Office of Surface Mining De; fr}; ifor Reclamation and Enforcement Annual Evaluation Report Prepared by: The Lexington Field Of?ce This page is intentionally blank. OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT Annual Evaluation Report for the Regulatory and Abandoned Mine Land Programs Administered by Department for Natural Resources of KENTUCKY for Evaluation Year 2017 July 1, 2016 to June 30, 2017 Prepared by Lexington Field Office August 2017 3 This page is intentionally blank. Executive Summary This 2017 Annual Evaluation Report contains information regarding the effectiveness of the Kentucky Department for Natural Resources (KYDNR) in the implementation of the Surface Mining Control and Reclamation Act of 1977 (SMCRA) during the period of July 1, 2016, through June 30, 2017. The Office of Surface Mining Reclamation and Enforcement (OSMRE) oversees the Regulatory and Abandoned Mine Lands Programs of the KYDNR and encourages public input into the process. The OSMRE Lexington Field Office staff participates in numerous public meetings, trainings and other events to encourage interaction and facilitate public participation; and, for the last several years, has placed all topical reports and performance agreements on the Lexington Field Office website. Every year, the Lexington Field Office notifies known stakeholders and media of its finished and planned activities and allows public input into the OSMRE/KYDNR Annual Performance Agreement. OSMRE staff interacts with citizens and the media in person or by phone on a frequent basis. Inspection and site visits are an integral part of OSMRE’s oversight activities, but OSMRE also utilizes programmatic reviews involving experts in hydrology or engineering to investigate and identify potential problems. This report serves to document our evaluation of the effectiveness of the KYDNR Regulatory and Abandoned Mine Land Programs by discussing the results of OSMRE’s inspection activities as well as accomplishments and successes of the program, results of oversight topic reviews, and program problems or issues, including litigation. These topics are covered in separate sections of the report. Detailed background information and comprehensive reports for the program elements evaluated during the period are available for review and copying at the OSMRE Lexington Field Office, 2675 Regency Road, Lexington, Kentucky, 40503. Reports are also available online at the following address: http://www.odocs.osmre.gov/. Major Accomplishments and Innovations KYDNR continues to uphold the intent of SMCRA as identified in section 102 of the Act. SMCRA, and its implementing regulations, represent the nationwide minimum standards to which all coal mining operations are held. Below is a list of some accomplishments achieved by KYDNR during EY 2017. • Office consolidation: The London regional office was closed and consolidated into the Middlesboro regional office location as a result of the declining coal market and to enable the inspection and enforcement staff to be closer to inspectable units. The Frankfort offices of the Divisions of Mine Permits, Abandoned Mine Lands, Mine Reclamation and Enforcement and the Office of the Reclamation Guaranty Fund are now consolidated in one new office location in Frankfort. • During the EY as a result of the Commissioners’ highwall reduction initiative, over 175,000 feet of idled highwall was eliminated. In an effort to reduce the idle highwall 5 footprint throughout the state, the Division instituted the use of technology with drones, GPS, and technology applications to monitor and track open highwall • The KYDNR conducted training for inspection staff to increase enforcement consistency. Trainings were held throughout the state covering all enforcement aspects. Subsequently, blasting training in each regional office was also scheduled. Regional offices instituted mandatory monthly in house trainings on safety and technical/enforcement topics. • KYDNR has begun using drones for investigations, overflights of slides, impoundments, and problem areas. The Division is working to increase the drone fleet; one per regional office. Three employees were certified by the Federal Aviation Administration as pilots to operate the drone. • KYDNR purchased 40 new vehicles for the inspection staff. This is the first mass vehicle purchase since 2008-2009. KYDNR also purchased uniforms and equipment upgrades. Uniforms had not been purchased in over 12 years. Success in Achieving the Purposes of SMCRA Offsite Impacts KYDNR issued 796 NNCs during EY 2017, 201 of which included off-site impacts. KYDNR identified 256 measureable off-site impacts as part of these 201 enforcement actions. The 201 enforcement actions with off-site impacts involved 153 permits representing approximately 10 percent of the 1,511 inspectable units. The remaining permits, approximately 90 percent, were free of off-site impacts. Reclamation Success (Bond Release and Reforestation) Reclamation success is tracked both by the amount of reclaimed acreage of active mines and the number of abandoned mine land projects reclaimed. Mine reclamation is considered to be a success when the land disturbed by surface and underground coal mining operations is restored to an equal to or greater land use than the pre-mining land use. Reclamation Success is a measure of the amount of acres KYDNR releases through Phase III bond release. KYDNR reported for EY 2017 that it granted bond releases for the following acreages: Phase I - 31,687 acres, Phase II – 10,503 acres, and Phase III - 8,282 acres, administratively released 11,800 acres. OSMRE and KYDNR also track the number of acres released with a reforestation component. In EY 2017 KYDNR granted Phase III bond release to 8,282 acres for permits having specific reforestation requirements including those with reforestation as a post mining land use. Assuming a survival rate of 450 trees per acre for each of the reforestation 6 type categories, approximately 1,590,043 trees were established on bond released acres in EY 2017. Abandoned Mine Land Reclamation Abandoned mine land reclamation is monitored through the number of Authorizations to Proceed (ATP) received by OSMRE, acid mine drainage projects completed or submitted, and water supply restoration projects submitted. During EY 2017, KYDNR submitted 87 new project proposals to OSMRE requesting ATPs. Twenty-one water supply restoration projects were either under construction or proposed. These projects will account for 421,689 miles of new water line that will provide safe domestic water supplies for approximately 1,248 residential customers. During 255 enhancement and performance review inspections of Kentucky Division of Abandoned Mine Lands (KYDAML) projects OSMRE identified 50 concerns in EY 2017. Customer Service Each evaluation year OSMRE Lexington Field Office conducts a customer service study to evaluate KYDNR’s performance regarding this aspect of their program. This evaluation year KYDNR’s citizen complaint process was evaluated. As specified in SMCRA section 102, the purpose of the act is to assure that the rights of landowners and other persons with a legal interest in the land or appurtenances thereto are fully protected from surface coal mine operational effects. Citizen Complaints During EY 2017, the KYDNR investigated 297 Citizen Request for Inspections related to active mine permits. This is a decrease of 63 citizen complaints from EY 2016. Three Ten-Day Notices (TDNs) were issued by OSMRE during EY 2017, as a result of citizen complaints. OSMRE has received the State response for all three TDNs and is currently reviewing the appropriateness of actions taken by the State. During EY 2017, no citizens requested informal reviews of the Lexington Field Office’s determinations regarding their citizen’s complaints. During EY 2017, KYDNR received approximately 479 complaints regarding abandoned mine lands, of which 37 were deemed eligible for funding. Reforestation Outreach During EY 2017, KYDNR conduced their Annual Arbor Day event in conjunction with Green Forests Work, a 501(c) (3) non-profit organization and Appalachian Regional Reforestation Initiative partner that works to re-establish healthy and productive forests on historically mined lands in Appalachia and the United States Forest Service. Reforestation volunteers for the Arbor Day event included local Boy Scouts of America, Explore Kentucky Initiative, Berea College and University of Kentucky students, AmeriCorps 7 National Service members, OSMRE ARRI coordinators, and KYDNR and USFS staff. Approximately 1677 high value hardwood tree seedlings were planted by 51 reforestation volunteers on 3.75 USFA acres of pre SMCRA surface mine lands. National Priority, Regional, and General Oversight Topic Reviews National Priority Topic Reviews No national priority oversight topic reviews were conducted during EY 2017. Regional Oversight Topic Reviews During EY 2017, OSMRE continued writing The Appalachian Regional Impoundment Study and conducted the Underground Mine Pool Study. OSMRE, after an initial kickoff meeting with the KYDNR, proceeded to complete all site reviews and prepare a draft report that is under review by the review team for the Appalachian Region Impoundment Study. The Underground Mine Pool oversight study report, once finalized, will contain discussions of the reviewed permits, issues identified, and proposed resolution measures for all issues. General Oversight Topic Reviews Oversight Studies: OSMRE conducts topical oversight studies as part of the Annual Performance Agreement to ensure KYDNR is meeting the minimum standards specified in SMCRA. These topical oversight studies include: an evaluation of OSMRE Inspections, The Bond Forfeiture Report, The Fill Inventory, The Long Term Treatment Inventory, and the Phase I Inspection Frequency Study. Results of these studies will be discussed herein. Inspection and Enforcement: OSMRE Directive REG-8 establishes the minimum number of oversight inspections required for each State program. REG-8 mandated that OSMRE conduct 309 oversight inspections in Kentucky. In EY 2017, OSMRE conducted a total of 368 oversight-related inspections of which 361 counted directly toward the required REG-8 inspections. During EY 2017, 211 comprehensive random inspections, 23 comprehensive independent random sample inspections, and 33 partial inspections were conducted. OSMRE observed 312 violations during oversight inspections. Comprehensive random inspections are also used to track industry compliance. Industry compliance is defined as a measurement of the number of comprehensive random inspections with no observed violations and is expressed as a percentage of the total number of comprehensive random inspections. Compliance was the lowest it has been in the last ten years, at 60%. During EY 2017, KYDNR completed a total of 6,497 complete and 10,185 partial inspections. KYDNR met 8 frequency on 99.74% of the permits requiring inspections. During the 16,682 inspections conducted by KYDNR, 796 Notices of Non-Compliance (NNC) were written and 1,634 violations were issued. Bond Forfeiture Report: The Draft Bond Forfeiture Report for EY 2017 found that 56% of permits did not have sufficient bond to reclaim the permit to permanent program standards. KYDAML’s cost estimates calculated the cost of reclamation of all forfeited increments to permanent program standards to be $1,865,953.25. Total bond posted for the 38 increments equals $984,879.00 which accounts for 52.8% of the total cost of reclamation Fill Inventory: During EY 2017, OSMRE and KYDNR collected information on the size and location of permitted excess spoil disposal fills for all new permits, amendments, and major revisions. OSMRE and KYDNR found 109 permitting actions (14 new permits, 44 amendments, and 51 major revisions) in CY 2016 involving surface, underground, or other mining operations. LFO and KYDNR found 16 permitting actions that contained information on 49 fills. The other 93 permitting actions did not involve fills. Long Term Treatment Inventory: The Kentucky long term treatment inventory is a list of permits, which would otherwise be eligible for bond release, that require continued treatment in order to meet Kentucky Pollutant Discharge Elimination System requirements. OSMRE conducts oversight inspections on all sites on this list. During EY 2017, OSMRE was notified that 11 sites, from 10 permits were eligible to transition from the active to historical inventory. This eligibility is based on a year’s worth of monitoring data that meets the Kentucky Pollutant Discharge Elimination System (KPDES) requirements without treatment. In addition, OSMRE performed five random inspections of permits on the active inventory in EY 2017. Phase I Inspection Frequency Study: This special study was developed to determine if KYDNR was reducing its inspection frequency at the appropriate time as per their regulations. Twenty-one permits were evaluated for this special study, OSMRE has a draft under review which will be sent to the state for comment in EY 2018. The Approved State Program Regulatory Program Problems and Issues The Kentucky State program was conditionally approved in 1982. Part 732 of Title 30 of the Code of Federal Regulations (CFR) sets forth criteria and decisions to approve or 9 disapprove State programs and program amendments. KYDNR currently has three program amendments that are being reviewed by OSMRE. 