****Editors Note:
     Embargoed for release until 10:00 a.m. EST, November 6, 1998

                                        Jerry Childress (202) 208-2719
                                        jchildre@osmre.gov

           OSM ANNOUNCES $5.9 MILLION IN FY-99 GRANTS 
             FOR APPALACHIAN CLEAN STREAMS INITIATIVE

     Kathy Karpan, Director of the Interior Department's Office of Surface Mining
(OSM) today announced that $5.9 million in allocations from OSM's Fiscal Year 1999
budget appropriation have been designated for supplemental grants to support
Appalachian Clean Streams Initiative projects in 11 States.  

     The grants are part of $7 million Congress provides for the Appalachian Clean
Streams Initiative in the FY 1999 Omnibus Appropriations Act.  Karpan explained that
the remaining $1.1 million is "non-grant" Clean Streams funding for cooperative
agreements with local non-profit organizations and with the National Mine Land
Reclamation Center to develop new and improved technology to prevent and treat acid
mine drainage (AMD).

      "In accordance with OSM's commitment to increase its support for the
Appalachian Clean Streams Initiative, and in keeping with the $2 million increase
included in the President's  FY 1999 Budget, we decided that the $5.9 million be
distributed so that each participating State is provided a base funding of $125,000, and
that the remaining funds be distributed to participants based on historical coal
production percentages," Karpan said.    
 
     Karpan noted that the agency formulated its distribution of Clean Streams funds
after discussions with State and Tribal AML programs and that the grants are as
equitable as possible to all States, both large and small.  "As contemplated in the
initiative, OSM is using these resources to provide states and local organizations with
 seed' money they can combine with other available funding sources, including other
federal funding," Karpan said.

      "In 1998, we distributed these  grants on the basis of historic coal production; 
however, this resulted in some states receiving a grant that was insufficient for even a
small project," Karpan said.  "This year, we started with a base amount that's enough to
start a project when combined with financial assistance from other partners, then
augmented each grant based on the state's historic coal production," she explained. 
"The formula used this year will apply in future years as well," she added.

     Karpan said that states and Indian tribes were asked to submit information on
potential projects for Appalachian Clean Streams grant funds.  Eleven States did so. 
All are Eastern States that have previously been given Clean Streams funding.  States
which will receive the Clean Streams funds are:  Alabama -- $263,804; Illinois --
$639,235; Indiana -- $292,416; Iowa -- $165,644; Kentucky -- $628,976; Maryland --
$157,657; Missouri -- $164,785; Ohio -- $440,230; Pennsylvania -- $1,787,239; Virginia
-- $279,687, and West Virginia -- $1,080,327.        

     "Pollution continues to be a major concern in this country, OSM is participating in
the national effort to improve water quality by rectifying problems caused by acid mine
drainage (AMD)," Karpan said.  "OSM's efforts to control and eliminate AMD in streams
throughout the nation's coal fields support President Clinton's commitment to clean
water through initiatives like American Heritage Rivers and the Clean Water Action
Plan."  

     "OSM's role as catalyst in the clean-up of AMD pollution in coalfield streams is
an example of our continuing commitment to cooperate  with the states and all others
who value environmental restoration," Karpan said.  "Remember, we're talking about
cleaning up resource-rich lands that previous generations relied on to build America
and win two World Wars, before the present generation's environmental standards
became part of the process."       

     Karpan expressed her appreciation to everyone that supported OSM's request
for increased funding to clean up acid mine drainage, including Congress, the
Administration, and the States.  

     "This represents a victory for the people of Appalachia and the nation," noted
Karpan.  "Increased funding to treat pollution from abandoned mines will help convert  
polluted streams from eyesores to community assets." 


                              -OSM-