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                                                      PRINTER'S NO. 3082

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2242 Session of 2001


        INTRODUCED BY GEORGE, BELARDI, CALTAGIRONE, COLAFELLA, COY,
           CURRY, DALEY, FAIRCHILD, FEESE, FREEMAN, GRUCELA, LAUGHLIN,
           LAWLESS, LEVDANSKY, LUCYK, MELIO, MUNDY, PISTELLA, STABACK,
           STEELMAN, SURRA, TANGRETTI, TRAVAGLIO, VITALI, WALKO,
           WANSACZ, J. WILLIAMS, WOJNAROSKI, G. WRIGHT, YOUNGBLOOD AND
           YUDICHAK, DECEMBER 12, 2001

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           DECEMBER 12, 2001

                                     AN ACT

     1  Amending the act of April 27, 1966 (1st Sp.Sess., P.L.31, No.1),
     2     entitled, as amended, "An act to protect the public health,
     3     welfare and safety by regulating the mining of bituminous
     4     coal; declaring the existence of a public interest in the
     5     support of surface structures; providing a remedy for the
     6     restoration or replacement of water supplies affected by
     7     underground mining; providing a remedy for the restoration or
     8     replacement or compensation for surface structures damaged by
     9     underground mining; providing standards for the prevention of
    10     hazards to human safety and material damage to certain
    11     structures; requiring permits, and in certain circumstances
    12     bonds, for the mining of bituminous coal; providing for the
    13     filing of maps or plans with recorders of deeds; providing
    14     for the giving of notice of mining operations to political
    15     subdivisions and surface landowners of record; requiring mine
    16     inspectors to accompany municipal officers and their agents
    17     on inspection trips; granting powers to public officers and
    18     affected property owners to enforce the act; requiring
    19     grantors to certify as to whether any structures on the lands
    20     conveyed are entitled to support from the underlying coal and
    21     grantees to sign an admission of a warning of the possible
    22     lack of any such right of support; requiring grantors to
    23     provide notice of the existence of voluntary agreements for
    24     the restoration or replacement of water supplies or for the
    25     repair or compensation for structural damage; imposing duties
    26     on the Department of Environmental Resources for the
    27     compilation and analysis of data; and imposing liability for
    28     violation of the act," providing for alternative methods to
    29     minimize subsidence damage, for additional protection for


     1     surface water, water supplies, perennial streams, surface
     2     structures, historic properties and public utilities, for
     3     additional measures regarding the restoration or replacement
     4     of water supplies, for limitations on defenses in an action
     5     for contamination, diminution or interruption of a water
     6     supply or damage to a surface structure, for assurance of the
     7     adequacy of bond amount to cover subsidence damage, for
     8     compilation, analysis and reporting of additional data and
     9     for additional duties of the Department of Environmental
    10     Protection; and making editorial changes.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  The title and section 3 of the act of April 27,
    14  1966 (1st Sp.Sess., P.L.31, No.1), known as The Bituminous Mine
    15  Subsidence and Land Conservation Act, amended June 22, 1994
    16  (P.L.357, No.54), are amended to read:
    17                               AN ACT
    18  To protect the public health, welfare and safety by regulating
    19     the mining of bituminous coal; declaring the existence of a
    20     public interest in the support of surface structures;
    21     providing a remedy for the restoration or replacement of
    22     water supplies affected by underground mining; providing a
    23     remedy for the restoration or replacement or compensation for
    24     surface structures damaged by underground mining; providing
    25     standards for the prevention of hazards to human safety and
    26     material damage to certain structures; requiring permits, and
    27     in certain circumstances bonds, for the mining of bituminous
    28     coal; providing for the filing of maps or plans with
    29     recorders of deeds; providing for the giving of notice of
    30     mining operations to political subdivisions and surface
    31     landowners of record; requiring mine inspectors to accompany
    32     municipal officers and their agents on inspection trips;
    33     granting powers to public officers and affected property
    34     owners to enforce the act; requiring grantors to certify as

    20010H2242B3082                  - 2 -

     1     to whether any structures on the lands conveyed are entitled
     2     to support from the underlying coal and grantees to sign an
     3     admission of a warning of the possible lack of any such right
     4     of support; requiring grantors to provide notice of the
     5     existence of voluntary agreements for the restoration or
     6     replacement of water supplies or for the repair or
     7     compensation for structural damage; imposing duties on the
     8     Department of Environmental [Resources] Protection for the
     9     compilation and analysis of data; and imposing liability for
    10     violation of the act.
    11     Section 3.  Legislative findings; declaration of policy.--(a)
    12  It is hereby determined by the General Assembly of Pennsylvania
    13  and declared as a matter of legislative findings that:
    14     (1)  Present mine subsidence legislation and coal mining laws
    15  have failed to protect the public interest in Pennsylvania in
    16  preserving our land.
    17     (2)  Damage from mine subsidence has seriously impeded land
    18  development of the Commonwealth.
    19     (3)  Damage from mine subsidence has caused a very clear and
    20  present danger to the health, safety and welfare of the people
    21  of Pennsylvania.
    22     (4)  Damage by subsidence erodes the tax base of the affected
    23  municipalities.
    24     (5)  Coal and related industries and their continued
    25  operation are important to the economic welfare and growth of
    26  the Commonwealth.
    27     (6)  In the past, owners of surface structures have not in
    28  many instances received adequate notice or knowledge regarding
    29  subsurface support, or lack thereof, for surface structures, and
    30  therefore the State must exercise its police powers for the
    20010H2242B3082                  - 3 -

     1  protection of the structures covered herein.
     2     (7)  In order to prevent the occurrence of such state of
     3  affairs in the future, the deed notice provisions relating to
     4  such subsurface support, or lack thereof to a person desiring to
     5  erect a surface structure after the effective date of this act,
     6  must be emphasized and strengthened and it is necessary to make
     7  available to those persons desiring to erect a surface structure
     8  procedures whereby adequate support of such structure can be
     9  acquired.
    10     (8)  Historic properties within Pennsylvania are
    11  irreplaceable resources for future generations, but they have
    12  not received adequate protection from damage due to mine
    13  subsidence.
    14     (9)  Preservation of surface water resources, including
    15  wetlands, during and after coal extraction is essential to the
    16  public interest.
    17     (10)  Millions of tax dollars are invested annually in the
    18  construction and maintenance of roads and bridges in this
    19  Commonwealth. This public infrastructure needs to be protected
    20  for future generations.
    21     (b)  The Pennsylvania General Assembly therefore declares it
    22  to be the policy of the Commonwealth of Pennsylvania that:
    23     (1)  The protection of surface structures and better land
    24  utilization are of utmost importance to Pennsylvania.
    25     (2)  Damage to surface structures and the land supporting
    26  them caused by mine subsidence is against the public interest
    27  and may adversely affect the health, safety and welfare of our
    28  citizens.
    29     (3)  The prevention or restoration of damage from mine
    30  subsidence is recognized as being related to the economic future
    20010H2242B3082                  - 4 -

     1  and well-being of Pennsylvania.
     2     (4)  The preservation within the Commonwealth of surface
     3  structures and the land supporting them is necessary for the
     4  safety and welfare of the people.
     5     (5)  It is the intent of this act to harmonize the protection
     6  of surface structures and the land supporting them and the
     7  continued growth and development of the bituminous coal industry
     8  in the Commonwealth.
     9     (6)  [It is necessary to develop an adequate remedy for the
    10  restoration and replacement of water supplies affected by
    11  underground mining.] It is the intent of this act to provide
    12  protection of water resources, including the restoration and
    13  replacement of water supplies affected by underground mining, so
    14  that these resources are available for utilization in connection
    15  with agricultural, commercial, recreational and residential uses
    16  of the surface during and after coal extraction.
    17     (7)  It is necessary to develop a remedy for the restoration
    18  or replacement of or compensation for surface structures damaged
    19  by underground mining.
    20     (8)  It is necessary to provide a method whereby surface
    21  structures erected after the effective date of this act may be
    22  protected from damage arising from mine subsidence.
    23     (9)  It is necessary to protect historic properties from
    24  material damage to their historic fabric arising from subsidence
    25  related to mine operation.
    26     (10)  It is necessary to protect State and local roads from
    27  subsidence related to mine operation.
    28     Section 2.  The act is amended by adding a section to read:
    29     Section 3.1.  Definitions.--The following words and phrases
    30  when used in this act shall have the meanings given to them in
    20010H2242B3082                  - 5 -

