Fern Lake Watershed, Tennessee, Lands Unsuitable for Surface Coal Mining And Reclamation Operations; Availability of Record of Decision and Statement of Reasons

DEPARTMENT OF THE INTERIOR

Fern Lake Watershed, Tennessee, Lands Unsuitable for Surface Coal

Mining And Reclamation Operations; Availability of Record of Decision

and Statement of Reasons

AGENCY: Office of Surface Mining Reclamation and enforcement, Interior.

ACTION: Notice of availability of record of decision and the statement

of reasons on the petition to declare certain lands in the Fern Lake

Watershed, Tennessee, unsuitable for surface coal mining.

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SUMMARY: The Director of the Office of Surface Mining Reclamation and

Enforcement (OSM) has reached a decision on a petition to designate an

area as unsuitable for surface coal mining operations in the Fern Lake

watershed, Claiborne County, Tennessee.

ADDRESSES: Copies of the decision and the statement of reasons for the

decision may be obtained from the Assistant Director, Program Support,

Office of Surface Mining Reclamation and Enforcement, 1951 Constitution

Avenue, HDQ01, Washington, D.C. 20240, or Willis L. Gainer, Supervisor,

Technical Group, Knoxville Field Office, 530 Gay Street, SW, Suite 500,

Knoxville, Tennessee 37902.

FOR FURTHER INFORMATION CONTACT: Willis L. Gainer, Office of Surface

Mining Reclamation and Enforcement, 530 Gay Street, SW, Suite 500,

Knoxville, Tennessee 37902; telephone: 423/545-4074.

SUPPLEMENTARY INFORMATION: The petition was submitted to OSM on

February 14, 1994, by the City of Middlesborough, Kentucky, and the

National Parks and Conservation Association to designate 3780 acres of

land lying in the Fern Lake watershed, Caliborne County, Tennessee, as

unsuitable for all types of surface coal mining operations. OSM

determined the petition to be complete on March 15, 1994, and initiated

evaluation of the petition allegations.

The petition was filed in accordance with Section 522 of the

Surface Mining Control and Reclamation Act of 1977 (SMCRA) and the

implementing regulations at 30 CFR 942.764. The petitioners alleged

that: (1) Surface coal mining operations would affect fragile lands and

could result in significant damage to important scientific or esthetic

values or natural systems; (2) surface coal mining operations would

affect land in which the surface coal mining operations could result in

a substantial loss or reduction in the long-range availability of water

supplies; (3) surface coal mining operations would be incompatible with

the local land use plans of the Cumberland Gap National Historic Park;

and (4) surface coal mining operations should not be allowed because

the area constitutes a natural hazard land. Pursuant to 30 CFR 942.764,

OSM analyzed the allegations of the petition and on March 12, 1996,

held a public hearing. OSM filed the final petition evaluation

document/environmental impact statement (PED/EIS) for the Fern Lake

petition with the Environmental Protection Agency (EPA) on August 2,

1996. The EPA subsequently published the notice of availability on

August 9, 1996 (61 FR 41607).

A copy of the decision signed by the Director appears as an

appendix to this notice. Additional copies of the decision and copies

of the statement of reasons (not attached to this notice) are available

at no cost from the offices listed above under ADDRESSES OSM has sent

copies of these documents to all interested parties of record.

Prior Federal Register notices on the Fern Lake unsuitability

petition were the notice of intent to prepare an EIS published in the

Federal Register dated April 6, 1994 (50 FR 31177), and the notice of

availability of the draft combined PED/EIS dated January 26, 1996 (61

FR 2531).

Dated: September 13, 1996.

Mary Josie Blanchard,

Assistant Director, Program Support

Appendix: Copy of Decision

Petition To Designate Certain Lands in the Fern Lake Watershed,

Tennessee, as Unsuitable for Surface Coal Mining Operations

Under Section 522 of the Surface Mining Control and Reclamation Act

of 1977 (SMCRA), 30 U.S.C. 1272, the Office of Surface Mining

Reclamation and Enforcement (OSM) was petitioned by the City of

Middlesborough and the National Parks and Conservation Association to

designate certain private lands in the Little Yellow Creek (Fern Lake)

watershed, Claiborne County, Tennessee, as unsuitable for all surface

coal mining operations.