733 Action Part 733 of Title 30 CFR establishes requirements for the maintenance of State programs and procedures for substituting Federal enforcement of State programs and withdrawal of approval of State programs. In accordance with 30 CFR 733.12(b), OSMRE notified KYDNR on May 1, 2012, that bonding under the Kentucky program is inadequate to ensure the full reclamation of forfeited sites. Consequently, Kentucky immediately implemented emergency program changes to raise the site specific base bond amounts and the creation of a non-site specific supplemental fund, referred to as the Kentucky Guarantee Reclamation Fund (KGRF). OSMRE solicited comments on the proposed changes and summarized the program changes in the Federal Register (FR) on March 26, 2015 [80 FR 15953]. Currently, Kentucky’s proposed program changes are under OSMRE’s review. OSMRE Assistance – Regulatory and AML Programs Grants OSMRE awards grants to the states annually, the Title V Administration and Enforcement (A&E) Regulatory Program grants are on a one year cycle, where the Title IV grants have a three year cycle. OSMRE awarded over $46.5 million to KYDNR to fund both programs. The 2015 A&E grant was awarded for $11,631,247 and does not include indirect costs. The regulatory program is 50 percent Federally-funded, except for the $1,419,423 that Kentucky received to administer the Federal Lands Program which is 100 percent funded. The grant awarded by OSMRE for the 2016 A&E grant was $11,632,000 of which $1,441,801 is to administer the Federal Lands Program. The AML 2016 grant requested $17,088,577 to fund 100 percent of the total program costs. In FY 2017, OSMRE awarded $12,649,694 to KYDAML for their program. Interagency Coordination KYDNR and OSMRE actively participate in meetings in which the sole purpose is to coordinate with other state and federal agencies that have a vested interest in SMCRA activities. These other agencies are primarily responsible for administering the Clean Water Act, the Endangered Species Act, and the National Historic Preservation Act. KYDNR and OSMRE also coordinate with Federal land managing agencies whenever permitting involves coal mining on federally owned lands. 10 Table of Contents I. Introduction ........................................................................................................................... 13 II. Overview of the Coal Mining Industry in Kentucky ............................................................ 15 III. Overview of the Public Participation Opportunities in the Oversight Process .................. 17 A. Notice of Intent to Sue ................................................................................................... 18 IV. V. Major Accomplishments and Innovations ......................................................................... 19 Success in Achieving the Purposes of SMCRA ................................................................... 19 A. Off-site Impacts .............................................................................................................. 20 B. Reclamation Success ...................................................................................................... 21 1. Phase III Bond Release ............................................................................................... 22 2. Contemporaneous Reclamation .................................................................................. 23 3. Reforestation............................................................................................................... 23 4. Experimental Practices ............................................................................................... 24 C. Customer Service ........................................................................................................... 25 1. Citizen Complaints ..................................................................................................... 25 2. Reforestation Outreach ............................................................................................... 27 VI. National Priority and General Oversight Topic Reviews .................................................. 28 A. National Priority Reviews .............................................................................................. 28 B. Regional Oversight Topic Reviews................................................................................ 28 1. Impoundment Study- Appalachian Regional Impoundment Study ............................ 28 2. Underground Mine Pool Study ................................................................................... 29 C. VII. General Oversight Topic Reviews ................................................................................. 30 1. Inspection and Enforcement ....................................................................................... 30 2. Blasting – Adverse Effects ......................................................................................... 38 3. Bond Forfeiture Report............................................................................................... 38 4. Fill Inventory .............................................................................................................. 39 5. Long-Term Treatment ................................................................................................ 40 6. Phase I Inspection Frequency Study........................................................................... 41 The Approved State Program............................................................................................. 44 VIII. Regulatory Program Problems and Issues...................................................................... 45 A. 733 Action ...................................................................................................................... 45 11 OSMRE Assistance- Regulatory Program ......................................................................... 46 IX. A. Grants ............................................................................................................................. 46 B. Training .......................................................................................................................... 46 C. Interagency Coordination ............................................................................................... 47 X. 1. Clean Water Act ......................................................................................................... 47 2. Endangered Species Act ............................................................................................. 48 3. National Historic Preservation Act ............................................................................. 48 4. Federal Lands ............................................................................................................. 49 Abandoned Mine Lands Reclamation................................................................................... 50 A. General: Introduction and Program Administration....................................................... 50 B. Noteworthy Accomplishments ....................................................................................... 50 C. Public Participation and Outreach .................................................................................. 51 D. OSMRE Assistance- Abandoned Mine Lands ............................................................... 52 E. Results of Evaluation Year 2017 Reviews ..................................................................... 53 1. Overall Reclamation Success ..................................................................................... 53 2. Acid Mine Drainage ................................................................................................... 54 3. Water Supply Restoration........................................................................................... 54 4. AML Grant Fiscal and Administrative Reviews ........................................................ 54 5. e-AMLIS..................................................................................................................... 55 XI. Appendix 1 Summary of Core Data to Characterize the Program..................................... 56 XII. Appendix 2 State Comments on the Report ....................................................................... 95 XIII. Appendix 3 State Non-Compliance Data (Listed by Descending Number of NonCompliances) ................................................................................................................................ 98 Appendix 4 State Non-Compliance Data (Listed by Permittee Alphabetically) ........................ 103 12 I. Introduction The Surface Mining Control and Reclamation Act of 1977 (SMCRA) established the Office of Surface Mining Reclamation and Enforcement (OSMRE) within the Department of the Interior. SMCRA provides authority to OSMRE to oversee the implementation of and provide Federal funding for the state and tribal regulatory and abandoned mine land (AML) programs that have been approved by the Secretary of the Interior as meeting the minimum standards specified by SMCRA. This report contains summary information regarding the Kentucky programs and the effectiveness of the Kentucky programs in meeting the applicable purpose of SMCRA as specified in section 102. This report covers the period July 1, 2016, to June 30, 2017. Detailed background information and comprehensive reports for the program elements evaluated during the period are available for review and copying at the OSMRE Lexington Field Office, 2675 Regency Road, Lexington, Kentucky, 40503. Reports are also available online at the following address: http://www.odocs.osmre.gov/. List of Acronyms The Following Acronyms are used in this report: Acronyms Meaning A&E Administration and Enforcement AMD Acid Mine Drainage AML Abandoned Mine Land AMLER Abandoned Mine Land Economic Revitalization ATP Authorization to Proceed CFR Code of Federal Regulations CHIA Cumulative Hydrologic Impact Assessment CIA Cumulative Impact Areas CO Cessation Order CY Calendar Year DCM Division of Fee Compliance Management e-AMLIS Abandoned Mine Land Inventory System EY Evaluation Year 13 Acronyms Meaning A&E Administration and Enforcement FR Federal Register FRA Forestry Reclamation Approach FY Fiscal Year GIS Geographic Information System KAR Kentucky Administrative Regulations KRGF Kentucky Guarantee Reclamation Fund KRS Kentucky Revised Statutes KYDAML Division of Abandoned Mine Lands KYDNR Kentucky Department for Natural Resources LTT Long-Term Treatment NEPA National Environmental Policy Act NNC Notice of Non-Compliance NOI Notice of Intent to Sue NPDES National Pollutant Discharge Elimination System NTTP National Technical Training Program OMDAI Long Term Treatment Active Inventory Inspection OSMRE Office of Surface Mining Reclamation and Enforcement PEP Protection and Enhancement Plan PMLU Post-Mining Land Use RAM Reclamation Advisory Memorandum SMCRA Surface Mining Control and Reclamation Act of 1977 TDN Ten-Day Notice 14 Acronyms Meaning A&E Administration and Enforcement TIPS Technical Innovation and Professional Services USFWS United States Fish and Wildlife Service WET Whole Effluent Toxicity II. Overview of the Coal Mining Industry in Kentucky Kentucky is made up of five physiographic sub-regions, including the Western and Eastern Kentucky coal fields. The Western Kentucky coal field is part of the Interior Low Plateau physiographic province, comprised of gently rolling hills consisting mainly of farmland and unmanaged forestland. The Eastern Kentucky coal field is part of the Appalachian Plateau physiographic province, at the edge of the Appalachian Mountains. The terrain is comprised of steep sloped hills of mainly unmanaged forestland. The forest type in this area is mixed mesophytic, meaning it is suited to land that is neither arid nor particularly wet, and is considered to be ecologically diverse. Kentucky's coal reserve base is the fifth largest in the nation and consists entirely of bituminous coal. Coal was first discovered in Kentucky in 1750 by Dr. Thomas Walker. The first commercial mine, known as the "McLean drift bank" was opened in 1820 in Muhlenberg County in the Western Kentucky coal field. Kentucky was the nation's leading coal producer for over a decade before 1988 when production in Wyoming and West Virginia exceeded that in Kentucky. Kentucky, now the fifth-largest coal-producing state, produced more than 44 million short tons of bituminous coal in calendar year (CY) 2016. We should note, information on coal sales is gathered and reported on the calendar year rather than the evaluation year. Coal production in Kentucky has continued the downward trend that began in the early 1990’s, decreasing 27% in CY 2016 from the previous year. Surface mines accounted for 10 million tons (29%) and underground mines accounted for 35 million tons (71%) of the coal mined in CY 2015. The decline in coal production through time is illustrated in Figure 1. 