability for more efficient and accurate use of the hydrologic data collected from the permits. MT-DEQ staff continue to enter geologic and hydrologic data sets into an Arc/Info and EarthVision format that will enable them to evaluate water resource recovery and replacement objectives more effectively in the future, fully utilizing the water quality monitoring data collected and submitted by the mine operators.
C. Hydrologic Standards for Phase IV Bond Release
One of the issues raised at the public outreach meetings in Montana has been the apparent lack of water quality and quantity standards in the Montana program to be met prior to Phase IV bond release application. The MT-DEQ agreed to develop these standards and guidelines for their implementation during EY98.
In Montana, the only approved post-mining land use in their program is grazing and habitat for livestock and wildlife use. The MT-DEQ approached development of the standards for livestock water supplies in two phases: 1) Development of Livestock Water Criteria and 2) Protocol for Applying Criteria to Specific Mine Areas.
The first phase focused on research of the published criteria applicable to beef cattle in the U.S. and Canada. This research confirms that the most widely accepted authority on water quality criteria for livestock is in a report prepared for the Environmental Protection Agency (EPA) by the Committee on Water Quality Criteria, the Environmental Studies Board, the National Academy of Sciences and the National Academy of Engineering, entitled "Water Quality Criteria 1972". This publication establishes the upper limit concentrations for general and specific water quality parameters which are proposed to guard against adverse effects to livestock and the toxic effects that might be experienced from the human consumption of products derived from livestock that consume such water. Based on this research, the MT-DEQ proposes to adopt the EPA level of 3000 mg/l TDS for livestock and wildlife standards.
The major ions that make up the TDS levels in water can also have varying affects on livestock. The MT-DEQ has also developed proposed threshold limits on these major ions that correlate to levels recommended by the EPA and work done by the California State Water Resources Control Board by McKee and Wolf (1963).
In the second phase of this issue, the MT-DEQ propose to present a protocol for applying the water quality criteria to accommodate local circumstances. If a specific parameter in pre-mine conditions exceeds the water quality criteria proposed, a local criterion would be developed based on the range of concentrations recorded for that parameter from the pre-mine water resource data.
The MT-DEQ has also initiated an investigation of currently used livestock water resources on or adjacent to the permit areas in Montana's coalfields. The purpose of the investigation is to:
1) gather water quality data from established livestock watering sites,
2) create a database of site locations and water quality consumed by livestock and wildlife,
3) compare water quality of currently used sites with water quality criteria proposed by the Department, and
4) determine if currently used sites can be retained in the post-mining setting.
The information regarding water quality parameters and current water use will be shared with the public at the next outreach meeting.
(Example of Contemporaneous Reclamation)
D. Contemporaneous Reclamation
In this EY review the CFO attempted to develop criteria to be reviewed annually as a comparison of the acres disturbed to the acres reclaimed on a state-wide and mine-site specific basis to evaluate how contemporaneously reclamation is occurring. Reclamation of disturbed lands in Montana may not be occurring at the same rate as lands are being disturbed by mining. The CFO plans to continue this specific review by focusing on a mine site specific inventory and status of disturbed lands (see Tables 6, 6a and 6b) in 1999.
As stated in the 1997 report the CFO believes the Montana coal industry has reached a level of maturity (there are no new mines coming on line or large production changes anticipated) where the number of acres disturbed by mining should be offset or exceeded by the number of acres reclaimed on a statewide average. As indicated in Table A, in 1991 and 1992, reclamation in Montana approximated this 1:1 ratio ( reclaimed to disturbed). However, since that time the ratio has slipped to about 1 to 3 by 1996 and 1 to 2 in 1998. While the MT-DEQ and CFO are concerned, there are many factors that can influence this ratio. The CFO and MT-DEQ believe that this issue is mine specific and should be handled as such. Mine site specific summaries are contained in Tables 6a and 6b. This review will allow MT-DEQ and the CFO to concentrate on those mining operations where a 1 to 1 ratio is not being achieved and to evaluate its compliance with the approved state program.
