Virginia Regulatory Program

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation and Enforcement

30 CFR Part 946

[VA-110-FOR]

Virginia Regulatory Program

AGENCY: Office of Surface Mining Reclamation and Enforcement (OSM),

Interior.

ACTION: Proposed rule; public comment period and opportunity for public

hearing.

-----------------------------------------------------------------------

SUMMARY: OSM is announcing receipt of a proposed amendment to the

Virginia regulatory program (hereinafter referred to as the Virginia

program) under the Surface Mining Control Reclamation Act of 1977

(SMCRA). The proposed amendment changes the Virginia Coal Surface

Mining Control and Reclamation Act to add ``letter of credit'' as an

acceptable form of collateral bond to satisfy the performance bonding

requirements of the Virginia Act. The amendment is intended to revise

the State program to be consistent with the Federal regulations.

DATES: Written comments must be received by 4:00 p.m., on September 24,

1997. If requested, a public hearing on the proposed amendment will be

held on September 19, 1997. Requests to speak at the hearing must be

received by 4:00 p.m., on September 9, 1997.

ADDRESSES: Written comments and requests to speak at the hearing should

be mailed or hand delivered to Mr. Robert A. Penn, Director, Big Stone

Gap Field Office at the first address listed below.

Copies of the Virginia program, the proposed amendment, a listing

of any scheduled public hearings, and all written comments received in

response to this document will be available for public review at the

addresses listed below during normal business hours, Monday through

Friday, excluding holidays. Each requestor may receive one free copy of

the proposed amendment by contacting OSM's Big Stone Gap Field Office.

Office of Surface Mining Reclamation and Enforcement, Big Stone Gap

Field Office, 1941 Neeley Road, Suite 201, Compartment 116, Big Stone

Gap, Virginia 24219, Telephone: (703) 523-4303, or

Virginia Division of Mined Land Reclamation, P.O. Drawer 900, Big Stone

Gap, Virginia 24219, Telephone: (703) 523-8100.

FOR FURTHER INFORMATION CONTACT: Mr. Robert A. Penn, Director, Big

Stone Gap Field Office, Telephone: (703) 523-4303.

SUPPLEMENTARY INFORMATION:

I. Background on the Virginia Program

On December 15, 1981, the Secretary of the Interior conditionally

approved the Virginia program. Background information on the Virginia

program, including the Secretary's findings, the disposition of

comments, and the conditions of approval can be found in the December

15, 1981, Federal Register (46 FR 61085-61115). Subsequent actions

concerning the conditions of approval and program amendments can be

found at 30 CFR 946.12, 946.13, 946.15, and 946.16.

II. Discussion of the Proposed Amendment

By letter dated July 31, 1997 (Administrative Record No. VA-921),

the Virginia Department of Mines, Minerals and Energy (DMME) stated

that the Virginia legislature has amended, effective July 1, 1997, the

Virginia Coal Surface Mining Control and Reclamation Act at Section

45.1-241(c). The amendment adds ``letter of credit'' as an acceptable

form of collateral bond that the DMME may accept to satisfy the

performance bonding requirements of the Virginia Act.

The amended statute specifies qualifying criteria that are intended

to be effectively consistent with the letter of credit criteria

contained in the Federal regulations at 30 CFR 800.21(b). The amendment

also imposes conditions upon a letter of credit that are intended to be

consistent with the Federal regulations at 30 CFR 800.16.

The proposed amendments are as follows:

Section 45.1-241(c) is amended by adding the following language to

the existing language:

The Director may also accept a letter of credit on certain

designated funds issued by a financial institution authorized to do

business in the United States. Each letter of credit can only be

issued up to the amount which can be insured by the FDIC. Any letter

of credit issued by a non-Virginia lending institution shall be

confirmed by an approved Virginia lending institution. The letters

of credit shall be irrevocable, unconditional, shall be payable to

the Department upon demand, and shall afford to the Department

protection equivalent to a corporate surety's bond. The issuer of

the letter of credit shall give prompt notice to the permittee and

the Department of any notice received or action filed alleging the

insolvency or bankruptcy of the issuer, or alleging any violations

of regulatory requirements which could result in suspension or

revocation of the issuer's

[[Page 44925]]

charter or license to do business. In the event the issuer becomes

unable to fulfill its obligations under the letter of credit for any

reason, the issuer shall immediately notify the permittee and the

Department. Upon the incapacity of an issuer by a reason of

bankruptcy, insolvency or suspension or revocation of its charter or

license, the permittee shall be deemed to be without proper

performance bond coverage and shall promptly notify the Department,

and the Department shall then issue a notice to the permittee

specifying a reasonable period, which shall not exceed ninety days,

to replace the bond coverage. If an adequate bond is not posted by

the end of the period allowed, the permittee shall cease coal

extraction and coal processing operations and shall immediately

begin to conduct reclamation operations in accordance with the

reclamation plan. Coal extraction and coal processing operations

shall not resume until the Department has determined that an

acceptable bond has been posted. If an acceptable bond has not been

posted by the end of the period allowed, the Department may suspend

the permit until acceptable bond is posted. The letter of credit

shall be provided on the form and format established by the

Director. Nothing herein shall relieve the permittee of

responsibility under the permit or the issuer of liability on the

letter of credit.