     1  this section unless the context clearly indicates otherwise:
     2     "Department."  The Department of Environmental Protection of
     3  the Commonwealth.
     4     "Perennial stream."  A body of water which is flowing in a
     5  channel or bed composed primarily of substrates associated with
     6  flowing waters and is capable, in the absence of pollution or
     7  other manmade stream disturbances, of supporting a benthic
     8  macroinvertebrate community composed of two or more recognizable
     9  taxonomic groups of organisms which are large enough to be seen
    10  by the unaided eye, can be retained by a United States Standard
    11  No. 30 sieve with twenty-eight meshes per inch and 0.595
    12  millimeter openings and can live at least part of their life
    13  cycles within or upon available substrates in a body of water or
    14  water transport system.
    15     "Public roads."  Any road or appurtenant structure
    16  constructed or maintained by the Commonwealth or any county or
    17  municipality.
    18     "Secretary."  The Secretary of Environmental Protection of
    19  the Commonwealth.
    20     Section 3.  Section 5(a) and (e) of the act, amended October
    21  10, 1980 (P.L.874, No.156), are amended to read:
    22     Section 5.  Permit; application; map or plan; bond or other
    23  security; filing; general rulemaking authority; prevention of
    24  damage; mine stability; maintenance of use and value of lands.--
    25  (a)  Before any bituminous coal mine subject to the provisions
    26  of this act is opened, reopened, or continued in operation, the
    27  owner, operator, lessor, lessee, general manager, superintendent
    28  or other person in charge of or having supervision over such
    29  mine or mining operation shall apply to the [Department of
    30  Environmental Resources] department, on a form prepared and
    20010H2242B3082                  - 6 -

     1  furnished by the department, for a permit for each separate
     2  bituminous coal mine or mining operation. As a part of such
     3  application for a permit the applicant shall furnish, in
     4  duplicate, a map or plan of a scale and in a manner in
     5  accordance with rules and regulations of the [Department of
     6  Environmental Resources] department showing the location of the
     7  mine or mining operation, the extent to which mining operations
     8  presently have been completed, and the extent to which mining
     9  operations will be conducted under the permit being requested.
    10  Such map or plan shall show the boundaries of the area of
    11  surface land overlying the mine or mining operation, the
    12  location and/or designation of all structures in place on the
    13  effective date of this act which overlie the proposed mine or
    14  mining operation, the name of the record owner or owners of said
    15  surface structures, the location of all bodies of water, rivers
    16  and streams, roads and railroads, and the political subdivision
    17  and county in which said structures are located. Such map or
    18  plan shall include, in addition to the information specified
    19  above, such information on the character of the mining
    20  operation, overburden, rock strata, proximity of and conditions
    21  in overlying or underlying coal seams and other geological
    22  conditions as the department, by rules and regulations, shall
    23  direct. The department shall have the power to require the
    24  updating of such maps from time to time as it shall prescribe by
    25  rule and regulation. The map or plan must set forth a detailed
    26  description of the manner, if any, by which the applicant
    27  proposes to support the surface structures overlying the
    28  bituminous mine or mining operation. Upon receipt of such
    29  application in proper form the department shall cause a permit
    30  to be issued or reissued if, in its opinion, the application
    20010H2242B3082                  - 7 -

     1  discloses that sufficient support will be provided for the
     2  protected structures and that the operation will comply with the
     3  provisions of this act and the rules and regulations issued
     4  thereunder. All permits issued under this act shall contain such
     5  terms and shall be issued for such duration as the department
     6  may prescribe.
     7     * * *
     8     (e)  An operator of a coal mine subject to the provisions of
     9  this act shall adopt measures and shall describe to the
    10  department in his permit application measures that he will adopt
    11  to prevent subsidence causing material damage to the extent
    12  technologically and economically feasible, to maximize mine
    13  stability, and to maintain the value and [reasonable] reasonably
    14  foreseeable use of such surface land[: Provided, however, That
    15  nothing]. The demonstration shall explain and provide
    16  technological and economic analysis of the impacts of subsidence
    17  on each surface structure overlying the mine which may be
    18  materially damaged by the mining. It shall also include, but not
    19  be limited to, an alternatives analysis which will demonstrate
    20  whether there are alternative methods of mining, mine layout
    21  and/or engineering which would minimize damage to dwellings and
    22  other surface structures. For the purposes of this section,
    23  "material damage" shall mean any damage to a dwelling, building,
    24  barn or other surface structure which could exceed five thousand
    25  dollars ($5,000.00). An applicant for a permit under this act
    26  shall also demonstrate to the department in the applicant's
    27  permit application that the proposed mining will be planned and
    28  conducted in a manner which will maintain and protect existing
    29  and designated surface water uses and the degree of water
    30  quality necessary to protect these existing uses. The
    20010H2242B3082                  - 8 -

     1  Environmental Quality Board or the department may provide
     2  additional protection to perennial streams. Nothing in this
     3  subsection shall be construed to prohibit planned subsidence in
     4  a predictable and controlled manner or the standard method of
     5  room and pillar mining so long as the operator complies with the
     6  requirements of this section.
     7     * * *
     8     Section 4.  Sections 5.1, 5.2, 5.3, 5.4, 5.5(a), (b) and (d),
     9  5.6(c) and 6(b) of the act, amended or added June 22, 1994
    10  (P.L.357, No.54), are amended to read:
    11     Section 5.1.  Restoration or replacement of water supplies
    12  affected by underground mining.--(a)  (1)  After the effective
    13  date of this section, any mine operator who, as a result of
    14  underground mining operations, affects a public or private water
    15  supply by contamination, diminution or interruption shall
    16  restore or replace the affected supply with an alternate source
    17  which adequately services in quantity and quality the premining
    18  uses of the supply or any reasonably foreseeable uses of the
    19  supply.
    20     (2)  A restored or replacement water supply shall be deemed
    21  adequate where it differs in quality from the premining supply,
    22  providing it meets standards set forth in the act of May 1, 1984
    23  (P.L.206, No.43), known as the "Pennsylvania Safe Drinking Water
    24  Act," or is comparable to the premining supply where that supply
    25  did not meet such standards. If an operator fails to comply with
    26  this provision, the [Secretary of Environmental Resources]
    27  secretary shall issue such orders to the operator as are
    28  necessary to assure compliance.
    29     (3)  For the purposes of this section, the term "water
    30  supply" shall include any existing source of water used for
    20010H2242B3082                  - 9 -

     1  domestic, commercial, industrial or recreational purposes or for
     2  agricultural uses, including use or consumption of water to
     3  maintain the health and productivity of animals used or to be
     4  used in agricultural production and the [watering] irrigation of
     5  lands on a periodic or permanent basis by a constructed or
     6  manufactured system in place [on the effective date of this act]
     7  three months prior to mining to provide [irrigation] water for
     8  agricultural production of plants and crops at levels of
     9  productivity or yield historically experienced by such plants or
    10  crops within a particular geographic area, or which serves any
    11  public building or any noncommercial structure customarily used
    12  by the public, including, but not limited to, churches, schools
    13  and hospitals.
    14     (4)  A restored or replacement water supply shall be deemed
    15  adequate in quantity when it produces the same or greater volume
    16  of water as existed prior to mining.
    17     (b)  A mine operator shall not be liable to restore or
    18  replace a water supply under the provisions of this section if a
    19  claim of contamination, diminution or interruption is made more
    20  than two years after [the supply has been adversely affected.]
    21  either the property owner discovers the contamination,
    22  diminution or interruption or the operator refuses to replace
    23  this supply.
    24     Section 5.2.  Procedures for securing restoration or
    25  replacement of affected water supplies; duties of Department of
    26  Environmental [Resources] Protection.--(a)  (1)  Whenever a
    27  landowner or water user experiences contamination, diminution or
    28  interruption of a water supply which is believed to have
    29  occurred as a result of underground coal mining operations, that
    30  landowner or water user shall notify the mine operator who shall
    20010H2242B3082                 - 10 -

