331 Rates to be used for calculating long-term operation and maintenance cost bonds for water supply replacement-mining operations

Rates to be Used for Calculating Long-Term Operation and Maintenance Cost Bonds for Water Supply Replacement-Mining Operations

[40 Pa.B. 1046]
[Saturday, February 20, 2010]

 The Department of Environmental Protection (Department) announces the rates to be used to calculate bond amounts for water supply replacement operation and maintenance costs for anthracite and bituminous coal and industrial mineral mining operations. The authority for bonding mining operations is found under The Clean Streams Law (35 P. S. §§ 691.1—691.1001), the Surface Mining Conservation and Reclamation Act (52 P. S. §§ 1396.1—1396.19a), the Coal Refuse Disposal Control Act (52 P. S. §§ 30.51—30.66), the Bituminous Mine Subsidence and Land Conservation Act (52 P. S. §§ 1406.1—1406.21), the Noncoal Surface Mining Conservation and Reclamation Act (52 P. S. §§ 3301—3326) and the regulations promulgated thereunder at 25 Pa. Code Chapters 77 and 86 (relating to noncoal mining; and surface mining of coal).

 The rates are used in calculating the water supply operation and maintenance bond amounts for replacement water supplies affected by activities at mining operations including: surface mines, coal refuse disposal sites, coal refuse reprocessing sites, coal processing facilities, underground coal mining operations and industrial mineral surface mines. The procedures for calculating water supply operation and maintenance bonds are described in technical guidance 562-4000-102, ''Increased Operation and Maintenance Costs of Replacement Water Supplies,'' which is available on the Department's web site www.depweb.state.pa, at the Public Participation Center page.

 The Department may review the adequacy of bonds on existing permits at any time. The Department will conduct these reviews before issuing permit renewals. The Department may conduct similar reviews at the mid-term of a permit and before approving a permit revision.

Rates

 The Department calculated the rate of inflation and rate of return using 5-year averages. For the rate of inflation, the Consumer Price Index (Northeast Urban) from the United States Department of Labor, Bureau of Labor Statistics, was averaged for the calendar years 2005-2009, resulting in a rate of 2.77%. For the rate of return, the interest rate for the 20-year Treasury bill as reported by the Federal Reserve was averaged for the calendar years 2005-2009 resulting in a rate of 4.604%.

 For background information and supporting documentation regarding the rates, contact the Bureau of Mining and Reclamation, Division of Monitoring and Compliance, P. O. Box 8461, Harrisburg, PA 17105-8461, [phone].

Effective Date

 The rates in this notice become effective on April 1, 2010. They will remain in effect until new rates are published. It is anticipated that these new rates will be published in February 2011 to be effective April 1, 2011.

JOHN HANGER, 
Secretary

[Pa.B. Doc. No. 10-331. Filed for public inspection February 19, 2010, 9:00 a.m.]