Indiana Regulatory Program

DEPARTMENT OF THE INTERIOR

30 CFR Part 914

[SPAT No. IN-134-FOR; Amendment No. 95-12]

Indiana Regulatory Program

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

Interior.

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

hearing.

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

Indiana regulatory program (hereinafter the ``Indiana program'') under

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

proposed amendment consists of revisions to the Indiana Surface Coal

Mining and Reclamation Act (ISMCRA) as enacted by the Indiana General

Assembly (1995) in Senate Enrolled Act 125 (SEA 125). The proposed

amendment concerns the submittal of affected area status reports and

performance bonding. The amendment is intended to revise the Indiana

program to be consistent with SMCRA and to incorporate State

initiatives.

DATES: Written comments must be received by 4:00 p.m., e.s.t., February

21, 1996. If requested, a public hearing on the proposed amendment will

be held on February 13, 1996. Requests to speak at the hearing must be

received by 4:00 p.m., e.s.t., on February 6, 1996.

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

be mailed or hand delivered to Mr. Roger W. Calhoun, Director,

Indianapolis Field Office, at the address listed below.

Copies of the Indiana 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 requester may receive one free copy of

the proposed amendment by contacting OSM's Indianapolis Field Office.

na 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 requester may receive one free copy of

the proposed amendment by contacting OSM's Indianapolis Field Office.

Roger W. Calhoun, Director, Indianapolis Field Office, Office of

Surface Mining Reclamation and Enforcement, Minton-Capehart Federal

Building, Room 301, Indianapolis, Indiana 46204, Telephone: (317) 226-

6700.

Indiana Department of Natural Resources, 402 West Washington Street,

Room C256, Indianapolis, Indiana 46204, Telephone: (317) 232-1547.

FOR FURTHER INFORMATION CONTACT:

Roger W. Calhoun, Director, Indianapolis Field Office, Telephone: (317)

226-6700.

SUPPLEMENTARY INFORMATION:

I. Background on the Indiana Program

On July 29, 1982, the Secretary of the Interior conditionally

approved the Indiana program. Background information on the Indiana

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

comments, and the conditions of approval can be found in the July 26,

1982, Federal Register (47 FR 32107). Subsequent actions concerning the

conditions of approval and program amendments can be found at 30 CFR

914.10, 914.15, and 914.16.

II. Description of the Proposed Amendment

By letter dated September 11, 1995 (Administrative Record No. IND-

1510), Indiana submitted a proposed amendment to its program pursuant

to SMCRA. Indiana submitted the proposed amendment at its own

initiative. SEA 125 amends ISMCRA by adding new sections and revising

existing sections, concerning affected area status reports and

performance bonding, to recodified Indiana Code (IC) 14-8 and 14-34.

The recodification of the current provisions of ISMCRA is proposed in

Indiana's Regulatory Program Amendment No. 95-10, and it

nt

to SMCRA. Indiana submitted the proposed amendment at its own

initiative. SEA 125 amends ISMCRA by adding new sections and revising

existing sections, concerning affected area status reports and

performance bonding, to recodified Indiana Code (IC) 14-8 and 14-34.

The recodification of the current provisions of ISMCRA is proposed in

Indiana's Regulatory Program Amendment No. 95-10, and it

will be discussed in a separate proposed rule.

A. Indiana Proposes to Add the Following Four Definitions at Recodified

IC 14-8 [previously IC 13-4.1-1-3]

1. IC 14-8-2-42.5 Definition of Collateral

``Collateral'', for purposes of IC 14-34-7, has the meaning set

forth in IC 14-34-7-0.5.

2. IC 14-8-2-49.5 Definition of Comparative Balance Sheet

``Comparative balance sheet'', for purposes of IC 14-34-7, has

the meaning set forth in IC 14-34-7-0.6.

3. IC 14-8-2-49.6 Definition of Comparative Income Statement

``Comparative income statement'', for purposes of IC 14-34-7,

has the meaning set forth in IC 14-34-7-0.7.

4. IC 14-8-2-274.5 Definition of Surface Mining Control and

Reclamation Act

``Surface Mining Control and Reclamation Act'', for purposes of

IC 14-34-7, has the meaning set forth in IC 14-34-7-2.5.

B. IC 14-34-5-10 Affected Area Status Reports

Indiana proposes to amend recodified IC 14-34-5-10 [previously IC

13-4.1-5-7] to read as follows.

