I. Introduction 1

II. Overview of the Texas Coal Mining Industry 2

III. Overview of the Public Participation Opportunities in the Oversight Process and the State Program 2

A. Public Participation in OSM's Oversight 2

B. Public Participation in State Processes 3

IV. Major Accomplishments/Issues/Innovations in the Texas Program 3

A. Regulatory Program 3

B. Abandoned Mine Land Reclamation 3

V. Success in Achieving the Purposes of SMCRA as Measured by the Number of Observed Off-site Impacts and the Number of Acres Meeting the Performance Standards at the Time of Bond Release 4

A. Off-Site Impacts 4

B. Reclamation Success 4

C. Customer Service 5

VI. OSM Assistance 6

VII. General Oversight Topic Reviews 6

Appendix A: Tabular Summaries of Data 7

TABLE 1 8

TABLE 2 9

TABLE 3 10

TABLE 3A 11

TABLE 4 12

TABLE 5 13

TABLE 6 14

TABLE 7 15

TABLE 8 16

TABLE 9 17

TABLE 10 18

Appendix B: State Comments on Report 19

I. Introduction

The Surface Mining Control and Reclamation Act of 1977 created the Office of Surface Mining in the Department of the Interior. SMCRA provides authority to OSM to oversee the implementation of and provide Federal funding for State regulatory programs that have been approved by OSM as meeting the minimum standards specified by SMCRA. This report contains summary information regarding the Texas Program and the effectiveness of the Texas program in meeting the applicable purposes of SMCRA as specified in Section 102. The evaluation period covered by this report is October 1, 1997 to September 30, 1998.

OSM continued its implementation of its new oversight policy, which was introduced in 1996. The primary focus of the new policy is an on-the-ground results-oriented strategy that evaluates the end result of State program implementation, i.e., the success of the State programs in ensuring that areas off the minesite are protected from impacts during mining, and that areas on the minesite are contemporaneously and successfully reclaimed after mining activities are completed. The new policy emphasizes a shared commitment between OSM and the States to ensure the success of SMCRA through the development and implementation of a performance agreement. Also, the new policy continued to encourage public participation as part of the revised oversight strategy. Besides the primary focus of evaluating end results, the oversight guidance makes clear OSM's responsibility to conduct inspections to monitor the State's effectiveness in ensuring compliance with SMCRA's environmental protection standards.

The new oversight guidance reemphasized that oversight is a continuous and ongoing process. To further the idea of continuous oversight, this annual report is structured to report on OSM's and Texas' progress in conducting evaluations and completing oversight activities, and on their accomplishments at the end of the evaluation period. Detailed background information and comprehensive reports for the program elements evaluated during the period are available for review and copying at the Office of Surface Mining, Tulsa Field Office, 5100 E. Skelly Drive, Suite 470, Tulsa, Oklahoma 74135-6547.

The following acronyms are used in this report:

AMD Acid Mine Drainage

AMLR Abandoned Mine Land Reclamation

AVS Applicant Violator System

EY Evaluation Year

NOV Notice of Violation

OSM Office of Surface Mining

RCT Railroad Commission of Texas, Surface Mining and Reclamation Division

SMCRA Surface Mining Control and Reclamation Act of 1977

TFO Tulsa Field Office

II. Overview of the Texas Coal Mining Industry

The near-surface coal deposits (20 to 200 feet) in Texas are about 97 percent lignite. The remainder is bituminous coal. The potential coal reserves are 23.37 billion tons of lignite and 787 million tons of bituminous coal. The sulfur content ranges from .7 to 1.5 percent for lignite and 1.4 to 3.6 percent for the bituminous coal. Cannel coal is mined on 3 South Texas mines and has an average sulfur content of 2.2 percent. The coal seams mined in Texas average about 8 feet in thickness.

In the 1840's the first bituminous coal was mined along the Trinity River of Texas. As early as 1850, lignite was produced and used. Coal from both lignite and bituminous deposits was used by the railroads until the 1920's. In 1917, coal production in Texas was about 2.5 million tons, with approximately equal amounts of lignite and bituminous coal. From 1918 until 1950, only 18,000 tons of lignite were produced. In 1954, a lignite-fueled electric power-generating plant near Rockdale, Texas opened. Following that, annual coal production increased rapidly to meet the demand for electric power generation at additional plants. In 1996, over 54 million tons of coal was produced in Texas from large surface mines using large equipment such as bucket-wheel excavators and cross pit spreaders in addition to draglines, scrapers, loaders, and trucks.