     1  both promptly notify the department thereof and with reasonable
     2  diligence investigate the water loss.
     3     (2)  Where the presumption of subsection (c) applies and the
     4  user is without a readily available alternate source, the
     5  operator shall provide a temporary water supply within twenty-
     6  four hours of being contacted by the landowner or water user.
     7     (3)  If a temporary water supply is not provided within
     8  twenty-four hours, the [Department of Environmental Resources]
     9  department, after notice by the landowner or water user, shall
    10  order the operator to provide temporary water within twenty-four
    11  hours. The operator shall notify the department of any claim of
    12  contamination, diminution or interruption made to it by a
    13  landowner or water user and its disposition.
    14     (b)  (1)  If the affected water supply has not been restored
    15  or an alternate source has not been provided by the operator or
    16  if an operator ceases to provide an alternate source, the
    17  landowner or water user may so notify the department and request
    18  that an investigation be conducted.
    19     (2)  Within ten days of such notification, the department
    20  shall investigate any such claim and shall, within [forty-five]
    21  thirty days following notification, make a determination in
    22  writing of whether the contamination, diminution or interruption
    23  was caused by the underground mining operation and so notify all
    24  affected parties. If it finds causation, [it] within forty-five
    25  days of receipt of the notification required by subsection (a),
    26  the department shall issue [such orders] an order to the mine
    27  operator [as are necessary to assure compliance with this
    28  section. Such orders may include orders requiring the temporary
    29  replacement of a water supply where it is determined that the
    30  contamination, diminution or interruption may be of limited
    20010H2242B3082                 - 11 -

     1  duration, orders requiring the provision of immediate temporary
     2  water to the landowner or orders requiring the provision of a
     3  permanent alternate source where the contamination, diminution
     4  or interruption does not abate within three years of the date on
     5  which the supply was adversely affected.] requiring replacement
     6  of the water supply. It is the intent of this section that
     7  temporary replacement of a water supply shall be permitted for
     8  no longer than ninety days after the department has determined
     9  that there is contamination, diminution or interruption of the
    10  supply caused by the underground mining operation or an
    11  additional two hundred seventy days if the department determines
    12  that water supply replacement to occur through connection to a
    13  public water supply is necessary. The permanent replacement
    14  supply shall be provided more promptly where reasonably
    15  possible.
    16     (c)  In any determination or proceeding under this section,
    17  it shall be presumed that an underground mine operator is
    18  responsible for the contamination, diminution or interruption of
    19  a water supply that is within an area [above the mine determined
    20  by projecting a thirty-five degree angle from the vertical from
    21  the outside of any coal removal area] of the mine subsidence
    22  permit's boundary or within two thousand five hundred feet
    23  horizontally beyond that permit's boundary. The mine operator
    24  may successfully rebut the presumption by affirmatively proving
    25  that the mine operator solicited access [was denied] to the
    26  property on which the supply is located to conduct premining and
    27  postmining surveys of the quality and quantity of the supply but
    28  was denied such access, that the mine operator notified the
    29  department thereof and the department thereafter served notice
    30  upon the landowner by certified mail or personal service, which
    20010H2242B3082                 - 12 -

     1  notice identified all of the rights established by sections 5.1
     2  and 5.3 and this section[,] and that access [had been] continued
     3  to be denied to the mine operator or the department [and the
     4  landowner failed to provide or authorize access within ten] for
     5  this survey work for thirty days after receipt [thereof.] by the
     6  landowner of the department's notice. In addition to identifying
     7  the rights established in sections 5.1 and 5.3 and this section,
     8  the notice by the department shall also advise the landowner
     9  receiving such notice that the failure to provide or authorize
    10  access may preclude the replacement of the water supply, in the
    11  event the water supply is diminished, contaminated or
    12  interrupted.
    13     (d)  Unless the presumption contained in subsection (c)
    14  applies, a landowner, the department or any affected user
    15  asserting contamination, diminution or interruption shall have
    16  the burden to affirmatively prove that underground mining
    17  activity caused the contamination, diminution or interruption.
    18  Wherever a mine operator, upon request, has been denied access
    19  to conduct a premining survey and the mine operator thereafter
    20  served notice upon the landowner by certified mail or personal
    21  service, which notice identified the rights established by
    22  sections 5.1 and 5.3 and this section, was denied access and the
    23  landowner failed to provide or authorize access [within ten days
    24  after receipt thereof,] as provided in subsection (c), then such
    25  affirmative proof shall include premining baseline data,
    26  provided by the landowner or the department, relative to the
    27  affected water supply.
    28     (e)  A mine operator shall be relieved of liability for
    29  affecting a public or private water supply by contamination,
    30  diminution or interruption by affirmatively proving [one] either
    20010H2242B3082                 - 13 -

     1  of the following defenses:
     2     (1)  The contamination, diminution or interruption existed
     3  prior to the mining activity as determined by a premining
     4  survey.
     5     [(2)  The contamination, diminution or interruption occurred
     6  more than three years after mining activity occurred.
     7     (3)] (2)  The contamination, diminution or interruption
     8  occurred solely as [the] a result of some cause other than the
     9  mining activity.
    10     (f)  Any mine operator who obtains water samples in a
    11  premining or postmining survey shall utilize a certified
    12  laboratory to analyze such samples and shall submit copies of
    13  the results of such analysis, as well as the results of any
    14  quantitative analysis, to the department and to the landowner
    15  within [thirty] ten days of their receipt. Nothing contained
    16  herein shall be construed as prohibiting a landowner or water
    17  user from utilizing an independent certified laboratory to
    18  sample and analyze the water supply.
    19     (g)  If an affected water supply is not restored or
    20  reestablished or a permanent alternate source is not provided
    21  within [three years, the mine operator may be relieved of
    22  further responsibility by entering into a written agreement
    23  providing compensation acceptable to the landowner. If no
    24  agreement is reached, the mine operator] ninety days, at the
    25  option of the landowner, the department shall order the mine
    26  operator to:
    27     (1)  replace the water supply within ninety days unless
    28  replacement is by connection to a public water supply in which
    29  case the department shall order replacement in a period not to
    30  exceed one year; or
    20010H2242B3082                 - 14 -

     1     [(1)] (2)  purchase the property for [a sum equal to its] an
     2  amount which is the fair market value immediately prior to the
     3  time the water supply was affected [; or]: Provided further,
     4  That in the event the mine operator is ordered to purchase the
     5  property, he shall pay the landowner an additional amount equal
     6  to 25% of the fair market value of such property to cover the
     7  landowner's dislocation and relocation to other property, but no
     8  more than twenty thousand dollars ($20,000.00).
     9     [(2)  make a one-time payment equal to the difference between
    10  the property's fair market value immediately prior to the time
    11  the water supply was affected and at the time payment is made;
    12  whereupon the mine operator shall be relieved of further
    13  obligation regarding contamination, diminution or interruption
    14  of the affected water supply under this act. Any measures taken
    15  under sections 5.1 and 5.3 and this section to relieve a mine
    16  operator of further obligation regarding contamination,
    17  diminution or interruption of an affected water supply shall not
    18  be deemed to bar a subsequent purchaser of the land on which the
    19  affected water supply was located or any water user on such land
    20  from invoking rights under this section for contamination,
    21  diminution or interruption of a water supply resulting from
    22  subsequent mining activity other than that contemplated by the
    23  mine plan in effect at the time the original supply was
    24  affected.
    25     (h)  Prior to entering into an agreement with the mine
    26  operator pursuant to subsection (g), the landowner may submit a
    27  written request to the department asking that the department
    28  review the operator's finding that an affected water supply
    29  cannot reasonably be restored or that a permanent alternate
    30  source, as described in subsection (i), cannot reasonably be
    20010H2242B3082                 - 15 -