A permittee must submit to the department an annual report that

reflects the status of the permittee's mining and reclamation

activities for each permit. The form, content, and date of filing of

the report required by this section shall be prescribed by rule

adopted under IC 4-22-2.

C. Indiana Proposes to Add the Following New Sections Pertaining to

General Requirements of Performance Bonding at Recodified IC 14-34-6

[Previously IC 13-4.1-6]

report that

reflects the status of the permittee's mining and reclamation

activities for each permit. The form, content, and date of filing of

the report required by this section shall be prescribed by rule

adopted under IC 4-22-2.

C. Indiana Proposes to Add the Following New Sections Pertaining to

General Requirements of Performance Bonding at Recodified IC 14-34-6

[Previously IC 13-4.1-6]

1. IC 14-34-6-14.3

The director may release the bond, deposit, or letter of credit

covering an area that has not been disturbed by surface coal mining

activities. A release under this subsection is not subject to the

public notice and hearing requirements set forth in sections 7

through 14 of this chapter.

2. IC 14-34-6-14.6

(a) This section applies when an applicant or permittee submits

a bond, deposit, or letter of credit covering an area that: (1) has

been disturbed by surface coal mining activities; and (2) is covered

by another bond, deposit, or letter of credit previously submitted

by another permittee.

(b) Except as provided in subsection (c), in a situation

described in subsection (a): (1) The bond, deposit, or letter of

credit previously submitted shall be released when the director

accepts the bond deposit or letter of credit submitted by the

applicant or permittee; and (2) the bond, deposit, or letter of

credit submitted by the applicant or permittee: (A) is subject to

the standards set forth in sections 7 through 14 of this chapter;

and (B) may not be released under section 14.3 of this chapter.

perfected, first-lien security interest in favor of the

department of natural resources in real property located in Indiana

that meets the requirements of this chapter.

(2) Securities backed by the full faith and credit of the United

States government, or state government securities, that are: (A)

acceptable to; (B) endorsed to the order of; and (C) placed in the

possession of; the director.

(3) Personal property that is located in Indiana and owned by

the applicant, the market value of which is more than one million

dollars ($1,000,000) per property unit.

2. IC 14-34-7-0.6 Definition of Comparative Balance Sheet

As used in this chapter, ``comparative balance sheet'' means

item accounts from a number of the operator's successive yearly

balance sheets arranged side by side in a single statement.

3. IC 14-34-7-0.7 Definition of Comparative Income Statement

As used in this chapter, ``comparative income statement'' means

an operator's income statement amounts for a number of successive

yearly periods arranged side by side in a single statement.

4. IC 14-34-7-2.5 Definition of Surface Mining Control and Reclamation

Act

As used in this chapter, ``Surface Mining Control and

Reclamation Act'' means the federal Surface Mining Control and

Reclamation Act of 1977 (30 U.S.C. 1201 through 1328).

E. IC 14-34-7-1 Definition of Liabilities

Indiana proposes to amend recodified IC 14-34-7-1 [previously IC

13-4.1-6.3-5] by adding the following exclusion statement to the end of

the definition.

The term does not include amounts that are required to be

recorded for financial accounting purposes under Statement of

Financial Accounting Standards number 106 issued by the Financial

Accounting Standards Board and effective December 1990.

F. Indiana Proposes To Amend Recodified IC 14-34-7-4 [Previously IC 13-

4.1-6.3-2, 3, 4, and 8] by Revising Existing Subsections as Follows

1. IC 14-34-7-4(b) [Was IC 13-4.1-6.3-3] Definition of Current

Liabilities

orded for financial accounting purposes under Statement of

Financial Accounting Standards number 106 issued by the Financial

Accounting Standards Board and effective December 1990.

F. Indiana Proposes To Amend Recodified IC 14-34-7-4 [Previously IC 13-

4.1-6.3-2, 3, 4, and 8] by Revising Existing Subsections as Follows

1. IC 14-34-7-4(b) [Was IC 13-4.1-6.3-3] Definition of Current

Liabilities

(b) As used in this section, ``current liabilities'' means: (1)

obligations that are reasonably expected to be paid or liquidated

within one (1) year or within the normal operating cycle of the

business; plus (2) dividends payable on preferred stock within: (A)

one (1) quarter, if declared; or (B) one (1) year, if a pattern of

declaring dividends each quarter is apparent from past business

practice.