As required by Section 522(c) of SMCRA, public comments were

solicited on the Fern Lake unsuitability petition; a public hearing was

held near the petition area in Middlesborough, Kentucky; and a detailed

petition evaluation document/environmental impact statement (PED/EIS)

was prepared by OSM. The PED/EIS evaluated the petition allegations,

the potential coal resources of the petition area, the demand for coal

resources, and the impacts of alternative petition decisions available

to the decision maker on the entire range of resource elements in the

social and physical environment.

I have considered the following information in the course of making

this decision on the petition: The draft and final PED/EIS documents;

the allegations of the petitioners; comments in the form of oral

testimony at the public hearing; and written submissions received

during the comment period (which ended March 26, 1996) by Federal

agencies, State agencies, local agencies, and members of the public and

industry. Other information considered in my decision included meetings

with the petitioners, landowners, leaseholders, and officials of the

Cumberland Gap National Historical Park. On the basis of all

information that is in the record of this proceeding, I have reached

the following decision: Designate the entire petition area as

unsuitable for all surface coal mining operations but allow underground

mining from outside the petition area.

OSM has previously approved permits to extract approximately 3.4 of

the estimated 4.3 million tons of the petition area's underground

minable

[[Page 49794]]

reserves from entries located outside the petition area. Permits for

these operations were in effect prior to the receipt and processing of

the Fern Lake petition. As a result, these and similar operations which

propose to mine coal by underground methods from entries located

outside the petition area will not be affected by this decision.

Copies of this decision will be sent to all parties in this

proceeding. The decision will become effective on the date of the

signing of the ``Statement of Reasons.'' Any appeal from this decision

must be filed within 60 days from the date in the United States

District Court for the Eastern District of Tennessee, as required by

Section 526(a)(1) of SMCRA, 30 U.S.C. 1276(a)(1).

Dated: September 13, 1996.

Robert J. Uram,

Director, Office of Surface Mining Reclamation and Enforcement.

Petition To Designate Certain Lands in the Fern Lake Watershed,

Tennessee as Unsuitable for Surface Coal Mining Operations; Statement

of Reasons

I. Introduction

In response to a petition filed by the City of Middlesborough,

Kentucky, and the National Parks and Conservation Association, I have

decided to designate the entire petition area as unsuitable for all

surface coal mining operations while allowing underground mining from

entries located outside the Fern Lake petition area in Claiborne

County, Tennessee. This decision takes into account all of the

information contained in the petition; the draft and final petition

evaluation document/environmental impact statement (PED/EIS);

information provided by the petitioners; comments in the form of oral

testimony at the public hearing; and written submissions received

during the comment period (which ended March 26, 1996) by Federal,

State and local agencies, and members of the public and industry. Other

information considered in my decision included meetings with the

petitioners, landowners, leaseholders, and officials of the Cumberland

Gap National Historical Park. The following is a discussion of the

reasons supporting my decision.

II. Legal Background

Section 522(c) of the Surface Mining Control and Reclamation Act of

1977 (SMCRA) allows any person having an interest that is or may be

adversely affected to petition to have an area designated unsuitable

for surface coal mining operations. The Secretary of the Interior is

responsible, under Section 504 of SMCRA, for designating lands in

Tennessee as unsuitable. Specific procedures for processing a petition

to designate private lands in Tennessee appear in 30 CFR 942,

Subchapter F. The Office of Surface Mining Reclamation and Enforcement

(OSM) has followed those procedures in reaching its decision on the

Fern Lake petition. The Secretary of the Interior has delegated to the

Director of OSM the authority to make a final decision on lands

unsuitable petitions except for noncoal mining [216 DM.1.1].