     1  provided. The department shall provide its opinion to the
     2  landowner within sixty days of receiving the landowner's
     3  request. The department's opinion shall be advisory only,
     4  including for purposes of assisting the landowner in selecting
     5  the optional compensation authorized under subsection (g). The
     6  department's opinion shall not prevent the landowner from
     7  entering into an agreement with the mine operator pursuant to
     8  subsection (g), and such opinion shall not serve as the basis
     9  for any action by the department against the mine operator or
    10  create any cause of action in a third party, provided the
    11  operator otherwise complies with subsection (g).]
    12     (i)  For purposes of this section, a permanent alternate
    13  source shall include any well, spring, municipal water supply
    14  system or other supply approved by the department which is
    15  adequate in quantity, quality and of reasonable cost to serve
    16  both the premining uses of the affected water supply and the
    17  supply owner's projected future uses of that supply.
    18     (j)  The department shall require an operator to describe in
    19  his permit application how water supplies [will] shall be
    20  replaced. [Nothing contained herein shall be construed as
    21  authorizing the department to require a mine operator to provide
    22  a replacement water supply prior to mining as a condition of
    23  securing a permit to conduct underground coal mining.] The
    24  operator shall, for each water supply which either overlies the
    25  permit area or is within two thousand five hundred feet of the
    26  permit boundary, describe specifically and with particularity in
    27  the permit application, the manner in which contaminated,
    28  diminished or interrupted water supplies will be replaced, and
    29  how they can be replaced within ninety days of being affected by
    30  mining. The permit application shall conclusively demonstrate
    20010H2242B3082                 - 16 -

     1  the availability of replacement options including, but not
     2  limited to, replacement options such as a hookup to a public
     3  water supply, drilling a well into a fresh water aquifer
     4  containing water of adequate quality and quantity to be used for
     5  a replacement supply, development of a spring in an area not
     6  affected by the mining, and any and all such other information
     7  as may be necessary for the department to determine that the
     8  water supply affected can actually be replaced within ninety
     9  days of being adversely affected by the mining, that such a
    10  replacement is feasible and practical, and that the water for
    11  the replacement is available at the location where the mining
    12  occurs. If the operator cannot conclusively demonstrate each
    13  such replacement, the permit shall not issue.
    14     (k)  Any landowner, water user or mine operator aggrieved by
    15  an order or determination of the department issued under this
    16  section shall have the right to appeal such order to the
    17  Environmental Hearing Board within thirty days of receipt of the
    18  order.
    19     Section 5.3.  Voluntary agreement; restoration or replacement
    20  of water; deed recital.--(a)  Nothing contained in this act
    21  shall prohibit the mine operator and landowner at any time after
    22  the effective date of this section from voluntarily entering
    23  into an agreement establishing the manner and means by which an
    24  affected water supply is to be restored or an alternate supply
    25  is to be provided or providing fair compensation for such
    26  contamination, diminution or interruption as required by section
    27  5.2(g). Any release contained in such an agreement shall only be
    28  valid in releasing the operator from liability for affecting a
    29  public or private water supply by contamination, diminution or
    30  interruption if all of the following apply:
    20010H2242B3082                 - 17 -

     1     (1)  It clearly states [what] all of the landowner's rights
     2  [are] in regard thereto as established by this act.
     3     (2)  The landowner expressly acknowledges their release for
     4  the consideration rendered.
     5     (3)  The contamination, diminution or interruption of the
     6  water supply occurs as a result of the mining contemplated by
     7  the agreement.
     8     (4)  The term of the release does not exceed thirty-five
     9  years.
    10     (5)  Notwithstanding the provisions of an agreement entered
    11  into under this section, in the event that an affected water
    12  supply cannot reasonably be restored or that a permanent
    13  alternate source, as described in section 5.2(i), cannot
    14  reasonably be provided within [three years] ninety days of the
    15  date on which the supply was adversely affected, the landowner
    16  shall have the option of proceeding pursuant to section 5.2(g)
    17  [and (h)]. Any amounts previously paid to the landowner by the
    18  mine operator pursuant to an agreement entered into under this
    19  section that were not used by the landowner to restore or
    20  replace the affected water supply or to secure a permanent
    21  alternate source, as described in section 5.2(i), shall be
    22  deducted from the compensation determined to be due pursuant to
    23  section 5.2(g).
    24     (b)  In every deed for the conveyance of property for which
    25  an agreement executed pursuant to subsection (a) is effective at
    26  the time of transfer, the grantor shall include in the deed a
    27  recital of the agreement and any release contained therein.
    28     (c)  Nothing contained in this act shall prevent any
    29  landowner or water user who claims contamination, diminution or
    30  interruption of a water supply from seeking any other remedy
    20010H2242B3082                 - 18 -

     1  that may be provided [at] in law or [in] equity. In any
     2  proceedings in pursuit of a remedy other than as provided
     3  herein, the [provisions of this act shall not apply and the
     4  party or parties against whom liability is sought to be imposed
     5  may assert in defense any rights or waivers arising from
     6  provisions contained in deeds, leases or agreements pertaining
     7  to mining rights or coal ownership on the property in question.]
     8  mine operator against whom liability is sought to be imposed may
     9  assert only those defenses specifically set forth in this act
    10  and waives, as a privilege of being granted a permit to conduct
    11  underground mining activities in this Commonwealth, any defense
    12  based on any right or waiver arising from provisions contained
    13  in deeds, leases or agreements pertaining to mining rights or
    14  coal ownership on the property in question. Any defense or
    15  waiver of rights contained in any severance deed shall be null
    16  and void as a defense to water contamination, diminution or
    17  interruption, by an operator granted a permit under this act.
    18     Section 5.4.  Restoration or compensation for structures
    19  damaged by underground mining.--(a)  Whenever underground mining
    20  operations conducted under this act cause damage to any of the
    21  following surface buildings overlying or in the proximity of the
    22  mine:
    23     (1)  any building which is accessible to the public,
    24  including, but not limited to, commercial, industrial and
    25  recreational buildings and all permanently affixed structures
    26  appurtenant thereto;
    27     (2)  any noncommercial buildings customarily used by the
    28  public, including, but not limited to, schools, churches and
    29  hospitals;
    30     (3)  dwellings used or intended to be used for human
    20010H2242B3082                 - 19 -

     1  habitation and permanently affixed appurtenant structures or
     2  improvements [in place on the effective date of this section or
     3  on the date of first publication of the application for a Mine
     4  Activity Permit or a five-year renewal thereof for the
     5  operations in question and within the boundary of the entire
     6  mine as depicted in said application]; or
     7     (4)  the following agricultural structures: all barns and
     8  silos and all permanently affixed structures of five hundred or
     9  more square feet in area that are used for raising livestock,
    10  poultry or agricultural products, for storage of animal waste or
    11  for the processing or retail marketing of agricultural products
    12  produced on the farm on which such structures are located;
    13  the operator of such coal mine shall repair such damage or
    14  compensate the owner of such building for the reasonable cost of
    15  its repair or the reasonable cost of its replacement where the
    16  damage is irreparable.
    17     (b)  For any irreparably damaged agricultural structure
    18  identified in subsection (a)(4) which, at the time of damage,
    19  the operator can affirmatively prove was being used for a
    20  different purpose than the purpose for which such structure was
    21  originally constructed, the operator, with the structure owner's
    22  consent, may provide for the reasonable cost to replace the
    23  damaged structure with a structure satisfying the functions and
    24  purposes served by the damaged structure before such damage
    25  occurred.
    26     (c)  [A] The underground mine operator shall be presumed to
    27  be responsible for any damage to structures located above the
    28  mine or within an area above the mine determined by projecting a
    29  thirty-five degree angle from the vertical from the outside of
    30  any coal removal area. The mine operator [shall not be liable to
    20010H2242B3082                 - 20 -