MONTANA STATEWIDE RECLAMATION SUMMARY
| YEAR | ACRES DISTURBED | ACRES RECLAIMED | RATIO OF RECL. VS. DIST. |
| 1990 | 531 | 119 | 0.22 |
| 1991 | 737 | 700 | 0.95 |
| 1992 | 783 | 695 | 0.89 |
| 1993 | 807 | 550 | 0.68 |
| 1994 | 816 | 536 | 0.66 |
| 1995 | 1213 | 579 | 0.48 |
| 1996 | 1507 | 541 | 0.36 |
| 1997 | 773 | 527 | 0.68 |
| 1998 | 842 | 462 | 0.55 |
E. Inspection and Enforcement
The Montana Department of Environmental Quality continues to conduct frequent and thorough inspections. Montana conducted 77 complete inspections and 107 partial inspections and met or exceeded the required number of inspections at all permits during the evaluation year. The Casper Field Office conducted 6 complete random sample inspections and 13 partial / focused inspections of coal mining operations in Montana.
Montana inspection reports are complete, and accurately document site conditions and mine activity, and give the status of any violations. They have continuity with previous reports. All performance standards were reviewed and documented during complete inspections and the reports contain a discussion of the current mine status. Each partial inspection report documents performance standards reviewed and permit requirements reviewed as well as the portions of the mine site inspected.
Montana maintains an inspectable units list and a inspection data base sufficient to meet its program requirements.
Montana issued 18 Notices of Violation and 5 Failure to Abate Cessation Orders during this evaluation period. One pattern of violation exists and a show cause hearings / alternative enforcement action (bond forfeiture) was initiate during this evaluation period.
The CFO did issue one Ten Day Notice (TDN) during this review period, Montana's action and the State response to the TDN was considered appropriate.
Also the CFO conducted a review and comparison of the inspection and enforcement activity of the CFO and Montana for the past twelve years as reported in the table below. There is no discernable correlation between the CFO inspection and enforcement activity and Montana's.
OSM / CFO and MT / DEQ INSPECTION & ENFORCEMENT DATA
|
Y E A R |
INSPECTABLE
UNITS (PERMITS) |
COMPLETE
INSPECTIONS |
PARTIAL
INSPECTIONS |
ENFORCEMENT
ACTIONS | |||
| MT/DEQ | CFO | MT/DEQ | CFO | MT/DEQ | CFO | ||
| 87 | 17 | 202 | 18 | 81 | 8 | 15 | 4 |
| 88 | 17 | 172 | 22 | 92 | 3 | 23 | 4 |
| 89 | 19 | 147 | 14 | 115 | 8 | 23 | 2 |
| 90 | 20 | 143 | 11 | 115 | 8 | 23 | 0 |
| 91 | 20 | 80 | 14 | 152 | 8 | 13 | 3 |
| 92 | 20 | 141 | 10 | 139 | 12 | 3 | 4 |
| 93 | 21 | 119 | 13 | 133 | 17 | 16 | 3 |
| 94 | 20 | 124 | 9 | 127 | 12 | 6 | 3 |
| 95 | 17 | 111 | 7 | 106 | 7 | 6 | 0 |
| 96 | 18 | 91 | 6 | 117 | 18 | 5 | 0 |
| 97 | 18 | 97 | 6 | 96 | 17 | 1 | 0 |
| 98 | 18 | 77 | 6 | 107 | 13 | 23 | 1 |
F. Grants
The CFO conducted financial oversight during the evaluation period. Specifically drawdowns, payroll, timeliness of grant application and reports, and status of audits were reviewed.
The CFO found that Montana was drawing down cash from U. S. Treasury under the Administration and Enforcement grant and that during the first half of the evaluation period for over 20 days , excess funds were being held. Montana was notified, and since then drawdowns have equaled expenditures and excess funds were not being held.
Bi-weekly payroll time sheets were reviewed. The MT-DEQ revised their payroll procedures in August 1997. Time sheets were signed by the employee and the supervisor as required. Accrual of sick and annual leave was reviewed. CFO confirmed that charges made to the grant for salaries and benefits were made by personnel working in the coal regulatory program. No irregularities were found in the charges made to the grant.
Reports and grant applications were timely during the reporting period.
The last completed A-128 Audit was for two years ending June 30, 1996. There were no findings nor any questioned costs. Currently Montana is completing the newly required A-133 Audit.