The regulatory authority shall designate an area unsuitable if it

determines that reclamation pursuant to the requirements of SMCRA is

not technologically and economical feasible [Section 522(a)(2)]. The

regulatory authority may designate any area unsuitable if such

operations would: (1) Be incompatible with existing State or local land

use plans or programs [Section 522(a)(3)(A)]; (2) affect fragile or

historic lands in which such operations could result in significant

damage to important historic, cultural, scientific, and esthetic values

and natural systems [Section 522(a)(3)(B)]; (3) affect renewable

resource lands in which such operations could result in a substantial

loss or reduction of long-range productivity of water supply or of food

or fiber products [522(a)(3)(C)]; or (4) affect natural hazard lands in

which such operations could substantially endanger life or property

[Section 522(a)(3)(D)].

The petition in this case requests that the designation of the Fern

Lake watershed be made on the basis of criteria cited under 522(a)(3)

(A), (B), (C) and (D). The petition contained numerous suballegations

and documentation to support its claim that the area should be

designated under these discretionary criteria.

III. Events

The petition area encompasses a portion of the Little Yellow Creek

watershed, an area of approximately 5.9 square miles, located in north-

central Claiborne County, Tennessee. Little Yellow Creek drains into

Fern Lake, a 110-acre public water supply lake for Middlesborough,

Kentucky. Approximately 45 acres of this lake is in the petition area

while the remainder of the lake is in Kentucky. Because the lake

constitutes the most significant feature of the watershed, the petition

is herein identified as the Fern Lake petition.

The Fern Lake unsuitability petition was submitted to OSM on

February 14, 1994, by the City of Middlesborough, Kentucky, and the

National Parks and Conservation Association. OSM determined the

petition to be complete on March 15, 1994, and initiated evaluation of

the petition allegations.

Because the decision on this petition may have a major effect on

the quality of the human environment, OSM decided to prepare a combined

petition evaluation document and environmental impact statement. A

notice of intent to prepare a draft PED/EIS, including a request for

public participation in determining the scope of the issues to be

addressed, was published in the April 6, 1994, Federal Register (50 FR

31177) and in the local newspaper. It was also mailed to all persons

with an identifiable ownership interest in the petition area and

interested State and Federal agencies. A scoping meeting was held on

April 18, 1994, in Middlesborough, Kentucky. Approximately 140 persons

attended the scoping meeting, 40 of whom presented oral comments.

By the close of the comment period on May 18, 1994, OSM had

received 31 scoping comment letters. All comments contained in the

public record for the petition and the proposed PED/EIS were used in

determining the scope of the PED/EIS.

OSM announced the availability of the draft PED/EIS and requested

public comments in the January 26, 1996 (61 FR 2531), Federal Register,

in the February 1996, Tennessee Administrative Register; and in local

newspapers. Notice of the March 12, 1996 public hearing also was made

in these notices and newspaper advertisements. The public comment

period on the draft officially closed on March 26, 1996; however, OSM

did consider comments received until July 1, 1996.

Approximately 30 persons attended the March 12, 1996 hearing with 7

persons presenting oral comments. During the comment period, 111

letters (with more than 300 signatures) provided written comments on

the draft PED/EIS. All comments were considered by OSM in the final

PED/EIS.

The notice of availability of the final PED/EIS was published in

the Federal Register on August 9, 1996 (61 FR 41607); in the

Middlesboro Daily News on August 9, 1996; and in the Claiborne Progress

on August 14, 1996.

IV. The Petition

The Fern Lake petition contained four primary allegations, with a

number of suballegations. The petition is printed in appendix C of the

final PED/EIS. The petitioners allege that: (1) The petition

[[Page 49795]]

area is a fragile area, and mining could result in significant damage

to important historical, cultural, scientific, and esthetic values and

natural systems; (2) surface mining would result in a substantial loss

or reduction in the long-range availability of water supplies; (3)

surface mining would be incompatible with local land use plans and

programs, including the Cumberland Gap National Historical Park; and

(4) surface coal mining operations would affect natural hazard lands

which are subject to frequent flooding.

V. Decision Alternatives

OSM evaluated several decision alternatives ranging from

designating all lands in the petition area unsuitable for all or

certain types of surface coal mining operations to not designating any

of the lands in the area as unsuitable. The alternatives include the

option of designating only parts of the area as unsuitable for all or

certain types of surface coal mining operations. However, underground

mining from entries located outside the petition area would not be

precluded regardless of a decision by the Director. This was based on

the fact that 3.4 million of the petition area's estimated 4.3 million

tons of underground recoverable reserves are already under permits

which allow extraction by this method. The full text discussion of the

decision alternatives and their environmental impacts are found in

Chapter V of the final PED/EIS.

