ARKANSAS -- U.S. OFFICE OF SURFACE MINING

PERFORMANCE AGREEMENT

BEGINNING OCTOBER 1, 1998

I. Regulatory Program: Goals/Objectives and plans for achieving them.

The Tulsa Field Office (TFO) is the responsible for oversight in Arkansas.

The Office of Surface Mining's (OSM) main goals are to ensure that coal mining operations do not adversely affect the environment, including the human environment, and to ensure that coal mined land is properly reclaimed. OSM's specific plans are to work with the State to provide resources, technical expertise, and evaluation of the implementation of the State program. OSM will work together with the State to implement the Surface Mining Control and Reclamation Act of 1977 (SMCRA). OSM will inspect mines in accordance with OSM's policies and in accordance with concerns of citizen's and concerns developed from OSM's routine document reviews. OSM will routinely review permitting actions, inspection and enforcement records, grants management records, and other actions in accordance with OSM policies.

OSM's specific objectives are to provide feedback to the State so that on-the-ground problems can be identified and corrected now and in the future and to provide positive reinforcement to the State when program implementation is appropriate.

The Arkansas Department of Pollution Control and Ecology's (ADPCE) goal is to continue full implementation of its approved program. ADPCE plans to continue its inspection and enforcement activities and permit review activities to ensure that its approved program is properly implemented.

II. Regulatory Program: Evaluation

OSM's Directive REG-8 provides instructions for the oversight of State regulatory programs. OSM is directed to solicit comments from citizens on oversight and incorporate those comments into an oversight workplan for the year. OSM is also directed to select oversight topics from concerns identified from mine inspections, document reviews, and national concerns. Topics selected are not necessarily deemed by OSM to be problems with implementation of the State program. Workplans will also consider State needs. Evaluation study findings will be compiled into topic-specific reports and into an Annual Evaluation Report. In addition to new topics identified from citizen's comments, State needs, and OSM concerns; issues from previous years are to be followed through to resolution.

