OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

Annual Evaluation Summary Report

of the

Wyoming Department of Environmental Quality

for

Evaluation Year 1998

(October 1, 1997 to September 30, 1998 )

DECEMBER, 1998

I. Introduction ................................................................................................................ 1

II. Overview of Coal Mining Industry ............................................................................ 1

III. Overview of Public Participation in the Program ................................................... 3

IV. Major Accomplishments/Issues/Innovations ............................................................ 5

V. Success in Achieving the Purposes of SMCRA ........................................................ 6

A. Off-site Impacts .............................................................................................. 6

B. Bond release .................................................................................................. 7

C. Reclamation Success ...................................................................................... 7

VI. OSM Assistance ......................................................................................................... 7

VII. General Oversight Topic Reviews ............................................................................. 8

Appendix A: Tabular Summary of Core Data to Characterize the Program

Appendix B: State Comments on the Report

Appendix C: CFO Responses to State Comments

I. Introduction

The Surface Mining Control and Reclamation Act of 1977 (SMCRA) created the Office of Surface Mining Reclamation and Enforcement (OSM) 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 Wyoming Program and the effectiveness of the Wyoming program in meeting the applicable purposes of SMCRA as specified in section 102. This report covers the period of October 1, 1997 to September 30, 1998. Detailed background information and comprehensive reports for the program elements evaluated during the period are available for review and copying at the Casper Field Office.

The following list of acronyms is used in this report:

AVF Alluvial Valley Floor

AVS Applicant Violator System

CFO Casper Field Office

CHIA Cumulative Hydrologic Impact Assessment

DEQ Department of Environmental Quality

EQC Environmental Quality Council

EY Evaluation Year

LQD Land Quality Division

OSM Office of Surface Mining Reclamation and Enforcement

PHC Probable Hydrologic Consequence

PRBRC Powder River Basin Resource Council

RSI Random Sample Inspection

SMCRA Surface Mining Control and Reclamation Act of 1977

TDN Ten-Day Notice

WQD Water Quality Division

WRCC Western Regional Coordinating Center

WOC Wyoming Outdoor Council

WWF Wyoming Wildlife Federation

II. Overview of the Wyoming Coal Mining Industry

Over ninety-nine percent of the current coal production in Wyoming is from surface coal mines with 92 percent of the coal currently mined in the Powder River Coal Basin near Gillette, Wyoming. Until 1954, underground mines out-produced surface mines, but in that year surface mines began to dominate production. By the late 1960's, surface coal mining production in the Powder River Basin became a major contributor to the Nation's total coal production as a result of the national energy crisis. Coal-bearing formations underlie more than 40,000 square miles, or approximately 41 percent of Wyoming's total land area. The coal mining industry directly employs approximately 4,400 people resulting in substantial income and secondary employment in the State.

The Wyoming Geological Survey estimates the quantity of Wyoming open pit coal reserves is in excess of 26.3 billion tons; an additional 38.3 billion tons of coal reserves can be recovered by underground mining methods. Coal seams in the Wasatch Formation and the underlying Fort Union Formations often exceed 100 feet in thickness with 30 to 80 foot seams being common; 220 foot thick seams have been uncovered. Wyoming coals range from lignite to high volatile A bituminous in rank with the majority of the coal produced being sub-bituminous. Wyoming has the largest reserves of "compliance coal" in the lower 48 States; that is coal of such high quality that utility companies can burn the coal in power plants without expensive scrubbers to remove sulphur dioxide emissions.

Forty active mining operations are permitted in Wyoming; 35 are surface operations, three (3) are underground operations and three are research and development (R&D) licenses. One (1) R&D license is for a dragline move from one mine site to another and two (2) licenses are for in-situ operations. The dragline move and in-situ operations are listed as "other facilities" in Table 2 of this report. There are no exploration permits but there is one (1) exploration notice currently in effect within the State.

Several new developments have occurred in the coal industry this evaluation year. Additional Federal leases have been awarded in the Powder River Basin and the ownership and control has changed at some of the mines, resulting in substantial consolidation of ownership in the Powder River Basin. The Bureau of Land Management (BLM) awarded Powder River Coal Company the Powder River Lease adjoining the Rochelle and North Antelope Mines. The lease contains 4,224 acres and contains coal reserves (532 million tons) that will extend the mining operations an additional seven years.