     1  repair or compensate for subsidence damage if the mine] may
     2  successfully rebut the presumption of liability by affirmatively
     3  proving that the mine operator[, upon request, is denied]
     4  solicited access to the property [upon] on which the [building]
     5  structure is located to conduct premining and postmining surveys
     6  of the [building and surrounding property] structure's condition
     7  but was denied such access; that the mine operator notified the
     8  department thereof and the department thereafter [serves] served
     9  notice upon the landowner by certified mail or personal service,
    10  which notice [identifies] identified all of the rights
    11  established by sections 5.5 and 5.6 and this section[, the mine
    12  operator was denied access and]; and that access continued to be
    13  denied to the mine operator or the department for this survey
    14  work for thirty days after receipt by the landowner of the
    15  department's notice. In addition to identifying all of the
    16  rights established in sections 5.5 and 5.6 and this section, the
    17  notice by the department shall also advise the landowner
    18  [failed] receiving such notice that the failure to provide or
    19  authorize access [within ten days after receipt thereof] may
    20  preclude the repair of the structure's damage, in the event the
    21  structure is damaged from mining activities.
    22     Section 5.5.  Procedure for securing repair and/or
    23  compensation for damage to structures caused by underground
    24  mining; duties of Department of Environmental [Resources]
    25  Protection.--(a)  The owner of any building enumerated in
    26  section 5.4(a) who believes that the removal of coal has caused
    27  mine subsidence resulting in damage to such building and who
    28  wishes to secure repair of or compensation for such damage shall
    29  notify the mine operator[.] thereof. The mine operator shall
    30  promptly notify the department of each such claim he receives.
    20010H2242B3082                 - 21 -

     1  If the mine operator agrees that mine subsidence damaged such
     2  building, he shall cause such damage to be fully repaired or
     3  compensate the owner for such damage in accordance with section
     4  5.4(a) or with an agreement in accordance with section 5.6
     5  reached between the parties either prior to mining or after the
     6  damage has occurred.
     7     (b)  If the parties are unable to agree [within six months of
     8  the date of notice] as to the cause of the damage or the
     9  reasonable cost of repair or compensation, the owner of the
    10  building may file a claim in writing with the [Department of
    11  Environmental Resources] department, a copy of which shall be
    12  sent to the operator. All claims under this subsection shall be
    13  filed within two years of the date damage to the building
    14  occurred or, if later, the date when the damage is discovered by
    15  the property owner.
    16     * * *
    17     (d)  In no event shall the mine operator be liable for
    18  repairs or compensation in an amount exceeding the cost of
    19  replacement of the damaged structure[.] with an equivalent
    20  structure. Whenever damage to a structure exceeds one thousand
    21  dollars ($1,000.00), the mine operator shall also compensate the
    22  structure's owner an amount equal to 10% of the cost of all
    23  repairs which will be made to the structure for the cost in time
    24  and effort to the structure's owner in securing, making or
    25  supervising the making of any such repairs. The occupants of a
    26  damaged structure shall also be entitled to additional payment
    27  for reasonable, actual expenses incurred for temporary
    28  relocation, interim storage of personal property and for other
    29  actual reasonable, incidental costs [agreed to by the parties or
    30  approved by the department] incurred by the structure's
    20010H2242B3082                 - 22 -

     1  occupants as a result of damage from mine subsidence.
     2     * * *
     3     Section 5.6.  Voluntary agreements for repair or compensation
     4  for damages to structures caused by underground mining; deed
     5  recital.--* * *
     6     (c)  The duty created by section 5.5 to repair or compensate
     7  for subsidence damage to the buildings enumerated in section
     8  5.4(a) shall be the sole and exclusive administrative remedy for
     9  such damage and shall not be diminished by the existence of
    10  contrary provisions in deeds, leases or agreements which
    11  [relieved] relieve mine operators from such duty[. Nothing
    12  herein shall impair agreements entered into after April 27,
    13  1966, and prior to the effective date of this section, which,
    14  for valid consideration, provide for a waiver or release of any
    15  duty to repair or compensate for subsidence damage. Any such
    16  waiver or release shall only be valid with respect to damage
    17  resulting from the mining activity contemplated by such
    18  agreement.]: Provided further, That nothing contained in this
    19  act shall prevent the owner of any building who claims damage
    20  thereto from subsidence from seeking any other remedy that may
    21  be provided in law or equity. In any proceedings in pursuit of a
    22  remedy other than as provided under this act, the mine operator
    23  against whom liability is sought to be imposed may assert only
    24  those defenses specifically set forth in this act and waives, as
    25  a privilege of being granted a permit to conduct underground
    26  mining activities in this Commonwealth, any defense based on any
    27  right or waiver arising from provisions contained in deeds,
    28  leases or agreements pertaining to mining rights or coal
    29  ownership on the property in question. Any defense or waiver of
    30  rights contained in any severance deed shall be null and void as
    20010H2242B3082                 - 23 -

     1  a defense to subsidence damage to a building, by an operator
     2  granted a permit under this act.
     3     * * *
     4     Section 6.  Repair of damage or satisfaction of claims;
     5  revocation or suspension of permit; bond or collateral.--* * *
     6     (b)  The department shall require the applicant to file a
     7  bond in a form prescribed by the secretary payable to the
     8  Commonwealth and conditioned upon the applicant's faithful
     9  performance of mining or mining operations, in accordance with
    10  the provisions of sections 5, 5.1, 5.4, 5.5 [and], 5.6, 5.7, 5.8
    11  and 5.9. Such bond shall be in [a reasonable amount as
    12  determined by the department.] an amount which will be adequate
    13  to cover all subsidence damage anticipated by the mine operator,
    14  and identified in the permit application, for the term of the
    15  permit. In addition, the bond shall be adequate to ensure that
    16  the mine operator can repair all subsidence damage anticipated
    17  during the life of the permit, as well as replace any and all
    18  water supplies contaminated, diminished or interrupted by the
    19  mining operations and repair all public roads damaged by the
    20  subsidence. In providing an amount for this bond, the mine
    21  operator shall estimate the amount of subsidence damage to each
    22  dwelling, structure, building, road or other surface feature,
    23  including surface waters, which is likely to sustain damage by
    24  subsidence during the term of the mining operation. In the even
    25  that the operator is unable to estimate the amount of subsidence
    26  damage with a reasonable degree of engineering and scientific
    27  certainty, then it shall be assumed for the purposes of this act
    28  that the anticipated subsidence damage to any dwelling,
    29  building, structure, road or other surface feature shall be
    30  equal to the fair market value of the dwelling, building,
    20010H2242B3082                 - 24 -

