229 Bond rate guidelines for the calculation of land reclamation bonds on coal mining operations

Bond Rate Guidelines for the Calculation of Land Reclamation Bonds on Coal Mining Operations

[40 Pa.B. 752]
[Saturday, February 6, 2010]

 The Department of Environmental Protection (Department) announces the 2010 bond rate guidelines for anthracite and bituminous coal mining operations. These rates become effective April 1, 2010. The authority for bonding coal 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) and 25 Pa. Code Chapter 86, Subchapter F (relating to bonding and insurance requirements). The unit costs listed in these guidelines will be used in calculating the land reclamation bonds for surface coal mining operations including, surface mines, coal refuse disposal sites, coal refuse reprocessing sites, coal processing facilities and the surface facilities of underground mining operations. The procedures for calculating land reclamation bonds are described in technical guidance 563-2504-001, ''Conventional Bonding for Land Reclamation—Coal,'' which is available on the Department's web site at the following link: http://www.elibrary. dep.state.pa.us/dsweb/Get/Document-48226/563-2504-001.pdf.

 The Department may review the adequacy of bonds on existing permits based on the bond rate guidelines 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.

 These bond rate guidelines do not apply to bonds assuring replacement of water supplies under subsection 3.1(c) of the Surface Mining Conservation and Reclamation Act (52 P. S. § 1396.3a(c)) or to bonds ensuring compliance with the requirements of the Bituminous Mine Subsidence and Land Conservation Act (52 P. S. §§ 1406.1—1410d).

General Methodology

 The Department developed the bond rate guidelines for 2010 from the unit costs for competitively bid contracts for mine reclamation. Contract bid data is available for various unit operations needed to complete reclamation of a mine site for the years 1998-2009. For most categories, a 3-year (2007-2009) average was used to calculate the guidelines. Some categories required another approach due to limited data. For example, there were no contracts in 2007 or 2009 that included selective grading. Therefore, a 4-year average was used for the 2009 selective grading bond rate.

 In general, the bond rate for a given unit operation is the weighted average of the three lowest total bids for each contract. However, grading costs were calculated using the number of bids at a cost per cubic yard frequency distribution and a weighted total number of yards at a cost per cubic yard frequency distribution, in combination with the averages and a cost trend analysis.

 In the event that a unit operation necessary to calculate a reclamation bond is not listed in Tables 1 or 2, then any additional cost information available will be used. If enough data is still not available, the rate will be set from a standard reference like ''Means Building Construction Cost Data'' or ''Walker's Building Estimator's Reference Book.''

 The fees associated with the Land Maintenance Bond Program are presented in Table 3. There has been no change in these rates for 2010.

 The bond rate guidelines are available electronically at http://www.dep.state.pa.us/dep/deputate/minres/bmr/programs/bonding.htm. For background information and supporting documentation regarding bonding rate guidelines, contact the Bureau of Mining and Reclamation, Division of Monitoring and Compliance, P. O. Box 8461, Harrisburg, PA 17105-8461, [phone].

Mine Sealing Costs

 The mine sealing bond rate guidelines are presented in Table 2. Mine sealing and borehole sealing bond rate guidelines remain the same for 2010.

Effective Date

 The bond rate guidelines in this notice become effective April 1, 2010.

TABLE 1

Standard Bond Rate Guidelines
For Year 2010

Unit Operation	Unit Measure	Unit Costs ($)
Mobilization/Demobilization	Job	4% of direct costs or $40,000 whichever is less
Grading (<500-foot push)	Cubic Yard	0.85
Grading (>=500-foot push/haul)	Cubic Yard	1.10
Selective Grading	Acre	1,150.00
Revegetation	Acre	1,615.00
Tree Planting	Tree	0.15
Ditch Excavation	Cubic Yard	4.55
Jute Matting	Square Yard	3.30
High Velocity Erosion Control	Square Yard	3.00
R3 Rock Lining	Square Yard	26.00
R4 Rock Lining	Square Yard	20.00
R5 Rock Lining	Square Yard	19.00
Geotextile/Filter Fabric	Square Yard	1.70
RVC Lining1	Square Yard	12.00
Subsurface Drain	Lineal Foot	17.00
Erosion and Sedimentation Control (Temporary Installation)	Job	Lump sum (5% of direct costs for site)
Pond Removal Active Phase2	Pond	3,800.00
Stage 3 Maintenance Bond Non-Cropland Areas (Land Uses Where Crop Yields Are Not Required)	Acre	100.00
Stage 3 Maintenance Bond Cropland (Not Row Crops) Pastureland Or Land Occasional Cut For Hay (Excludes Seed Cost)	Acre	600.00
Stage 3 Maintenance Bond Cropland Area-Row Crops (includes seed cost)	Acre	800.00
Stage 3 Mobilization	Job	2,500.00
Pond Removal-Stage 3	Cubic Yards (Embankment Volume) Plus Topsoiling and Revegetation Cost	Use <500 Grading For Pond Embankment Volume Plus Topsoiling and Revegetation Cost For The Area Disturbed
Ditch Removal-Stage 3	Lineal Foot	0.75
Equipment Tire Removal and Disposal	Tire	300.00
Structure Demolition	Costs Will Be Calculated Using Costs Listed In The Construction Industry's Latest Annual Cost Publications, Such As Means Building Construction Cost Data.

TABLE 2

Mine Sealing Bond Rate Guidelines
For Year 2010

Sealing Bituminous Underground Mine Drift and Slope Openings
Unit Operation	Unit Measure	Unit Costs ($)
Concrete Work	Cubic yard	128.00
Masonry Work	Square foot	11.00
Fill Material and Earthwork3	Cubic yard	23.00
Security Fencing	Lineal foot	29.00
Mobilization Cost	Job	5% of Total Amount
Sealing Bituminous Underground Mine Shaft Openings
Concrete Material	Cubic Yard	96.00
Aggregate Material	Cubic Yard	27.00
Fill material and Earthwork3	Cubic Yard	4.00
Security Fencing	Lineal Foot	29.00
Mobilization Cost	Job	5% of Total Amount
Sealing Boreholes at Bituminous Underground Mines
Dimension	Minimum Cost Per Hole ($)	Unit Cost ($) Per Lineal Foot
12 Inch or Less Diameter	1,500	5.50
Larger Than 12 Inch Diameter	2,000	5.50

 ¹ Typically used for lining of ponds or ditches crossing fill material.

 ² Unit cost not from BAMR bids; includes dewatering, grading, topsoil placement and revegation.

 ³ Mine sealing costs are minimum costs. Additional costs per mine seal will be assessed based on specific design criteria, such as the thickness of the seal and the volume of backfill material required, using appropriate material, equipment, and labor costs from BAMR bid abstracts or from an industry-standard cost estimation publications, for example, Means Estimating Handbook or Walker's Building Estimator's Reference Book.

TABLE 3

Land Maintenance Financial Guarantee Fees
For Year 2009

Fee Category	Fee ($)
Publication	$1,000
Administrative	$300

JOHN HANGER, 
Secretary

[Pa.B. Doc. No. 10-229. Filed for public inspection February 5, 2010, 9:00 a.m.]