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OSM Seal Oklahoma
Performance Agreement
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October 1, 1997 - September 30, 1999
I.   Goals and Objectives and Plans for Achieving Them 

     A.   Office of Surface Mining (OSM) Objectives and Plans
                     
          OSM's  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.  With primacy, OSM can meet
          these goals only by ensuring that the Oklahoma program is implemented
          in accordance with the program approved by the Secretary of the Interior.

          OSM's specific plans are to work with Oklahoma to provide resources,
          technical expertise, and evaluation of the implementation of the State
          program.  OSM will work together with Oklahoma to implement the
          Surface Mining Control and Reclamation Act of 1977.  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 review permitting actions, inspection and
          enforcement records, grants management records, and other documents
          in accordance with OSM policies.

          OSM's specific objective is to provide feedback to the State so that on-the-ground 
          problems can be identified and corrected as soon as possible. 
          Another objective is to provide positive reinforcement to the State when
          program implementation is appropriate.

     B.   State Objectives and Plans
 
          The Oklahoma Department of Mines' (ODM) goal is full implementation of
          the approved regulatory program.  ODM plans to continue its inspection
          and enforcement and permit review activities to ensure that the State
          program is implemented in accordance with the Oklahoma Title 45
          statutes.

II.  Evaluation 

     OSM's Directive REG-8 provides instructions for the oversight of State programs. 
     OSM is directed to solicit comments from citizens on oversight and incorporate
     those comments into the performance agreement.  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 the implementation of the Oklahoma program. 
     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
          
          1.   Issues from previous evaluations.

               (a)  Reclamation and bonding failures
                    (1)  Surety reclamation in lieu of forfeiture
                    (2)  Contractor reclamation with forfeited funds
                    (3)  Alternative enforcement actions
                    (4)  Bond forfeiture process                 
                    (5)  Permittee compliance schedules in lieu of forfeiture             
               (b)  Bonding ( bonding instruments and records)
               (c)  Permit defects 
               (d)  Ground-water hydrology 
               (e)  Surface-water hydrology 
               (f)  Permit review procedures
               (g)  Off-Site Impacts (See Appendix II)
               (h)  Reclamation Success (See Appendix III)

          2.   New Topics 

               (a)  Postmining Land Use  (See Appendix V)
               (b)  Customer Service (See Appendix IV)
               (c)  Whistle blower protection
               (d)  Water monitoring waivers/reductions
               (e)  Bond adequacy

     B.   Procedures for Evaluation 

          The basic standards for evaluation will be the requirements of the
          Oklahoma program.  
          Evaluation procedures will be developed that are specific to each topic. 
          The topic-by-topic evaluation procedures 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 ODM will work jointly to design and
          carry out evaluation studies whenever possible.  Reports of the findings
          will be prepared.  OSM and ODM will discuss the findings so that the
          merits of issues are explored, and so that OSM and ODM jointly identify
          causes for issues and develop methods for resolving them.  Specific-topic
          procedures are listed in Appendix I.

     C.   Innovative Actions

          OSM encourages the recognition of all innovative approaches to
          managerial efficiency, problem resolution and environmental protection;
          and recognition of extraordinary achievements by both ODM and the coal
          mining permittees.     

III. Methods for Resolving Issues

     To resolve issues that arise from evaluation studies, OSM and ODM will jointly
     develop a process for resolving each issue identified.  Each issue may require
     several methods of  resolution, but may include:
               
         Changes to the performance agreement or action plans   
         Technical assistance or training provided by OSM
         Follow-up evaluations

     When practical, success of issue resolution will be measured by on-the-ground
     abatement of the problem that precipitated the issue.
  
IV.  Technical Assistance that OSM Will Provide 

     OSM will provide technical assistance as needed.  This will include the TIPS
     system, technical expertise in specific areas, and training.  OSM will continue the
     assistance with AEA's initiated under the 30 CFR Part 733.  In accordance with
     the State's request, OSM will work with ODM to develop guidance in the
     following areas:
     
          (a)  Development of  guidelines for determining the appropriate amount
               of water, and the appropriate slopes for permanent impoundments.
          (b)  Improved guidelines for plans and specifications for bond forfeiture
               reclamation work.
          (c)  Implementation of OAC 460:20-15-5(a)(2) requirements for public
               availability of permit/renewal/significant revision applications.
          (e)  Permitting of roads.
          (f)  Standardization and networking of data bases.

V.   Data that Oklahoma Will Provide to OSM 

     ODM 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.
         Notices of bond release 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.  