     1  structure, road or other surface feature prior to the date of
     2  the issuance of the mining permit. Liability under such bond
     3  shall continue for the duration of the mining or mining
     4  operation, and for a period of ten years thereafter or such
     5  longer period of time as may be prescribed by rules and
     6  regulations promulgated hereunder, at which time the bond shall
     7  become of no force and effect, and it, or any cash or securities
     8  substituted for it as hereinafter provided, shall be returned to
     9  the applicant. Upon application of any proper party in interest,
    10  the department, after due notice to any person who may be
    11  affected thereby, and hearing, in accordance with the provisions
    12  of section 5(g), may order the amount of said bond to be
    13  increased or reduced or may excuse the permit holder from any
    14  further duty of keeping in effect any bond furnished pursuant to
    15  a prior order of the department and return said bond, or the
    16  securities or cash posted in lieu thereof, to the permit holder,
    17  notwithstanding any different provision herein respecting the
    18  duration or term of said bond. Such bond shall be executed by
    19  the applicant and a corporate surety licensed to do business in
    20  the Commonwealth: Provided, however, That the applicant may
    21  elect to deposit cash, automatically renewable irrevocable bank
    22  letters of credit which may be terminated by the bank at the end
    23  of a term only upon the bank giving ninety days prior written
    24  notice to the permittee and the department or negotiable bonds
    25  of the United States Government or the Commonwealth of
    26  Pennsylvania, the Pennsylvania Turnpike Commission, the General
    27  State Authority, the State Public School Building Authority, or
    28  any municipality within the Commonwealth, with the department in
    29  lieu of a corporate surety. The cash deposit or irrevocable
    30  letter of credit or market value of such negotiable bonds shall
    20010H2242B3082                 - 25 -

     1  be at least equal to the sum of the bond. Where the mining
     2  operation is reasonably anticipated to continue for a period of
     3  at least ten years from the date of application, the operator
     4  may, as an alternative, deposit collateral and file a collateral
     5  bond as provided for in this section according to the following
     6  phased deposit schedule. The operator shall, prior to commencing
     7  operations, deposit ten thousand dollars ($10,000.00) or 25% of
     8  the amount determined under this subsection, whichever is
     9  greater. The operator shall thereafter annually deposit 10% of
    10  the remaining bond amount for ten years. Interest accumulated by
    11  such collateral shall become a part of the bond. The department
    12  may require additional bonding at any time to meet the intent of
    13  this subsection. The collateral shall be deposited, in trust,
    14  with the State Treasurer, or with a bank, selected by the
    15  department, which shall act as trustee for the benefit of the
    16  Commonwealth, according to rules and regulations promulgated
    17  hereunder, to guarantee the operator's compliance with this act.
    18  The operator shall be required to pay all costs of the trust.
    19  The collateral deposit, or part thereof, shall be released of
    20  liability and returned to the operator, together with a
    21  proportional share of accumulated interest, upon the conditions
    22  of and pursuant to the schedule for release provided for by
    23  rules and regulations promulgated hereunder. In lieu of the bond
    24  required by this section, the department may require the
    25  operator of an underground mining operation to purchase
    26  subsidence insurance, as provided by the act of August 23, 1961
    27  (P.L.1068, No.484), entitled, as amended, "An act to provide for
    28  the creation and administration of a Coal and Clay Mine
    29  Subsidence Insurance Fund within the Department of Environmental
    30  Resources for the insurance of compensation for damages to
    20010H2242B3082                 - 26 -

     1  subscribers thereto; declaring false oaths by the subscribers to
     2  be misdemeanors; providing penalties for the violation thereof;
     3  and making an appropriation," for the benefit of all surface
     4  property owners who may be affected by damage caused by
     5  subsidence. The insurance coverage shall be in an amount
     6  determined by the department to be sufficient to remedy any and
     7  all damage. The term of this obligation shall be for the
     8  duration of the mining and reclamation operation and for ten
     9  years thereafter. For all other surface effects of underground
    10  mining, the operator shall post a bond as required by this
    11  section. The department shall, upon receipt of any such deposit
    12  of cash or irrevocable letter of credit or negotiable bonds,
    13  immediately place the same with the State Treasurer, whose duty
    14  it shall be to receive and hold the same in the name of the
    15  Commonwealth, in trust, for the purposes for which such deposit
    16  is made. The State Treasurer shall at all times be responsible
    17  for the custody and safekeeping of such deposits. The applicant
    18  making the deposit shall be entitled from time to time to demand
    19  and receive from the State Treasurer, on the written order of
    20  the department, the whole or any portion of any collateral so
    21  deposited, upon depositing with him, in lieu thereof, other
    22  collateral of the classes herein specified having a market value
    23  at least equal to the sum of the bond, and also to demand,
    24  receive and recover the interest and income from said negotiable
    25  bonds as the same become due and payable: Provided, however,
    26  That where negotiable bonds, deposited as aforesaid, mature or
    27  are called, the State Treasurer, at the request of the
    28  applicant, shall convert such negotiable bonds into such other
    29  negotiable bonds of the classes herein specified as may be
    30  designated by the applicant: And provided further, That where
    20010H2242B3082                 - 27 -

     1  notice of intent to terminate a letter of credit is given, the
     2  department shall give the permittee thirty days written notice
     3  to replace the letter of credit with other acceptable bond
     4  guarantees as provided herein, and if the permittee fails to
     5  replace the letter of credit within the thirty-day notification
     6  period, the department shall draw upon and convert such letter
     7  of credit into cash and hold it as a collateral bond guarantee.
     8     The department, in its discretion, may accept a self-bond
     9  from the permittee, without separate surety, if the permittee
    10  demonstrates to the satisfaction of the department a history of
    11  financial solvency, continuous business operation and continuous
    12  efforts to achieve compliance with all United States of America
    13  and Pennsylvania environmental laws, and, meets all of the
    14  following requirements:
    15     (1)  The permittee shall be incorporated or authorized to do
    16  business in Pennsylvania and shall designate an agent in
    17  Pennsylvania to receive service of suits, claims, demands or
    18  other legal process.
    19     (2)  The permittee or if the permittee does not issue
    20  separate audited financial statements, its parent, shall provide
    21  audited financial statements for at least its most recent three
    22  fiscal years prepared by a certified public accountant in
    23  accordance with generally accepted accounting principles. Upon
    24  request of the permittee, the department shall maintain the
    25  confidentiality of such financial statements if the same are not
    26  otherwise disclosed to other government agencies or the public.
    27     (3)  During the last thirty-six calendar months, the
    28  applicant has not defaulted in the payment of any dividend or
    29  sinking fund installment or preferred stock or installment on
    30  any indebtedness for borrowed money or payment of rentals under
    20010H2242B3082                 - 28 -

     1  long-term leases or any reclamation fee payment currently due
     2  under the Federal Surface Mining Control and Reclamation Act of
     3  1977, 30 U.S.C. § 1232, for each ton of coal produced in the
     4  Commonwealth of Pennsylvania.
     5     (4)  The permittee shall have been in business and operating
     6  no less than ten years prior to filing of application unless the
     7  permittee's existence results from a reorganization,
     8  consolidation or merger involving a company with such longevity.
     9  However, the permittee shall be deemed to have met this
    10  requirement if it is a majority-owned subsidiary of a
    11  corporation which has such a ten-year business history.
    12     (5)  The permittee shall have a net worth of at least six
    13  times the aggregate amount of all bonds applied for by the
    14  operator under this section.
    15     (6)  The permittee shall give immediate notice to the
    16  department of any significant change in managing control of the
    17  company.
    18     (7)  A corporate officer of the permittee shall certify to
    19  the department that forfeiture of the aggregate amounts of self-
    20  bonds furnished for all operations hereunder would not
    21  materially affect the permittee's ability to remain in business
    22  or endanger its cash flow to the extent it could not meet its
    23  current obligations.
    24     (8)  The permittee may be required by the department to
    25  pledge real and personal property to guarantee the permittee's
    26  self-bond. The department is authorized to acquire and dispose
    27  of such property in the event of a default to the bond
    28  obligation and may use the moneys in the Bituminous Mine
    29  Subsidence and Land Conservation Fund to administer this
    30  provision.
    20010H2242B3082                 - 29 -