Kennecott Energy finalized the purchase of Kerr-McGee's Jacobs Ranch mine. Kennecott currently owns Rojo Caballo, Cordero, and Antelope mines in Wyoming, and the Spring Creek mine in Montana. Prior to finalizing the purchase of Jacobs Ranch, Kerr-McGee had acquired 1,102 acres of Federal lands adjacent to Jacobs Ranch mine in a land exchange with the U.S. Forest Service. This is an initiative by the Forest Service to eliminate small isolated parcel of Federal lands and consolidate the ownership into large uniform parcels of land in the Thunder Basin Grasslands area. In addition Kennecott Energy submitted a "lease by application" (Horse Creek LBA) to the BLM for 2,838 acres containing 356.5 million tons adjacent to Jacobs Ranch mine.

Arch Coal completed an acquisition of ARCO's Black Thunder and Coal Creek mines. The Wyoming LDQ permit transfers have not been completed.

The Zeigler Coal Holding Company has announced a merger with AEI Resources in an $855 million stock deal. Zeigler's coal holdings include the Buckskin and North Rochelle mines in Wyoming. North Rochelle mine has begun overburden removal and plans to start shipping coal on a newly built rail spur by November 1998. Construction of facilities at the North Rochelle mine are underway.

The Black Hills Corporation and Earthco, working with the Wyodak Resource Development Corporation are setting up a briquet operation at the Wyodak mine site. A process developed by Earthco utilizes coal fines to produce briquets capable of generating 10,000 BTU/lb. This will increase the coal production of the Wyodak mine by 6 million tons a year. Wyodak's 1997 production was 3.3 million tons.

BLM issued a draft environmental impact statement for the possible leasing of 5,235 acres of Federal coal lands in Carbon County in southern Wyoming. Arch of Wyoming would open two new mines if they are successful in obtaining these Federal leases. These coal reserves (150 million tons) would replace dwindling reserves at Arch's Medicine Bow and Seminoe II mines. Arch proposes to develop a surface mine (Elk Mountain mine) and an underground mine (Saddleback Hills mine). The Wyoming Outdoor Council opposes BLM offering these leases for sale.

In response to the trend of consolidation of ownership and control of Wyoming mines, BLM has reviewed the ownership and control of Federal coal leases where these consolidations have taken place as it pertains to the requirements for coal lease relinquishment. According to Federal regulations (43 CFR 3472.1-3), no person or company can own or control coal leases in excess of 46,000 acres in any one State, or 100,000 acres in the United States. Thus far, Peabody Coal Company is the only company to relinquish portions of its coal leases.

During the past year, Glenrock Coal Company (subsidiary of PacifiCorp) announced the shut down of the Dave Johnston mine. Coal production will cease in January 1999 and all efforts will then focus on final reclamation.

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

A. OSM Outreach Efforts.

The Casper Field Office (CFO) actively encourages public involvement in the Wyoming oversight and regulatory program. This includes CFO initiated contacts with citizen groups and participation in industry activities. Specifically, CFO has visited with citizens representing the Powder River Basin Resource Council (PRBRC), Wyoming Outdoor Council (WOC), Wyoming Wildlife Federation (WWF), and the Wyoming Mining Association (WMA). The purpose of these contacts is to notify these groups of OSM's activities and to provide the opportunity to interested parties to suggest how OSM's oversight role can assist in improving the State's regulatory program.

In the past, CFO held public meetings; however, there was little public participation. As an alternative for EY 1998, CFO approached citizen organizations and offered to give a presentation focused on the activities that transpired during the evaluation year. CFO contacted the citizen groups and WMA offering to travel to their location and give a presentation of the results from the previous year's evaluations and discuss this year's evaluation topics. PRBRC accepted the offer and CFO met with citizen group in Gillette. CFO presented the results to the Specific Oversight Topic Reports and Annual Report. CFO discussed the PRBRC's concerns and ideas for oversight.