15 Coal Production 200000000 150000000 Surface 100000000 Underground 50000000 Total 0 KY 1995 KY 2000 KY 2005 KY 2010 KY 2011 KY 2012 KY 2013 KY 2014 KY 2015 KY 2016 Figure 1. Graph showing coal production from selected years starting in 1995. With the decline in the industry over the past few years, OSMRE has begun to track the number of bankruptcies that occur during each evaluation year. During EY 2017, two companies filed for Chapter 11 bankruptcies on mining permits in Kentucky. The two companies included; Blackforest Coal LLC, and Meadowfork Mining LLC. KYDNR currently inspects 1,511 coal mining permits: 677 surface mines, 524 underground mines, and 310 roads, preparation plants, refuse disposal areas, and other ancillary facilities. Figure 2 shows the variation in numbers of different types of permits since 1985. History of Permits by Type 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1985 1990 1995 2000 Surface Permits 2005 2010 2011 2012 Underground Permits 2013 2014 2015 2016 2017 Other Permits Figure 2. Inspectable units graph showing the number and type of permits for selected years, from 1985 to the present. The graph shows a sharp decline between EY 1985 and EY 1990, and a less pronounced, but still significant rate of decline from EY 1990 to EY 2005, when the trend stabilized. Between EY 2005 16 and 2013, little variation was observed in the total number of permits, which averaged 1,804. Since EY 2013, the total number of permits has steadily declined, with 1,511 total permits in EY 2017, 16 percent fewer than the average between EY 2005 and EY 2013. The information for inspectable units is shown in Table 10 of Appendix 1. The 1,511inspectable units include both permanent program permits and interim permits. The number of permits being issued has declined in much the same manner as the number of active permits. The graph below shows the decrease in the number of newly issued permits from the last 5 years. In EY 2012, KYDNR issued 77 new permits compared to 17 issued during EY 2017, a 78 percent decrease in 5 years. Number of New Permits Issued Permitting Activity 90 80 70 60 50 40 30 20 10 0 2012 2013 Surface 2014 Underground 2015 Other 2016 2017 Total Figure 3. Graph showing the number of new permits issued for the last 6 EYs by permit type. III. Overview of the Public Participation Opportunities in the Oversight Process Prior to the beginning of each evaluation year, OSMRE solicits suggestions from citizen and industry groups on oversight topics for the upcoming year. The draft EY 2017 Performance Agreement was sent out to potential stakeholders for input in June 2016. There were no comments received for this Performance Agreement. This agreement describes proposed oversight activity for the evaluation year and identifies specific issues to be addressed by oversight inspections as well as joint special studies to be conducted on 17 selected components of the State's Program. The EY 2017 Performance Agreement was finalized on July 7, 2016. The enactment of SMCRA created many avenues for citizen involvement. Citizens have a statutorily defined opportunity for input in practically every phase of the surface mining program, from permit issuance to bond release. Since SMCRA's enactment in 1977, coalfield citizens have exercised those rights to influence policies and programs that govern surface coal mining and reclamation in America. Kentucky has several citizen organizations that take part in public participation opportunities regarding coal mining issues, including: Kentuckians for the Commonwealth, Kentucky Resources Council, Kentucky River Keeper, Kentucky Waterways Alliance, Ohio Valley Environmental Coalition, Sierra Club, Alliance for Appalachia, Appalachian Citizen’s Law Center, Appalachian Mountain Advocates, Appalachian Voices and Heartwood. In addition to citizen group participation, industry groups also provide input to the oversight process. There are three major coal associations in Kentucky: the Kentucky Coal Association, the Western Kentucky Coal Association, and Coal Operators and Associates, Inc. Other pro-industry groups active in the regulatory process are Friends of Coal and Faces of Coal. A. Notice of Intent to Sue Section 520 of SMCRA allows citizens to file civil actions against the United States government, a governmental instrumentality, an agency, or any other person who is in violation of any rule, regulation, order, or permit issued pursuant to the Act. A notice of intent to sue (NOI) is sent to notify the coal industry, and/or, state or federal regulatory authority that a citizen intends to file a civil action. There were no NOIs filed against coal companies, KYDNR, or OSMRE in Kentucky during EY 2017. Additional actions were taken during EY 2017 for NOI filed by the Johnson Family Property, LLC (Johnson Family) in EY 2014. The issue involves the right of entry and consent to surface mine for a surface tract in Pike County, Kentucky. During this EY, the Johnson Family filed a motion with the US District court asking for a review of the termination of a cessation order after not receiving a final decision on the same issue from the Interior Board of Land Appeals. The District court denied motions by OSMRE and Premier Elkhorn for summary judgment and for lack of subject matter jurisdiction, respectively. Early in EY 2018, Premier Elkhorn’s motion for summary judgment of the Office of Hearings and Appeals decision which affirmed OSMRE's decision to terminate the cessation order was granted by the District court and will be heard in the current EY. 18 IV. Major Accomplishments and Innovations KYDNR continues to uphold the intent of SMCRA as identified in section 102 of the Act. SMCRA, and its implementing regulations, represent the nationwide minimum standards to which all coal mining operations are held. Below is a list of some accomplishments achieved by KYDNR during EY 2017. V. • Office consolidation: The London regional office was closed and consolidated into the Middlesboro regional office location as a result of the declining coal market and to enable the inspection and enforcement staff to be closer to inspectable units. The Frankfort offices of the Divisions of Mine Permits, Abandoned Mine Lands, Mine Reclamation and Enforcement and the Office of the Reclamation Guaranty Fund are now consolidated in one new office location in Frankfort. • During the EY as a result of the Commissioners’ highwall reduction initiative, over 175,000 feet of idled highwall was eliminated. In an effort to reduce the idle highwall footprint throughout the state, the Division instituted the use of technology with drones, GPS, and technology applications to monitor and track open highwall. • The Division of Mine Permits conducted a robust review of contemporaneous reclamation variance requests and as a result found 157,000 feet of potential highwall was found not to be justified. • The KYDNR conducted training for inspection staff to increase enforcement consistency. Trainings were held throughout the state covering all enforcement aspects. Subsequently, blasting training in each regional office was also scheduled. Regional offices instituted mandatory monthly in house trainings on safety and technical/enforcement topics. • KYDNR has begun using drones for investigations, overflights of slides, impoundments, and problem areas. The Division is working to increase the drone fleet; one per regional office. Certified 3 employees by the Federal Aviation Administration as pilots to operate the drone. • KYDNR purchased 40 new vehicles for the inspection staff. This is the first mass vehicle purchase since 2008-2009. KYDNR also purchased uniforms and equipment upgrades. Uniforms had not been purchased in over 12 years. Success in Achieving the Purposes of SMCRA 19 A. Off-site Impacts How effectively KYDNR’s program protects the public and the environment from off-site impacts is evaluated by identifying and analyzing known off-site damage from surface and underground coal mining permits in Kentucky. During each Evaluation Year, KYDNR supplies OSMRE with all Notices of Non-Compliance (NNC) and Cessation Orders (CO), along with associated mine inspection reports that document off-site impacts. OSMRE analyzes this information, documents the magnitude, and identifies the root cause of each off-site impact. KYDNR issued 796 NNCs during EY 2017, 201 of which included off-site impacts. KYDNR identified 256 measureable off-site impacts as part of these 201 enforcement actions. Off-site impacts were identified based on KYDNR’s documentation and the OSMRE reviewer’s interpretation of the enforcement language used in the inspection reports associated with the enforcement action. The OSMRE reviewer contacted the issuing KYDNR inspector when more information was needed to properly evaluate an offsite impact. The 201 enforcement actions with off-site impacts involved 153 permits representing approximately 10 percent of the 1,511 inspectable units. The remaining permits, approximately 90 percent, were free of off-site impacts. The NNCs with off-site impacts were analyzed for type of incident, resource affected, degree of impact, and root cause. As displayed in Figure 4 below, the percentage of permits free of off-site impacts decreased from a high of 93% in EY 2006 to a low of 79% in EY 2010. A rising trend of permits free of offsite impacts has continued since the low of EY 2010. Percent of Mine Permits Free of Offsite Impacts 95% 93% 90% 90% 88% 87% 86% 85% 87% 82% 80% 80% 87% 85% 79% 80% 75% 70% EY EY EY EY EY EY EY EY EY EY EY EY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20 Figure 4. Graph showing the total percentages of permits free of offsite impacts from EY 2006 to EY 2017. Of the 256 measurable off-site impacts, 48.4% were for hydrology; 28.1% were for land stability; 18.4 were for encroachment; 4.7% were for other (including public roadway affect) impacts; and only 0.4% was for blasting. Based on the data collected, the total off-site impacts from coal mining operations for EY 2017 included 317.7 acres of land, 23.88 miles of streams, 10 structures, and 4 ground water wells. The findings for off-site impacts indicate that approximately 49.6% of the measured incidents involved water, 46.5% involved land, 3.9% involved structures, and no people were impacted. The majority of impacts, approximately 91.8%, were minor, 3.5% were considered moderate, and 4.7% were considered major incidents. The root causes of the off-site impacts included 47% attributed to operator negligence, 37% to improper maintenance, 6% to improper permitting activities, 6% were linked to unanticipated natural events (such as extreme rain fall events), and 4% to improper construction techniques. B. Reclamation Success Mine reclamation is considered to be a success when the land disturbed by surface and underground coal mining operations are restored to a land use equal to or higher than the premining land use. Several tables of Data for States and Tribes (DST Tables) for the evaluation year are presented in Appendix 1 of this report. The DST Tables provide a measure of the success in reclamation for each Evaluation Year. Reclamation success is considered to be directly related to the number of acres KYDNR processes through Phase III bond release. The standards of Phase III bond release ensure that land disturbed by mining is restored to an equal to or higher land use. Reclamation performance bonds are collected to provide the financial assurance that all permanent performance standards will be met, including the restoration of, or improvement in post mining land use if the operator is unable to perform this reclamation. In accordance with SMCRA, the Kentucky program uses a phased bond release system to allow permittees to reduce their bond liability as certain phases of reclamation are successfully achieved. Phase I requires that the disturbed area be backfilled, graded, topsoil spread, seeded, mulched, and provided with sediment control. Phase II requires that vegetation meeting the standards for re-vegetation success has been established in reclaimed areas, in accordance with the approved reclamation plan. The reclaimed area must not contribute suspended solids to stream flow or runoff outside the permit area. Phase III requires that: the reclaimed area successfully meets all surface coal mining and reclamation standards in accordance with the approved reclamation plan; the reclaimed land is capable of supporting the approved Post Mining Land Use (PMLU) requirements and; the applicable liability period has expired. During mining, operators are required to reclaim in a contemporaneous manner. This helps ensure that the required standards will be met as the permit becomes eligible for phased bond releases. Contemporaneous reclamation was identified by OSMRE as an issue, and evaluated in EY 2003, and then again in EY 2011. OSMRE concluded in the EY 2011 study 21 that KYDNR had adequately addressed the EY 2003 oversight findings. OSMRE continues to review compliance data from both KYDNR and OSMRE inspections to ensure that operators are in compliance with contemporaneous reclamation requirements. 