2. IC 14-34-7-4(d) [Was IC 13-4.1-6.3-8] Conditions For Self-Bonding

a. At subsection (d), the language ``Subject to subsection (f)''

was added at the beginning of the introductory sentence and the

language ``at the time the self-bond is accepted'' was added at the end

of this sentence.

b. New paragraphs (3) through (6) were added to IC 14-34-7-4(d) to

read as follows:

(3) The applicant is not subject to any outstanding cessation

order issued under IC 13-4.1-11-5 (before its repeal), IC 14-34-15-

6, or the Surface Mining Control and Reclamation Act.

(4) The applicant does not owe any civil penalties under IC 13-

4.1-12 (before its repeal), IC 14-34-16, or the Surface Mining

Control and Reclamation Act.

(5) The applicant does not owe any fees under this article, IC

13-4.1 (before its repeal), or the Surface Mining Control and

Reclamation Act, and is not delinquent in the payment of any fees or

civil penalties.

ontrol and Reclamation Act.

(4) The applicant does not owe any civil penalties under IC 13-

4.1-12 (before its repeal), IC 14-34-16, or the Surface Mining

Control and Reclamation Act.

(5) The applicant does not owe any fees under this article, IC

13-4.1 (before its repeal), or the Surface Mining Control and

Reclamation Act, and is not delinquent in the payment of any fees or

civil penalties.

(6) The applicant's permit has never been suspended under this

article or IC 13-4.1 (before its repeal), and the applicant is not

listed on the Applicant Violator System (AVS).

c. IC 14-34-7-4(d)(7). Existing IC 13-4.1-6.3-8(3) was redesignated

as IC 14-34-7-4(d)(7) and the introductory sentence was revised by

changing the work ``show'' to ``demonstrate,'' by changing the word

``meets'' to ``satisfies,'' and by adding the phrase ``at least''

before the word ``one.'' The following subparagraphs were also revised.

The following additional requirement was added at IC 14-34-7-

4(d)(7)(A).

The applicant must identify the rating service used by the

applicant and provide any additional relevant information concerning

how the serve arrived at the specific ratings.

The following additional requirement was added at IC 14-34-7-

4(d)(7)(B).

The ratio requirements set forth in this clause must be met for

the year immediately preceding the application, and must be

documented for the four (4) years preceding the application. An

explanation shall be included for any year in which the ratios of

the applicant did not meet the requirements set forth in this

clause. The failure of an applicant to meet the ratio requirements

set forth in this clause for any of the four (4) years preceding the

application does not necessarily disqualify an applicant for self-

bonding under this chapter.

The following additional requirement was added at IC 14-34-7-

4(d)(7)(C).

year in which the ratios of

the applicant did not meet the requirements set forth in this

clause. The failure of an applicant to meet the ratio requirements

set forth in this clause for any of the four (4) years preceding the

application does not necessarily disqualify an applicant for self-

bonding under this chapter.

The following additional requirement was added at IC 14-34-7-

4(d)(7)(C).

The ratio requirements set forth in this clause must be met for

the applicant's fiscal year immediately preceding the application,

and must be documented for the four (4) years preceding the

application. An explanation shall be included for any year in which

the rations of the applicant did not meet the requirements set forth

in this clause. The failure of an applicant to meet the ration

requirements set forth in this clause for any of the four (4) years

preceding the application does not necessarily disqualify an

applicant for self-bonding under this chapter.

d. IC 14-34-7-4(d)(8). Existing IC 13-4.1-6.3-8(4) was redesignated

as IC 14-34-7-4(d)(8). New subparagraphs (C) and (D) were added and

existing subparagraph (C) was redesignated (E). New subparagraphs (C)

and (D) read as follows.

(C) Comparative financial data from a five (5) year period, that

must include a comparative income statement and a comparative

balance sheet.

(D) A statement listing: (i) every lien filed against any assets

of the applicant in any jurisdiction in the United States for an

amount that is more than two percent (2%) of the applicant's net

worth; (ii) every action pending against the applicant; (iii) every

judgment rendered against the applicant within the seven (7) years

preceding the application that remains unsatisfied and for an amount

that is more than two percent (2%) of the applicant's net worth; and

pplicant in any jurisdiction in the United States for an

amount that is more than two percent (2%) of the applicant's net

worth; (ii) every action pending against the applicant; (iii) every

judgment rendered against the applicant within the seven (7) years

preceding the application that remains unsatisfied and for an amount

that is more than two percent (2%) of the applicant's net worth; and

(iv) any petitions or actions in bankruptcy against the applicant,

including actions for reorganization.

