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PA Bulletin, Doc. No. 03-626

NOTICES

Bond Rate Guidelines for the Calculation of Land Reclamation Bonds on Coal Mining Operations

[33 Pa.B. 1782]

   The Department of Environmental Protection (Department) announces the bond rate guidelines for 2003 for anthracite and bituminous coal mining operations. The authority for bonding coal mining operations is The Clean Streams Law (35 P. S. §§ 691.1--691.1001), the Surface Mining Conservation and Reclamation Act (52 P. S. §§ 1396.1--1396.19a), the Coal Refuse Disposal Control Act (52 P. S. §§ 30.51--30.66) and the regulations promulgated thereunder at 25 Pa. Code Chapter 86, Subchapter F (relating to bonding and insurance requirements). These guidelines will be used in calculating the land reclamation bonds for surface coal mining activities including surface mines, coal refuse disposal sites, coal refuse reprocessing sites, coal processing facilities and the surface facilities of underground mining operations. The procedures for calculating land reclamation bonds are described in technical guidance 563-2504-001, ''Conventional Bonding for Land Reclamation--Coal,'' which is available on the Department's website (www.dep.state.pa.us) at the Public Participation Center page.

   The Department will apply the 2003 Bond Rate Guidelines in Table 1 when calculating bond amounts for new permits and permit renewals, at the midterm of the permit and when a change in a mine's operation or reclamation plan necessitates a recalculation of the bond. The Department may review the adequacy of bonds on existing permits based on the bond rate guidelines at any time.

   The bond rate guidelines do not apply to bonds assuring replacement of water supplies under subsection 3.1(c) of the Surface Mining Conservation and Reclamation Act or to bonds ensuring compliance with the requirements of the Bituminous Mine Subsidence and Land Conservation Act (52 P. S. §§ 1406.1--1406.21).

General Methodology

   The Department developed the bond rate guidelines for 2003 from a database of unit costs provided by the Bureau of Abandoned Mine Reclamation (BAMR). The BAMR database lists contract bid amounts for the various unit operations needed to complete reclamation of a mine site for years 1998--2001.

   In general, the bond rate for a given unit operation is the weighted average of the three lowest bids for that unit operation. Not all unit operations included in the BAMR database are included in Table 1. Some unit operations listed in the database were combined to streamline the guidelines. In the event that a unit operation necessary to calculate a reclamation bond is not listed in Table 1, then any additional cost information available from BAMR will be used. If enough data is still not available, the rate will be set from a standard reference like ''Means Building Construction Cost Data.''

   The bond rate guidelines are available electronically at http://www.dep.state.pa.us/dep/deputate/minres/BMR/BMRhome.htm. For background information and supporting documentation regarding bonding rate guidelines, contact the Bureau of Mining and Reclamation, Division of Monitoring and Compliance, P. O. Box 8461, Harrisburg, PA 17105-8461, (717) 787-5103.

Effective Date

   The bond rate guidelines in this notice become effective April 21, 2003.

TABLE 1

Bond Rate Guidelines
For Year 2003

Unit Operation Unit Measure Unit Costs ($)
Mobilization/demobilization job 4% of direct costs or $40,000, whichever is less
Grading (<500-foot push) cubic yard 0.55
Grading (>=500-foot push) cubic yard 0.80
Selective Grading acre 800.00
Revegetation acre 1,160.00
Tree Planting tree 0.15
Ditch Excavation cubic yard 4.50
Jute Matting square yard 2.00
High Velocity Erosion Control square yard 2.40
R3 Rock Lining square yard 16.00
R4 Rock Lining square yard 20.00
R5 Rock Lining square yard 18.50
Geotextile/Filter Fabric square yard 1.50
PVC Lining1 square yard 8.00
Subsurface Drain lineal foot 15.00
Pond Removal2 pond 3,500.00
Erosion and Sedimentation Control (Temporary Installation) job Lump sum
(5% of direct costs for site)
Stage 3 Maintenance Bond acre 500.00
Structure Demolition Costs for structure demolition will be calculated using costs listed in the construction industry's latest annual cost publications, such as the Means Building Construction Cost Data publication.
Mine Sealing3
Nonhydraulic shaft seal--inert fill
shaft (10 ft. or less diameter) 1,400.00
shaft (11 to 15 ft. diameter) 3,000.00
shaft (16 to 20 ft. diameter) 4,500.00
shaft (21 to 25 ft. diameter) 8,000.00
Mine Sealing3
Hydraulic shaft seal w/bulkhead
shaft (10 ft. or less diameter) 7,600.00
shaft (11 to 15 ft. diameter) 9,200.00
shaft (16 to 20 ft. diameter) 10,700.00
shaft (21 to 25 ft. diameter) 14,200.00
Mine Sealing3
Nonhydraulic drift/slope seal
drift/slope 3,900.00
Mine Sealing3
Hydraulic drift/slope seal w/bulkhead
drift/slope 6,200.00

   1  Typically used for lining of ponds or ditches crossing fill material.

   2  Unit cost not from BAMR bids, includes dewatering, grading, topsoil placement and revegetation.

   3  Mine sealing costs are minimum costs. Additional costs per mine seal will be assessed based on specific design criteria, such as the thickness of the seal and the volume of backfill material required, using appropriate material, equipment and labor costs from BAMR bid abstracts or from an industry-standard cost estimation publications, for example, Means Estimating Handbook or Walker's Building Estimator's Reference Book.

KATHLEEN A. MCGINTY,   
Acting Secretary

[Pa.B. Doc. No. 03-626. Filed for public inspection April 4, 2003, 9:00 a.m.]



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