1. Phase III Bond Release In Appendix 1, DST Table 6, KYDNR reported for EY 2017 that it granted bond releases for the following acreages: Phase I – 31,687 acres, Phase II – 10,503 acres, and Phase III - 8,282 acres. In EY 2017, KYDNR administratively released 11,800 acres. These administrative releases include areas that were permitted, but not mined. Sixty-seven percent (5,539 acres) and twentyfour percent (2,012 acres) released during the evaluation year were fish and wildlife habitat and pasture/hayland, respectively. Bond Release Acrages 35000 30000 Acres 25000 20000 15000 10000 5000 0 EY 12 Phase I EY 13 Phase II EY 14 Phase III EY 15 EY 16 EY 17 Administrative Figure 5. Graph showing the acres granted bond release over the last five Evaluation Years for Phases I, II, III, and administrative release. As part of OSMRE’s oversight role, random sample inspections include permits that have received Phase I bond release. Thirty such sites were randomly inspected during EY 2017. Nine of the thirty inspected permits were found to be in violation, with thirteen performance standards cited. The work plan for the regional underground mine pool evaluation study required OSMRE to review all underground mine permits applying for Phase III bond release. OSMRE reviewed sixtyone permits through joint Phase III bond release inspections with KYDNR. Fourteen of the sixtyfive permits were evaluated for the regional underground mine pool study. The remainder of the permits included surface mines, preparation plants, and other ancillary permits. Four permits (one underground and three surface) were found to be in violation and 6 performance standards were written by KYDNR. 22 2. Contemporaneous Reclamation KYDNR monitors contemporaneous reclamation compliance during field inspections. The State uses both contemporaneous reclamation and backfilling and grading performance standards to cite contemporaneous reclamation non-compliances. Evaluation of State Compliance Data: KYDNR wrote 796 notices of non-compliance during EY 2017, citing 1,335 violations. Of these violations, 58 were related to contemporaneous reclamation and 63 to backfilling and grading. This represents only about 9 percent of the total violations written by KYDNR during EY 2017. The State also reported that they received 297 citizen complaints during EY 2017. No complaints were investigated for contemporaneous reclamation. Evaluation of OSMRE Compliance Data: OSMRE conducted 234 random comprehensive and partial oversight inspections during EY 2017 and documented 261 violations. Seventeen of these were contemporaneous reclamation violations, all of which were previously cited by KYDNR. Twenty other backfilling and grading violations were cited during EY 2017. Together approximately 14 percent of all violations observed by OSMRE on comprehensive inspections for the evaluation year were related to contemporaneous reclamation or backfilling and grading. 3. Reforestation Reforestation is another measure that contributes to reclamation success. KYDNR annually reports to OSMRE the number of acres that were permitted with a reforestation component to the PMLU. KYDNR also reports the number of acres with a reforestation component that received a Phase III bond release. The PMLU categories that commonly utilize reforestation and the Forestry Reclamation Approach (FRA) are Forest Land, and Fish and Wildlife. Some permits, having a combination of PMLUs, may intermittently implement the use of FRA to achieve permit specific conditions such as Indiana Bat Protection and Enhancement Plans (PEP). Newly Permitted Acreages: The following table summarizes the permitting activity during EY 2017 as it relates to reforestation. Reforestation Type Acres Permitted EY 2017 Approximate No. of Trees (Assuming re-stocking rate of 680 stems/acre) Min.% Acreage Requirement for Reforestation Forestland 3,129.19 2,127,720 100% Fish and Wildlife 3,008.61 613,756 30% 23 Reforestation Type Acres Permitted EY 2017 Approximate No. of Trees (Assuming re-stocking rate of 680 stems/acre) Min.% Acreage Requirement for Reforestation Enhanced Fish and Wildlife 1,804.8 1,227,264 70% Total Acreage Permitted EY 2017 7,942.6 Total Estimated Trees 4,173,323 Table 1. Table of the acreages and number of trees to be planted on the different post mining land uses involving reforestation. Phase III Bond Released: The following table summarizes the estimated number of trees released during the EY . Reforestation Type Fish and Wildlife Forestland Enhanced Fish and Wildlife Total Acreage Released EY 2017 Approximate No. of Trees (Assuming survival rate of 450 trees/acre) Min.% Acreage Requirement for Reforestation 2,215.9 299,146 30% 542 243,900 100% 3,323.8 1,046,997 70% Acres Released EY 2017 6,081.7 Total Estimated Trees 1,590,043 Table 2. Table of the number of acres and trees surviving on sites granted Phase III bond release during EY 2017 4. Experimental Practices OSMRE encourages the development of experimental practices as a means of demonstrating the effectiveness and economic feasibility of new mining and reclamation practices or to provide innovative post-mining land use alternatives. The primary responsibility for processing experimental practice applications is to assure that the findings meet the standards at 30 CFR 24 785.13(d) OSM Directive REG-7 dated April 24, 1992. Approvals of experimental practices are Federal actions requiring compliance with the National Environmental Policy Act of 1969 (NEPA), as amended (P.L. 91-190). Environmental documents submitted for NEPA compliance must meet the requirements of REG-7 and the OSMRE NEPA Handbook (REG-1). OSMRE continued to monitor the experimental practice for retention of highwalls for industrial/ commercial development at the KC Coals site. OSMRE also evaluates the experimental practice applications as they are submitted by applicants. During the EY, OSMRE continued evaluating the experimental practice proposed by Option Land Development that proposes the removal of the natural barrier and replacing it with weep berms to improve water quality leaving the mine site. C. Customer Service 1. Citizen Complaints OSMRE gathers data annually on citizen complaints. During EY 2017, the KYDNR investigated 297 Citizen Request for Inspections related to active mine permits. This is a decrease of 63 citizen complaints from EY 2016. Three Ten-Day Notices (TDNs) were issued by OSMRE during EY 2016, as a result of citizen complaints. OSMRE has received the State response for all three TDNs and is currently reviewing the appropriateness of actions taken by the State. During EY 2017, no citizens requested informal reviews of the Lexington Field Office’s determinations regarding their citizen’s complaints. In addition to new Citizen Request for Inspections, KYDNR had 55 complaints that remained outstanding and\or unresolved from EY 2016; therefore, the total number of complaints to be investigated and resolved for EY 2017 was 352. Sixty-nine complaints remained unresolved at the end of in EY 2017. Of the 297 Citizen Request for Inspections reported, 319 violations of performance standards were alleged by the complainants. KYDNR issued 59 NNCs as a result of the Citizen Requests for Inspection investigations citing 83 performance standards. The table below gives a breakdown of each performance standard issued during the EY Performance Standard Total Amount Performance Standard Off Permit Disturbance (OD) 13 Roads (AC) Water Quality (WQ) 13 Air Resources (AP) Protection General Hydrologic (HR) 11 Other (OT) Conditions 25 Permit Total Amount 3 2 2 Total Amount Performance Standard Total Amount Performance Standard Sedimentation Ponds (SC) 11 Contemporaneous Reclamation (CR) 1 Effluent Limitations (EL) 8 Backfilling and Grading (BG) 1 Disposal of Excess Spoil (DS) 5 Other (OF) 1 Diversions (DV) 5 Subsidence (SB) 1 Method of Operation (OM) 5 Water Monitoring (WM) 1 Transport Facilities Table 3: Table showing the performance standards issued as a result of a citizen request for inspection. The numbers of citizen complaints continued to decrease in EY2017, decreasing by 63 from the previous EY. The graph below shows this reduction throughout the years. Due to the decrease in mining activity in the state, is likely the cause of the decrease in citizen complaints. 1,600 Citizen Complaints to KYDNR by Evaluation Year 1,527 1,400 1,200 1,000 800 860 8 845 809 636 734 728 732 563 600 479 587 564 360 400 297 200 0 Number of Complaints Figure 6. Graph showing the number of citizen complaints received each year by KYDNR since evaluation year 1995. 26 2. Reforestation Outreach Through KYDNR Reforestation Outreach initiatives decreased from EY 2016 due to budgeting and loss of staff. The KYDNR reforestation outreach provides opportunities and instruction to civic groups, elementary, high school, and college level students on surface coal mining reforestation technology. Photo 1. OSMRE staff and Americorp Volunteers plant seedlings on the Daniel Boone National Forest. 2017 KYDNR Annual Arbor Day Event During EY 2017, KYDNR conduced their Annual Arbor Day event in conjunction with Green Forests Work, a 501(c) (3) non-profit organization and Appalachian Regional Reforestation Initiative partner that works to re-establish healthy and productive forests on historically mined lands in Appalachia and the United States Forest Service. Annual Arbor Day celebrations are important for providing educational opportunities to Kentuckians on the environmental benefits of reestablishing forests throughout the Appalachians. The KYDNR’s Annual Arbor Day event for EY 2017 was held on the Daniel Boone National Forest in Pulaski County, Kentucky and co-funded by a United States Forest Service grant and Green Forest Works. Reforestation volunteers for the Arbor Day event included local Boy Scouts of America, Explore Kentucky Initiative, Berea College and University of Kentucky students, AmeriCorps National Service members, OSMRE ARRI coordinators, and KYDNR and USFS staff. Approximately 1677 high value hardwood tree seedlings were planted by 51 reforestation volunteers on 3.75 USFA acres of pre SMCRA surface mine lands. The project also provided an opportunity for the volunteers to learn about the American Chestnut Foundation’s experimental Back-Ccrossed American chestnut project and to inter-plant seedlings on the site. back-crossed American chestnut seedlings generously provided by The American Chestnut Foundation. The student volunteers were successful in helping re-establish a high-value hardwood forest on actively mined land, planting seedlings for a combined total of 2,176 volunteer hours. 27 VI. National Priority and General Oversight Topic Reviews OSMRE conducted the following National Priority and General Oversight Topic Reviews during EY 2017. The following reviews were joint studies, with team members representing both OSMRE and KYDNR. Subjects of these types of reviews are mutually agreed to by OSMRE and KYDNR each year when the Annual Performance Agreement is signed. Below is a summary of each review conducted during EY 2017. If the summary references a complete report, these are available for review and copying at the OSMRE Lexington Field Office 2675 Regency Road, Lexington, Kentucky, 40503 and are also available online at the following address: http://www.odocs.osmre.gov/. A. National Priority Reviews OSMRE did not conduct any national reviews in EY 2017. B. Regional Oversight Topic Reviews 1. Impoundment Study- Appalachian Regional Impoundment Study This regional study evaluated the permit review processes of KYDNR concerning the potential for impounded coal mine waste in impoundments to “breakthrough” into adjacent and subjacent underground mines. Determination of breakthrough potential was evaluated by OSMRE in accordance with standard engineering and dam safety practices, approved state and federal regulations and the following parameters: • The presence or absence of minable coal seams adjacent and subjacent to coal mine waste slurry impoundments. • The extent to which the operator investigated underground mine maps and other information to evaluate the nature and extent of adjacent and subjacent underground mining within 500 feet of or below an impoundment. • For cases where underground mines were determined to exist in the vicinity of an impoundment; steps taken to assess the potential for fine-waste slurry to flow into the underground mines following a breakthrough, and to prevent a breakthrough from occurring. 