OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

Annual Evaluation Summary Report

for the

Abandoned Mine Land Reclamation Program

Administered by the State

of

WYOMING

for

Evaluation Year 1998

(October 1, 1997 to September 30, 1998)

TABLE OF CONTENTS

Part 1. General................................................................................................................ 1

Part II. Noteworthy Accomplishments........................................................................ 2

Part lll. Results of Enhancement and Performance Reviews..................................... 3

AML Inventory - Public Facilities Inventory............................................................... 3

Past AML Reclamation .................................................................................................. 4

On-going AML Projects ................................................................................................. 4

Financial Administration................................................................................................ 5

Part IV. Accomplishments and Inventory Reports..................................................... 6

APPENDIX A. Enhancement and Performance

Review Reports.................................................................................................................7

ANNUAL REPORT

Part l. General

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 to oversee the regulation of coal exploration and surface coal mining and reclamation operations and the reclamation of lands adversely affected by past mining practices. SMCRA provides that, if certain conditions are met, a State may assume primary authority for the reclamation of abandoned mine lands within its borders. Once the State has obtained such approval, OSM has the responsibility to make investigations, evaluations, and inspections necessary to determine whether the State Abandoned Mine Land (AML) program is being administered in accordance with the approved program provisions.

OSM's evaluation methods are based upon OSM Directive AML-22 and a Programmatic Agreement between Wyoming AML and OSM. The Agreement was signed June 8, 1998 and covers the two year period of October 1, 1997 to September 30, 1999. The agreement establishes a commitment between the State and OSM as to how oversight will be conducted. This approach allows the State to take a more active role in the entire oversight process. The State and OSM staff develop topics for review, specific methodologies for evaluation, and assist one another in the preparation of the final report.

OSM's Casper Field Office (CFO) in partnership with Wyoming AML Division identified specific topics to be reviewed during the review period. Wyoming AML Division and the CFO worked in concert to write the Programmatic Agreement.

The assessment of the Wyoming AML program included enhancement and performance review of selected topics and the State's citizen participation efforts. Specific topics are past reclamation, ongoing reclamation, public facility projects, and financial administration. Results of these reviews are available in Part III of this report.

The State's citizen participation efforts were not evaluated, however OSM did review whether citizens were given the opportunity to participate in the State program.

The State certified on May 25, 1984 that all inventoried coal mines eligible for AML reclamation have been completed, or are under reclamation, or design. As new coal sites are found, the State gives them first priority over non-coal sites and starts reclamation as soon as possible. Wyoming was certified to initiate public facility projects five years ago. After such certification a state is allowed to initiate public facility projects. Consequently, Wyoming currently concentrates on the reclamation of non-coal mine sites and constructing public facility projects.

Wyoming does not have an AML Emergency program and therefore emergency projects are administrated by OSM. However, Wyoming AML Division assists OSM with AML emergencies, since most emergencies are initially reported to Wyoming AML. When this occurs, Wyoming contacts the OSM Casper Field Office and the Western Regional Coordinating Center and assists in the abatement of such emergencies. In many instances, Wyoming has AML projects in the area of the emergency and offers assistance through their existing contractors. Wyoming has developed an excellent rapport and trust with the public, cities, counties, other State and Federal agencies and contractors.

Overall, Wyoming administers its AML program in a professional manner resulting in high quality performance in all aspects of the program. Excellent communication and cooperation between OSM and the Wyoming AML program staff continue.

Part ll. Noteworthy Accomplishments

In the last twenty years, the Wyoming Abandoned Mine Land Program has reclaimed over 800 abandoned mine sites encompassing over 27,000 acres. Approximately $100 million has been spent on coal reclamation. Most of that has been spent for stabilizing mine subsidence in business and residential areas of Rock Springs, Glenrock and Hanna. Approximately $70 million has been spent reclaiming abandoned bentonite pits in the northeast and northern portion of the state. Approximately $17 million has been spent in the reclamation of hardrock mine sites throughout the State. Reclamation of abandoned uranium mine sites has accounted for $55 million. Uranium reclamation makes up a bulk of the remaining work to be done and is expected to grow over the next several years. Wyoming's AML Division has invested over $50 million in public facility projects around the state. The remaining funding has been split among abandoned drill hole plugging, a mine subsidence insurance program, administrative costs, engineering services, and establishing a trust fund to address future mine subsidence and reclamation needs. The amount of funding used for construction of public facilities is expected to greatly increase in the coming years.

