PRINTER'S NO. 699
No. 631 Session of 1989
INTRODUCED BY KASUNIC, S. H. SMITH, DALEY, STAIRS, WOZNIAK, HALUSKA, ARGALL, LUCYK, DeWEESE, ITKIN, BLACK, MARKOSEK, COLAIZZO, COWELL, WASS, LAUGHLIN, TELEK, TRICH, BURD, KAISER, PETRARCA, McCALL, BILLOW, CESSAR, CARLSON, J. L. WRIGHT, CAWLEY, PHILLIPS, DISTLER, JAROLIN, TANGRETTI, HESS, McVERRY, KONDRICH AND STISH, MARCH 6, 1989
REFERRED TO COMMITTEE ON CONSERVATION, MARCH 6, 1989
AN ACT 1 Amending the act of June 22, 1937 (P.L.1987, No.394), entitled, 2 as amended, "An act to preserve and improve the purity of the 3 waters of the Commonwealth for the protection of public 4 health, animal and aquatic life, and for industrial 5 consumption, and recreation; empowering and directing the 6 creation of indebtedness or the issuing of non-debt revenue 7 bonds by political subdivisions to provide works to abate 8 pollution; providing protection of water supply and water 9 quality; providing for the jurisdiction of courts in the 10 enforcement thereof; providing additional remedies for 11 abating pollution of waters; imposing certain penalties; 12 repealing certain acts; regulating discharges of sewage and 13 industrial wastes; regulating the operation of mines and 14 regulating the impact of mining upon water quality, supply 15 and quantity; placing responsibilities upon landowners and 16 land occupiers and to maintain primary jurisdiction over 17 surface coal mining in Pennsylvania," further providing for 18 the powers and duties of the department and for the operation 19 of mines. 20 The General Assembly of the Commonwealth of Pennsylvania 21 hereby enacts as follows: 22 Section 1. Section 5 of the act of June 22, 1937 (P.L.1987, 23 No.394), known as The Clean Streams Law, is amended by adding a 24 subsection to read:
1 Section 5. Powers and Duties.--* * * 2 (c) Whenever the department proposes to establish discharge 3 effluent limitations in any permit which are based on stream 4 quality standards that are more stringent than technology-based 5 effluent standards required under the Federal Water Pollution 6 Control Act (62 Stat. 1155, 33 U.S.C. § 1251 et seq.), the 7 department shall consider and balance the economic, aquatic and 8 social impacts of the more stringent limitations before imposing 9 them. 10 Section 2. Section 315(a) and (b) of the act, amended 11 October 10, 1980 (P.L.894, No.157), are amended to read: 12 Section 315. Operation of Mines.--(a) No person or 13 municipality shall operate a mine or allow a discharge from a 14 mine into the waters of the Commonwealth unless such operation 15 or discharge is authorized by the rules and regulations of the 16 department or such person or municipality has first obtained a 17 permit from the department. Operation of the mine shall include 18 preparatory work in connection with the opening or reopening of 19 a mine, refuse disposal, backfilling, sealing, and other closing 20 procedures, and any other work done on land or water in 21 connection with the mine. Underground mining operations and 22 surface entries and accesses to the mine, including drifts, 23 adits, slopes and shafts, shall be located, designed and 24 conducted to prevent gravity discharge of water from the mine 25 unless the mine operator demonstrates that hydraulic seals or 26 other technology is available to prevent such discharge or any 27 adverse impacts on the waters of this Commonwealth. A discharge 28 from a mine shall include a discharge which occurs after mining 29 operations have ceased, provided that the mining operations were 30 conducted subsequent to January 1, 1966, under circumstances 19890H0631B0699 - 2 -
1 requiring a permit from the Sanitary Water Board under the 2 provisions of section 315 (b) of this act as it existed under 3 the amendatory act of August 23, 1965 (P.L.372, No.194). The 4 operation of any mine or the allowing of any discharge without a 5 permit or contrary to the terms or conditions of a permit or 6 contrary to the rules and regulations of the department, is 7 hereby declared to be a nuisance. Whenever a permit is requested 8 to be issued pursuant to this subsection, and such permit is 9 requested for permission to operate any mining operations, the 10 city, borough, incorporated town or township in which the 11 operation is to be conducted shall be notified by registered 12 mail of the request, at least ten days before the issuance of 13 the permit or before a hearing on the issuance, whichever is 14 first. 15 (b) The department may require an applicant for a permit to 16 operate a mine, or a permittee holding a permit to operate a 17 mine under the provisions of this section, to post a bond or 18 bonds on forms prescribed and furnished by the department in 19 favor of the Commonwealth of Pennsylvania and with good and 20 sufficient collateral, irrevocable bank letters of credit or 21 corporate surety guarantees acceptable to the department to 22 insure that there will be compliance with the law, the rules and 23 regulations of the department, and the provisions and conditions 24 of such permit including but not limited to conditions 25 pertaining to restoration measures or other provisions insuring 26 that there will be no polluting discharge after mining 27 operations have ceased: Provided, however, That the portion of 28 any such bond attributable to demolition and restoration of 29 long-term surface structures and facilities shall be calculated 30 on the basis of the surface area occupied by such structures or 19890H0631B0699 - 3 -