CFO has a good working relationship with the PRBRC, WOC and WWF. These organizations are actively involved in OSM and State permitting and inspection oversight activities. Such involvement has resulted in helpful changes in the State program, thus improving the overall quality of the program. PRBRC has taken an active part in the oversight process and meets with the CFO several times a year. WOC and WWF have not been as active but CFO maintains communications with the groups, informing them of meetings and issues.

B. Wyoming Outreach Efforts

LQD has an advisory board (Land Quality Division Advisory Board) that provides recommendations to the Land Quality Division through a public forum. The Environmental Quality Council (EQC) rules on regulatory matters for all Divisions within the Department (including LQD), and also serves as the administrative hearings board for all Divisions (i.e., Land Quality, Air Quality and Water Quality Divisions) in DEQ. Wyoming's outreach efforts include, but are not limited to LQD Advisory Board meetings, and Environmental Quality Council hearings and board meetings. LQD has met on several occasions with the special interest groups (PRBRC, WOC, WWF, and WMA) to discuss their concerns.

LQD also has public participation during the permitting, bond release, and enforcement processes. During the permitting and bond release processes, notices are published and comments are solicited. Citizen complaints are investigated as part of the enforcement process. Previous oversight reviews have found that LQD is highly receptive to the concerns of public, industry and citizen groups. DEQ also has an internet website at: "http://deq.state.wy.us/"with information for the public on permits, current rules, and proposed rule changes.

CFO monitors DEQ's and LQD's meetings and outreach efforts and believe the State does a good job interacting with citizens.

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

A. Accomplishments

The State of Wyoming continues to administer an excellent Title V program. Wyoming is currently working to improve its program. Under the State's permitting functions, plans for an intranet system and modifying the format for reporting data in the permit Annual report are examples of such achievements.

Wyoming DEQ-LQD has determined that the intranet is the most practical approach to implementing electronic permitting with three geographically separate offices. Wyoming has developed a plan to install a State intranet - electronic communications system -- to allow ease of simultaneous permit review and data sharing by three geographically separate LQD offices (Lander, Sheridan and Cheyenne). The intranet will be comprised of an LQD web page accessible only to staff, administered through a Windows NT server in Cheyenne.

This effort will be a continuation of Wyoming's long term implementation of electronic permitting by allowing staff in all offices (three districts and technical support) to review documents received from mine operators using one simple interface. The LQD staff in Lander or Sheridan offices would access the intranet server and thus reduce the need to download these files to their computers. This also reduces the need to purchase multiple copies of infrequently used software packages, because a set would will be available to all staff on the intranet.

The intranet will also allow decentralization of other coal permitting and review procedures. District offices will be able to access, query and add data to databases. This will allow all the offices to identify the most recent submittals, revision approvals, and bond changes, eliminating calls to check on the status of a particular submittal. Hydrologists in each of the offices will query the Coal Permitting and Reclamation (CPR) hydrology data, and view the data directly in the intranet browser software. Each office will have access to the same data at the same time with little/or no additional training of staff.

The electronic permitting efforts in FY98 were centered in-house. Designing the intranet and developing operational and procedural plans were the main thrust of the electronic permitting initiative; preparing ground for more widespread use and encouragement of electronic permitting material submitted by industry.

Several coal mine operators in Wyoming have submitted annual reports and major permit revisions in electronic format. As a result of those submittals, several major operators have entered into contractual arrangements with consultants and started converting all of their data into electronic formats in anticipation of electronic submittals. The operators have indicated that the use of an electronic permit will save both time and money for operators and LQD staff.

B. Issues

In 1997, CFO and LQD reviewed four mine sites for compliance with contemporaneous reclamation requirements and compared the on-the-ground reclamation with the approved reclamation plan in the permits. CFO and LQD found that the four mine permits did not clearly and concisely set time schedules and requirements for contemporaneous reclamation. Contemporaneous reclamation remains as an issue for the EY 1999 evaluation.