The Wyoming AML Program received an OSM Excellence in Surface Mining Award in 1998. This award was for the reclamation of the Colorado Fuel and Iron (CF&I) Corporation's Sunrise Mine. This reclamation included the elimination of environmental and safety hazards associated with an abandoned iron ore mine near Guernsey, Wyoming. Over the past 12 years, a total of 13 construction bid packages have been let to address varying degrees of problems left behind from past mining. These hazards have been both physical and environmental. A total of $4,470,836 has been spent by 3 engineering firms and 10 construction contractors to address these hazards including: asbestos abatement; lead paint removal; regrading 2 rock dumps; regrading and reclaiming 2 open pit mines; fencing 3 extremely large open pits; and closing 176 shafts and adits by plugging, backfilling or installing bat doors or grates.

Part lll. Results of Enhancement and Performance Reviews

AML Inventory - Public Facilities Inventory.

In 1990 Congress amended SMCRA to allow use of AML funds for construction of public facilities through applications from communities, counties, special districts or joint powers boards. Again, Wyoming is a pioneer in the AML inventory program for public facility projects. Wyoming is a leader in development of its criteria, processes and procedures for considering and approving public facility projects using AML funds. Information gathered in the evaluation of Wyoming's efforts may be useful for other states.

One project were selected for evaluation. The sewage lagoon near Guernsey, Wyoming.

The Guernsey sewage lagoon is located adjacent to the North Platte river and was determined to be connected hydrologically to the river. Raw sewage is entering or has the potential for entering the river and the river is a source of drinking water for communities downstream. To address this health risk, Wyoming AML is planning to construct a minimum maintence multi-celled series of lagoons. This facility will serve the town of Guernsey, the nearby National Guard Camp, and nearby railroad facilities. Construction on this project has been initiated.

No problems or issues were identified during this evaluation. No corrective action is required.

Past AML Reclamation

One project was selected as a sample site for oversite evaluation. This project was the Sunrise Iron Mine near Guernsey. No problems were observed during the field site visits nor identified throughout the evaluation.

The Sunrise iron ore mine reclamation was completed in 1997. This site included significant hazards to public health and safety. Three large pits created by both mining and the subsidence of underground workings were fenced off to prevent unauthorized access into or around the extremely hazardous areas. Two other open pits have been reclaimed. Open shafts were sealed by backfilling and adits were plugged. Bat grates were added to other adits. In addition the Wyoming AML staff eliminated health and safety threats posed by hazardous solid and liquid waste materials.

No problems or issues were identified during the evaluation. No corrective action is required.

On-going AML Projects

Two ongoing projects were selected for the purpose of measuring the process and uniqueness of each. The two projects selected were the Day Loma and George reclamation projects in the Gas Hills uranium mine district. Reclamation is being conducted in a workman like manner. Environmental and safety hazards are being eliminated.

No problems were identified during the evaluation. No corrective action is required.

Financial Administration

The Casper Field Office conducted financial oversight during the evaluation period. Specifically, drawdowns, timeliness of grant applications and reports, audits, accounting, and travel were reviewed. The CFO visited DEQ offices in Cheyenne, Wyoming and reviewed information pertinent to these topics.

Wyoming has a U.S.Treasury agreement affecting the AML program and therefore no drawdown analysis was conducted. The agreement has been updated and applies to OSM's 1998 evaluation year.

Wyoming is submitting grant applications and costs and performance reports in a timely manner.

CFO is relying 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 reviewed 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 procedure to include approvals.

Wyoming is submitting required reports in a timely fashion.

Summary

Site visits were coordinated with the Wyoming AML Division Administrator for on-the-ground and office evaluation of topics. No issues or problems are identified in the evaluation of public facility projects, past projects, on-going projects, or financial administration.

Citizens input and concerns are monitored through various contacts with the public. OSM observed such contacts as Wyoming's AML Advisory Board meetings, AML's participation in local city and county public forums, public information meetings, published public notices, news releases and reports.

Part IV. Accomplishments and Inventory Reports

The Wyoming AML program accomplishments in the past ten years include: 27,528 surface mined acres reclaimed including highwalls, landslides, refuse, and water impoundments; 1,289 mine openings safeguarded including shafts, portals, adits, stopes, and subsidence; 18 coal fires abated or controlled; and one acid mine drainage project completed. A total of $334 million dollars in AML funds have been awarded the Wyoming AML Program.

Wyoming has completed 18 projects during the past year. Work included closing 7 shafts and adits, grouting under 138 residential and commercial structures, and reclaiming over 636 acres. Wyoming also completed 4 public facility projects.

As reclamation of coal related sites in Wyoming are completed Wyoming AML continues to increase funding for non-coal reclamation and public facilities projects. During the past year Wyoming AML made significant initial progress in reclamation efforts at the Atlantic City iron ore mine, resumed reclamation at the Gas Hills Uranium District and completed closure of several hazardous shafts, portals, and reclaimed 16 bentonite mines.