VI. Preferred Alternative

The Council on Environmental Quality regulations for implementing

the procedural provisions of the National Environmental Policy Act

require an agency preparing an environmental impact statement to

identify its preferred alternative [40 CFR 1502.14(e)]. OSM's preferred

alternative for the Fern Lake unsuitability petition is alternative 1

in the final PED/EIS. This alternative includes the designation of all

parts of the petition area as unsuitable for surface coal mining

operations while allowing the continuation of underground mining from

entries located outside the petition area. A detailed discussion of the

existing environmental resources and the impacts of the preferred

alternative can be found in the final PED/EIS in chapter II and chapter

V, section A, respectively.

VII. Findings

These findings are based upon all the information contained in the

public record of the proceedings on the petition. In accordance with 30

CFR 942.764.13(b)(1)(v), OSM assumed that contemporary mining practices

under the Federal Program for Tennessee would be followed if the area

were to be mined. The petition allegations and my findings with regard

to each allegation and suballegations follow.

A. Allegation No. 1 is that surface coal mining operations will

affect fragile lands in which such operations would result in

significant damage to important scientific or esthetic values or

natural systems. The petitioners supported this allegation with five

suballegations. However, several of these suballegations were

repetitive so the allegations were grouped into four broader

suballegations for the purpose of analysis and are described and

answered as follows:

1. The petitioners allege that Little Yellow Creek is a water body

of high quality in chemical, biological, and ecological terms, both

regionally and specifically within the Yellow Creek watershed. The

petitioners have specifically identified Little Yellow Creek as having

a unique water quality making it a good reference stream for comparison

with other heavily mined watersheds in the region. They also state that

the water quality has resulted in the preservation of sensitive aquatic

species. Data collection showed that the blackside dace species, listed

as an endangered fish species in Tennessee and a Federally listed

threatened species, exists in the petition area; however, no other

sensitive aquatic species were identified. The blackside dace are

susceptible to changes in water chemistry and sedimentation associated

with surface coal mining. The petitioners further stated that the water

quality and aquatic ecosystem act to replenish degraded downstream

reaches of Yellow Creek.

Based on the results of the sedimentation investigations conducted

during the course of the PED/EIS, it was found that the Fern Lake

watershed would be subjected to increased sediment loading as a result

of surface coal mining operations. It has also been determined that a

large portion of this sediment loading would be from uncontrolled

drainage associated with haul roads and would be clay faction colloidal

material which could not easily be retained by standard sediment ponds

without additional water treatment techniques. Any additional

treatment, such as flocculants to remove the colloidal clay material,

could affect water chemistry and affect the blackside dace [PED/

EIS:page IV-3]. As a result, I have determined that potential increase

in sediment loading, in the absence of extraordinary control measures,

would dramatically impact the thriving population of blackside dace in

Little Yellow Creek. [PED/EIS:page V-9].

The PED/EIS determined that the waters in Fern Lake basin are of

higher water quality than many adjacent watersheds. The effects of

mining on the surface-water quality of Little Yellow Creek can already

be seen. Future mining would increase the nutrient levels in the stream

and lake. Specific aquatic toxicity from metals and trace elements is

not projected from mining the watershed. However, local toxicity in

some tributaries is possible. More importantly, the nutrient loading

caused by the mining would change the aquatic ecosystem. Large influxes

of sulfates and other dissolved solids would be expected to affect the

competitiveness of some aquatic species. The lack of toxicity data on

the blackside dace makes predictions difficult, but experience in the

Little Clear Creek watershed suggests that mining and the blackside

dace are not compatible. As a result of the sedimentation and water

quality investigations, I have determined that the sedimentation of

Little Yellow Creek, more so than the changes in water chemistry, would

adversely affect the blackside dace [PED/EIS: page V-9].