3. IC 14-34-7-4(e), (f), and (g). Additional requirements for self-

bonding were added at new subsections (e), (f), and (g).

(e) If an applicant submits financial information to demonstrate

that the applicant satisfies the criteria set forth in subsection

(d)(7)(B) or (d)(7)(C), the two (2) ratios set forth in subsection

(d)(7)(B) or (d)(7)(C) shall be calculated with the proposed self-

bond amount included in the current liabilities or total liabilities

for the year of the application. The operator may deduct from the

total liabilities the costs currently accrued for reclamation that

appear on the balance sheet current in the year of the application.

(f) Notwithstanding subsection (d)(7), the director may not

accept a self-bond from an applicant unless the financial ratios of

the applicant are at least as favorable as those listed for the

medium performers in the Dun and Bradstreet listing of Industry

Norms and Key Business Ratios.

(g) Each lien, action, and petition listed under subsection

(d)(8)(E) must be identified by the named parties, the jurisdiction

in which the matter was filed, the case number, and the final

disposition or the current status of any action still pending.

G. IC 14-34-7-4.1 Replacement of Self-Bonds

Indiana proposes to add the following new requirements for

replacement of self-bonds at IC 14-34-7-4.1

ch lien, action, and petition listed under subsection

(d)(8)(E) must be identified by the named parties, the jurisdiction

in which the matter was filed, the case number, and the final

disposition or the current status of any action still pending.

G. IC 14-34-7-4.1 Replacement of Self-Bonds

Indiana proposes to add the following new requirements for

replacement of self-bonds at IC 14-34-7-4.1

(a) Before January 1, 1996, all self-bonds in effect on July 1,

1995, must be replaced in one (1) of the following ways: (1) The

self-bond may be replaced by another form of bond allowed under IC

13-4.1-6. (2) The self-bonded permittee may reapply for self-bonding

under this chapter.

(b) If the application of a permittee submitted under subsection

(a)(2) is not accepted, the permittee must replace its self-bond

with another form of bond allowed under IC 14-34-6.

H. IC 14-34-7-5 Corporate Guarantee

Indiana proposes to amend recodified IC 14-34-7-5 [previously IC

13-4.1-6.3-9] as follows.

1. New subsection (a) is added.

(a) A written guarantee accepted under this section is referred

to as a ``corporate guarantee''.

2. Existing subsection (a) is redesignated as subsection (b), and

the language ``at the time the self-bond is accepted'' is added after

the word ``if.'' Also, subsection (b)(2) is revised by changing the

word ``meets'' to ``satisfies,'' and replacing the reference to section

4(d)(4) with a reference to section 4(d)(8).

3. Existing subsection (b) is redesignated as subsection (c).

Subsection (c)(1) is revised by adding the language ``complete the

reclamation plan'' after the first reference to ``the guarantor

shall.'' Subsection (c)(3) is revised by replacing the language ``The

cancellation'' with the language ``A notice of cancellation of a

corporate guarantee.'' Also at subsection (c)(3)(A), Indiana is

requiring that for a replacement bond to be suitable, it must be

allowed under IC 13-4.1-6 (before its repeal) or IC 14-34-6.

I. IC 14-34-7-7 Indemnity Agreement Conditions

nce to ``the guarantor

shall.'' Subsection (c)(3) is revised by replacing the language ``The

cancellation'' with the language ``A notice of cancellation of a

corporate guarantee.'' Also at subsection (c)(3)(A), Indiana is

requiring that for a replacement bond to be suitable, it must be

allowed under IC 13-4.1-6 (before its repeal) or IC 14-34-6.

I. IC 14-34-7-7 Indemnity Agreement Conditions

Indiana proposes to amend recodified IC 14-34-7-7 [previously IC

13-4.1-6.3-11] as follows.

1. The introductory sentence is revised by removing the language

``subject to the following'' and adding the requirement that the

indemnity agreement be submitted to the director. A second sentence

requiring the indemnity agreement to meet the following requirements is

added.

2. A new subsection IC 14-34-7-7(1) is added as follows.

(1) The indemnity agreement must provide in express terms that

the persons or parties bound by the agreement are liable to the

director for all costs incurred by the director: (A) in pursuing

forfeiture of any self-bonds posted by the permittee for whom the

indemnity agreement was submitted; and (B) in reclaiming those areas

at which the permittee for whom the indemnity agreement was

submitted retains excess monetary liability to the director under IC

14-34-6-16(c).