A. Topics to be evaluated.

TOPIC-BY-TOPIC PROCEDURES

Topic	Concern	Review to be done by	Outline of review	Time Frame
Bond Forfeiture Reclamation.	Follow-up on concerns from previous evaluations.	Joint ADPCE/ OSM	Continuation of review initiated during the last evaluation period. The ADPCE/OSM review team recommended that since bond forfeiture reclamation was not yet complete on any of the sites included in the study, the topic be included in the next PA to follow-up on the State's progress in addressing the team's recommendations on the four sites reviewed.	Complete report and discuss findings with ADPCE management by 9/1/99.
Hydrology.	Follow-up on concerns from previous evaluations. Concerns are over discharge structures; diversions; construction/ maintenance of impoundments; directing runoff from disturbed areas through approved water treatment facilities.	Joint ADPCE/ OSM	OSM's complete oversight inspections will have added emphasis on compliance status in the areas of discharge structures; diversions; construction/main-tenance of impoundments; sediment control. As a follow-up of the previous permit review, review permitting actions approved since 1/1/98 to determine compliance with approved program in the area of designs of water control structures. OSM will also follow-up on the State's progress in addressing OSM's site specific recommendations from the previous review.	Complete report and discuss findings with ADPCE management by 8/1/99.
Acid Mine Drainage.	National concern.	Joint ADPCE/ OSM	Continue implementation of previously developed plan for identifying the potential for AMD and on-the-ground impacts of AMD. Develop and begin implementation of plan for preventing AMD and cleaning up impacts, if found to exist, of current AMD.	Continue ongoing effort to minimize the potential adverse impacts of AMD. Complete progress report by 9/30/99.
Bond adjustments for postmine AMD.	National concern.	Joint ADPCE/ OSM	Develop a plan for identifying sites generating postmine water with pH less than 6.0. For sites identified, develop a plan to ensure reclamation performance bond is adequate to remediate source of the low pH water or provide for perpetual water treatment to comply with discharge standards.	Complete progress report by 9/30/99.
Handling of citizen complaints.	OSM emphasis -customer service.	Joint ADPCE/ OSM	Review ADPCE/OSM citizen complaint files for complaints filed within one year of the initiation of the review to determine if complaints were handled in compliance with the approved State program and counterpart Federal regulations. Citizens maybe interviewed to ascertain their perspective.	Complete report and discuss findings with ADPCE management by 8/30/99.
Bond releases.	OSM emphasis - customer service.	Joint ADPCE/ OSM	Review ADPCE files for bond release actions being processed during the period within one year of the initiation of the review to determine if public notice/participation was handled in compliance with the approved State program and counterpart Federal regulations. Citizens maybe interviewed to ascertain their perspective.	Complete report and discuss findings with ADPCE management by 8/30/99.
Administrative and judicial review.	OSM emphasis - customer service.	Joint ADPCE/ OSM	Review ADPCE files for administrative and judicial reviews being processed during the period within one year of the initiation of the review to determine if public notice/participation, general procedures, and decision process was handled in compliance with the approved State program and counterpart Federal regulations. Citizens maybe interviewed to ascertain their perspective.	Complete report and discuss findings with ADPCE management by 8/30/99.
Reclamation of abandoned sites.	The lack of reclamation or release from liability on sites operators walked off from in the 1980's uses OSM/ADPCE resources that should be better spent on active sites. Sites with unfinished reclamation potentially cause offsite damage and may prevent surface owners from fully utilizing their properties.	Joint ADPCE/ OSM	Emphasis will be on exploring and implementing options within the State's approved program to acquire complete reclamation of sites mined in the 1980's and to release old permits that meet applicable bond release requirements.	Ongoing throughout the evaluation period. Progress report completed and presented to ADPCE management by 9/30/99.
Off-site impacts.	OSM emphasis.	OSM	Data on off-site impacts will be collected on State and Federal inspections, enforcement actions, and civil penalty assessments on all permits. Documents (especially inspection reports) will include data collection on the nature of off-site impacts, degree of the impacts, and ability to repair the damage. Categories of impacts to be evaluated include hydrology, blasting, encroachment, land stability, fish and wildlife, air quality, and vegetation.	Throughout EY- 1999, data on off-site impacts will be collected. In October 1999, the data will be analyzed to look for trends and to prepare a report. The report on this topic will be used in preparing the Annual Evaluation Report.
Reclamation Success.	OSM emphasis.	OSM	The effectiveness of reclamation will be measured by bonds released. Information on bond releases will be collected by OSM and the State throughout the year and will include: acreage of land that has been successfully backfilled and graded to approximate original contour; acreage where topsoil has been successfully replaced; acreage where vegetation has been successfully established; acreage where each potential land use has been successfully achieved; successful accomplishment of cover and production standards restoration of the hydrologic balance; permanent impoundments and other structures.	TFO will analyze the information collected from bond releases and prepare a report on reclamation success at the end of the evaluation year.

B. Procedures for Evaluation.

The basic standards for evaluation will be the requirements of the State program.

Procedures will be developed that are specific to each topic. The workplan will include information to identify why the review is needed, who will conduct the review, and what kind of review will be done. OSM and ADPCE will work jointly to design and carry out evaluation studies whenever possible. Reports of the findings will be prepared. OSM and ADPCE will discuss the findings so that the merits of issues are explored and so that OSM and ADPCE jointly identify causes for issues and develop methods for resolving them.

C. Methods for Resolving Issues.

To resolve issues that arise from evaluation studies, OSM and ADPCE will jointly work to develop a process to determine whether a problem actually exists and to resolve each issue identified. Each issue may require different methods for resolution, but may include: specific performance agreements or action plans; OSM's providing technical assistance or training; follow-up evaluations.

When practical, success of issue resolution will be measured by on-the-ground correction of the problem that precipitated the issue.

D. Technical Assistance that OSM will provide.

OSM will provide technical assistance as needed. This will include the TIPS system and other computer assistance, technical expertise in specific areas, and training.

E. Core data that States will provide to OSM.

ADPCE will continue to provide OSM with:

copies of current applicable State laws and regulations;

copies of permit applications that have been issued with all revision and renewal documents;

copies of inspection reports of all mine inspections;

copies of enforcement documents including hearings records and settlement agreements;

hearings docket and conference schedules including updates;

notice of bond releases and bond release documents;

compiled data on inspection and enforcement, permitting actions, and other data that is required for the preparation of the Annual Evaluation Report.