LQD has agreed to review the required schedules in all permits. Furthermore , the State has agreed to revise the annual reporting format to include information regarding contemporaneous reclamation progression. LQD has completed reviewing about 70 percent of the permits and has required some revisions. The remaining 30 percent have not been reviewed because revisions are anticipated that will affect the reclamation schedules for these permits. LQD will review these permits after the revisions are submitted. The target for completing the reviews is January 1999. Most of the reviews will be completed by this time. However, some of the expected revisions will be "major" in scope and will extend beyond January 1999. Revision to the annual reporting format has begun. Starting in 1999, annual reports will contain contemporaneous reclamation information.

C. Innovations

A pilot study indicated a significant decrease in review and issue resolution time as well as, the overall time to issue a permit. (See A. Accomplishments) The Wyoming DEQ-LQD is a pioneer in the development of electronic permitting. Wyoming has developed standard formats for recording and submitting data to LQD for review of permit applications.

V. Success in Achieving the Purposes of SMCRA as Determined by Measuring and Reporting End Results

To further the concept of reporting end results, the findings from performance standards 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 and 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 Casper Field Office which provide additional details on how the following evaluations and measurements were conducted.

A. Off-Site Impacts:

During EY 1998, there were 4 off-site impacts that occurred at Wyoming mines. They included blasting, hydrology and encroachment off the permit. The blasting violating entailed flyrock leaving the mine site. The hydrology impacts involved petroleum products entering a wetland and silt leaving the mine site. The encroachment violation was for an unauthorized upgrading and modification of a road off the permit area. All of the violations were considered to be minor impacts, except the contamination of a wetland with a petroleum product. This is considered a moderate impact

B. Bond Release:

During EY 1998, there were no Phase I, II, or III bond releases (Table 5, Appendix A, page T-5). Most of these lands have not had any bonds released (Appendix A, Table 6, Page A-6).

C. Reclamation Success:

Approximately 173,515 acres are currently bonded (Table 5) . By end of the evaluation period, approximately 34,165 acres were permanently reclaimed with a permanent seed mixture and ready for application for bond release.

VI. OSM Assistance

OSM offers training courses to State regulatory authority employees at no expense to the State (other than salary and benefits) or the employee. OSM's technical training program provided a wide range of courses including engineering, hydrology, soils & revegetation, inspection & enforcement, and computer software. Thirteen Wyoming employees received training from OSM's technical training program at a cost of $ 7,081 during EY1998. In addition, one Wyoming employee served as an instructor for one of these training classes.

Eighteen LQD staff have taken part in OSM/States Advanced Statistics Initiative by participating and by making presentations in the four workshops as follows:

Statistical Sampling for Baseline Studies, Bond Release and Monitoring Studies Workshop (9)

Topics in Statistical Analysis for Environmental Monitoring Associated with the Surface Mining Control and Reclamation Act (1)

Advanced Statistical Methods for Bond Release in Arid and Semi-Arid Regions (hands-on MATLAB) (3)

Statistical Methods for Spatial Data Associated with Hydrologic Investigations, Spoils Monitoring and Revegetation off Reclaimed Areas (5)

The initiative is an effort by OSM and the Western States to build familiarity with advanced statistical techniques. This assists the State in evaluating bond release proposals, especially those developed under the direction of professional statistical consultants working for industry. The major part of the initiative is to expose the staff to computer aided-statistical evaluation techniques, in particular for non-normally distributed data. With shrinking budgets, regulatory agencies do not have the luxury of hiring consultants to match the expertise available to industry, and must acquire this expertise on their own, as bond release activities increase in the Western States under SMCRA.

VII. General Oversight Topic Reviews

This section contains a brief description of the topics reviewed during the evaluation year. Major accomplishments, issues and innovations are addressed in Section IV of this report. The detailed documentation of all reviews are available in the central files at the Casper Field Office.

A. NEW TOPICS

The evaluation was conducted to determine if problems exist in the field. When no problems are observed in the field, the evaluation is concluded. However, when problems such as failure to comply with the State's statutes and rules were identified, the team investigates the problem, traced the source(s) and works with the State to resolve the problems.