1 facilities. The department shall establish the amount of the 2 bond required for each operation based on the cost to the 3 Commonwealth of taking corrective measures in cases of the 4 operator's failure to comply, or in such other amount and form 5 as may be established by the department pursuant to regulations 6 for an alternate coal bonding program which shall achieve the 7 objectives and purposes of the bonding program. The department 8 may, from time to time, increase or decrease such amount: 9 Provided, however, That no bond shall be filed for less than ten 10 thousand dollars ($10,000) for the entire permit area. The 11 department shall also establish the duration of the bond 12 required for each operation and at the minimum liability under 13 each bond shall continue until such time as the department 14 determines that there is no further significant risk of a 15 pollutional discharge, unless the operator demonstrates to the 16 satisfaction of the department that he can comply with 17 regulations providing for abatement requirements and alternative 18 financial responsibility programs, including self-bonding and 19 other programs, to provide for the sound future treatment of 20 pollutional discharges. The bond shall be conditioned upon the 21 operator's faithful performance of the requirements of this act, 22 the act of November 26, 1978 (P.L.1375, No.325), known as the 23 "Dam Safety and Encroachments Act," the act of May 31, 1945 24 (P.L.1198, No.418), known as the "Surface Mining Conservation 25 and Reclamation Act," the act of January 8, 1960 (1959 P.L.2119, 26 No.787), known as the "Air Pollution Control Act," the act of 27 September 24, 1968 (P.L.1040, No.318), known as the "Coal Refuse 28 Disposal Control Act," and where applicable of the act of July 29 31, 1968 (P.L.788, No.241), known as the "Pennsylvania Solid 30 Waste Management Act" or the act of July 7, 1980 (No.97), known 19890H0631B0699 - 4 -
1 as the "Solid Waste Management Act": Provided, however, That an 2 operator posting a bond sufficient to comply with this section 3 of the act shall not be required to post a separate bond for the 4 permitted area under each of the acts hereinabove enumerated: 5 And provided further, That the foregoing proviso shall not 6 prohibit the department from requiring additional bond amounts 7 for the permitted area should such an increase be determined by 8 the department to be necessary to meet the requirements of this 9 act. Where the minerals are to be removed by the underground 10 mining method, and the mining operations are reasonably 11 anticipated to continue for a period of at least ten years from 12 the date of application, the operator may elect to deposit 13 collateral and file a collateral bond as provided in this 14 subsection according to the following phased deposit schedule. 15 The operator shall, prior to commencing mining operations, 16 deposit ten thousand dollars ($10,000) or twenty-five per cent 17 of the amount of bond determined under this subsection, 18 whichever is greater. The operator shall, thereafter, annually 19 deposit ten per cent of the remaining bond amount for a period 20 of ten years. Interest accumulated by such collateral shall 21 become part of the bond. The department may require additional 22 bonding at any time to meet the intent of this subsection. The 23 collateral shall be deposited, in trust, with the State 24 Treasurer as provided in this subsection, or with a bank, 25 selected by the department, which shall act as trustee for the 26 benefit of the Commonwealth, according to rules and regulations 27 promulgated hereunder, to guarantee the operator's compliance 28 with this act and the acts hereinabove enumerated. The operator 29 shall be required to pay all costs of the trust. The collateral 30 deposit, or part thereof, shall be released of liability and 19890H0631B0699 - 5 -
1 returned to the operator, together with a proportional share of 2 accumulated interest, upon the conditions of and pursuant to the 3 schedule and criteria for release provided for in rules and 4 regulations promulgated hereunder. Upon the completion of any 5 mining operation and prior to the release by the department of 6 any portion of the bond liability, the operator shall remove and 7 clean up all temporary materials, property, debris or junk which 8 were used in or resulted from his mining operations. The failure 9 to post a bond required by the department shall be sufficient 10 cause for withholding a permit or for the suspension or 11 revocation of an existing permit. If the operator fails or 12 refuses to comply with the requirements of the act in any 13 respect for which liability has been charged on the bond, the 14 Secretary of the Department of Environmental Resources shall 15 declare the bond forfeited, and shall certify the same to the 16 Attorney General, who shall proceed to enforce and collect the 17 amount of liability forfeited thereon, and