28 During EY 2016, sites were selected and a kickoff meeting was conducted. Each permit evaluation included a review of pertinent documents, information, and data in the coal waste impoundment permit-application and inspection-and-enforcement files. All site visits have been completed and a draft report that is currently in review at OSMRE’s Appalachian Regional Office is expected to be completed during EY 2018. 2. Underground Mine Pool Study The underground mine pool study is a regional oversight effort that was designed to assess whether or not regulatory authorities are appropriately considering post closure hydrology and the pollution potential (current and future) of water that accumulates in underground mines. Long term control, treatment, and maintenance of underground mine pools are necessary to prevent problematic pollutional discharges as required by 30 CFR § 800.40 (b) (1) and 405 KAR 10:040 Section 1 (4). This study also includes consideration of the financial assurances that must be in place if the operator ceases to provide the necessary control and treatment. OSMRE provided the EY 2016 underground mine pool report to KYDNR for review on November 15, 2016. The report contained a discussion of the permits reviewed during EY 2016, as well as recommendations to improve KYDNR’s evaluation of underground mines prior to bond release. KYDNR provided OSMRE with comments to this document on August 3, 2017. OSMRE is currently reviewing these comments in preparation to finalize the report. A similar report will be drafted outlining the findings of the EY 2017 inspections. As a part of the regional oversight effort, OSMRE drafted an Appalachian Region (AR) regional report entitled “Appalachian Region Oversight Study on the Information and Inspection Techniques used by Regulatory Authorities to Evaluate Underground Mine Pools and Discharges at Bond Release”. The report synthesizes the findings from the EY 16 OSMRE underground mine bond release inspections in Appalachian Region states Kentucky, Pennsylvania, Tennessee, Virginia and West Virginia. The report is currently in review by OSMRE management. As part of the EY 2017 regional oversight study, OSMRE conducted oversight inspections for all Phase III bond releases at underground mines. During EY 2017, OSMRE reviewed 19 Phase III underground mine bond release applications. OSMRE reviewed the bond release documentation submitted by the permittee, typically consisting of a bond release application, planting report, notification letters, ads, etc. OSMRE personnel prepared for the inspection by reviewing pertinent portions of the permit application, the final underground mine map, as well as the maps for adjacent underground and surface mines. The location of face-ups and punch-outs, as well as the most likely discharge locations were identified through the map review. The outcrop barrier thickness, the potential for mine pool development and the likelihood of a pollutional discharge were also evaluated. Of the 19 Phase III underground mine bond release applications, 4 were withdrawn prior to the field inspection and 1 permit was determined to have highwall mined the permitted underground acres; therefore OSMRE performed field inspection of 14 permits during EY 2017. 29 KYDNR drafted a new form during EY 2017 entitled “Underground Mine Review Bond Release”, as a result of DMRE finding unapproved, unreclaimed, or punch-outs / portals not reclaimed per the approved permit during bond release inspections. This form which is to be filled out at the time of bond release in addition to the Underground Mine Review form which is completed after the permittee submits their annual underground mine map. The “Underground Mine Review Bond Release” form should aide inspectors in becoming more familiar with the underground permit at bond release, especially older underground mines where the inspector may not be familiar with the underground works due to the time passed since the last annual mine map submittal. Once this oversight study report is finalized, it will contain discussions of the reviewed permits, issues identified, and recommendations regarding resolution of those issues. The underground mine pool study report will be drafted and sent to KYDNR in EY 2018 C. General Oversight Topic Reviews 1. Inspection and Enforcement Federal Oversight Related Inspections OSMRE Directive REG-8 established a formula to calculate the minimum number of OSMRE oversight inspections required for the evaluation of State primacy programs. The calculation of the REG-8 mandate for OSMRE oversight in Kentucky identified 309 oversight inspections as the minimum required. In EY 2017, OSMRE conducted a total of 368 oversight-related inspections of which 361 counted directly toward the required REG-8 inspections. The graph below demonstrates the comparison between the minimum REG-8 target inspections and the actual number of inspections conducted that count toward the REG-8 requirement. 30 Lexington Field Office Inspections 700 Number of Inspections 600 545 470 500 400 576 448 456 358 320 361 339 300 200 320 320 320 319 318 315 315 312 309 100 0 EY 2009EY 2010EY 2011EY 2012EY 2013EY 2014EY 2015 EY2016 EY2017 Minimum REG-8 Inspection Target Total Number of Inspections Figure 7. Chart comparing the number of Reg-8 minimum oversight inspections to the total OSMRE inspections. The following table is a breakdown of the 368 oversight-related inspections conducted by OSMRE. The additional inspections that are reflected in OSMRE’s total inspections are included at the bottom of the table. These inspections investigated citizen complaint review, and document review. The letter codes are OSMRE’s inspection codes used in the Inspection and Enforcement (I&E) database. Inspection Type REG-8 Number of Requirement Inspections Number of Violations Oversight Complete (OC) 105 211 257 Oversight Complete Independent (OCI) 30 23 4 Oversight Bond Release Phase III (OBR3) 61 6 Oversight Partial (OPO) 33 31 31 Inspection Type Oversight Bond Forfeiture (OBF) REG-8 Number of Requirement Inspections 174 Number of Violations 17 0 Oversight AMD Active Inventory (OMDAI) 5 0 Oversight AMD Inventory Deletion (OMDDS) 10 1 Oversight Follow-up TDN (OFTDN) 1 0 Citizen Complaint Review (CCR) N/A 3 4 Document Review (DR) N/A 4 9 REG-8 Totals 309 361 299 Total N/A 368 312 Table 4. This table is a breakdown of the 368 oversight-related inspections conducted by OSMRE. OSMRE’s oversight format provides a general assessment through random oversight inspections. The purpose of these inspections is to evaluate the degree of industry compliance with the approved State program. Permits are selected at random from Kentucky’s inspectable units list. The randomly selected permits are then used by OSMRE to plan joint oversight inspections with KYDNR. Random inspections are comprised of “oversight complete inspections”, and “oversight complete independent inspections”. “Oversight partial inspections” are normally used for followup inspections to previously conducted “oversight complete inspections”, and “oversight complete independent inspections”, However during the EY, 22 of the 33 OPO inspections, were conducted for the PI inspection frequency special study. These inspections account for During EY 2017, 211 comprehensive random inspections, 23 comprehensive independent random sample inspections, and 33 partial inspections were conducted. All 267 inspections were selected from the list of active and Phase I bond released permits for surface and underground coal mining operations. The other inspections that contribute to the REG-8 mandate include “oversight bond forfeiture”, “oversight long term treatment active inventory”, and “oversight long term treatment inventory deletion. OSMRE tracks the compliance data observed during oversight inspections. The following table shows violation data collected during REG-8 inspections. 32 Inspections Type Oversight Complete (OC) Deferred Previously to State Cited Abated TDN During Total Issued Inspection 118 127 9 3 257 Oversight Complete Independent (OCI) 1 3 0 0 4 Oversight Partial (OPO) 12 18 0 1 31 Oversight Bond Release Phase III (OBR3) 2 0 0 4 6 Oversight AMD Inventory Deletion (OMDDS) 1 0 0 0 1 134 148 9 8 299 Totals Table 5. This table shows violation data collected during REG-8 inspections. OSMRE observed 299 violations during oversight inspections, 40 percent of which were cited during oversight inspections. Previously cited violations accounted for 42 percent of the observed violations. OSMRE issued TDNs on Fifteen violations during eight inspections occurring during the EY. Six of the fifteen were related to PMLU and revegetation, two were related to hydrologic balance, three were related to administrative standards, two were related to disposal of excess spoil, one was related to an off permit disturbance, and one was related to a coal processing waste dam. OSMRE is currently reviewing the appropriateness of the state action taken. The most often cited performance standards for the 299 violations observed during EY 2017 oversight inspections were: Siltation structures, terms and conditions of the permit, groundwater monitoring, and mining within a valid permit. Comprehensive random inspections conducted by OSMRE are also used to track industry compliance. Industry compliance is defined as a measurement of the number of comprehensive random inspections with no observed violations divided by the total number of comprehensive random inspections and expressed is as a percentage. The industry compliance rate of 60% during EY 2017 is the lowest it has been in the past ten-year period, as shown in Figure 9 below. 33 Percentage of Units Inspected With No Violations Found Industry Compliance 100% 87% 87% 80% 77% 65% 70% 70% 72% 68% 69% 61% 60% 60% 40% 20% 0% Figure 8. Bar Graph showing the industry compliance over the past 10 years expressed as a percent of permits with no observed violations. State Regulatory Authority Inspections During EY 2017, KYDNR completed a total of 6,497 complete inspections and 10,185 partial inspections. KYDNR is required by 405 KAR 12:010, Section 3(5) to conduct one complete, and two partial inspections per calendar quarter on all active mine sites. Inactive and abandoned/forfeited mine sites require one complete inspection per quarter. Inactive mine sites are those that have received a Phase I bond release and meet the requirements listed in 405 KAR 12:010, Section 3(5) or are in temporary cessation. For EY 2017, KYDNR reported the following statistics: Coal Mines and Facilities Number of Complete Inspections Number of Partial Inspections Active 6,275 10,103 Inactive 190 61 Abandoned 32 21 Total 6,497 10,185 Table 6. Breakdown of inspection statistics for active, inactive, and abandoned sites. 34 OSMRE tracks inspection frequency throughout EY 2017 and reports the overall frequency annually. KYDNR met the required inspection frequency on 99.74% of the permits requiring inspections. The table below is a summary of the data used to calculate inspection frequency. Number of Permits Requiring Inspection 1,511 Number of Inspections Conducted 16,682 Number of Permits Meeting Frequency 1410 Percentage of Permits Meeting Frequency 93% Table 7. This table is a summary of the data used to calculate inspection frequency. During EY2017 the state of Kentucky had one of the worst wildfire seasons in recent history. Over 70,000 acres burned in CY 2016, which is 50,000 more than the previous. On October 27, 2016, Governor Matthew G. Bevin declared a State of Emergency due to wildfires in Eastern Kentucky. Within this executive order, Governor Bevin authorized the Division of Emergency Management to request any assistance to be made available to provide essential services to the general population and to assist state, local governments and individuals impacted by the emergency. KYDNR’s Division of Mine Reclamation and Enforcement has three regional offices located in Eastern Kentucky with a skilled workforce that had the abilities to assist the Kentucky Division of Forestry in their firefighting efforts. Under the executive order from Governor Bevin, the Division of Mine Reclamation and Enforcement provided twenty-five (25) employees to assist in the fighting of these wildfires, from October 27, 2016 through December 16, 2017. As a result, some mining operations missed partial inspections. Calculating inspection frequency for the EY excluding these inspections raises the frequency to 99.74% rather than the 93.38%, reported. OSMRE was made aware of these missed inspections through written correspondence from the Commissioner of KYDNR, Allen Luttrell. Due to the state of emergency OSMRE elected to agree with the Commissioner’s decision to allow employees to assist in fire suppression and chose to calculate frequencies by not including those missed inspections. Even at the lower frequency rate KYDNR still has met a higher frequency then that was recorded from EY 2009- EY 2012 where inspection frequency averaged 84%. 