Rolling Bonds: The Western Region has identified "Bond Roll-Overs" as a regional topic for oversight. OSM has identified instances on Federal lands where bonds covering a specific area is transferred, or "rolled" from one area of a mine site to another without a formal (phase I) bond release. This results in a defacto release. The intent of SMCRA (Section 509) was to maintain adequate bond on disturbed land to accomplish the required reclamation. SMCRA requires bond release to occur at three different phases (Phases I, II, and III) of reclamation.

Wyoming has an alternative bonding system approved by the Secretary, pursuant to Section 509(c) of SMCRA (48 FR 51466, November 9, 1983). This section requires posting of sufficient bond to cover the cost of reclamation by a third party, in the event of bond forfeiture. The Federal rule (30 CFR 800.11) requires that the alternative bonding system assure adequate funds are available to cover the reclamation costs and provide substantial economic incentives for the permittee to comply with reclamation requirements. OSM's Secretarial findings found Wyoming's alternative bonding to accomplish both requirements.

OSM evaluated the bonding instruments and calculations during the 1997 evaluation and found no problems with the State's bonding system. Wyoming's alternative bonding system assures adequate funds are available to cover the reclamation costs and provides substantial economic incentives for the permittee to comply with reclamation requirements. Although the Wyoming bonding system does allow area bonds to "roll" with the pit advancement, the system does comply with the requirements of the Act [Section 509(c)]. Wyoming was found to comply with its approved program.

Probable Hydrologic Consequences (PHC) Verification: During mining operations, mine operators are required to collect hydrologic monitoring data. Wyoming coal operators have been preparing and revising PHC predictions based on available baseline data recorded at the time of the permit application. LQD and OSM developed a study plan to evaluate the accuracy of the PHC predictions at three active mine sites using the surface- and ground-water monitoring data. OSM hydrologists have completed the study and prepared a draft report. The draft report is currently being reviewed by LQD and will be finalized in EY 1999.

Cultural Resources: In the past year, there have been some incidences where cultural resources have been disturbed or destroyed by mining operations when requirements in the permit has specified mitigation or protection. Often several years elapse between the time sites are identified in the permit application and the disturbance occurs. Disturbance of these sites do not appear to be intentional; however, these sites appear to have been overlooked at the time topsoil operations begin.

The State Historic Preservation Officer (SHPO) has expressed concerns regarding the protection and mitigation of cultural sites in the Powder River Basin. After discussions with the LQD, BLM and SHPO; CFO assumed the cultural resource coordination responsibilities for the Title V program.

Three mine sites with known cultural resources were selected based on the significance of the cultural resource values and the proximity of the mining progression. The mine sites selected are: Cordero, North Antelope, and Belle Ayre. LQD, SHPO, BLM and OSM personnel visited each mine site, discussed the mine company's cultural resource mitigation plans, and viewed the sites in the field to observe any mitigation proposed, or in progress.

The Cordero mine was selected because during the previous year, one prehistoric site had been destroyed and one other impacted. The Cordeo Mining Company was conducting mitigation measures to preserve the remaining artifacts and information about the remaining sites in the area. North Antelope mine was selected because of the mitigation ongoing along Antelope Creek. Several prehistoric artifacts were located and excavated. This was a good opportunity to observe the actual field work preformed by the mine operator's archaeologists. The Belle Ayr mine was selected because of its work with the "Sawyer" rifle pits, a historical site. AMAX Coal Company has conducted a significant amount to mitigation and data collection. In addition, the company has shared through an educational outreach effort, the historical information with the community and local schools. The company conducted a tour of the site for the public and schools and documented it on video tape.

There were no problems or issued identified during this evaluation.

Permanent Impoundments: The permanent impoundments topic was not selected due to any known issues or problems. Several mine sites in Wyoming have proposed permanent impoundments in the final reclamation functioning as part of post mining land use.

Three mine sites with permanent impoundments were selected and field site visits were conducted to observe these impoundments. The criteria for evaluating on-the-ground performance included embankment geometry, water rights, water quality and quantity, and design certification and as builts. At all three sites an evaluation or water quantity and quality could not be done, because reclamation of the entire watershed for each impoundment had not been completed. Water quality and quantity is a key demonstration of successful reclamation. Monitoring will begin after final reclamation of the watershed is completed. This topic should be reviewed at that time. The structures and revegetation in the immediate area of the impoundments appeared to be adequate. There were no problems or issued identified during this evaluation.

