SB108 Provides Amnesty for Idle Mines!! In 2011, CalCIMA sponsored Senate Bill (SB)108 to address some of the problems associated with "idle" mines and Interim Management Plans (IMP). Current law requires that within 90 days of a surface mining operation becoming idle, the operator must submit an IMP to the lead agency. If an operator fails to submit an IMP and remains "idle" for over a year, the mine site is considered "abandoned" and must commence reclamation. The problem with the current law is that the definition of "idle" is not well defined which has led to confusion among operators and lead agencies on determining when an operation has become "idle". In addition, a mine site does not need to be given notice that they have become "idle" nor is there a procedure for operators to follow to file a late IMP. Thus, mine sites can be identified as "abandoned" without due process.

Signed by the Governor on October 5, 2011, (SB) 108 is the first step to solving these problems by changing the definition of 'idle', allowing for multiple 5-year extensions of an IMP, and providing 18 months of amnesty for operations to file a late IMP and or correct errors on previously filed Annual Reports. This article breaks down the details of SB108 and explains how the bill will impact surface mining operations in California.

New Definition of "Idle"
Beginning January 1, 2012, a surface mining operation will be considered idle if: the annual mineral production is reduced by more than 90% of the operation's previous maximum over the last 5-years. Current policy relies on maximum production (in any one year) over the entire life of the mine. It is important to note that an operator is still required to file an IMP with the lead agency within 90 days of a surface mine operation becoming idle.

Multiple 5 Year Extensions of an IMP
Current law allows an IMP to remain in effect for 5-years and the lead agency is authorized to renew the IMP for another 5-years if the operation is in full compliance of the IMP. However, current law is not clear whether an IMP can be renewed after the 5-year extension has expired. SB 108 officially authorizes the lead agency to renew the IMP for continuous 5-year periods as long as the operator remains in compliance with their IMP.

Amnesty
SB 108 gives an operator until July 1, 2013 to receive an approved IMP if their surface mining operation was or is "idle" and has not filed an IMP by January 1, 2012. If the IMP is approved by July 1, 2013 the mine site can avoid being classified as abandoned; or if the mine site has been classified as "abandoned" it can return to idle status without having to commence reclamation. It is important to note that, SB 108 requires that the operator must notify the lead agency and the director of the Department of Conservation (DOC), in writing, their intention to continue surface mining operations and the desire to file a late IMP. Before an operator can be granted the amnesty period the lead agency must also confirm the following:

1.The operator has an existing, valid permit or a vested right to conduct surface mining operations.
2.The operator has an approved reclamation plan.
3.The operator has an approved financial assurance.
4.The operator has had a recent inspection by the lead agency.
5.The operator has demonstrated that there are commercially useful mineral reserves remaining at the mine site.

The same amnesty period is also available for operators that have failed to properly report a mine's mineral production or mine status in any year prior to January 1, 2012. Corrected annual reports must be submitted on or before July 1, 2013. To be eligible for amnesty, again the operator must notify the lead agency and the director of the DOC in writing. Similarly, the lead agency must confirm items 1 through 5 above as well as complete the following:

1.Pay any unpaid fees for years during which the operations' status was not properly reported.
2.Provide evidence to support any modified production reported on corrected annual reports.

SB 108 also allows for the Office of Mine Reclamation (OMR) to inspect any mine site that is requesting a corrected annual report or change in mine status when submitting a late IMP. The operator will also be responsible for the costs of the inspection by OMR.

Depending on the situation, a mine operator may need to correct their annual reports and file a late IMP at the same time. However, it is important to note that for an operator to take advantage of the amnesty provided in SB 108, the late IMP must be APPROVED by July 1, 2013. An IMP is considered to be an amendment to the reclamation plan. As a result, it will be necessary for the lead agency to forward the IMP to OMR for review. Depending on the lead agency’s standards for review and OMR’s comments, approval of an IMP may require several months. The operator must allow time for plan development, revisions, and lead agency review and approval. As a result, any operator wishing to file a late IMP must start planning today!

If you have questions about SB 108 or want advice on how to file a late IMP, please give EnviroMINE a call (619) 284-8515 or email us at: crystal@enviroMINEinc.com

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