3. Existing subsections IC 14-34-7-7(1), (2), and (3) are

redesignated IC 14-34-7-7(2), (3), and (4), respectively, with only

minor language changes made to clarify the existing provisions.

4. Existing subsection IC 14-34-7-7(4) is redesignated IC 14-34-7-

7(5), and the language ``in default'' is removed and replaced with the

language ``as to which a bond has been forfeited for failure to

reclaim.''

5. A new subsection IC 14-34-7-7(6) is added as follows.

(6) All bonds and guarantees must be indemnified corporately and

personally by all principals.

J. IC 14-34-7-7.1 Use of Collateral to Support a Self-Bond

Indiana proposes to add the following new section at IC 14-34-7-

7.1.

'' is removed and replaced with the

language ``as to which a bond has been forfeited for failure to

reclaim.''

5. A new subsection IC 14-34-7-7(6) is added as follows.

(6) All bonds and guarantees must be indemnified corporately and

personally by all principals.

J. IC 14-34-7-7.1 Use of Collateral to Support a Self-Bond

Indiana proposes to add the following new section at IC 14-34-7-

7.1.

(a) If an application for self-bonding is rejected based on the

information required by section 4 of this chapter or limitations set

forth in section 4 of this chapter, the applicant may offer

collateral (as defined in section 0.5 of this chapter) and an

indemnity agreement to support the applicant's self-bond

application. An indemnity agreement offered under this subsection is

subject to the requirements of section 7 of this chapter.

(b) The following information must be provided about collateral

offered under subsection (a) to support a self-bond: (1) The value

of the property. The property must be valued at the difference

between the fair market value of the property and reasonable

expenses the department anticipates incurring in selling the

property. The fair market value must be determined by an appraiser

proposed by the applicant. The director may reject an appraiser

proposed by the applicant. An appraisal of property must

be performed expeditiously and a copy of the appraisal must be

furnished to the director and the applicant. The applicant must pay

the cost of the appraisal. (2) A description of the property,

indicating that the property is satisfactory for deposit under this

section, and a statement of: (A) all liens, encumbrances, or adverse

judgments imposed on the property; and (B) any pending litigation

relating to the property.

(c) The director has full discretion in accepting collateral

offered under subsection (a) to support a self-bond.

f the appraisal. (2) A description of the property,

indicating that the property is satisfactory for deposit under this

section, and a statement of: (A) all liens, encumbrances, or adverse

judgments imposed on the property; and (B) any pending litigation

relating to the property.

(c) The director has full discretion in accepting collateral

offered under subsection (a) to support a self-bond.

(d) Real property offered as collateral under subsection (a) may

not include lands that are in the process of being mined or

reclaimed or lands that are the subject of an application under this

chapter. The operator may offer land that was formerly subject to a

bond if the bond has been released.

(e) Securities offered as collateral under subsection (a) may

include only securities that meet the definition of collateral set

forth in section 0.5 of this chapter.

(f) Personal property offered as collateral under subsection (a)

must be in the possession of the operator, must be unencumbered, and

may not include the following: (1) Property that is already being

used as collateral. (2) Goods that the operator sells in the

ordinary course of business (3) Fixtures. (4) Certificates of

deposit that are not federally insured or that are issued by a

depository that is unacceptable to the director.

(g) Evidence of ownership of property offered as collateral

under subsection (a) must be submitted in one(1) of the following

forms: (1) If the property offered is real property, the interest of

the applicant must be evidenced by a title certificate or similar

evidence of title and encumbrance prepared by an abstract office

that is: (A) authorized to transact business in Indiana; and (B)

satisfactory to the director. (2) If the property offered is a

security, the operator's interest must be evidenced by possession of

the original or a notarized copy of the certificate or a certified

statement of account from a brokerage house

ertificate or similar

evidence of title and encumbrance prepared by an abstract office

that is: (A) authorized to transact business in Indiana; and (B)

satisfactory to the director. (2) If the property offered is a

security, the operator's interest must be evidenced by possession of

the original or a notarized copy of the certificate or a certified

statement of account from a brokerage house. (3) If the property

offered is personal property, evidence of ownership must be

submitted in a form that: (A) is satisfactory to the director; and

(B) affirmatively establishes unencumbered title to the property of

the operator.