The CFO awarded Montana one administration and enforcement grant during the evaluation period meeting the Government Performance Results Act requirement of awarding the grant within 60 days of the grant application.
G. Bonding Practices
During this evaluation period, OSM's Western Region identified the issue of "rolling bonds" as a regional oversight topic for the coal producing states in the region. Each of the western field offices reviewed the approved bonding provisions of the individual state programs and evaluated them against how these provisions are actually being implemented.
The practice of "rolling bonds" occurs when the performance bond for a permit is reviewed or considered for adjustment while using a "worst-case scenario" for evaluation. When a worst-case scenario is used, generally only those areas that are disturbed at any given time are considered for determining the bond amount necessary for a third party to mobilize and reclaim a site. When only the area currently disturbed is considered, areas that have already been backfilled, soiled, or seeded are taken out of the bond calculation equation, thus allowing the mine a defacto bond reduction, at least with respect to any particular tract of land, without the benefit of a formal bond release application and approval process.
The current bonding provisions of the Montana program were approved by OSM as being as stringent as and as effective as Section 509(a) of SMCRA, in April 1980. SMCRA, the Federal regulations, and the Montana program do not allow bonds to be reduced or released on lands for which reclamation has begun, unless all applicable bond release requirements have been met. As such, any reduction in bond for reclamation work performed can only be through a formal bond release process. However, a review of how Montana implements its bonding provisions indicates that with most (but not all) permits, the State is giving credit for reclamation done, without benefit of the formal bond release application and approval process when reevaluating bonds.
Bond amounts in Montana are calculated based on the maximum disturbance ("worst-case") estimated within a five year permit term area. When the bonds are next reviewed (mid-term, renewal, or major revision) the area of disturbance has moved forward with the advancing pit and a new worst-case scenario is evaluated. This new scenario however, credits disturbance that has been backfilled, soiled, or seeded behind the pit as it advanced, thus removing these areas from bond calculation and consideration.
The MT-DEQ staff responsible for bond review and calculation have all attended OSM's bonding training and past reviews of Montana's bonding methods by OSM have not indicated any problems with the State's methodology for calculating bond amounts or the adequacy of those bonds.
The following tables represent data pertinent to the State and Federal regulatory and abandoned mine land program activities within Montana. These tables also summarize funding provided by OSM and Montana staffing. Unless otherwise specified, the reporting period for the data contained in all tables is October 1, 1997 to September 30, 1998 Additional data used by OSM in its evaluation of Montana's performance is available for review in the evaluation files maintained by the Casper, Wyoming, OSM Office.
On March 12, 1999, the Montana Department of Environmental Quality provided the Casper Field Office with their review and comments regarding the draft EY98 Annual Report. These comments and the Casper Field Office response are as follows:
State Comment: Section II, 5th paragraph, last sentence. We would recommend a change to read, "This mine total includes one mine jointly administered by OSM and Montana on the Crow Ceded Strip that lies adjacent to the northern boundary of the Crow Reservation." Montana does not agree that the Westmoreland Resources Absaloka mine is an Indian Lands Mine.
OSM Response: The report has been corrected to incorporate the suggested changes.
State Comment: Section V, A, 2. We would recommend the following replacement: "Montana is currently reviewing impacts of mine pit dewatering and subsequent downsteam recharge on a ranch in the Colstrip area. This review has determined an adverse, off-site impact did occur to a specific downstream hayfield." The statement as written in the draft document does not seem to indicate this specific problem, but rather a much broader impact area.
OSM Response: The Casper Field Office agrees with this statement and the report was changed to clarify the specific issue in question.
State Comment: Section VII, A, 3rd paragraph, last sentence. Please substitute March for January. Rule amendments will be acted upon by the Board of Environmental Review on March 19, 1999.
OSM Response: The report has been changed to reflect this latest scheduling update.
State Comment: Section VII, D, 2nd sentence. Montana would recommend deletion of the entire sentence because the one which follows it is sufficient and the results if references will provide a more accurate representation of specific data and implications, and there is not an acceptable nor published definition of contemporaneous.