VI.  Data that OSM Will Provide to Oklahoma

     OSM will continue to provide Oklahoma with:

         Federal Register notices.
         Copies of OSM inspection reports.
         Copies of enforcement documents including results of judicial proceedings
         Copies of Oklahoma oversight studies.
         Compiled data on inspection and enforcement, permitting actions, grant
          applications, and other data that is prepared for the Annual Evaluation
          Report.

VII. Terms of Agreement

This agreement covers activities for Evaluation Year 1998 and 1999.  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.

VIII.     Approval




                                                                                                                                     
Michael C. Wolfrom, Director          Date             James Hamm, Director                   Date
Tulsa Field Office                                                  Oklahoma Department of Mines
Office of Surface Mining

                            APPENDIX I

     TOPIC-BY-TOPIC PROCEDURES FOR 1998 OVERSIGHT EVALUATION

                 Issues from Previous Evaluations
TopicConcernReview to be done byDetails of reviewTime Frame
1(a) Reclamation and bonding failures: (1) surety reclamation in lieu of forfeitureFollow-up of previous evaluations and of July 3, 1997 letterOSM/ ODM
OSM Contact: J. Zingo
ODM Contact: Rhonda Dossett
Verify implementation of new policy, e.g., conference procedures, agreement and compliance schedules, participation of ODM affected parties, notifications to sureties. Conduct OSM inspections of each site to confirm compliance with approved reclamation plan.Study 2/98 - 10/98. Discuss with ODM management by 10/98.
(a) Reclamation and bonding failures: (2) Contractor reclamation with forfeited fundsFollow-up of previous evaluations and of July 3 1997 letterOSM/ ODM
OSM Contact: J. Zingo
ODM Contact: Don Beam
Verify implementation of new policy, e.g., sequence of reclamation, adequacy of technical plans, protection of topsoil and other critical resources, follow-up work. OSM to conduct field reviews to determine compliance with ODM policy & procedures.Study 2/98 - 10/98. Discuss with ODM management by 10/98.
1(a) Reclamation and bonding failures: (3) Alternative enforcement actionsFollow-up of previous evaluations and of July 3, 1997 letter.OSM/ Solicitors/ ODM
OSM Contact: J. Zingo
ODM Contact: Catherine Jenkins
Verify implementation of new policy, e.g., asset checks of owners/ controllers, ICP's/ injunctions/criminal actions to compel reclamation, timing of AEA actions, reclamation cost estimatesStudy K&R Alpine, and Savage/Trans-western 3/98 - 5/98. Discuss with ODM management by 6/98. Study ODM's progress on other AEA's 10/98 - 12/98. Discuss with ODM management by 12/98.
1(a) Reclamation and bonding failures: (4) bond forfeiture processFollow-up of previous evaluations and of July 3, 1997 letterOSM/ ODM
OSM Contact: J. Zingo
ODM Contact: Don Beam
Verify implementation of new policy, e.g., forfeiture recommendation, order of forfeiture, conferences, disposition of bond proceedsBegin study 9/98; complete and discuss with ODM manage-ment by 12/98.
1(a) Reclamation and bonding failures: (5) Permittee compliance schedules in lieu of forfeitureFollow-up of previous evaluations and of July 3, 1997 letterOSM/ ODM
OSM Contact: J. Zingo
ODM Contact: Rhonda Dossett
Verify implementation of new policy, e.g., order of forfeiture, compliance schedule, monitoring of reclamation activities, and enforcement. OSM inspections of each site to confirm compliance with approved reclamation plan.Begin study 2/98 to 10/98; complete and discuss with ODM management by 10/98.
1(b) Bonding. Bonding instruments and records.Follow-up of the EY97 Bonding Oversight Evaluation Report. The concern is the collectibility of reclamation performance bonds may be impaired by irregularities in bonding instruments and record keeping.ODM/ OSM OSM Contact: J. Zingo ODM Contact: Margaret MasonFollow-up on OSM recommendations of June 97 to determine if bonding instruments and records meet program requirements and generally accepted industry standards.Begin study by 3/98; complete study and discuss with ODM management by 6/98.
1(c) Permitting topics.Follow-up of previous evaluations.OSM/ MCRCC/ ODM
OSM Contact: J. Zingo
ODM Contact: Tekleab Tsegay
Monitor ODM's continued implementation of its action plan to resolve: (1)geologic baseline data/overburden analysis/acid & toxic materials handling plans; (2)impoundment/ diversion designs; (3)slope stability analysis; (4) using comments and requesting approvals of UFWS & ODWC for wildlife protection plans. Use permitting actions approved since 10/97. Include follow up of OSM's recommendations from EY 96 reviews. Begin review by 5/15/98. MCRCC reports complete by 7/15/98. Discuss findings with ODM management by 8/98.
1(d) Ground-water hydrology. Effects of underground mining, adequacy of baseline data, meeting water quality standards, material damage criteria, written findings, verification of data.This is a citizen identified issue that mining and reclamation impacts to the ground-water systems are not being fully evaluated during the permitting process. ODM is concerned about jurisdiction and a lack of consensus on what water quality standards ODM must enforce.OSM/ MCRCC ODM
OSM Contact: J.Zingo
ODM Contact: Tekleab Tsegay
Review recently approved permitting actions to determine if mining and reclamation impacts to ground-water hydrology are adequately considered during the permit review process. Study will address ODM jurisdiction over water quality standards and follow up on OSM's recommendations from EY 96 review.Begin study by 4/99; MCRCC complete reports by 7/99 and discuss with ODM management by 8/99.
1(e) Surface-water hydrology. PHC's, CHIA's, engineering aspects of impoundments and diversions, wetland/flood plain impacts, material damage criteria, meeting water quality standards, written findings, verification of data including landowner requests for permanent impoundments.Follow-up on concerns documented from previous evaluations and public outreach. Concerns expressed by citizens and agencies that indicate mining and reclamation related impacts to the hydrologic system may not by fully evaluated during the permitting process. Some landowners have asserted that their positions on retention of impoundments have been misrepresented by operators in some permitting actions. OSM/ MCRCC ODM
OSM Contact: J. Zingo
ODM Contact: Tekleab Tsegay
Review recently approved permitting actions to determine if mining and reclamation impacts to surface-water hydrology are adequately considered during the permit review process. Study will include element to determine if landowner comments are verified. Study will address ODM jurisdiction over water quality standards. Review will also include follow up on recommendations from EY 96 review. Begin review by 5/98; MCRCC complete reports by 8/98; Discuss findings with ODM management by 8/98.
1(f) Permit review procedures.This is a citizen identified issue. The concern is that ODM does not have an effective permit review system in place that results in permit decisions that met program requirements.ODM/ OSM OSM Contact: J. Zingo ODM Contact: Mary Ann PritchardReference items reviewed at 1(b), 1(c), 1(d), 1(e) & 2(e). Reference items reviewed at 1(b), 1(c), 1(d), 1(e) & 2(e).
1(g) Off-site impacts.OSM national concern. REG-8OSM/ ODM
OSM Contact: J. Zingo
ODM Contact: Rhonda Dossett
Determine effectiveness of State program in protecting environment and public from off-site impacts of surface coal mining and reclamation operations. See Appendix IIOngoing during EY 98.
1(h) Reclamation SuccessOSM national concern. REG-8OSM
OSM Contact: J. Zingo
ODM Contact: Rhonda Dossett
Evaluate effectiveness of State program ensuring successful reclamation of lands affected by surface coal mining operations. See Appendix IIIOngoing during EY 98.