Most of the lignite production is used in the generation of electric power within the State. The lignite from one mine is used to produce activated carbon. The bituminous production has been used intrastate by the cement, lime and light-weight aggregate industry to fire kilns, and boilers. The cannel coal mined near Laredo, Texas, has been exported to Europe for fireplace coal, to South America for generation of electricity, and used within the State by various industries such as cement production. Texas is the Nation's fifth ranked coal-producing State and the largest lignite producer in the world. Daily employment at the 21 permitted operations exceeds 2,000.

Climate is not a limiting factor for reclamation in Texas. Some mines have encountered acid-forming materials in the overburden that has complicated reclamation activities. In some areas, where topsoil substitution is used, selective overburden handling techniques have proven successful in the reclamation of thousands of acres.

III. Overview of the Public Participation Opportunities in the Oversight Process and the State Program

A. Public Participation in OSM's Oversight

OSM outreach activities included a presentation in Austin, Texas, of OSM's budget items for FY 1999 and OSM's request for FY 2000. The presentation, advertised in State newspapers, was open to citizens and the coal industry. No citizens participated in the meeting. Budget activities discussed at this meeting included both Regulatory and Abandoned Mine Land funding.

B. Public Participation in State Processes

RCT allows public input into the State program through several avenues. Citizens may comment on permit applications, be party to the proceedings, comment on amendments to the State program, or file complaints on mining operations. OSM's review of bond release procedures indicates that RCT has always extended the opportunity for public comment and taken appropriate measures to ensure that any comments are properly considered and implemented where possible.

IV. Major Accomplishments/Issues/Innovations in the Texas Program

A. Regulatory Program

During EY 1998, RCT was successful in operating its regulatory program so that there were no significant adverse environmental impacts from coal mining in Texas. Texas and OSM are working on a program amendment to develop and promulgate formal rules to determine vegetation success on reclaimed areas. These rules are expected to be completed in 1999. During EY 1998, Texas completed three program amendments (TX-035-036-040).

B. Abandoned Mine Land Reclamation Program

The Texas AML program is operating with an annual grant of $1.5 million and a full-time staff of 10.

Texas is reclaiming noncoal abandoned mine land sites (surface uranium and underground cinnabar mines) because all known coal-related sites have been completed. In EY 1998, RCT's project construction consisted of that which could be done under its annual construction appropriation plus carry-over construction projects started in previous years. RCT has involved the general public and local citizens in project construction. No citizen complaints were received. RCT followed standard construction practices using State contracting procedures and used the AVS to check on the violation status of bidders before contracts were awarded to preclude violators from receiving AML contracts. RCT is following the provisions of its realty requirements on all approved AML projects. OSM's inspection of construction projects indicated that RCT completed projects appropriately and on time.

In EY 1998, the RCT completed reclamation of approximately 83 acres, 5,000 linear feet of highwall and 1 hazardous water body. Revegetation is in progress on 253 acres, which includes 83 acres completed in EY 1998 and 170 completed in EY 1997. RCT has completed reclamation designs on two large uranium mines and will initiate reclamation on one of the mines that consists of 2.6 million cubic yards of earthwork, in 1999. Also in 1999, RCT expects to close 10 portals and 26 vertical openings.

V. Success in Achieving the Purposes of SMCRA as Measured by the Number of Observed Off-site Impacts and the Number of Acres Meeting the Performance Standards at the Time of Bond Release

To further the concept of reporting end results, the findings from performance standard evaluations and public participation evaluations are being collected for a national perspective in terms of the number and extent of observed off-site impacts, the number of acres that have been mined and reclaimed which meet the bond release requirements for the various phases of reclamation, and the effectiveness of customer service provided by the State. Individual topic reports are available in the Tulsa Field Office which provide additional details on how the following evaluations and measurements were conducted.