OSM Response: Montana's statement that there is no published definition of "contemporaneous" is correct. The CFO reworded the statement to clarify its intent.
State Comment: Section VII, D, 2nd paragraph, 2nd sentence. Montana would recommend deletion of this statement because it does not provide a distinction between mines, and/or possible reasons as you discussed in the rest of that paragraph. The conclusion was reached before the data were evaluated for tangible and intangible variables.
OSM Response: The report has been corrected to incorporate the suggested change.
State Comment: Table 1. Montana's record indicate a total of 42.565 million tons of coal were mined in 1998. Also on that page, the last paragraph, last sentence, Montana consider this as Westmoreland Resources Absaloka Mine that is jointly administered by OSM and Montana.
OSM Response: As noted in the footnote for this table, the information source for this table is the tonnage reported to OSM by each mining company on the form they use to access their AML fees (form OSM-1). This reported production may vary from that reported to the State. The Casper Field Office also prepares an annual report on the Crow Tribe and the production from the Absaloka Mine is reported there too.
|
COAL PRODUCTION
(Millions of short tons) | |||
| Period | Surface
mines |
Underground
mines |
Total |
| Coal productionA for entire State: | |||
| 1994 | 42.15 | 0.003 | 42.153 |
| 1995 | 39.67 | 0.010 | 39.680 |
| 1996 | 37.033 | 0.138 | 37.171 |
| 1997 | 38.733 | 0.011 | 38.744 |
| 1998 | 40.824 | 0.003 | 40.827 |
A Coal production as reported in this table is the gross tonnage which includes coal that is sold, used or transferred as reported to OSM by each mining company on form OSM-1 line 8(a). Gross tonnage does not provide for a moisture reduction. OSM verifies tonnage reported through routine auditing of mining companies. This production may vary from that reported by States or other sources due to varying methods of determining and reporting coal production. Montana production also includes production from the Crow Absaloka Mine.
(As of September 30, 1998) and related facilities (hundreds of acres) PP: Permanent regulatory program sites. B Numbers of units may not equal the sum of the three preceding categories because a single inspectable unit may include lands in more than
one of the preceding categories. C Includes only exploration activities regulated by the State pursuant to a cooperative agreement with OSM or by OSM pursuant to a Federal
lands program. Excludes exploration regulated by the Bureau of Land Management. D Inspectable Units includes multiple permits that have been grouped together as one unit for inspection frequency purposes by some State
programs.
INSPECTABLE UNITS
Coal mines
Number and status of permits
Insp.
UnitD
Permitted acreageA
Active or
temporarily
inactive
Inactive
Abandoned
Totals
Phase II
bond release
IP
PP
IP
PP
IP
PP
IP
PP
IP
PP
Total STATE and PRIVATE LANDS
REGULATORY AUTHORITY: STATE Surface mines
0
10
2
2
0
0
2
12
16
0.28
544.9
545 Underground mines
0
1
0
0
0
0
0
1
1
0
42.4
42 Other facilities
0
0
0
0
0
0
0
0
0
0
0
0 Subtotals
0
11
2
2
0
0
2
13
17
0.28
587.3
588 FEDERAL LANDS
REGULATORY AUTHORITY: STATE Surface mines
0
11
0
1
0
0
0
12
12
0
279
279 Underground mines
0
0
0
0
0
0
0
0
0
0
0
0 Other facilities
0
0
0
0
0
0
0
0
0
0
0
0 Subtotals
0
11
0
1
0
0
0
12
12
0
279
279 ALL LANDS B Surface mines
0
21
2
3
0
0
2
24
16
0
824
824 Underground mines
0
1
0
0
0
0
0
1
1
0
42
42 Other facilities
0
0
0
0
0
0
0
0
0
0
0
0 Totals
0
22
2
3
0
0
2
25
17
0
866
866 Average number of permits per inspectable unit (excluding exploration sites)
1
Average number of acres per inspectable unit (excluding exploration sites)
3,308
Number of exploration permits on State and private lands:
4
On Federal lands:
2
C Number of exploration notices on State and private lands:
6
On Federal lands:
6
C IP: Initial regulatory program sites.
A When a unit is located on more than one type of land, includes only the acreage located on the indicated type of land.
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Type of
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