     1     (9)  The permittee may be required to provide third party
     2  guarantees or indemnifications of its self-bond obligations.
     3     (10)  The permittee shall provide such other information
     4  regarding its financial solvency, continuous business operation
     5  and compliance with environmental laws as the department shall
     6  require.
     7     (11)  An applicant shall certify to the department its
     8  present intention to maintain its present corporate status for a
     9  period in excess of five years.
    10     (12)  A permittee shall annually update the certifications
    11  required hereunder and provide audited financial statements for
    12  each fiscal year during which it furnishes self-bonds.
    13     (13)  The permittee shall pay an annual fee in the amount
    14  determined by the department of the cost to review and verify
    15  the permittee's application for self-bonding and annual
    16  submissions thereafter.
    17     * * *
    18     Section 5.  The act is amended by adding sections to read:
    19     Section 5.7.  Protection requirements for public roads.--(a)
    20  An underground mine operator shall be presumed to be financially
    21  responsible for the costs of repair of any subsidence damage to
    22  public roads located above the mine or within an area above the
    23  mine determined by projecting a thirty-five degree angle from
    24  the vertical from the outside of any coal removal area.
    25     (b)  The department shall develop and implement regulations
    26  to prevent, minimize and repair mine subsidence damage to public
    27  roads. These regulations shall include, but are not limited to,
    28  specific bonds to cover the projected cost of repairing
    29  undermined roads within an area above the mine determined by
    30  projecting a thirty-five degree angle from the vertical from the
    20010H2242B3082                 - 30 -

     1  outside of any coal removal.
     2     Section 5.8.  Procedure for securing compensation for damage
     3  to public roads caused by underground mining; duties of
     4  department.--(a)  The owner of any public road described in
     5  section 5.7(a) who believes that the removal of coal has caused
     6  mine subsidence resulting in damage to such public road and who
     7  wishes to secure compensation for such damage shall notify the
     8  mine operator thereof. The mine operator shall promptly notify
     9  the department of each such claim the operator receives. If the
    10  mine operator agrees that mine subsidence damaged the public
    11  road, as claimed, the operator shall compensate the owner for
    12  the damage in accordance with section 5.7(a) or with an
    13  agreement in accordance with section 5.9 reached between the
    14  parties either prior to mining or after the damage has occurred.
    15     (b)  If the parties are unable to agree as to the cause of
    16  the damage or the reasonable cost of compensation, the owner of
    17  the public road may file a claim in writing with the department,
    18  a copy of which shall be sent to the operator. All claims under
    19  this subsection shall be filed within two years of the date
    20  damage to the public road occurred or, if later, the date when
    21  the damage is discovered by the owner of the public road.
    22     (c)  The department shall make an investigation of a claim
    23  within thirty days of receipt of the claim. The department
    24  shall, within sixty days following the investigation, make a
    25  determination in writing as to whether the damage was caused by
    26  subsidence due to underground coal mining and, if so, the
    27  reasonable cost of repairing or replacing the damaged road. If
    28  the department finds the damage to be caused by the mining, it
    29  shall issue a written order directing the operator to compensate
    30  the owner of the road.
    20010H2242B3082                 - 31 -

     1     (d)  In no event shall the mine operator be liable for
     2  compensation in an amount exceeding the cost of replacement of
     3  the damaged public road.
     4     (e)  If either the road owner or the mine operator is
     5  aggrieved by an order issued by the department under this
     6  section, that person shall have the right to appeal the order to
     7  the Environmental Hearing Board within thirty days of receipt of
     8  the order. The appeal of a mine operator shall not be considered
     9  perfected unless within sixty days of the date the mine operator
    10  received the department's order, the operator has deposited an
    11  amount equal to the amount of compensation ordered by the
    12  department in an interest-bearing escrow account administered
    13  for such purposes by the department.
    14     (f)  If the mine operator shall fail to compensate for
    15  subsidence damage within six months or shall fail to perfect an
    16  appeal of the department's order directing compensation, the
    17  department shall issue an order or take an action as necessary
    18  to compel compliance with the requirements hereof, including,
    19  but not limited to, cessation orders and permit revocation. If
    20  the mine operator fails to compensate for damage after
    21  exhausting its right of appeal, the department shall pay the
    22  escrow deposit made with respect to the particular claim
    23  involved and accrued interest to the owner of the damaged road.
    24     (g)  Except as provided in subsection (f), the existence of
    25  unresolved claims of subsidence damage shall not be used by the
    26  department as a basis for withholding permits from or suspending
    27  review of permit applications submitted by a mine operator
    28  against whom such claims have been made.
    29     Section 5.9.  Voluntary agreements for compensation for
    30  damages to public roads caused by underground mining.--(a)
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     1  Nothing contained in this act shall prohibit the mine operator
     2  and the owner of the public road at any time after the effective
     3  date of this section from voluntarily entering into an agreement
     4  establishing the manner and means by which compensation for
     5  subsidence damage is to be provided. Any release contained in
     6  such an agreement shall only be valid in releasing the operator
     7  from liability under this act if it clearly states what rights
     8  are established by this act and the road's owner expressly
     9  acknowledges the release as consideration for the alternate
    10  remedies provided under the agreement, except that such remedies
    11  shall be no less than those reasonably necessary to compensate
    12  the owner of the road for the reasonable cost of its repair or
    13  the reasonable cost of its replacement where the damage is
    14  irreparable. Any such release shall be null and void if no
    15  mining occurs for a period of thirty-five years within the coal
    16  field of which the coal underlying the affected public road
    17  forms a part.
    18     (b)  The duty created by section 5.8 to compensate for
    19  subsidence damage to the public roads enumerated in section
    20  5.7(a) shall be the sole and exclusive administrative remedy for
    21  such damage: Provided, further, That nothing contained in this
    22  act shall prevent the owner of any public road who claims damage
    23  thereto from subsidence from seeking any other remedy that may
    24  be provided in law or equity. In any proceedings in pursuit of a
    25  remedy other than as provided under this act, the mine operator
    26  against whom liability is sought to be imposed may assert only
    27  those defenses specifically set forth in this act and waives, as
    28  a privilege of being granted a permit to conduct underground
    29  mining activities in this Commonwealth, any defense based on any
    30  right or waiver arising from provisions contained in deeds,
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     1  leases or agreements pertaining to mining rights or coal
     2  ownership on the property in question. Any defense or waiver of
     3  rights contained in any severance deed shall be null and void as
     4  a defense to subsidence damage to a road by an operator granted
     5  a permit under this act.
     6     Section 6.  Section 7(a) of the act, amended October 10, 1980
     7  (P.L.874, No.156), is amended to read:
     8     Section 7.  Jurisdiction; enforcement; rulemaking.--(a)  All
     9  bituminous coal mines or mining operations coming within the
    10  provisions of this act shall be under the exclusive jurisdiction
    11  of the [Department of Environmental Resources] department and
    12  shall be conducted in accordance with this act, the act of July
    13  17, 1961 (P.L.659, No.339), known as the "Pennsylvania
    14  Bituminous Coal Mine Act," the act of November 10, 1965
    15  (P.L.721, No.346), known as the "Pennsylvania Anthracite Coal
    16  Mine Act," the act of July 9, 1976 (P.L.931, No.178), entitled
    17  "An act providing for emergency medical personnel; employment of
    18  emergency medical personnel and emergency communications in coal
    19  mines," and with such reasonable rules and regulations as may be
    20  deemed necessary by the department for the health and safety of
    21  those persons engaged in the work. The department shall have the
    22  power to enforce the provisions of this act and the rules and
    23  regulations promulgated hereunder by it.
    24     * * *
    25     Section 7.  Section 9.1 of the act, added June 22, 1994
    26  (P.L.357, No.54), is amended to read:
    27     Section 9.1.  Prevention of hazards to human safety and
    28  material damage to certain buildings.--(a)  [If the Department
    29  of Environmental Resources determines and so notifies the mine
    30  operator that] The department shall determine if a proposed
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     1  mining technique or extraction ratio will result in subsidence
     2  which creates an imminent hazard to human safety[,] and notify
     3  the mine operator of its conclusion in regard thereto. If the
     4  department concludes that there is such a hazard, utilization of
     5  such technique or extraction ratio shall not be permitted unless
     6  the mine operator, prior to mining, takes measures approved by
     7  the department to eliminate the imminent hazard to human safety.
     8  For purposes of this section, "imminent hazard to human safety"
     9  shall include, but not be limited to, subsidence of homes,
    10  dwellings, roads, buildings or other surface features which
    11  could result in injury to the occupants thereof.
    12     (b)  [If the department determines and so notifies] The
    13  department shall determine and so notify the mine operator
    14  [that] if a proposed mining technique or extraction ratio will
    15  cause subsidence which will result in irreparable damage to a
    16  building enumerated in section 5.4(a)(3) or (4)[, utilization].
    17  Utilization of such technique or extraction ratio shall not be
    18  permitted unless the building owner, prior to [mining] issuance
    19  of the permit, consents to such mining or the mine operator,
    20  with the consent of the building owner and prior to [mining]
    21  issuance of the permit, agrees to take measures approved by the
    22  department to minimize [or reduce] impacts resulting from
    23  subsidence [to] of such buildings. For purposes of this section,
    24  "irreparable damage" to a dwelling, structure, building or other
    25  surface feature shall mean damage which will cause temporary or
    26  permanent relocation of the owner of the dwelling, structure or
    27  building, as a result of the mining operation or which exceeds
    28  ten thousand dollars ($10,000.00), or both.
    29     (c)  Underground mining activities shall not be conducted
    30  beneath or adjacent to:
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     1     (1)  public buildings and facilities;
     2     (2)  churches, schools or hospitals;
     3     (3)  impoundments with a storage capacity of twenty acre-feet
     4  or more; [or]
     5     (4)  bodies of water with a volume of twenty acre-feet or
     6  more;
     7     (5)  any historic property, which shall mean any property
     8  listed on the National Register of Historic Places, any property
     9  determined by the Pennsylvania Historical and Museum Commission
    10  to be eligible for such a listing and any other property
    11  otherwise determined to be of historic or archeological
    12  importance; or
    13     (6)  public utilities, including, but not limited to, gas,
    14  electric and water lines, unless the mine operator has made
    15  adequate arrangements with the operator of such utility, prior
    16  to the issuance of a permit by the department, so as to assure
    17  that the utility will be protected to the satisfaction of the
    18  operator of the utility: Provided, That all costs associated
    19  with protection of such utilities shall be borne by the mine
    20  operator;
    21  unless the subsidence control plan demonstrates that subsidence
    22  will not cause material damage to or reduce the reasonably
    23  foreseeable use of such features or facilities. If the
    24  department determines that it is necessary in order to minimize
    25  the potential for material damage to the features or facilities
    26  described above or to any aquifer or body of water that serves
    27  as a significant water source for any public water supply
    28  system, it may limit the percentage of coal extracted under or
    29  adjacent thereto.
    30     (d)  Nothing in this act shall be construed to amend, modify
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     1  or otherwise supersede standards related to prevailing
     2  hydrologic balance contained in the Surface Mining Control and
     3  Reclamation Act of 1977 (Public Law 95-87, 30 U.S.C. § 1201 et
     4  seq.) and regulations promulgated by the Environmental Quality
     5  Board for the purpose of obtaining or maintaining primary
     6  jurisdiction over the enforcement and administration of that act
     7  nor any standard contained in the act of June 22, 1937
     8  (P.L.1987, No.394), known as "The Clean Streams Law," or any
     9  regulation promulgated thereunder by the Environmental Quality
    10  Board.
    11     Section 8.  Section 18 of the act, amended October 10, 1980
    12  (P.L.874, No.156), is amended to read:
    13     Section 18.  Legislative oversight.--(a)  In order to
    14  maintain primary jurisdiction over surface coal mining in
    15  Pennsylvania pursuant to the Surface Mining Control and
    16  Reclamation Act of 1977, Public Law 95-87, the Environmental
    17  Quality Board shall have the authority to adopt initial
    18  regulations on an emergency basis in accordance with section
    19  204(3) (relating to omission of notice of proposed rule making)
    20  of the act of July 31, 1968 (P.L.769, No.240), referred to as
    21  the Commonwealth Documents Law. Provided, however, within thirty
    22  days after the Secretary of the United States Department of
    23  Interior grants such primary jurisdiction to Pennsylvania, the
    24  Environmental Quality Board shall repropose the regulations
    25  adopted on an emergency basis, shall submit the regulations to
    26  the [Senate] Environmental Resources and [House Mines and Energy
    27  Management Committees of the General Assembly] Energy Committee
    28  of the Senate and the Environmental Resources and Energy
    29  Committee of the House of Representatives for their review and
    30  comments, and shall schedule public hearings within ninety days
    20010H2242B3082                 - 37 -