A. Off-Site Impacts

Using both State and Federal inspections, 16 off-site impacts were observed from 335 observations. An observation is defined as an inspection, either State or Federal, partial or complete. When a Federal observation led to a State observation, it was counted only once. No types of sites were excluded and 12 observations resulted in NOV's. Eleven observations were self reported events by coal companies of water effluent limitations, which are not considered violations by the State. Thirteen of the 16 off-site impacts identified were impacts to water of which, 10 were minor and three were moderate. One impact was related to air quality for dust; and two were minor impacts for encroachment off the permit. The majority of the reported impacts are minor water events that were not considered significant by the State. In discussing these data, RCT indicated it will monitor the coal mining activities closely and work with the coal companies to reduce off-site impacts in FY1999 (Table 4).

B. Reclamation Success

In the evaluation of the effectiveness of the Texas program in ensuring successful reclamation on lands affected by surface coal mining operations, OSM jointly conducted 3 bond release inspections with State inspectors. The approved Texas Regulatory Program does not contain revegetation standards for reclaimed mines that are due for bond release. However, RCT has released bonds under an RCT policy currently being used as a standard. This policy generally meets Federal requirements but has not been incorporated into the Texas Regulatory Program. RCT is currently working on a revegetation standard that will be used to amend its Regulatory Program. All other performance standards for reclamation have been met on the reclaimed areas where bond was released.

During EY 1998, RCT released 11,009.5 acres under Phase I, meaning approximate original contour was restored, and topsoil or an approved alternative was replaced. Under Phase II, RCT released 10,727.5 acres indicating that surface stability and vegetation had been established. Phase III releases totaled 6,519 acres. On the final Phase III releases, vegetative cover, productivity, and ground and surface water quality were restored to the current State policy requirement. Most of the Phase III released mine land was reclaimed to pastureland or hay producing land (Table 5).

RCT is preparing bond release/revegetation success guidelines, which will be included in a State program amendment in EY 1999. OSM and RCT have been working together with input from the coal industry on these procedures. In addition, OSM and RCT have been discussing two other bond release concerns. One concern is RCT's practice of releasing bonds on permit increments where the bonds were not posted incrementally. The second concern is RCT's practice of deleting small parcels from a larger area for which bond release has been requested because those parcels do not meet bond release standards. The result is a series of small parcels that are still bonded within larger areas for which bond has been released. The discussions will continue in EY 1999 with the expectation that RCT and OSM will reach a consensus that will ensure conformance with the State program and provide for maximum environmental protection.

C. Customer Service

OSM reviewed citizen's complaint files, bond release actions, and interviewed RCT staff on how complaints were resolved.

Based on a review of the 24 citizen's complaints, OSM found that RCT resolved each complaint successfully within a reasonable time and in accordance with the program requirements. Complaints were investigated promptly and thoroughly with reasonable communication with the complainant. Complaints received verbally were treated in a manner similar to those received in writing. However, documentation was incomplete regarding the requirement to advise citizens of their right to have a complaint remain confidential and have the opportunity to accompany the authorized RCT representative during the inspection. RCT indicated that in the future it will notify complainants of the right to anonymity and opportunities to accompany the inspector by telephone. A telephone conversation report will be used to document the file.

RCT complied with it's public participation requirements on bond release actions. Bond release records were made available through newspaper advertisements and letters to adjoining property owners, local government, planning agencies and applicable utility companies in the locality of the bond release. No complaints were filed during this review period. OSM review revealed that citizens and landowners participated in the inspections and had input on the evaluation.

VI. OSM Assistance

OSM provided financial assistance to Texas in the form of grants, for 50 percent of the operational budget for RCT's activity as the regulatory authority and 100 percent of RCT 's activity in abandoned mine land reclamation. RCT has access to and uses equipment provided by OSM for the Technical Information Processing System. OSM provided information on several topics during the course of the year.

VII. General Oversight Topic Reviews

Mine-Site Evaluation: During EY 1998, TFO conducted 16 complete inspections and 3 bond release inspections on Texas mines. As a result of the oversight inspections, TFO sent one TDN to RCT that did not result in a violation. Texas conducted 100 percent of the required number of complete and partial inspections during the evaluation period (See Table 3A).

These tables present data pertinent to mining operations and State and Federal regulatory and abandoned mine land reclamation activities within Texas. They also summarize funding provided by OSM and current Texas staffing. Unless otherwise specified, the reporting period of the data contained in all tables is October 1, 1997, to September 30, 1998. Additional data used by OSM in its evaluation of Texas' performance is available for review in the evaluation files maintained by the Tulsa Field Office.