TOPIC-BY-TOPIC PROCEDURES FOR 1998 OVERSIGHT EVALUATION New Topics
TopicConcernReview to be done byDetails of reviewTime Frame
2(a) Postmining land use. Postmining land-use team requirements/recommenda-tionsConcern resulted from OSM document review. ODM/ OSM
OSM Contact: J. Zingo
ODM Contact: James Hamm
ODM/OSM team initiated study early in EY 97. Remaining work is detailed in 3/18/97 letter at Appendix V.Request ODM response to 3/18/97 letter by 4/1/98, discuss OSM findings with ODM by 6/1/98.
2(b) Customer ServiceOSM national concern. REG-8ODM/ OSM
OSM Contact: J. Zingo
ODM Contact: Mary Ann Pritchard
Evaluate ODM's responses to complaints and requests for assistance and services. Review administrative and judicial reviews for timeliness, accuracy, completeness, and appropriateness of State actions. See Appendix IVBegin study by 4/98 and complete report by 7/98. Discuss by 8/98.
2(d) Water monitoring waivers/reductions in frequency.Concern was raised during OSM document review.OSM/ MCRCC/ ODM
OSM Contact: J. Zingo
ODM Contact: Rhonda Dossett
Determine if ODM's waivers/reductions in frequency of water monitoring comply with its approved program. Study will include settlement agreements/compliance schedules that address reclamation in lieu of bond forfeiture.Begin study by 6/99 and present MCRCC findings to ODM management by 8/99.
2(e) Bond adequacyConcern was raised during document review by citizen input and ODM personnel.OSM/ MCRCC/ ODM
OSM Contact: J.Zingo
ODM Contact: John Privrat
Evaluate the adequacy of bond on active permits. Appropriateness of bond calculations and ability to conduct third-party reclamation.Begin study by 7/98 and complete MCRCC report by 11/98. Discuss with ODM manage-ment by 11/98.


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Office of Surface Mining
1951 Constitution Ave. N.W.
Washington, D.C. 20240
202-208-2719
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