     1  after such grant of primary jurisdiction for the purpose of
     2  hearing public comment on any appropriate revisions.
     3     (b)  At least thirty days prior to consideration by the
     4  Environmental Quality Board of any revised regulations or any
     5  new regulations under this act other than those initial
     6  regulations promulgated on an emergency basis, the department
     7  shall submit such regulation to the [Senate] Environmental
     8  Resources and [House Mines and Energy Management Committees of
     9  the General Assembly] Energy Committee of the Senate and the
    10  Environmental Resources and Energy Committee of the House of
    11  Representatives for their review and comment.
    12     Section 9.  Section 18.1 of the act, added June 22, 1994
    13  (P.L.357, No.54), is amended to read:
    14     Section 18.1.  Compilation and analysis of data.--(a)  The
    15  department shall conduct postmining inspections on all
    16  undermined properties to determine the degree of structural
    17  damage, completion of repairs or replacements and effectiveness
    18  of repairs and replacements. As a part of these inspections, the
    19  department shall record repair costs, duration of the repair
    20  period, type of water supply replacement and water supply
    21  utilized. The department shall compile, on an ongoing basis, the
    22  information so collected and the information contained in deep
    23  mine permit applications, in monitoring reports and other data
    24  submitted by operators, from enforcement actions and from any
    25  other appropriate source for the purposes set forth below.
    26     (b)  Such data shall be analyzed by the department, utilizing
    27  the services of professionals or institutions recognized in the
    28  field, for the purpose of determining, to the extent possible,
    29  the effects of deep mining on subsidence of surface structures
    30  and features and on water resources, including sources of public
    20010H2242B3082                 - 38 -

     1  and private water supplies.
     2     (c)  The [analysis] analyses of such data and any relevant
     3  findings shall be presented in report form to the Governor, the
     4  General Assembly and to the Citizens Advisory Council of the
     5  department at five-year intervals commencing in 1993.
     6     (d)  [Nothing contained herein shall be construed as
     7  authorizing the department to require a mine operator to submit
     8  additional information or data, except that it shall require
     9  reporting of all water loss incidents or claims of water loss.]
    10  The department, as part of its Annual Report of Mining
    11  Activities, shall report the numbers of all water loss incidents
    12  or claims of water loss, numbers of incidents of road damage
    13  from mine subsidence, the numbers of all incidents of subsidence
    14  damage to surface structures or claims of structural damage from
    15  mine subsidence on a county-by-county basis for each mine which
    16  is covered in the Annual Report of Mining Activities.
    17     (e)  Beginning on the effective date of this subsection, as
    18  part of all reports to the Governor, General Assembly and the
    19  Citizens Advisory Council pursuant to subsection (c), the
    20  department shall undertake a comprehensive evaluation of the
    21  various techniques and methods employed by or on behalf of mine
    22  operators to mitigate subsidence damage to, roads and surface
    23  structures, including surface waters, to determine the extent to
    24  which these techniques and methods are effective in preventing
    25  structural and nonstructural damage to surface structures and as
    26  part thereof shall investigate and report on whether other
    27  potential techniques and methods are available which would more
    28  effectively prevent all types of subsidence-related damage to
    29  surface structures.
    30     Section 10.  This amendatory act shall be known and may be
    20010H2242B3082                 - 39 -

     1  cited as the Coal Community Fairness Act.
     2     Section 11.  This act shall take effect in 60 days.



















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