HOUSE BILL REPORT

HB 1797

BYRepresentatives S. Wilson,  Sutherland, Meyers, Fuhrman, Amondson, Sanders and Doty

Revising provisions governing surface mine reclamation.

House Committe on Natural Resources

Majority Report:  Do pass.  (16)

      Signed by Representatives Sutherland, Chair; K. Wilson, Vice Chair; Basich, Beck, Belcher, Bumgarner, Butterfield, Cole, Dorn, Fuhrman, Haugen, Sayan, Schmidt, C. Smith, Spanel and S. Wilson.

House Staff:Pamela Madson (786-7310)

AS REPORTED BY COMMITTEE ON NATURAL RESOURCES FEBRUARY 4, 1988

BACKGROUND:

The Department of Natural Resources regulates the reclamation of land that has been disturbed due to surfaced mining.

Before a mining operator can begin mining operations, the operator must obtain a permit from the Department that includes an approved reclamation plan.  The permit authorizes operation for the period required to mine the land which in some cases lasts several years.

Upon receipt of a permit, an operator must deposit with the Department of Natural Resources, an acceptable performance bond unless the operator is a public or governmental agency. Historically, the bond amount was set by statute; now, DNR unilaterally sets the amount of the bond.

The Department has available several methods of enforcing compliance with statutory regulations and conditions contained in permits.  The Department may suspend mining operations and can enforce the suspension by a civil penalty of not more than $500 per violation.  Each day of non-compliance is a separate violation.  The Department may also seize the performance bond, or impose a mechanics lien on the property.  The Department may use one or a combination of all the methods of enforcement.

All Department methods of enforcement are taken against the mining operator except the mechanics lean.  In many cases, landowners lease their property to a mining operator who secures the necessary permits and satisfies the bonding requirements.  The landowner may have no other involvement in the operation until enforcement action is taken by the Department in the form of a mechanics lien placed on his or her property.

SUMMARY:

A mechanics lien is removed as one of the Department of Natural Resources' methods of enforcement of surface mining regulations and permits.

Fiscal Note:      Requested January 28, 1988.

House Committee ‑ Testified For:    Mike Smith, landowner.  (Bill Lingley, Department of Natural Resources, appeared as a resource person only.  The Department takes no position on this bill.)

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Landowners do not participate in the setting of the bond amount or any changes in the bond amount.  The landowner may ultimately be liable for the cost of reclamation which may be in excess of the available bond. The Department is in a better position to obtain adequate protection by setting an appropriate bond amount.

House Committee - Testimony Against:      None Presented.