For Release October 2, 1998        Jerry Childress (202) 208-2719
                                                                             jhildre@osmre.gpv


        OSM FINALIZES COOPERATIVE AGREEMENT WITH KENTUCKY
       TO REGULATE SURFACE MINING & RECLAMATION ON FEDERAL
LANDS

     The Interior Department's Office of Surface Mining Reclamation and
Enforcement (OSM) today finalized a cooperative agreement with the Commonwealth
of Kentucky for the regulation and reclamation of surface and underground coal mining
operations on federal lands in the state.

     The agreement was published in the Federal Register of October 2, 1998.

     OSM officials said that the agreement provides Kentucky full regulatory and
reclamation authority over coal mining on federal lands within the state, as provided for
in the Surface Mining Control and Reclamation Act of 1977 (SMCRA).  The agreement
designates the Kentucky Natural Resources and Environmental Protection Cabinet to
administer the program, to include permit processing and review, enforcement,
bonding, and inspections.

     According to OSM officials, Kentucky joins 12 other states that have entered into
similar agreements with the Interior Department (Alabama, Colorado, Illinois, Montana,
New Mexico, North Dakota, Ohio, Oklahoma, Utah, Virginia, West Virginia, and
Wyoming.)

     Requests for additional information or copies of the agreement should be
directed to William J. Kovacic, Director, Lexington Field Office, Office of Surface Mining
Reclamation and Enforcement, 2675 Regency Road, Lexington, Kentucky 40503,
telephone (606) 233-2894.
                              -DOI-