35 Percentage of Units Meeting Inspection Frequency 100% 99% Inspection Frequency 100% 99% 97% 83% 83% 83% 87% 93% 100% 99% 80% 60% 40% 20% 0% Figure 9. Chart showing the inspection frequency since evaluation year 2007. During EY 2017, KYDNR issued 796 NNCs. These NNCs resulted in 1,335 violations of performance standards. This is a slight decrease in enforcement actions from EY 2016 when KYDNR issued 960 NNCs with 1,634 violations of performance standards. A complete listing of State non-compliance data (listed alphabetically, by company name) issued by KYDNR is located in Appendix XIV. A breakdown of the performance standards cited during EY 2017 is listed by totals and percentages in the following table: 36 Performance Standards Cited During EY 2017 Performance Standard Total by Total Percentage Amount (Approx.) Performance Standard Total by Total Percentage Amount (Approx.) Water Monitoring (WM) 341 25.54% Revegetation (RV) 16 1.20% Sedimentation Ponds (SC) 150 11.24% Liability Insurance (LI) 3 0.22% Water Quality (WQ) 112 8.39% Disposal of Non Coal Waste (DW) 12 0.90% Off Permit Disturbance (OD) 90 6.74% Use of Explosives (UE) 10 0.75% Other Permit Conditions (OT) 50 3.75% Ownership and Control (OC) 0 0.00% Backfilling and Grading (BG) 63 4.72% Coal Waste Dams (WD) 14 1.05% Disposal of Excess Spoil (DS) 71 5.32% Disposal of Coal Processing (DC) 7 0.52% General Hydrologic (HR) 30 2.25% Topsoil (TH) 1 0.07% Effluent Limitations (EL) 65 4.87% Flyrock (FR) 0 0.00% Impoundments (IM) 53 3.97% Drilled Holes (DH) 3 0.22% Method of Operation (OM) 46 3.45% Auger Mining (AM) 2 0.15% Roads (AC) 47 3.52% Subsidence (SB) 2 0.15% Contemporaneous Reclamation (CR) 58 4.34% Mining Off Permit U/G (OO) 2 0.15% Diversions (DV) 49 3.67% Post Mining Land Use (PL) 1 0.07% Steep Slopes (SS) 16 1.20% Air Resources Protection (AP) 1 0.07% Signs and Markers (SM) 16 1.20% Approved Operator (UO) 1 0.07% Table 8. Performance Standards Cited During EY 2017 37 2. Blasting – Adverse Effects The most serious adverse effect resulting from blasting is flyrock. KYDNR and OSMRE have continued to stress the importance of reducing the number of flyrocks. There were no confirmed flyrock events that occurred during EY 2017. This reduction represents both the downturn in the coal industry and the effort KYDNR and OSMRE have put forth to reduce the number of flyrocks. Flyrock Events Flyrock Events by Evaluation Year 20 18 16 14 12 10 8 6 4 2 0 19 16 12 10 5 3 2007 2008 2009 2010 5 5 2011 2012 2013 Evaluation Year 1 2014 2 0 2015 2016 2017 Figure 10. The chart shows the reduced trend of confirmed flyrock events that have occurred during the listed evaluation year since EY 2007. 3. Bond Forfeiture Report The Draft Permanent Program Bond Forfeitures Report is a study conducted by OSMRE to assess whether the reclamation performance bond amounts being set were adequate to complete reclamation in the event of forfeiture. Bond forfeitures have been studied on an annual basis since EY 2007. The prior studies identified concerns regarding the adequacy of reclamation bond amounts and supplemental assurance, the lack of financial assurance that acid mine drainage (AMD) discharges would be treated, and the timeliness of enforcement/legal actions. Figure 12, below, illustrates the number of forfeited permits over the past ten years. This year’s study evaluated the permanent program bond forfeitures that occurred at 17 permits during EY 2016. 38 Number of Bond Forfeitures 35 30 25 20 15 10 5 0 EY 07 EY 08 EY 09 EY 10 EY 11 EY12 EY13 EY14 EY15 EY 16 Figure 11. Chart showing the number of forfeited permits for the last ten EYs. The team found that, when evaluating bond sufficiency using the total bond amount for a permit and the bond amount for each increment, 56% did not have sufficient bond to reclaim the permit or increment to permanent program standards. On average in EY 2016, forfeited increments were under bonded by $23,683.37. KYDAML’s cost estimates calculated the cost of reclamation of all forfeited increments to permanent program standards to be $1,865,953.25. Total bond posted for the 38 increments equals $984,879.00 which accounts for 52.8% of the total cost of reclamation. The National Priority Review Report on bond calculation, completed on January 5, 2011, indicated that the bond computations protocol used at the time did not always yield sufficient bond to complete the reclamation required in the approved permit. This substantiated the results of studies done on bond forfeitures by OSMRE. As a result, on May 1, 2012, OSMRE initiated the 30 CFR Part 733 process which requires Kentucky to correct its bonding deficiencies or face a Federal take-over of part or all of the State’s surface coal mining program. KYDNR submitted two program amendments to OSMRE in response to the 733 action: 1) the bonding protocols on September 26, 2012 and, 2) the creation of the bond pool on December 4, 2013. These amendments were combined under one Federal Register notice and have been given the program amendment number KY-256. OSMRE is currently reviewing the program amendment and will continue to work closely with KYDNR to resolve the 733 action. 4. Fill Inventory Since CY 1999, OSMRE and KYDNR have collected information on a calendar year (CY) basis for the size and location of excess spoil disposal fills for all new permits, amendments, and major revisions issued. This information includes data on both newly permitted fills, and modifications to permitted fills. OSMRE and KYDNR use the data to do trend analysis for the total number and 39 size of fills permitted from year to year. Figure 13, below, shows the total number of fills permitted every year since CY 1999. Total Number of Permitted Fills 400 350 300 250 200 150 100 50 0 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Figure 12. Chart showing the total number of fills permitted during Calendar Years 1999 through 2015. In CY 2016, KYDNR issued 109 permitting actions (14 new permits, 44 amendments, and 51 major revisions) in CY 2016 involving surface, underground, or other mining operations. LFO and KYDNR found 16 permitting actions that contained information on 49 fills. The other 93 permitting actions did not involve fills. 5. Long-Term Treatment The Kentucky Long Term Treatment (LTT) Inventory is a list of permits which require treatment in order to meet KPDES requirements; it is maintained by KYDNR Frankfort Central Office staff. Ponds (sites) are added to the inventory as field staff identifies the need for treatment during inspections. The inventory includes two sections, active and historical. The active inventory includes all sites which currently require treatment. The historic inventory includes sites that were once on the active inventory, but were approved for removal because treatment was no longer necessary. The KYDNR policy entitled “Procedure for the Identification and Inventory of Long Term Treatment Sites” dated May 6, 2013, describes KYDNR’s definition of treatment, as well as when a site is eligible to transition from the active to historical inventory. Once a site is added to the active inventory, the permittee is notified that a permit revision is necessary to identify the location and type of treatment. The revision must either demonstrate that the substandard discharge will be remediated through land reclamation, or provide an estimated annual treatment cost. If annual costs are provided, KYDNR calculates a bond (LTT bond) in the amount of twenty 40 times the annual cost of treatment plus any set-up costs. During EY 2017, 7 sites, from 7 permits were added to the LTT active inventory. As part of the performance agreement, KYDNR notifies OSMRE when a site is eligible to transition from the active to historical inventory. OSMRE performs field inspection of these permits to catalog the conditions at each site. During EY 2017, OSMRE was notified that 11 sites from 10 permits were eligible to transition from the active to historical Inventory. Another site was removed as it was determined it was added to the LTT Inventory in error. OSMRE performed 10 Oversight Mine Drainage Deleted Site inspections during EY 2017. Of the permits inspected, 2 were determined to be ineligible to transition from the active to historical inventory. Pond 2 on Covol Fuels No. 3 LLC, Permit No. 807-5238 was determined to be ineligible because water discharging from the structure on the date of the inspection was not in compliance with the KPDES permit. Pond BP-30 on Nally and Hamilton Enterprises Inc., Permit No. 848-0233 was determined to be ineligible because of poor quality water entering the structure. In addition to Oversight Mine Drainage Deleted Site inspections, OSMRE also performs Oversight Mine Drainage Active Inventory (OMDAI) inspections. During an OMDAI inspection, OSMRE documents the treatment system and performs an investigation of the pond(s) where the treatment is occurring. The inspection also includes a review of the approved LTT permit documents and DNR’s bond calculation. The KYDNR inspector, and when available, a permittee representative, are interviewed to determine if changes to the treatment system have occurred over time. The observations made in the field (treatment system configuration, chemicals, number of ponds, use of electricity, etc.) are compared to that described in the approved permit, to determine if the permit adequately described the treatment system. OSMRE conducted 5 OMDAI inspections during EY 2017. The permits were randomly chosen from the KYDNR LTT Inventory. Permits included in the EY 2017 study include Terry Glenn Coal Company, Permit No. 848-5119; High Ridge Mining Company, Permit No. 898-0939; River View Coal LLC, Permit No. 913-5015; Belfry Coal Corporation, Permit No. 836-5601 and New Ridge Mining Company, Permit No. 898-9160. The inspections occurred between April 3 and May 30, 2017. OSMRE is currently drafting a report summarizing the findings of the EY 17 OMDAI inspections. 6. Phase I Inspection Frequency Study This special study was developed to determine if KYDNR was reducing its inspection frequency at the appropriate time as per their regulations; Kentucky Administrative Regulation (KAR) 405 section 12:010 General Provisions for Inspection. This law states that partial inspections of surface coal mining and reclamation operations shall be conducted an average of at least one partial inspection per month. Partial inspections are to occur at least until Phase I reclamation has been achieved on the entire permit area. After Phase I reclamation, or if the cabinet has received notice of temporary cessation, the cabinet shall conduct partial inspections until the cabinet determines that the permit area is sufficiently stable with respect to mass stability, erosion, revegetation, water quality and other reclamation requirements so that the quarterly complete inspections required will provide adequate inspection of the permit area. 41 Permits were chosen using the KYDNR’s Surface Mining Information System, to determine when a permit was placed into Phase I status. Once a permit was in Phase I status, an authorized individual from OSMRE conducted a file review to determine if the bonds were released during the EY. After it was determined that the permits was in Phase I status and the bonds had been released during EY 2017, OSMRE and a representative(s) from KYDNR scheduled a site inspection. This partial inspection was solely to determine if the permit met the criteria of 405 KAR 12:010. Once the inspection was conducted a summary of the site conditions was compiled as well as recommendations if the permit met the criteria for a reduced inspection frequency. These summaries and recommendations were then used to compile this report. 