NOTICES
Bond Rate Guidelines for the Calculation of Land Reclamation Bonds on Coal Mining Operations
[39 Pa.B. 905]
[Saturday, February 14, 2009]The Department of Environmental Protection (Department) announces the 2009 bond rate guidelines for anthracite and bituminous coal mining operations. These rates become effective April 1, 2009. The authority for bonding coal mining operations is found under 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 25 Pa. Code Chapter 86, Subchapter F (relating to bonding and insurance requirements). The unit costs listed in these guidelines will be used in calculating the land reclamation bonds for surface coal mining operations 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 web site at the following link: http://164.156.71.80/WXOD.aspx?fs=2087d8407c0e0000800006fb000006fb&ft=1.
The Department may review the adequacy of bonds on existing permits based on the bond rate guidelines at any time. The Department will conduct these reviews before issuing permit renewals. The Department may conduct similar reviews at the midterm of a permit and before approving a permit revision.
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 (52 P. S. § 1396.3a(c)) or to bonds ensuring compliance with the requirements of the Bituminous Mine Subsidence and Land Conservation Act (52 P.S §§ 1406.1--1410d).
General Methodology
The Department developed the bond rate guidelines for 2009 from the unit costs for competitively bid contracts for mine reclamation. Contract bid data is available for various unit operations needed to complete reclamation of a mine site for the years 1998-2008. For most categories, a 3-year (2006-2008) average was used to calculate the guidelines. Some categories required another approach due to limited data. For example, there were no contracts in 2007 that included selective grading, and during 2006 there were only 30 acres of selective grading under contract. Therefore, a 5-year average was used for the 2009 selective grading bond rate.
In general, the bond rate for a given unit operation is the weighted average of the three lowest total bids for each contract. However, grading costs were calculated using the number of bids at a cost per cubic yard frequency distribution and a weighted total number of yards at a cost per cubic yard frequency distribution, in combination with the averages and a cost trend analysis.
In the event that a unit operation necessary to calculate a reclamation bond is not listed in Tables 1 or 2, then any additional cost information available 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'' or ''Walker's Building Estimator's Reference Book.''
The fees associated with the Land Maintenance Bond Program are presented in Table 3. There has been no change in these rates for 2009.
The bond rate guidelines are available electronically at http://www.dep.state.pa.us/dep/deputate/minres/bmr/programs/bonding.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.
Mine Sealing Costs
The mine sealing bond rate guidelines are presented in Table 2. Review of the contract data for mine sealing projects reveals that they are designed and bid on a volume and material basis. The Department has evaluated these bond rate guidelines resulting in updated mine sealing bond rate guidelines for 2009. The Department also developed bond rate guidelines for sealing boreholes.
Effective Date
The bond rate guidelines in this notice become effective April 1, 2009.
TABLE 1
Standard Bond Rate Guidelines
For Year 2009
Unit Operation Unit Measure Unit Costs ($) Mobilization/Demobilization Job 4% of direct costs or $40,000,
whichever is less
Grading (< 500-foot push) Cubic Yard 0.95 Grading (>= 500-foot push/haul) Cubic Yard 1.20 Selective Grading Acre 1,250.00 Revegetation Acre 1,600.00 Tree Planting Tree 0.15 Ditch Excavation Cubic Yard 5.25 Jute Matting Square Yard 3.25 High Velocity Erosion Control Square Yard 3.50 R3 Rock Lining Square Yard 25.00 R4 Rock Lining Square Yard 22.00 R5 Rock Lining Square Yard 21.00 Geotextile/Filter Fabric Square Yard 2.00 PVC Lining1 Square Yard 11.00 Subsurface Drain Lineal Foot 18.50 Erosion and Sedimentation Control (Temporary Installation) Job Lump sum
(5% of direct costs for site)Pond Removal Active Phase2 Pond 3,800.00 Stage 3 Maintenance Bond Noncropland Areas (Land Uses Where Crop Yields Are Not Required) Acre 100.00 Stage 3 Maintenance Bond Cropland (Not Row Crops) Pastureland Or Land Occasional Cut For Hay (Excludes Seed Cost) Acre 550.00 Stage 3 Maintenance Bond Cropland Area-Row Crops (includes seed cost) Acre 800.00 Stage 3 Mobilization Job 2,500.00 ____
1 Typically used for lining of ponds or ditches crossing fill material.
2 Unit cost not from BAMR bids; includes dewatering, grading, topsoil placement and revegetation.
Unit Operation Unit Measure Unit Costs ($) Mobilization/Demobilization Job 4% of direct costs or $40,000,
whichever is less
Pond Removal-Stage3 Cubic Yards
(Embankment volume)
Plus Topsoiling and
Revegetation CostUse < 500 grading for pond embankment volume plus
Topsoiling and Revegetation
cost for the area disturbedDitch Removal-Stage3 Lineal Foot 0.75 Equipment Tire Removal and Disposal Tire 300.00 Structure Demolition Costs will be calculated using costs listed in the construction industry's latest annual cost publications, such as Means Building Construction Cost Data.
TABLE 2
Mine Sealing Bond Rate Guidelines
For Year 2009
Sealing Bituminous Underground Mine Drift and Slope Openings Unit Operation Unit Measure Unit Costs ($) Concrete Work Cubic yard 128.00 Masonry Work Square foot 11.00 Fill Material and Earthwork3 Cubic yard 23.00 Security Fencing Lineal foot 29.00 Mobilization Cost Job 5% of Total Amount Sealing Bituminous Underground Mine Shaft Openings Concrete Material Cubic Yard 96.00 Aggregate Material Cubic Yard 27.00 Fill material and Earthwork3 Cubic Yard 4.00 Security Fencing Lineal Foot 29.00 Mobilization Cost Job 5% of Total Amount Sealing Boreholes at Bituminous Underground Mines Dimension Minimum Cost Per Hole ($) Unit Cost ($) Per Lineal Foot 12 Inch or Less Diameter 1,500 5.50 Larger Than 12 Inch Diameter 2,000 5.50 ____
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, such as, Means Estimating Handbook or Walker's Building Estimator's Reference Book.
TABLE 3
Land Maintenance Financial Guarantee Fees
For Year 2009
Fee Category Fee ($) Publication $1,000 Administrative $300 JOHN HANGER,
Acting Secretary
[Pa.B. Doc. No. 09-266. Filed for public inspection February 13, 2009, 9:00 a.m.]
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