Wyoming has begun an update of its inventory. The update is two fold. The first is to update the reclamation cost estimates and the second is to add new sites to the inventory. The inventory will be used as a planning tool for the AML program. The inventory update is 50% complete.

APPENDIX A

ENHANCEMENT AND PERFORMANCE REVIEW

REPORTS

WYOMING AML PROGRAM

ENHANCEMENT AND PERFORMANCE REVIEW REPORT

EVALUATION YEAR 1998

Principles Being Evaluated: AML - Public Facilities Inventory

Background: Wyoming has established a public facilities program that includes a procedure whereby AML funds can be used for public facilities related to mining impacts. The criteria set forth in the SMCRA and the Federal regulations, as well as, the Wyoming AML program allow Wyoming to assist Wyoming communities in eliminating hazards to the public and the environment through the construction of public facilities. This portion of Wyoming AML program is being reviewed due to its experience in a field that few agencies have ever experienced. Other States and the Hopi tribe have contacted Wyoming AML for advice and other information regarding public facility projects.

Review Methodology: Field site visits and office reviews were conducted to perform evaluations of the projects. The criteria used to evaluate these project were the overall success in eliminating potential hazards to the public and the environment..

Population / Sample: There are 11 completed and 11 ongoing public facility projects in Wyoming. One current projects was selected for evaluation, the Guernsey sewage lagoon system.

Findings and Conclusions: Overall no problems or issues were observed during the field site visit. The project is ongoing and progressing in a workman like manner.

The Guernsey Sewage Lagoon project was selected so that there would be elimination of the threat of water pollution from the existing lagoon which leaks untreated effluent into the North Platte River. The inspection team observed the location of the present lagoon to be within 100 feet of the river bank. Thus demonstrating a high probability of hydrologic connection between the lagoon and the river. Design and engineering work is ongoing. Considerations were given to the size of the towns budget, workforce, and expertise when designing a system to replace the faulty existing one. A multi celled passive series of lagoons system was proposed.

Corrective Actions: No problems or issues were identified during this evaluation. No corrective action is required.

WYOMING AML PROGRAM

ENHANCEMENT AND PERFORMANCE REVIEW REPORT

EVALUATION YEAR 1998

Principles Being Evaluated: AML - Ongoing AML Projects

Background: The State is certified, meaning that all inventoried coal mines eligible for AML reclamation are completed or currently under reclamation. Coal mine reclamation projects are becoming fewer as each project is completed. Currently, the new projects are those that were not identified earlier as eligible for AML reclamation or consent for reclamation has been recently obtained. Sufficient funding is available to reclaim newly identified coal sites. As new coal sites are found, the State allows them first priority and start reclamation.

Review Methodology: Site visits were coordinated with the Wyoming AML Division Administrator for on the ground evaluation of the sites. If no issues or problems are identified in the field, no further evaluation will take place. However, if an issue or problem is identified the source will be investigated and a resolutions will be worked out with the State.

Population / Sample: There are forty-eight completed and twelve ongoing non-coal reclamation projects. Two ongoing projects were selected to evaluate process and uniqueness of each.

Findings and Conclusions: No problems or issues were identified during this evaluation. No corrective action is required.

WYOMING AML PROGRAM

ENHANCEMENT AND PERFORMANCE REVIEW REPORT

EVALUATION YEAR 1998

Evaluation Topic: Program Administration -- Title IV

Review Dates: August 12 and 13, 1998

Personnel: Neal Jacquot (CFO), Steve Toalson (DEQ)

Background: Program administration topics reviewed are: (1) Drawdowns, (2) Accounting procedures to include payroll, accounts payable, travel, and (3) Procurement and management of property and services.

For AML, Wyoming has a US Treasury agreement. Therefore, no specific drawdown analysis is required. Monitoring of DEQ's timely reporting to Treasury is sufficient.

Review Methods: For the drawdown review, only the agreement between Wyoming and the US Treasury was reviewed to ensure that the agreement was current.

CFO relied primarily on A-128 and A-133 Audit findings for accounting procedural controls to include payroll, accounts payable, travel, procurement, and management of property and services. Currently, an A-133 Audit is being completed for the one year period ending June 30 will be completed during the winter of CY-98.

CFO did review travel policies and procedures and applicable expenditures. Specifically, per diem, lodging, and mileage were reviewed.

Findings and Conclusions: Wyoming has a current US Treasury agreement and therefore drawdowns are not an issue. There are no outstanding issues or cost regarding A-128 or A-133 Audits. No problems were found regarding travel management.

Corrective Action: None

To date, all previous audit findings have been resolved. There were no questioned