The petitioners have also alleged that the high water quality and

diverse aquatic biota of the Fern Lake watershed help to restore the

downstream reaches of Yellow Creek and the Upper Cumberland River basin

which have already had a major impact from surface coal mining

operations. The baseline information in chapter II indicates that

Little Yellow Creek above Fern Lake provides little flow during the dry

months and has been seen to go completely dry in some segments.

Furthermore, the lake discharges water only from the emergency

spillway. During summer and fall when rains become infrequent, the

evaporation and pumpage from the lake exceed the inflows to the lake.

This causes lake water levels to drop below the spillway elevation

eliminating any surface-water discharge to lower stream segments. As a

result, during low flow periods Little Yellow Creek below the Fern Lake

dam flows as a result of dam seepage and ground-water recharge.

Sampling of water below the dam in the summer of 1994 revealed fair

water quality but high total dissolved solids, elevated sulfates, and

some iron. Thus, the data does not support the petitioners' allegation

that the Fern Lake watershed helps replenish the downstream degraded

reaches. While contributions do occur during high flows and spring

runoff events, the contribution during chemically critical

[[Page 49796]]

low flows does not appear to be major. As a result of these studies, I

have determined that the petition area does not significantly

contribute to the restoration of downstream reaches of Yellow Creek.

[PED/EIS: page IV-9]

Associated with the other suballegations, the petitioners contend

that the high water quality in the petition area makes it a biological

refuge for fish and aquatic species. This refuge acts to replenish

degraded downstream reaches. OSM findings show that Little Yellow

Creek, including Davis Branch, supports aquatic resources that are more

diverse than most of the Yellow Creek watershed. Of principle

significance is the diverse fishery which supports a population of the

blackside dace in Davis Branch which is a tributary to lower Little

Yellow Creek. Additionally, the presence of blackside dace in Little

Yellow Creek upstream of Fern Lake also represents an aquatic refuge

for that species. Although Fern Lake is a high quality aquatic

resource, the lake itself is less important as an aquatic refuge in

that it serves as a barrier to downstream translocation of native

species and promotes potentially nuisance aquatic species. As a result

of these findings, I have determined that Fern Lake itself acts as a

barrier to the successful translocation of upstream species in the

petition area to the degraded downstream reaches. However, the high

water quality in the Little Yellow Creek watershed upstream of the Lake

does act as a biological refuge for various species which are

intolerant of water chemistry alterations associated with mining. [PED/

EIS: page IV-11-12]

The petitioners allege that the high water quality and aquatic

systems of the petition area make it a reference stream for comparing

to other impacted watersheds in the area. The PED/EIS determined that,

based on the evidence provided by the petitioners, there is

insufficient rationale to consider Little Yellow Creek suitable as a

reference stream. The findings do verify that Fern Lake and the Little

Yellow Creek tailwaters immediately below Fern Lake are high quality

water bodies. They also find that water chemistry and physical habitat

characterization of Little Yellow Creek upstream of Fern Lake are

indicative of a relatively higher quality than most of Yellow Creek

proper and its major tributaries. However, OSM's analyses of biological

communities in upper Little Yellow Creek indicate moderate reduction in

biological diversity when compared with that in Davis Branch, which is

a protected tributary within the boundaries of the national park.

Additionally, habitat alteration and associated shift in the biological

community as a result of impoundment of Little Yellow Creek limit the

importance of Fern Lake as a reference water body in the Yellow Creek

drainage. The fact that mining has already occurred and is having some

impact on the water quality and aquatic ecosystem further reduces the

viability of the area as a reference stream. Based on these findings, I

have determined that Little Yellow Creek in the petition area would not

meet the criteria needed to be a reference stream and that there are

better streams available in the general area which are less affected by

previous mining and afford higher biological diversity. [PED/EIS: page

IV-12-14]

2. The petition states that surface coal mining operations would

result in visual impacts resulting from the alteration of the land

surfaces associated with mining and reclamation activities. They state

that these visual impacts would be incompatible with the goals of the

Cumberland Gap National Historical Park, which depend on the natural

unspoiled, scenic splendor of the vistas from the Pinnacle and other

overlooks to help convey a sense of the historic and cultural

importance of the Cumberland Gap in American history. They also state

that the deforestation and mining-related activities will alter the

landscape as seen from overlooks, adversely affecting the primitive

experience of park visitors. Because of the regrouping of allegations,

the alleged incompatibility of surface coal mining with the goals of

the Cumberland Gap National Historical Park's Master Plan is addressed

in this document under Allegation No. 3 which concerns local land use

plans.