where the operator 18 has deposited cash or securities as collateral in lieu of a 19 corporate surety, the secretary shall declare said collateral 20 forfeited. If the operator is or was engaged in surface mining 21 operations at the time of the violation, the secretary shall 22 direct the State Treasurer to pay said funds into the Surface 23 Mining Conservation and Reclamation Fund, or to proceed to sell 24 said securities to the extent forfeited and pay the proceeds 25 thereof into the Surface Mining Conservation and Reclamation 26 Fund. If the operator is or was engaged in the operation of a 27 deep mine at the time of the violation, the secretary shall 28 direct the State Treasurer to pay said funds into The Clean 29 Water Fund, or to proceed to sell said securities to the extent 30 forfeited and pay the proceeds thereof into The Clean Water 19890H0631B0699 - 6 -
1 Fund. Should any corporate surety fail to promptly pay, in full, 2 a forfeited bond, it shall be disqualified from writing any 3 further bonds under this act. Any operator aggrieved by reason 4 of forfeiting the bond or converting collateral, as herein 5 provided, shall have a right to appeal such action to the 6 Environmental Hearing Board. 7 The department, in its discretion, may accept a self-bond 8 from the permittee, without separate surety, if the permittee 9 demonstrates to the satisfaction of the department a history of 10 financial solvency, continuous business operation and continuous 11 efforts to achieve compliance with all United States of America 12 and Pennsylvania environmental laws, and, meets all of the 13 following requirements: 14 (1) The permittee shall be incorporated or authorized to do 15 business in Pennsylvania and shall designate an agent in 16 Pennsylvania to receive service of suits, claims, demands or 17 other legal process. 18 (2) The permittee or if the permittee does not issue 19 separate audited financial statements, its parent, shall provide 20 audited financial statements for at least its most recent three 21 fiscal years prepared by a certified public accountant in 22 accordance with generally accepted accounting principles. Upon 23 request of the permittee, the department shall maintain the 24 confidentiality of such financial statements if the same are not 25 otherwise disclosed to other government agencies or the public. 26 (3) During the last thirty-six calendar months, the 27 applicant has not defaulted in the payment of any dividend or 28 sinking fund installment or preferred stock or installment on 29 any indebtedness for borrowed money or payment of rentals under 30 long-term leases or any reclamation fee payment currently due 19890H0631B0699 - 7 -
1 under the Federal Surface Mining Control and Reclamation Act of 2 1977, 30 U.S.C. § 1232, for each ton of coal produced in the 3 Commonwealth of Pennsylvania. 4 (4) The permittee shall have been in business and operating 5 no less than ten years prior to filing of application unless the 6 permittee's existence results from a reorganization, 7 consolidation or merger involving a company with such longevity. 8 However, the permittee shall be deemed to have met this 9 requirement if it is a majority-owned subsidiary of a 10 corporation which has such a ten-year business history. 11 (5) The permittee shall have a net worth of at least six 12 times the aggregate amount of all bonds applied for by the 13 operator under this section. 14 (6) The permittee shall give immediate notice to the 15 department of any significant change in managing control of the 16 company. 17 (7) A corporate officer of the permittee shall certify to 18 the department that forfeiture of the aggregate amounts of self- 19 bonds furnished for all operations hereunder would not 20 materially affect the permittee's ability to remain in business 21 or endanger its cash flow to the extent it could not meet its 22 current obligations. 23 (8) The permittee may be required by the department to 24 pledge real and personal property to guarantee the permittee's 25 self-bond. The department is authorized to acquire and dispose 26 of such property in the event of a default to the bond 27 obligation and may use the moneys in The Clean Water Fund to 28 administer this provision. 29 (9) The permittee may be required to provide third party 30 guarantees or indemnifications of its self-bond obligations. 19890H0631B0699 - 8 -
1 (10) The permittee shall provide such other information 2 regarding its financial solvency, continuous business operation 3 and compliance with environmental laws as the department shall 4 require. 5 (11) An applicant shall certify to the department its 6 present intention to maintain its present corporate status for a 7 period in excess of five years. 8 (12) A permittee shall annually update the certifications 9 required hereunder and provide audited financial statements for 10 each fiscal year during which it furnishes self-bonds. 11 (13) The permittee shall pay an annual fee in the amount 12 determined by the department of the cost to review and verify 13 the permittee's application for self-bonding and annual 14 submissions thereafter. 15 * * * 16 Section 3. This act shall take effect in 60 days. A3L32WMB/19890H0631B0699 - 9 -