(h) An applicant that offers personal property as collateral

under subsection (a), in addition to submitting the evidence

required by subsection (g), must satisfy the financial requirements

set forth in section 4(d)(7)(B) and 4(d)(7)(C) of this chapter.

(i) If the director accepts personal property from an applicant

as collateral under subsection (a), the director shall require the

following: (1) Quarterly and annual maintenance reports prepared by

the applicant. (2) A perfected, first lien security interest in the

property in favor of the department of natural resources. The

security interest must be perfected through: (A) the filing of a

financing statement; or (B) surrender of possession of the

collateral to the department under subsection (k).

(j) If the director accepts personal property from an applicant

as collateral under subsection (a), the director may require

quarterly or annual inspections of the personal property by a

qualified representative of the department.

(k) If the director accepts personal property form an applicant

as collateral under subsection (a), the director shall, as

applicable, require: (1) possession by the department of the

personal property; or (2) a mortgage or security agreement executed

by the applicant in favor of the department.

y or annual inspections of the personal property by a

qualified representative of the department.

(k) If the director accepts personal property form an applicant

as collateral under subsection (a), the director shall, as

applicable, require: (1) possession by the department of the

personal property; or (2) a mortgage or security agreement executed

by the applicant in favor of the department.

(l) The property interest conveyed under subsection (k) vests in

the department to secure the right and power to sell or otherwise

dispose of the property by public or private proceedings so as to

ensure reclamation of the affected lands in accordance with the

reclamation plan.

(m) A mortgage executed under subsection (k)(2) must be executed

and recorded so as to be first in time and constitute notice of the

interest of the department in the property to any prospective

subsequent purchaser of the property.

(n) Any income received from the collateral during the period

when the collateral is in the possession of the department shall be

remitted to the applicant.

(o) If collateral is left in the possession of the applicant,

the security agreement executed under subsection (k)(2) must require

that, upon default, the applicant shall assemble the collateral and

make it available to the department at a place designated by the

department that is reasonably convenient to both parties. All costs

of transporting and assembling the collateral shall be borne by the

applicant.

l is left in the possession of the applicant,

the security agreement executed under subsection (k)(2) must require

that, upon default, the applicant shall assemble the collateral and

make it available to the department at a place designated by the

department that is reasonably convenient to both parties. All costs

of transporting and assembling the collateral shall be borne by the

applicant.

(p) With the consent of the director, an applicant may

substitute other property for any property accepted and held as

collateral under this section. Property may be substituted under

this subsection only if: (1) all the information required concerning

property originally submitted as collateral is provided concerning

the proposed substitute collateral; and (2) all requirements of this

section are met with respect to the proposed substitute collateral

so that all obligations relating to mining operations are secured

under all period of time.

(q) If collateral is posted under subsection (a) to support a

self-bond, the applicant shall: (1) notify all persons that have an

interest in the collateral of the posting of the collateral and of

all other actions affecting the collateral; and (2) provide copies

of the notices provided under subdivision (1) to the director.

K. IC 14-34-7-8 Information Requirements for Self-Bonding

Indiana proposes to revise recodified IC 14-34-7-8 [previously IC

13-4.11-6.3-12] as follows.

The director shall require self-bonded applicants and corporate

guarantors to submit: (1) an update of the information required

under section 4(d)(7), 4(d)(8), and 4(f) of this chapter within

ninety (90) days after the close of each fiscal year; and (2)

information required under section 4(d)(8)(B) of this chapter on a

quarterly basis not later than sixty (60) days after the end of each

quarter; following the issuance of the self-bond or corporate

guarantee.

L. IC 14-34-7-9 Requirements for a Change in Financial Conditions

section 4(d)(7), 4(d)(8), and 4(f) of this chapter within

ninety (90) days after the close of each fiscal year; and (2)

information required under section 4(d)(8)(B) of this chapter on a

quarterly basis not later than sixty (60) days after the end of each

quarter; following the issuance of the self-bond or corporate

guarantee.

L. IC 14-34-7-9 Requirements for a Change in Financial Conditions

Indiana proposes to revise recodified IC 14-34-7-9 [previously IC

13-4.1-6.3-13] by changing the referenced section 4(d)(3) to sections

4(d)(7) and (4)(f) and by replacing the word ``not'' with the words

``no longer.''

M. IC 14-34-7-10 Self-Bonding Report Requirements

Indiana proposes to add the following new section at IC 14-34-7-10.