42 PERMITTEE Permit# Acres Permitted Date Phase I Received Alden Resources LLC 918-0470 224.4 9/12/2016 Alden Resources LLC 861-0529 236.9 1/24/2017 D & J Coal LLC 832-0068 197.48 2/28/2017 Don Bowles Corporation 854-8011 397.64 8/23/2016 Investment Energy LLC 918-0462 18.25 2/13/2017 Kentucky Corporation Fuels 860-5337 262.45 8/30/2016 Kentucky Corporation Fuels 860-5350 667.07 8/22/2016 Landfall Incorporated Mining 898-9144 18.1 1/20/2017 Liberty Management LLC 897-0611 917.3 9/23/2016 Liberty Management LLC 898-0989 1410.17 10/31/2016 Liberty Management LLC 898-0990 803.19 10/13/2016 Liberty Management LLC 836-0458 603.49 11/02/2016 Liberty Management LLC 836-0456 361.9 1/4/2017 Locust Grove INC 897-0502 421.6 11/14/2016 Locust Grove INC 897-0531 414.4 1/26/2017 Locust Grove INC 897-0449 1,226.87 4/18/2017 Nally and Hamilton Enterprises INC 807-0372 666.69 8/15/2016 Nally and Hamilton Enterprises INC 807-0371 54.77 2/13/2017 Pine Branch Mining LLC 897-8057 202.25 1/31/2017 Revelation Energy LLC 898-0982 233.41 10/31/2016 Rex Coal Company INC 848-5414 892.63 12/13/2016 Wellmore Corporation 898-0868 68.4 2/13/2017 Coal Table 9. Table that lists the permits evaluated for the Phase I Inspection Frequency Study. OSMRE is currently drafting a report that summarizes the results of this study. A draft of the study will be sent to the state for comment in EY 2018 43 VII. The Approved State Program The Kentucky State program was conditionally approved in 1982. Since that time the State has submitted 258 amendments to the approved program. Part 732 of 30 CFR provides the regulatory framework for states to maintain the approved program in accordance with SMCRA through program amendments. Part 733 of 30 CFR allows for the substitution of federal law, in the place of state law. KYDNR currently has three program amendments pending. The following table describes the active program amendments. Amendment Number Description Status KY-254-FOR Statutory changes resulting from the passage of HB 385 during Kentucky’s 2011 Legislative Session. The amendments to Kentucky Revised Statutes (KRS) 350.060 require any changes to the bonding protocol currently in use to be promulgated in an administrative regulation. The amendment also requires the formula used to establish the bond amount to be included in the administrative regulation. The administrative regulation will be found deficient if the formula is not included. Final review under consideration by OSMRE KY-255-FOR The State submitted administrative regulations as proposed amendments that are intended to be a cost saving measure regarding electronic notification of enforcement documents required under KRS Chapter 350. Awaiting the submission of a correction to the amendment by the State KY-256-FOR This originally was an interim final rule. The KYDNR is concurring with the Governor’s decision to make the bond adequacy effective immediately, based in part to OSMRE’s 733 letter issued May 1, 2012. KYDNR also submitted regulations that will go through their normal process including our program amendment process. This amendment has been combined with KY-257 in federal register notice 80 FR 15953, on Thursday, March 26, 2015. Final review under consideration by OSMRE KY-258-FOR Kentucky seeks to amend the language within its approved program with the intent to clarify what is required for a permit applicant to demonstrate right of entry/right to mine when the proposed operations entail land with severed surface and mineral estates. Under consideration by OSMRE Table 10. Active Program Amendments. 44 VIII. Regulatory Program Problems and Issues. A. 733 Action In January 2011, OSMRE concluded that KYDNR was not requiring adequate bond to be posted to ensure complete reclamation of mine sites. An action plan was developed that assigned a joint OSMRE/KYDNR team to review KYDNR proposals for revising the current bonding protocols to reduce the bond shortfalls. On January 17, 2012, OSMRE concluded that, while the bond protocols proposed would result in an overall improvement, the resulting bond amounts would remain inadequate. On May 1, 2012, OSMRE initiated the 30 CFR Part 733 process which requires KYDNR to correct the bonding deficiencies, or have Federal law substituted for part or all of the Kentucky surface mining program, including AML funding. On May 4, 2012, Kentucky adopted emergency regulations to revise the bonding program to prevent OSMRE from taking over responsibility for the reclamation bonding program. At the same time Kentucky also began the review process to change the permanent administrative regulations to match the emergency regulations. On March 22, 2013, Governor Beshear signed House Bill 66 resulted in statutes found at KRS 350 and administrative regulations at 405 KAR. The bill immediately established the Kentucky Reclamation Guaranty Fund as a reclamation account, requiring mandatory participation, unless the permittee opts for full cost bonding. The account is designed to cover the excess costs of reclamation for coal mining sites when the permit specific bond is inadequate. A summary of the changes to the bonding program was published in the Federal Register, 80 FR 15953, on Thursday, March 26, 2015. Written comments were accepted until April 27, 2015. There were no requests for a public hearing. Currently Kentucky’s proposed program changes are under final review. During EY 2017 the actuarial report for FY 2014 and 2015 were completed. These studies are to assess the soundness of the fund against the bond forfeitures that occur under the revised protocols. The actuarial reports found the fund to be solvent. OSMRE staff have reviewed the reports and determined that the overall the projections used seem reasonable. OSMRE will continue to review future audits and actuarial studies as they are completed, to monitor the soundness of the fund. 45 IX. OSMRE Assistance- Regulatory Program A. Grants The Administration and Enforcement (A&E) Grant provided by OSMRE to Kentucky funds 50% of the regulatory program with the State being required to provide the other 50% in matching funds. The final 2015 A&E grant awarded Kentucky a total of $11,631,247 including indirect costs. Kentucky received $1,419,423 to administer the Federal Lands Program which is 100 percent Federally-funded. KYDNR de-obligated $475,000 from the 2015 A&E grant for failure to match Federal funds. The amount awarded by OSMRE for the 2016 A&E grant was $11,632,000 of which $1,441,801 is to administer the Federal Lands Program. At the end of the EY 2017, the A&E grant was supporting 180 positions in the regulatory branches of KYDNR. KYDNR regulatory branch which consists of the Department of Reclamation and Enforcement and the Division of Mine Permits is 50% federally funded. KYDNR continues to be limited by the inability to match the allocated federal funds with state appropriations, effectively reducing the total funds available to the coal permitting and enforcement programs. In addition, KYDNR has been required to rely on restricted receipts, principally the collection of permit application fees, to make their match. KYDNR reports that at the end of EY 2017 the Division of Permits is down to 30 permit review and maintenance employees from 61 during the previous year. The Division of Enforcement and Reclamation is staffed with 108 inspection related employees which is down from 134. Of the inspection related personnel 53 were inspectors carrying a load of permits. The total number of inspectable units for EY 2017 was 1,511; this gives KYDNR a ratio of one field inspector per 28.5 inspectable units. B. Training The KYDNR participated in OSMRE’s National Technical Training Program (NTTP) and Technical Innovation and Professional Services (TIPS) Training Programs which offer AML and regulatory agencies introductory and advanced training classes. During EY 2017, KYDNR had 59 participants in TIPS and 51 participants in NTTP classes. NTTP provided training in the following areas: Coalfield Communications, Forensic Hydrologic Investigations, Erosion and Sediment Control, Subsidence, Passive Treatment, NEPA Procedures, Soils and Revegetation, Wetlands Awareness, Surface and Groundwater Hydrology, Advanced Blasting Investigations and Analysis, Mine Gas Safety and Investigations, Geology and Geochemistry of Acid Forming Materials, Historical and Archaeological Resources, Applied Engineering Principles, AML Design Workshop: Dangerous Highwalls, AML : Landslides, AML: Dangerous Openings and AML: Subsidence. TIPS courses attended by KYDNR employees included AutoCAD for Permitting and Reclamation, Carlson Mining Site Design, Mobile GIS for Reclamation Analysis and Analysis, Global Mapper, Introduction to GIS, Introduction to GPS, SEDCAD Applications and Extensions, AutoCAD Map 3D, Android and iOS Devices, ARCGIS Spatial Analysis, Modeling and Analysis with Groundwater Vistas, CAD 400 and CAD 301. KYDNR continues 46 to utilize both hardware and software provided through TIPS. The GIS and AutoCAD software packages are the most common programs used by KYDNR. During this EY, DNR provided five instructors for the NTTP courses that included Wetlands Awareness, Permit Findings, SMCRA and the ESA: the 1996 Biological Opinion, Surface and Groundwater Hydrology and both of the blasting courses. C. Interagency Coordination KYDNR and OSMRE meet biannually with other state and federal agencies (Kentucky Department for Environmental Protection, Kentucky Geological Survey, United States Army Corp of Engineers, United States Environmental Protection Agency, United States Fish and Wildlife Service (USFWS), and the United States Geological Survey) that have a vested interest in SMCRA activities to improve coordination and communication. KYDNR and OSMRE have established working relationships and open dialogues between all agencies involved with the permitting and inspection of mine sites within Kentucky and the region. 1. Clean Water Act The Clean Water Act Authority in Kentucky is the Division of Water, which issues Kentucky Pollutant Discharge Elimination System Coal Permits. The Kentucky Division of Water and KYDNR work cooperatively to ensure compliance with these permits. KYDNR issued 40 Cumulative Hydrologic Impact Assessments (CHIA) during EY 2017. Of the 40 CHIAs, 10 were for new permit applications, 26 for amendments and 4 for a major permit revision. KYDNR continued trend station monitoring to measure water quality impacts at 177 sites in Hydrologic unit code-12 watersheds. KYDNR is currently matching OSMRE funds using a $240,000 in funds obtained from a litigation settlement. At the end of EY 2017, KYDNR still had $218,363 of the funds available for monitoring. The OSMRE Appalachian Region has begun performing a review of KYDNR’s CHIA process. The review is the first of four phases being used to evaluate CHIAs in Kentucky, Maryland, Ohio, Pennsylvania, West Virginia and Virginia state regulatory programs and the Tennessee Federal regulatory program. The purpose of the evaluation is to Document the CHIA processes currently being used in each state and determine whether the state regulatory authorities and the OSMRE Knoxville Field Office in Tennessee are implementing the CHIA process as required by the applicable statutes, regulations, and internal policies and procedures. In addition, the review will document the following information regarding the specific CHIA processes: 1. Size of cumulative impact areas (CIAs) 2. Criteria for establishing monitoring points (trend stations) and determining if any such monitoring points match the CIAs or are used in any way to validate CHIAs. 3. Differences between surface and groundwater CIAs 47 4. Methods of evaluating impacts both to the quantity and quality of surface and ground waters 5. Definition of material damage 6. Thresholds for determining material damage 7. Events that trigger a new or revised CHIA OSMRE documented the KYDNR CHIA process by reviewing existing policies and guidelines governing the CHIA process and interviewing permit review staff. KYDNR provided OSMRE with a list of all new permits, amendments and major revisions processed since August 2010. From this list, 18 CHIAs were randomly selected for review. The CHIA and any pertinent permit documents were reviewed as part of the process. A standardized CHIA Data Collection Form developed by OSMRE was completed using information obtained during the policy review, staff interviews, and permit reviews. The reviews have all been concluded and a report is currently being drafted. The Report is expected to be complete during EY 2018. 2. Endangered Species Act On September 24, 1996 the Biological Opinion was issued by the USFWS to OSMRE on the surface coal mining and reclamation operations under State and Federal regulatory programs adopted pursuant to Title V of SMCRA where mining operations “may adversely affect” species listed as threatened or endangered or designated critical habitat under the Endangered Species Act. OSMRE works in conjunction with the USFWS to ensure that proposed, threatened, and endangered species and critical habitat are adequately protected for all permitting actions, including exploration operations, initial permit issuance, renewals, and significant revisions. The Biological Opinion is important for Kentucky, a primacy state, because there is not a cooperative agreement with the Secretary of interior to assume responsibility for operations that may adversely affect species. During EY 2017, KYDNR received 20 Protection and Enhancement Plans (PEPs). When a threatened and endangered species is suspected to be present in the area, KYDNR requires that permit applicants either conduct a survey to determine if the species is present at their site or assume the presence of the species and submit a PEP. They requested surveys or PEPs related to bat species from 24 permit applicants, 16 permits elected to conduct surveys. 