F. Core data OSM will provide:

copies of Federal laws and regulations including all changes and OSM's interpretation of the changes;
timely and complete information relating to grants;
timely notification of oversight inspections and evaluation studies;
copies of Federal inspection reports and enforcement actions;
results of Federal oversight studies and copies of all oversight reports relating to Arkansas;
copies of OSM research studies relating to Arkansas.

III. Abandoned Mine Land Program Evaluation

A. Goals/Objectives and Plans

The primary objective of the national Abandoned Mine Land (AML) program is to mitigate the effects of past mining by aggressively pursuing the reclamation of abandoned mines, with a primary emphasis on correcting the most serious problems affecting public health, safety, property, and the general welfare. OSM and ADPCE share the responsibility for achieving the goals of the program.

TFO is responsible for monitoring the performance of the Arkansas AML Reclamation Program. TFO staff, with assistance from other OSM offices as necessary, will perform the State AML program evaluations.

This agreement sets forth the principles of excellence which will be used to conduct enhancement and performance reviews (EPR). EPR's are intended to assist the state in the administration, implementation, and maintenance of its approved reclamation programs to ensure that the provisions of SMCRA and the implementing regulations are met. This agreement incorporates three principles of excellence that support the

concept of excellence in reclamation, along with performance measures that can be used to determine whether the programs are meeting the principles.

B. Responsibilities

The State and OSM agree to accomplish their shared mission by agreeing to the following responsibilities of each party:

The State will:

1. Actively pursue implementation of the AML program while adhering to its approved program, State and Federal laws and regulations.

2. Collaborate with OSM to resolve issues of concern. The State agrees to promptly notify OSM of any significant AML problems or issues that may arise.

3. Assist OSM with data and information required to satisfy general information requests of OSM and others. Information requests will be screened to ensure that it is needed and in the best interest of OSM and the State to accomplish.

4. Advise OSM of technical and educational needs.

OSM will:

1. Actively participate with the State in implementation of its AML program.

2. Provide technical and educational assistance to the State, when possible.

3. Provide timely and consistent response to requests from the State concerning grants, financial, and programmatic questions.

4. Provide assistance for complying with Federal laws, regulations.

5. Collaborate with the State to resolve issues of concern. OSM agrees to promptly notify the State of any issues that may arise.

6. Prepare and distribute the Annual Evaluation Report in accordance with AML-22.

C. AML Topics for Review in 1999

1. State's on-the-ground reclamation is successful.

Evaluation Parameters: Do completed reclamation projects meet the requirements of the AML program?

Procedure: This evaluation will include review of ADPCE project files and site inspection. Not less than two completed projects and one in progress will be reviewed. The review will include comparing work identified in the approved grant with completed projects and active projects.

Schedule: A schedule for site visits and file reviews will be coordinated with ADPCE in order not to interrupt the work schedule.

2. The State must have an approved reclamation plan which meets the requirements of Federal laws and regulations and must conduct reclamation in accordance with its plan.

Evaluation Parameters: Does the State AML program comply with NEPA as required? Is construction completed on schedule (within the performance period)? Are the final costs of the project, as compared to the program's original estimates, appropriately documented and supported? Are projects completed in an environmentally sound manner and in compliance with all State and Federal statutory and regulatory requirements to minimize both short- and long-term effects? Are measures to control sedimentation, water pollution, enhance wildlife or other natural resources values effective. Did the State obtain all necessary permits in a timely manner, to include those pertaining to historic preservation, wetlands preservation and restoration and stormwater discharge?

Procedure: Review ADPCE files to identify actions dealing with environmental requirements for short-term and long-term effects. ADPCE's coordinating activities will be compared to its approved AML plan. The standard for the review will be Arkansas' approved AML plan, SMCRA and 30 CFR Part 882. The review will include not less than three completed projects.

Schedule: File reviews will be coordinated with ADPCE in order not to disrupt the work schedule.

IV. Agreement

This agreement covers activities beginning October 1, 1998. The agreement may be amended in writing at any time through the mutual agreement of the parties. This agreement may be terminated in whole or in part in writing by either party. However, no such termination shall be effected until the parties have attempted to resolve any disagreement.

Michael C. Wolfrom Date Floyd Durham Date

Director Chief

Tulsa Field Office Surface Mining & Reclamation Div.

Office of Surface Mining Arkansas Department of Pollution

Control and Ecology