(a) An applicant shall submit, in addition to the financial

information required under section 4 of this chapter, a report

prepared by a qualified independent public accounting consultants

selected from a list of public accounting consultants approved by

the director. The director shall consider the information in the

report when deciding whether to accept the self-bond of an

applicant.

(b) The director may also require reports described in

subsection (a) after the director accepts the applicant's self-bond,

but not more than one (1) time every three (3) years while the self-

bond is posted, except as provided in subsection (d).

(c) A consultant who prepares a report under this section must:

ation in the

report when deciding whether to accept the self-bond of an

applicant.

(b) The director may also require reports described in

subsection (a) after the director accepts the applicant's self-bond,

but not more than one (1) time every three (3) years while the self-

bond is posted, except as provided in subsection (d).

(c) A consultant who prepares a report under this section must:

(1) verify that the financial information required under section 4of

this chapter was prepared in accordance with generally accepted

accounting principles; (2) verify that the accounting principles

referred to in subdivision (1) were applied consistently for each

year of the period for which the information is submitted; (3) state

the amount of, and reason for, any restatement of the financial

information referred to in subdivision (1) that is necessary to meet

the requirements of subdivision (2); and (4) state whether any

information reviewed during the preparation of the report would lead

the consultant to conclude that the applicant would not meet the

requirements of section 4 of this chapter at the end of each of the

three (3) fiscal years ending after the calendar month in which the

report is completed.

(d) If the consultant who prepares a report under this section

is unable to provide the information required by subsection (c)(4),

the applicant for whom the report is prepared shall submit an

updated report annually.

(e) An applicant shall submit a report required under this

section not later than ninety (90) days after the director notifies

the applicant or permittee that the report is required.

(f) If an applicant fails to submit a report required under

subsection (a), the director shall refuse to accept the self-bond of

the applicant until the applicant files the report.

t an

updated report annually.

(e) An applicant shall submit a report required under this

section not later than ninety (90) days after the director notifies

the applicant or permittee that the report is required.

(f) If an applicant fails to submit a report required under

subsection (a), the director shall refuse to accept the self-bond of

the applicant until the applicant files the report.

(g) If a permittee who has posted a self-bond under this chapter

fails to submit a report required under subsection (b), the director

may require the permittee to post an alternate form of bond not

later than ninety (90) days after the deadline for the submission of

the report.

N. IC 14-34-7-11 Self-Bond Coverage Requirements

Indiana proposes to add the following new section at IC 14-34-7-11.

(a) The director may not accept an applicant's self-bond under

this chapter in an increment unless, when the self-bond is initially

approved under this chapter, the total area of the increment is one

hundred percent (100%) self-bonded.

(b) When a self-bond is initially accepted from a permit

applicant under this chapter, the self-bond may cover areas subject

to the permit on which, as of July 1, 1995, grading has been

deferred.

(c) After a self-bond is accepted under this chapter: (1)

coverage under the self-bond continues on any areas subject to a

grading deferral that is in existence on July 1, 1995, if the

grading deferral is subsequently extended beyond its original term;

but (2) an area subject to the permit as to which a grading deferral

is granted after July 1, 1995, may not be covered by self-bonding.

(d) An area described in subsection (c)(2): (1) must be covered

by another form of bond allowed under IC 14-34-6; and (2) may not be

covered by the surface coal mine reclamation bond pool established

by IC 14-34-8.

O. IC 14-34-7-12 Self-Bond Phase I Grading Release Requirements

Indiana proposes to add the following new section at IC 14-34-7-12.

y 1, 1995, may not be covered by self-bonding.

(d) An area described in subsection (c)(2): (1) must be covered

by another form of bond allowed under IC 14-34-6; and (2) may not be

covered by the surface coal mine reclamation bond pool established

by IC 14-34-8.

O. IC 14-34-7-12 Self-Bond Phase I Grading Release Requirements

Indiana proposes to add the following new section at IC 14-34-7-12.

(a) If a permittee who posted a self-bond under this chapter

does not file an application for a Phase I grading release with the

department before the second November 1 after the year in which the

coal was removed from the site covered by the self-bond, the

permittee shall replace the self-bond with an alternate form of bond

within ninety (90) days of the November 1 deadline established under

this subsection.

(b) If: (1) a permittee who posted a self-bond under this

chapter files an application for a Phase I grading release with the

department before the second November 1 after the year in which the

coal was removed from the site covered by the self-bond; but (2) the

application is rejected by the department; the permittee replace the

self-bond with an alternate form of bond not later than ninety (90)

days after the denial of the application for a Phase I grading

release becomes a final order of the department.