In response to this allegation, OSM determined that surface coal

mining within the petition area would adversely affect the area as a

landscape resource. Surface mining would affect both the visual quality

and value of the Pinnacle Overlook, and the subjective response of the

visitor. OSM determined that the Fern Lake petition area is not a

pristine viewshed, based on the number of past mining activities both

within and adjacent to the petition area. However, OSM also determined

that much of this older mining is now reclaimed and not readily

visible, giving the current undisturbed appeal. Should surface mining

activity occur in the petition area, the current wooded appearance of

Fern Lake watershed would change following mining, particularly in the

short to medium time frame, decreasing the scenic quality of the view.

However, reclamation to approximate original contour and postmining

revegetation would minimize most of the long-term impacts as it has

with the previous mining in the petition area. Based on this

information, I have determined that there would be an adverse impact on

visual quality associated with the park. However, these types of

impacts, which have been historically occurring within the petition

area, are generally of a short to medium duration and should not cause

any permanent impact to the visual quality of the area. [PED/EIS: page

IV-14-16]

3. The petitioners allege that surface coal mining would

significantly diminish the recreational experience of visitors to

Cumberland Gap National Historical Park. The petitioners support this

by stating that surface coal mining activities would alter the visual

quality of the park which depends on the natural unspoiled, scenic

splendor of the vistas from the Pinnacle and other overlooks to help

convey a sense of the historic and cultural importance of the area in

American history. They state that deforestation and mining-related

disturbances would alter the landscape and adversely affect the

primitive experience of the park visitor. They further allege that the

area of ``recreational value due to high environmental quality'' and

should be considered as fragile lands.

OSM findings support the petitioners' allegation in that surface

coal mining operations would be expected to affect the visual quality

of the Cumberland Gap National Historical Park, thus impacting the

visitor's recreational experience [PED/EIS: page IV-16-17]. OSM also

recognized that Cumberland Gap is a unique feature which provides

special recreational opportunities because of its historical and

cultural background. The Cumberland Gap is a break in the Appalachian

Mountains that allowed westward expansion of the United States to occur

in the late 1700's. The route through the gap also played an important

role for Colonists to move westward prior to the Revolutionary War.

Because of this historical and cultural association with the gap, I

have determined that the area is unique and that similar esthetic

values and recreational opportunities at other public use lands would

not provide an appropriate substitute for those found at the Cumberland

Gap National Historical Park. For these historical and cultural values

of the park, I conclude that its natural visual character is important.

However, for recreationists who are not concerned with historical or

cultural aspects, the Cumberland Gap National Historical Park is not

considered unique, nor would mining be expected to drastically reduce

the recreational

[[Page 49797]]

experience of those who are involved with more conventional use of the

park such as hiking, camping, picnicking, and fishing.

4. The petitioners refer to analyses performed by the Commonwealth

of Kentucky in granting the Lands Unsuitable Petition 87-2 for the

Cannon Creek Lake watershed. Petitioners allege these analyses

demonstrate that impacts from surface coal mining operations ``could

result from the surface disturbances associated with coal mining

activities and discharges of water which have been demonstrated to be

major in terms of both the water supply systems and the natural systems

with the lake.'' Petitioners argue that these impacts would result even

if the operations were conducted in full compliance with all the

environmental protection performance standards of Sections 515 and 516

of SMCRA and the Secretary's regulations. They go on to provide a

summary of the findings made by the Kentucky Division of Surface Mining

Reclamation and Enforcement which showed major sediment loading to

Cannon Creek Lake, which is the public water supply lake for Pineville,

Kentucky.

