Members of the DEP Mining and Reclamation Advisory Board wrote to Secretary Michael Krancer on January 16 asking him to start the drafting of regulations to implement a law passed last October to give mining operators additional options to provide financial guarantees for land reclamation Act 157 - House Bill 1813.

David Osikowicz, Chair of MRAB, wrote, “Act 157 took effect on December 24, 60 days after the governor’s signature.  However, at a meeting of the MRAB on Thursday, January 10, the panel was told by DEP mining personnel that the Department cannot begin to implement the law until regulations are promulgated and in place.

“Further, they also stated that the mining bureau cannot even begin to develop a rulemaking until it receives written authorization to do so from your (Secretary’s) office.”

MRAB requested Secretary Krancer to give his approval as soon as possible.

Act 157 could authorize up to $100 million in bonding guarantees to certain anthracite and bituminous mine operators to cover land reclamation obligations using already available $12.4 million in funding.

The Act was passed in part to require the agency to uses these existing funds for this purpose which have been available for several years.

Industry representatives said it is important to provide this option to mine operators because the cost of obtaining surety bonds which normally guarantee land reclamation has increased 25 percent in the last year and is likely to increase again this Spring.

Mr. Osikowicz noted Act 157 is also designed to encourage the re-mining of previously mined areas.

A copy of the letter is available online.

1/28/2013