(d) All acreage and structures that are within a permitted area

and are used to facilitate active mining and reclamation operations

are exempt from subsection (c). Areas described in this subsection

include, but are not limited to, the following: (1) Processing

sites. (2) Tipples. (3) Railroad sidings. (4) Buildings. (5) Haul

roads. (6) Topsoil stockpiles. (7) Sediment ponds.

(e) For the purposes of subsection (d), the director shall

determine what areas are used to facilitate active mining and

reclamation operations.

s

are exempt from subsection (c). Areas described in this subsection

include, but are not limited to, the following: (1) Processing

sites. (2) Tipples. (3) Railroad sidings. (4) Buildings. (5) Haul

roads. (6) Topsoil stockpiles. (7) Sediment ponds.

(e) For the purposes of subsection (d), the director shall

determine what areas are used to facilitate active mining and

reclamation operations.

(f) A permittee shall submit annual reports to the department in

a form that the director considers necessary to facilitate the

effective monitoring of acres under self-bonding that have been

affected and reclaimed.

(g) An area that: (1) is not subject to the time limitations set

forth in subsection (c); and (2) has been used for the disposal of:

(A) coal combustion fly or bottom ash; (B) flue gas desulfurization

byproducts generated by coal combustion units; or (C) coal

processing wastes; is no longer eligible for self-bonding ten (10)

years after the disturbance of the area or the self-bonding of the

area, whichever is later. An alternative from of bond must be posted

for the area under IC 14-34-6 not later than ninety (90) days after

the area becomes ineligible for self-bonding under this subsection.

(h) Whenever an area is determined to be no longer eligible for

self-bonding, and an alternative form of bond is posted under IC 14-

34-6, the area: (1) is never again eligible for self-bonding; and

(2) may not be bonded by the surface coal mine reclamation bond pool

established under IC 13-4.1-6.5-3.

P. IC 14-34-7-13

Indiana proposes to add the following new section at IC 14-34-7-13.

For purposes of IC 1-1-1-8, if the amendments to IC 14-34-7-1,

as amended by SEA 125-1995, are held invalid or otherwise

unenforceable, the other amendments to IC 14-34-7 made by SEA 125-

1995 are also void.

III. Public Comment Procedures

coal mine reclamation bond pool

established under IC 13-4.1-6.5-3.

P. IC 14-34-7-13

Indiana proposes to add the following new section at IC 14-34-7-13.

For purposes of IC 1-1-1-8, if the amendments to IC 14-34-7-1,

as amended by SEA 125-1995, are held invalid or otherwise

unenforceable, the other amendments to IC 14-34-7 made by SEA 125-

1995 are also void.

III. Public Comment Procedures

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

seeking comments on whether the proposed amendment satisfies the

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

is deemed adequate, it will become part of the Indiana 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 Indianapolis Field Office

will not necessarily be considered in the final rulemaking or included

in the Administrative Record.

Public Hearing

Persons wishing to speak at the public hearing should contact the

person listed under FOR FURTHER INFORMATION CONTACT by 4:00 p.m.,

e.s.t., on February 6, 1996. The location and time of the hearing will

be arranged with those persons requesting the hearing. If no one

requests an opportunity to speak at the 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 speak have been heard. Persons in the audience who

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

following those who have been scheduled

iber. 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 speak have been heard. Persons in the audience who

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

following those who have been scheduled. The hearing will end after all

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

to speak have been heard.

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.

Public Meeting

If only one person requests an opportunity to speak 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

amendment may request a meeting 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 at the

locations listed under ADDRESSES. A written summary of each meeting

will be made a part of the Administrative Record.

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 12778

nd, if possible, notices of meetings will be posted at the

locations listed under ADDRESSES. A written summary of each meeting

will be made a part of the Administrative Record.

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 12778

The Department of the Interior has conducted the reviews required

by section 2 of Executive Order 12778 (Civil Justice Reform) and has

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

applicable standards of subsections (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 rule 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

roposed 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 rule 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.

List of Subjects in 30 CFR Part 914

Intergovernmental relations, Surface mining, Underground mining.

Dated: January 9, 1996.

Brent Wahlquist,

Regional Director, Mid-Continent Regional Coordinating Center.

[FR Doc. 96-648 Filed 1-19-96; 8:45 am]

BILLING CODE 4310-05-M