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THE NEED FOR FEDERAL OVERSIGHT OF ALTERNATIVE BOND SYSTEMS UNDER SMCRA
Authors:Ann E Beier  James M McElfish
Institution:Ann E. Beier is a staff attorney at the Environmental Law Institute, Washington, DC. She received her B.S. degree in 1980 from the University of Wisconsin, Madison;her M.A. degree in 1982 from Washington State University;and her J.D. degree in 1988 from the University of Wisconsin Law School.;James M. McElfish, Jr. is a Senior Attorney at the Environmental Law Institute. He received his B.A. degree in 1976 from Dickinson College and his J.D. degree in 1978 from Yale Law School.
Abstract:The 1977 Surface Mining Control and Reclamation Act (SMCRA) requires mine operators to post reclamation bonds before mining begins. The Federal Office of Surface Mining Reclamation and Enforcement (OSMRE) has approved alternative bond systems in seven states. These systems, rather than requiring bond amounts at the full cost of reclamation, require operators t o submit only a flat rate, acreage specific bond. Additional reclamation costs should be covered by a supplemental fund composed generally of permit fees, taxes, or penalties.
In many cases, alternative bond systems fail to ensure that funds will be available to reclaim coal mined land in the event of operator default, as required by SMCRA. OSMRE needs to take a more active role in oversight of existing state alternative bond systems to ensure that reclamation occurs.
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