III. Public Comment Procedures

In accordance with the provisions of 30 CFR 732.17(h), OSM is now

seeking comment on whether the amendments proposed by Virginia satisfy

the applicable program approval criteria of 30 CFR 732.15. If the

amendments are deemed adequate, they will become part of the Virginia

program.

Written Comments

Written comments should be specific, pertain only to the issues

proposed in this rulemaking, and include explanations in support of the

commenter's recommendations. Comments received after the time indicated

under DATES or at locations other than the Big Stone Gap Field Office

will not necessarily be considered in the final rulemaking or included

in the Administrative Record.

Public Hearing

Persons wishing to comment at the public hearing should contact the

person listed under FOR FURTHER INFORMATION CONTACT by close of

business on September 9, 1997. If no one requests an opportunity to

comment at a public hearing, the hearing will not be held.

Filing of a written statement at the time of the hearing is

requested as it will greatly assist the transcriber. Submission of

written statements in advance of the hearing will allow OSM officials

to prepare adequate responses and appropriate questions.

The public hearing will continue on the specified date until all

persons scheduled to comment have been heard. Persons in the audience

who have not been scheduled to comment, and who wish to do so, will be

heard following those scheduled. The hearing will end after all persons

scheduled to comment and persons present in the audience who wish to

comment have been heard.

Public Meeting

If only one person requests an opportunity to comment at a hearing,

a public meeting, rather than a public hearing, may be held. Persons

wishing to meet with OSM representatives to discuss the proposed

amendments may request a meeting at the Big Stone Gap Field Office by

contacting the person listed under FOR FURTHER INFORMATION CONTACT. All

such meetings will be open to the public and, if possible, notices of

meetings will be posted in advance at the locations listed under

ADDRESSES. A written summary of each public meeting will be made part

of the Administrative Record.

Any disabled individual who has need for a special accommodation to

attend a public hearing should contact the individual listed under FOR

FURTHER INFORMATION CONTACT.

IV. Procedural Determinations

Executive Order 12866

This rule is exempted from review by the Office of Management and

Budget (OMB) under Executive Order 12866 (Regulatory Planning and

Review).

Executive Order 12988

The Department of the Interior has conducted the reviews required

by section 3 of Executive Order 12988 (Civil Justice Reform) and has

determined that, to the extent allowed by law, this rule meets the

applicable standards of subsection (a) and (b) of that section.

However, these standards are not applicable to the actual language of

State regulatory programs and program amendments since each such

program is drafted and promulgated by a specific State, not by OSM.

Under sections 503 and 505 of SMCRA (30 U.S.C. 1253 and 1255) and 30

CFR 730.11, 732.15 and 732.17(h)(10), decisions on proposed State

regulatory programs and program amendments submitted by the States must

be based solely on a determination of whether the submittal is

consistent with SMCRA and its implementing Federal regulations and

whether the other requirements of 30 CFR Parts 730, 731, and 732 have

been met.

National Environmental Policy Act

No environmental impact statement is required for this rule since

section 702(d) of SMCRA [30 U.S.C. 1292(d)] provides that agency

decisions on proposed State regulatory program provisions do not

constitute major Federal actions within the meaning of section

102(2)(C) of the National Environmental Policy Act (42 U.S.C.

4332(2)(C)).

Paperwork Reduction Act

This rules does not contain information collection requirements

that require approval by OMB under the Paperwork Reduction Act (44

U.S.C. 3507 et. seq.).

Regulatory Flexibility Act

The Department of the Interior has determined that this rule will

not have a significant economic impact on a substantial number of small

entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

The State submittal which is the subject of this rule is based upon

counterpart Federal regulations for which an economic analysis was

prepared and certification made that such regulations would not have a

significant economic effect upon a substantial number of small

entities. Accordingly, this rule will ensure that existing requirements

previously promulgated by OSM will be implemented by the State. In

making the determination as to whether this rule would have a

significant economic impact, the Department relied upon the data and

assumptions for the counterpart Federal regulations.

Unfunded Mandates

This rule will not impose a cost of $100 million or more in any

given year on any governmental entity or the private sector.

List of Subjects in 30 CFR Part 946

Intergovernmental relations, Surface mining, Underground mining.

Dated: August 8, 1997.

Allen D. Klein,

Regional Director, Appalachian Regional Coordinating Center.

[FR Doc. 97-22415 Filed 8-22-97; 8:45 am]

BILLING CODE 4310-05-M