B. MONITORING TOPICS

Monitoring topics are issues identified in previous oversight evaluations. Due to the long term nature of these topics, the final evaluation cannot be resolved during a single evaluation period.

Permitting, CHIAs

In the 1992 Annual Evaluation year, CFO identified three deficiencies with some CHIA documents: 1) not all hydrologic impact projections were based on the most recent, readily available technical/baseline information; 2) assessments of hydrologic impacts were not adequate because the existing CHIA was general in scope and not specific to certain drainage basins; and, 3) the LQD did not have a formalized plan to develop comprehensive basin specific or regional CHIAs.

One basin specific CHIA has been completed and two others have been started. The State has encountered a problem in that individuals assigned to prepare CHIAs have terminated employment with the agency. This has slowed progress until another individual can be located and assigned to the project.

The final resolution of this problem will occur with the development of CHIA's where the most recent technical baseline information resources are used for specific cumulative impact areas (CIA's).

Program Maintenance (Amendments)

In the 1994 Annual Evaluation Year Report, the CFO reported that numerous outstanding program deficiencies existed, including less effective rules [30 CFR 732.17], disapproved rules [30 CFR 950.15], and required program amendments [30 CFR 950.16].

Wyoming LQD's and OSM's objective is to assure that these program deficiencies are resolved through approved amendments to the Wyoming Program. Schedules and priorities have been established for amendments that are crucial to the operation of the Wyoming regulatory program.

Only one amendment was scheduled to be submitted to OSM during this evaluation period. It was received in July and is under review at WRCC. The State has meet internal time frames for the Advisory Board meetings and Environmental Quality Council hearings for other amendments.

During the evaluation year, the State showed a higher level of progress (62 percent). As new changes to the program are required, these issues are grouped into related topic amendment packages and priorities are re-assessed jointly by LQD and OSM.

In July 1998, LQD submitted the "miscellaneous rule package" for OSM review and approval. The comment period closed August 20, 1998 and concurrences from Advisory Council for Historic Preservation (ACHE) and Environmental Protection Agency (EPA) were due September 20, 1998. This amendment contains rule changes that relate to the ACHE and EPA. ACHE did not respond and according to ACHE requirements (36 CFR), a no response equates to concurrence. EPA responded and concurred with the amendment. A decision on the amendment will occur early in the 1999 evaluation period. The next amendment is scheduled to be submitted in December 1998, which will address rule changes for roads.

.

No problems or issues have been identified relating to this topic.

C. FOLLOW-UP TOPICS

Follow-up topics are issues identified in previous year's evaluation. Resolution of these topics are usually resolved within the next evaluation period.

Contemporaneous Reclamation

In response to last year's evaluation of contemporaneous reclamation, the State agreed to contact the permittee and require changes to the format of data reported in the permit's annual report. The State has contacted the companies and required the change. In addition, the State agreed to review all permits and assure that the permits contained clear ly outlined standards for contemporaneous reclamation. The state is approximately 70 percent complete. See IV. Major Accomplishments /Issues/ Innovations in the Wyoming Program, B. Issues for additional discussion and progress.

D. ON-GOING TOPICS

On-going topics are functions of the State program that are reviewed every evaluation year.

INSPECTIONS

The Casper Field Office Director reduced the number of complete oversight inspections for this evaluation year from 7 to 5. The mines were randomly selected and inspected jointly with the DEQ-LQD personnel. No violations were observed during joint inspections. One instance of offsite damages was observed, which was cited by LQD in a previous State inspection.

The CFO issued one TDN in response to a citizen's complaint concerning NOX gas and the risk associated health and safety hazards. CFO is currently investigating the complaint. A second TDN regarding a topsoil violation issued by LQD and subsequently vacated by the Administrator. LQD's response to the TDN was determined to be inappropriate and LQD has appealed that decision. The appeal is currently under review.

