Idle mines and tighter regulations

[editor]

BILL ANALYSIS

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|SENATE RULES COMMITTEE | SB 108|
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THIRD READING

Bill No: SB 108
Author: Rubio (D)
Amended: 5/3/11
Vote: 21


SENATE NATURAL RES. AND WATER COMMITTEE : 9-0, 4/26/11
AYES: Pavley, La Malfa, Cannella, Evans, Fuller, Kehoe,
Padilla, Simitian, Wolk

SENATE APPROPRIATIONS COMMITTEE : 8-0, 5/16/11
AYES: Kehoe, Alquist, Emmerson, Lieu, Pavley, Price,
Runner, Steinberg
NO VOTE RECORDED: Walters

SUBJECT : Surface mining: idle mines

SOURCE : California Construction and Industrial
Materials Association

DIGEST : This bill changes the standard for classifying a
surface mine as idle, and also authorizes the extension of
an approved interim management plan (IMP) for a surface
mine.

ANALYSIS : Existing law, under the Surface Mining and
Reclamation Act (SMARA) of 1975:

1. Prohibits a person from conducting a surface mining
operation unless, among other things, a reclamation plan
has been submitted to and approved by the lead agency
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for the operation.

2. Requires an operator, within 90 days of a surface mining
operation becoming idle, to submit to the lead agency
for review and approval, an IMP.

3. Defines "idle" to mean a curtailment for a period of one
year or more of surface mining operations by more than
90 percent of the operation's previous maximum annual
mineral production, with the intent to resume those
surface mining operations at a future date.

4. Requires a surface mining operation that remains idle
for over one year after becoming idle, without obtaining
approval of an IMP, in certain circumstances, to be
considered abandoned and requires the operator to
commence and complete reclamation in accordance with the
approved reclamation plan.

5. Authorizes an IMP to remain in effect for a period not
to exceed five years, after which, the lead agency is
authorized to take certain actions, including renewing
the IMP for another period not to exceed five years, if
the lead agency finds that the surface mining operator
has complied fully with the IMP.

This bill:

1. Defines "idle" to mean that an operator of a surface
mining operation has curtailed production at the surface
mining operation, with the intent to resume the surface
mining operation at a future date, for a period of one
year or more by more than 90 percent of its maximum
annual mineral production within any of the last five
years.

2. Exempt from being considered idle certain surface mining
operations, if the operator can demonstrate that the
surface mining operation is not in fact idle.

3. Authorizes an IMP to remain in effect for a period not
to exceed five years, after which, the lead agency is
authorized to take certain actions, including renewing
the IMP for another period not to exceed five years, if

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the lead agency finds that the surface mining operator
has complied fully with the IMP.

4. Authorizes the lead agency to continuously renew the IMP
for additional five-year periods, if the lead agency
finds that the surface mining operator has complied
fully with the IMP.

Background

SMARA requires that a mine operator prepare a reclamation
plan that is approved by the lead agency, which is usually
a local government. When an operator decides to idle a
surface mining operation, SMARA requires the operator to
prepare an IMP for approval by the lead agency. Idle mines
are defined as those at which operations are curtailed for
a period of one year or more by more than 90 percent of the
previous maximum annual mineral production and where there
is an intent to resume surface mining operations at a
future date. If there is no intent to resume mining, a
mine is considered either active (and presumably going
through the reclamation process) or abandoned.

When a mine is idled, SMARA requires an IMP to be submitted
to the lead agency for review and approval within 90 days.
The lead agency has 60 days to review and approve the IMP,
although there are provisions in the law for these
deadlines to be extended upon mutual agreement. Because
the IMP is considered an amendment to a reclamation plan,
it is also subject to review by the Department of
Conservation (CDC). A lead agency must respond in writing
to any comments from the CDC. Typically, the IMP addresses
public health and safety issues that must be addressed
until operations are resumed and often include runoff,
drainage, erosion control, and temporary fencing.

SMARA also provides for an appeals process if the lead
agency denies approval of the IMP. IMPs may remain in
effect for a period not to exceed five years. At that
point, the lead agency may renew the IMP for another five
year period if the operator is in compliance with SMARA.
If that does not happen, the operator must begin mining or
reclamation. If the plan is not filed, the mine is
considered abandoned and the operator is responsible for

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beginning the reclamation process. In most circumstances,
mines that have been idle for more than one year and have
not obtained an IMP shall be considered abandoned and the
operator must begin reclamation.

The IMP is considered an amendment to the applicable
reclamation plan and is not subject to the California
Environmental Quality Act.

Idle mines must maintain approved financial assurances for
reclamation and like active mines, must file an annual
report with the CDC along with appropriate reporting fees,
and are subject to annual inspections.

FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No

According to the Senate Appropriations Committee:

Fiscal Impact (in thousands)

Major Provisions 2011-12 2012-13 2013-14 Fund

Oversight of idle mine $85 $100
$100Special *
classification

* Mine Reclamation Account.

SUPPORT : (Verified 5/17/11)

California Construction and Industrial Materials
Association (source)
Basic Resources, Inc.
Beacon Concrete Inc.
California Cement Manufacturers Environmental Coalition
Holliday Rock Company, Inc.
Lehigh Hanson
National Cement Company of California, Inc.
Teichert & Son, Inc.
Vulcan Materials Company, Western Division
West Coast Aggregates, Inc.

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ARGUMENTS IN SUPPORT : The author's office and sponsor,
the California Construction Industrial Materials
Association (CalCIMA) state that this bill is needed
because the current definition of "idle" is unnecessarily
narrow and not suitable for mines facing ebbs or spikes in
demand caused by large public works projects or,
alternatively, depressed construction activities. The
author and CalCIMA point out that a year or two of high
demand followed by a drop-off in demand could trigger a
requirement for an IMP as would a depressed economy that
causes a longer-term decrease in demand.

The author and sponsor also state that the determination of
"idle" when made by a lead agency could result in the
immediate initiation of reclamation without the operator
being aware of that determination. They are also concerned
that existing law is ambiguous regarding how many IMP
renewals may be granted by a lead agency.

Several mining companies are in support of this bill and
they all assert that current law inadvertently penalizes
operators who experience decreased construction activity.
They strongly support provisions in SMARA that would
provide expanded opportunities to file IMPs.

CTW:kc 5/17/11 Senate Floor Analyses

SUPPORT/OPPOSITION: SEE ABOVE

**** END ****

[David Jackson Ingraham]

How does this requirement affect patent claims? Patent claims are considered private property, and not subject to abandonment.

[editor]

Best I can tell, It affects all mines. Maybe someone else has more insight?

[Outdorsguy]

SMARA requires that a mine operator prepare a reclamation
plan that is approved by the lead agency, which is usually
a local government.

This is what is wrong with big government. They write legislation, but in this paragraph, they don't even know who the lead agency is...(Usually a government agency?)

[David Jackson Ingraham]

Another Corrupt law for the state to destroy the rights of miners and a free people in California.

[David Jackson Ingraham]

The lead Agency is the federal Government as the rules for Abandonment are under the jurisdiction of the Federal law, not the State law.