OSM recognizes the findings and the decision made by the

Commonwealth of Kentucky to designate the watershed to the Cannon Creek

lake as unsuitable for surface coal mining activities. OSM's findings

do acknowledge that there are similarities between the petition areas;

however, OSM also recognizes that each watershed has physical and

ecological differences that need to be considered distinctly from each

other. In conclusion, I have determined that the decision regarding the

Cannon Creek Lake petition area is not precedent setting with regards

to the Fern Lake petition area.

Based upon: (1) The effects of the increase in sedimentation and

water chemistry from mining, including adverse effects on the blackside

dace; (2) the value of Little Yellow Creek as important habitat for the

blackside dace; and (3) the short to medium term adverse impact on the

visual quality of the views from the Cumberland Gap National Historic

Park, I have determined that surface coal mining operations in the

petition area will affect fragile lands resulting in damage to

important estetic values and natural systems.

B. Allegation No. 2 is that surface coal mining operations would

affect land by causing a substantial loss or reduction in the long-

range availability of water supplies.

The petitioners have alleged that surface mining could result in an

increased sediment yield of as much as 2000 times that of baseline

conditions during mining and 10-100 times that of baseline conditions

after reclamation, and that such sedimentation would decrease the

storage capacity and useful life of the lake. OSM's analysis determined

that although some sediment loading would occur as a result of mining

activities, there would not be any major impact to the storage capacity

of Fern Lake nor would it dramatically alter the useful life of the

lake from a water quantity standpoint.

The petitioners alleged that surface mining could also alter the

physical and chemical properties of the water stored in the lake,

resulting in diminution of water quality and potentially increasing

water treatment costs. Based on available information, OSM's findings

support this allegation. Surface coal mining and reclamation operations

conducted within the Fern Lake watershed would significantly impair the

water quality of Fern Lake by altering both the physical and chemical

characteristics of the water. If surface coal mining operations

occurred, chemical changes to the water are predicted to last several

hundred years. [PED/EIS: page V-5]

The PED/EIS concluded that these effects would result in increased

treatment costs to the City of Middlesborough to meet domestic water

supply standards for the water supplied to its users. A sustained

increase in turbidity of Fern Lake waters would require the city's

treatment plant to operate longer hours and/or to modify equipment to

process high turbidity water. The increase in water sediments would

increase costs because it would require more frequent equipment

cleaning and disposal of more sediment. In addition, the plant would

have to add chemicals and/or other processing equipment to reduce the

increased concentrations of metals and trace elements in the water from

Fern Lake such as fluoride, lead, mercury, selenium, and sulfate. The

use of additional chemicals and/or installation of processing equipment

would be necessary to meet domestic water supply standards. The

existing plant was not designed to treat water with elevated levels of

sulfates, sediments, and turbidity. [PED/EIS: page V-11-13]

The significant changes to the water quality of Fern Lake would

require the city to make appropriate changes to the existing water

treatment system to maintain current water quality. These changes are

predicted to be costly to Middlesborough, with no guarantee that the

existing water quality could be maintained. Furthermore, no other

domestic water supply of the same quality was identified which it would

be economically feasible for the city to utilize.

The PED/EIS also concluded that underground mining, from outside

the petition area, would cause a major alteration of the water quality

or treatment costs of water in Fern Lake.

According to the petitioners, surface coal mining operations could

affect aquifers and recharge areas for the watershed, thus affecting

the overall hydrology and water availability to the City of

Middlesborough. The PED/EIS concluded that the Fern Lake watershed is a

renewable resource land and that surface coal mining could result in a

substantial loss and reduction in the long-range availability of water

supplies for the community of Middlesborough. In evaluating the

allegation, I was especially concerned with the predicted impact of

mining in the petition area on the water supply for Middlesborough.

Based on OSM's findings, I have determined that changes in sediment

loading and water chemistry as a result of surface coal mining

operations will affect both aquatic life and drinking water supplies.

For the long term, the resource lands subject to the petition would no

longer produce a water supply that existing facilities and budget could

treat, as discussed above. Therefore, I conclude that surface mining

operations on these lands would substantially reduce the long-range

productivity of the community's water supply.

C. Allegation No. 3 is that surface coal mining operations would be

incompatible with existing local land use plans or programs,

specifically those associated with the Cumberland Gap National

Historical Park.