The Powder River Basin Resource Council has expressed concern regarding the vacation of violations and the reduction in civil penalties. The Casper Field Office is currently reviewing LQD's enforcement actions. This review should be completed during the next evaluation period.

FINANCIAL ADMINISTRATION (GRANTS)

CFO conducted financial oversight during the evaluation period. CFO visited DEQ offices in Cheyenne, Wyoming and reviewed financial information. Specifically, drawdowns, timeliness of grant applications and reports, audits, accounting, and travel were reviewed.

CFO conducted a drawdown analysis for the existing Administration and Enforcement grant. In one instance, DEQ drew funds (over $127,000) twice for single intended expenditures. In all other instances reviewed there were no excess drawdowns. The procedure in place to ensure that duplicate drawdowns was not followed where excess drawdowns occurred. DEQ instituted a new procedure of having the grant accountant verify previous draws and review the Federal accounting system prior to attempting a draw on. CFO will continue to conduct drawdowns for the Administration and Enforcement grant.

Wyoming is submitting required reports in a timely manner.

CFO has relied primarily upon A-133 Audits for (1) accounting procedure controls to include payroll, account payable, travel and (2) procurement and management of property and services. To date, all previous A-133 Audit findings have been resolved. There were no questioned costs. Currently, an A-133 Audit is being completed for the one year period ending June 30, 1998. This report will be completed during the winter of CY-98.

CFO did review travel expenditures for DEQ. Travel policies and procedures were reviewed for per diem to include quarterly allowances, lodging and mileage for personal vehicles, in and out of State allowances and required supervisory approval. CFO found that DEQ was following their travel policies and procedures.

CFO made one Administration and Enforcement grant award during EY98. The award was made in less than 60 days of the grant application, meeting the required Government Performance standard.

Appendix A:

Tabular Summary of Core Data to

Characterize the Program

^A Coal production as reported in this table is the gross tonnage which includes coal that is sold, used or transferred as reported to OSM by each mining company on form OSM-1 line 8(a). Gross tonnage does not provide for a moisture reduction. OSM verifies tonnage reported through routine auditing of mining companies. This production may vary from that reported by States or other sources due to varying methods of determining and reporting coal production.

The objective of this Table is to report all off-site impacts identified in a State regardless of the source of the information. Report the degree of impact under each resource that was affected by each type of impact. Refer to guidelines in Directive REG-8 for determining degree of impact. More than one resource may be affected by each type of impact. Therefore, the total number of impacts will likely be less than the total number of resources affected; i.e., the numbers under the resources columns will not necessarily add horizontally to equal the total number for each type of impact. As provided by the Table, report impacts identified on bond forfeiture sites separately from impacts identified on other sites. If bond forfeitures sites were not evaluated during the period, clearly note the table to indicate that fact. Impacts related to mine subsidence or other areas where impacts are not prohibited are not included in this table. Refer to report narrative for complete explanation and evaluation of the information provided by this table.

TABLE 6

* 1997 is the last year with complete data.

Appendix B:

State Comments on the Report

Appendix C:

CFO Response to State Comments

CFO Response to State Comments

State Comment:

RE: Page 2, third paragraph, first sentence.

"Forty mining active operations..." should be "Forty active mining operations..."

CFO Response:

The error has been corrected.

State Comment:

RE: Page 2, third paragraph, last sentence.

The word "are" should be deleted.

CFO Response:

The error has been corrected.

State Comment:

RE: Page 7, Item C.

This section states that during the evaluation period, approximately 34,165 acres were permanently reclaimed ... (emphasis added). It implies 34,165 acres were seeded just during the evaluation period. The correct statement is by the end of the evaluation period, a total of 34,165 acres had been reclaimed.

CFO Response:

The error has been corrected.

State Comment:

RE: Page 9, Cultural Resources, third paragraph.

The word "know" in the first sentence should be "known".

CFO Response:

The error has been corrected.

State Comment:

RE: Table 2.

All sites are listed as initial regulatory program sites. In the past only those sites that elected to reclaim and remain under the initial program were listed in this category. Should they be listed in the permanent regulatory program?

CFO Response:

The error has been corrected.