The Cumberland Gap National Historical Park Master Plan (National

Park Service, 1978) states that ``according to law, the purpose of the

Cumberland Gap National Historical Park is to preserve * * * natural

features for the benefit and inspiration of the people.'' Based on this

objective, the stated goals of the master plan include the securing of

a ``land base through acquisition or other means that is adequate to

preserve the park's natural * * * resources and to provide for visitor

use and enjoyment.''

The petition area is visible from the Pinnacle Overlook, one of the

most popular destinations in the park, and was judged to offer greater

esthetic qualities than any of the other viewsheds visible from the

Overlook. I have concluded that based on the stated overall objective

and purpose of the park, esthetic impacts associated with surface coal

mining operations in the

[[Page 49798]]

petition area would be short to medium term, but would nevertheless be

considered incompatible with the goals of the master plan which are to

preserve the park's natural resources and minimize adverse effects on

these resources and visitation because of strip mining (see previous

discussion on page 7).

D. Allegation No. 4 is that surface coal mining operations should

not be allowed because the watershed, due to frequent flooding,

constitutes a natural hazard land.

The petitioners have alleged that any additional mining would

increase surface water runoff and increase sediment loading and

flooding to downstream areas in the Cumberland Gap National Historical

Park and the City of Middlesborough. They support this by making a

statement that, without any major surface disturbances within the

watershed, there is still evidence of current sediment loading from the

headwaters (identified as logging roads) which are depositing sediment

in the stream channel of Little Yellow Creek.

With regard to Allegation No. 4, OSM's findings in the PED/EIS

demonstrated that mining in the petition area would not substantially

affect the flooding potential in the Yellow Creek basin and that the

Fern Lake watershed does not constitute a natural hazard land. Mining

in the watershed would constitute a minor change in the overall land

use, which, when coupled with the storage capacity of the required

sediment basins, should not significantly alter surface water runoff to

the Little Yellow Creek watershed. As a result, I have determined that

the area does not constitute a natural hazard land and that mining

would not significantly alter the flooding potential of the area.

VIII. Conclusion

I find that surface coal mining operations in the petition area

would affect the renewable resource lands in that area and result in a

substantial loss in long-range productivity of Fern Lake, which serves

as the Middlesborough public water supply. Surface mining would alter

the physical and chemical properties of the water stored in the lake.

Changes in sediment loading and water chemistry could degrade the water

quality of the lake so as to be a major burden on the city's water

treatment plant. Mining in the petition area would cause this loss in

productivity even if conducted in full compliance with the

environmental performance standards of SMCRA.

In addition, I find that surface coal mining operations in the

petition area would affect fragile lands resulting in damage to

important esthetic values and natural systems and would be incompatible

with the goals of the master plan for the Cumberland Gap National

Historical Park. I considered these findings in my decision on the

petition, but the most important consideration was the impact of

surface coal mining operations in the petition area on productivity of

the Fern Lake water supply.

I find that alternative No. 1, designating the entire petition area

as unsuitable for surface coal mining operations but allowing

underground mining from outside the petition area, will best prevent

the harms discussed in this decision. The other designation

alternatives would not effectively address the adverse effects

identified in Section V of the PED/EIS.

IX. Future Action

OSM is responsible for approving or denying applications for

proposed surface coal mining operations in the Fern Lake petition area.

Under this decision, OSM would not receive and process applications for

proposed surface coal mining operations on any coal seam within the

Fern Lake petition area. However, if a petitioner provides information

to terminate this designation, the petition would require new

allegations of fact that would support such a termination.

X. Notification

Pursuant to 30 CFR 942.764.19, this ``Statement of Reasons'' is

being sent simultaneously by certified mail to the petitioners and by

regular mail to every other party to the petition process. My decision

becomes final upon the date of signing this statement. Any appeal from

this decision must be filed within 60 days from this date in the Untied

States District Court for the Eastern District of Tennessee, as

required by Section 526(a)(1) of SMCRA.

Dated: September 13, 1996.

Robert J. Uram,

Director, Office of Surface Mining Reclamation and Enforcement.

[FR Doc. 96-24262 Filed 9-20-96; 8:45 am]

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