3. National Historic Preservation Act The National Historic Preservation Act of 1966 provides protection for our nation’s historic resources and establishes the Federal government’s policy on historic preservation and the national historic preservation program. They are the statute, and basic implementing regulations that explain how a Federal agency is to take into account the effects of their undertakings on historic properties listed in or eligible for listing in the National Register. 48 The Kentucky Heritage Council is required to “prepare and maintain an inventory or survey of Kentucky’s resource of historic buildings, sites, structures, and other landmarks, and list in an official roll those landmarks which possess statewide or national significance”. KYDNR assists in identifying coal mining related activities that may affect historic properties within the State. During EY2017 surveys were conducted in nine counties. Within the nine counties thirteen surveys were required, and eleven have been received. The results of these surveys identified four historical sites, which include a historical home in Mclean County, a prehistoric lithic scatter in McLean County and two historic scatters that were relocated in Union County 4. Federal Lands In 1998, KYDNR and OSMRE signed a cooperative agreement that gave KYDNR the authority to administer the regulations of coal mining activity on federal lands. OSMRE provides assistance to federal agencies in meeting their procedural requirements. OSMRE is also responsible for making determinations of valid existing rights for KYDNR for permittees requesting to surface mine on United States Forest Service owned land. There are several Federal agencies which manage land that have or had coal mine permits in Kentucky including the United States Army Corps of Engineers, the Tennessee Valley Authority, the United States Forest Service, and the Bureau of Land Management. In EY 2017 KYDNR processed, two major revisions that included federal lands. OSMRE attends and provides input to the subject federal agency on all phases of bond releases on federal lands. During EY 2017, OSMRE did not receive any notices of bond release that included federal lands. 49 X. Abandoned Mine Lands Reclamation A. General: Introduction and Program Administration KYDAML implements the AML reclamation program and successfully achieves lasting and effective reclamation of mined lands that eliminates hazards to the public and restores land to beneficial uses. B. Noteworthy Accomplishments KY DAML accomplished a great deal in EY 2017, some of these accomplishments are listed below: • The Director of KYDAML traveled to Washington, D.C. in the Spring (2017) and testified at a Congressional Legislative Hearing in support of the RECLAIM Act which will accelerate the distribution of AML funds to Kentucky, and other AML Program states, for the purposes of AML reclamation associated with economic development. • KYDAML continues to utilize AML Pilot Project funding ($30 million dollar AMLER Grant) to spur economic development activity on, or adjacent to, AML sites. Nine projects were chosen for this funding. During the evaluation year, eight of the nine project proposals received initial OSMRE approval; one project received final OSMRE approval; three projects have formal Memorandum of Agreements in place between the contractors and the Energy and Environment Cabinet; three projects are in the design phase; and one project is in the construction phase. • KYDAML received official notification that it has been selected to receive a second round of AML Pilot Project Funding in the amount of $25 million dollars. KY DAML will submit a grant application for this funding in similar fashion to the first round of AML Pilot Project Funding. • KYDAML continues to employ drones for aerial reconnaissance. The Division is currently using four drones for AML and bond forfeiture overflights. • KYDAML is hosting the National Association of Abandoned Mine Land Programs Annual Conference in Lexington, KY, September 24-27, 2017. The division expended considerable effort this evaluation year in preparation for the Conference. 50 C. Public Participation and Outreach The Kentucky Abandoned Mine Land program works on sites that are deemed eligible for AML funding. The projects that are submitted for approval for funding are generated from the public, who request investigation of problem areas they believe have been caused by past mining activity. The KYDAML program receives a high volume of citizen complaints because of the long history of past mining and the steep topography in eastern Kentucky. As seen in the table below, the KYDAML still receives and responds to many requests for assistance on an annual basis. Calendar Year Complaints Received No. Deemed AML Eligible 2014 722 42 2015 963 32 2016 Approx. 400* 14 2017 479 37 Table 11. Complaints received by KYDAML * - Through August of 2016. In general, averages of 7% – 10% of the investigations that KYDAML pursues are eligible for AML funding. These sites are scrutinized to ensure that they are eligible for funding; meaning that the AML mining influence is the predominant cause of the problems being alleged. Unfortunately, many cases are made worse by individuals attempting to resolve a small issue on their own and can significantly impact the eligibility of the project. The KYDAML receives requests at either the field office or their Frankfort (main) office. Occasionally, OSMRE also receives complaints, which are referred to the State. The field office staff for Kentucky does an initial investigation and interviews the complainant, evaluates the problem identified by the land owner, and usually takes samples and photos to document the site. The summary report is then forwarded to the Frankfort office for further evaluation. If the initial investigation concludes past mining might be the cause of the complaint, the staff at the main office does a review of all known mining records, including mine maps, old field notes from past reviews, and GIS layers. KYDAML uses the compiled information to determine if the complaint is AML related. It is often necessary to send out staff to the site to verify information 51 found during the record review. Some of these reviews can take several days, weeks to even years, depending on the nature of the problem and complexity. Sites that are deemed eligible are sent to KYDAML for preparation work to begin to build a project to reclaim the site. The key steps in the process include development of the construction plan, detailed design work for cost estimates, etc. Once the design is complete, the features to be reclaimed are entered into the e-AMLIS to document the features, costs and location in the inventory. As previously mentioned KYDAML and OSMRE sought public involvement in soliciting proposals for the AMLER grant funds. KYDAML met with interested parties in several different forums including an OSMRE hosted meeting, meetings they sponsored, and at the Shaping Our Appalachian Region conference in Pikeville, Kentucky where they also presented an overview of the AMLER grant process and criteria. D. OSMRE Assistance- Abandoned Mine Lands OSMRE provides 100 percent funding to Kentucky for the AML program. The grant cycle for AML begins on July 1st, and the A&E grant cycle begins on September 1st, of each CY. This means the State draws from two separate Federal grant year monies during the Evaluation Year. For example, the State began drawing its Federal FY 2016 A&E grant money allocation on September 1, 2016. Prior to that time, they operated on FY 2015 money. The AML program does draw down the AMD set-aside money soon after the Federal allocation, but does not begin drawing the remainder of the grant allocation until July 1st of the following year. The following narrative details money awarded to KYDNR during the evaluation year. The AML program is funded by the collection of fees from active coal mining across the country. The authority to collect these fees was set to expire in 2004 and extended into 2005. This authority was reauthorized in 2006 and, among other things allowed the states to receive the unappropriated balances that were held for them in the AML Trust fund. This distribution was to take place over 7 years which significantly increased the Kentucky AML program funding through FY 2015. This increase in funds allowed Kentucky’s AML program to address higher cost projects that previously were unfunded, including waterline projects. The higher cost of waterline projects frequently requires multiple partners with varied funding sources. KYDAML provides funds only to areas that had been impacted by pre-law mining. Other partners would fund non-AML areas served by the waterline. The increased rate of funding ended with the 2014 distribution and the funding levels returned to previous distribution rates. In FY 2016, OSMRE awarded $17,088,577 to KYDNR for their AML program. In EY2017 (July 1, 2016 to June 30, 2017), OSMRE distributed and awarded $12,649,694 to KY for its FY2017 AML program. Also in EY2017, OSMRE distributed $25,000,000 to KY for its AML Pilot program. (The AML Pilot funds were not awarded prior to June 30, 2017.) At the end of the Evaluation Year the grant was supporting 93 positions. 52 E. Results of Evaluation Year 2017 Reviews 1. Overall Reclamation Success During EY 2017, the KYDAML submitted 87 new project proposals to OSMRE for ATP. Authorizations To Proceed Received EY 2017 AML Pilot (2) AML Enhancement Rule (1) Maintenance (4) General (30) High Priority (33) Water Supply (9) Figure 13. The Number and type of projects submitted for authorizations to proceed in EY 2017 The KYDAML conducts project monitoring through periodic, monthly, and final construction inspections. During EY 2017 the KYDAML used only in-house staff for inspections. These inspections are often conducted jointly with OSMRE AML Inspectors. As part of its oversight the OSMRE conducted a total of 255 inspections of KYDAML projects during EY 2017. This included 7 pre-authorization inspections, 56 pre-construction inspections, 117 active construction inspections, 72 final construction inspections, and 3 follow-up inspections. In the course of these inspections, OSMRE identified 50 concerns in EY 2017. A total of 24 concerns were identified in EY 2016. The concerns covered such issues as revegetation, construction progress, deviation from approved plans, sediment control installation and maintenance, stability issues, and questions related to the NEPA. Forty-one (41) of the 50 concerns were deemed to be “major”. The remaining 9 were considered “minor”. Major and minor determinations are made in the field by the AML Inspector, and are based on factors as the nature of the problem, magnitude, and potential environmental impacts. The OSMRE is conducting two evaluations in EY 2018 to help determine the cause of the rise in the number of concerns. These 53 evaluations will help to reveal areas where possible programmatic changes could limit the number of concerns found in the field. 2. Acid Mine Drainage Prior to FY 2008, the KYDAML decided that their AML grant funds were insufficient to take advantage of SMCRA’s AMD set aside program. In recent years, the KYDAML began participating in the AMD program by requesting funds each year for their AMD fund. The KYDAML did not request AMD set-aside funds in the FY 2016 or FY 2017 grant applications. These funds may be used to cover program administration, planning, design, construction, and construction monitoring. This program area has had a relatively short history in Kentucky. The first AMD project in Kentucky was announced in April 2008. In EY 2017, the KYDAML completed three AMD projects: The Burt Melton AMD, the Bob Carter AMD, and the David and Emma Shepherd AMD. 3. Water Supply Restoration The KYDNR provides AML funds to install new and/or enhance existing water supply infrastructure that is administered by local city or county municipalities and/or other public water commissions. These projects provide a steady supply of good quality water for municipalities and for private water supplies where water supplies have been impacted by AML-eligible coal mining. Frequently, these projects combine other federal, state, and local governmental funds to provide public water to a larger area. The other sources of funding allow non-AML-impacted areas to also receive water service. The AML program funds a portion of the cost of these water replacement projects based on the mining impacts found in groundwater quality and quantity studies. The funds are most commonly used to install water storage tanks, booster pump stations, and residential water meters. They also allow for the extension or improvement of existing water lines and water facilities serving AMLimpacted areas. In EY 2017, KYDAML submitted twelve new water supply projects to OSMRE for ATP. During the EY KYDAML had 21 total projects under construction and proposed. These projects would install 421,689 feet of new water line that will provide safe domestic water supplies for approximately 1,248 residential customers. The combined cost of projects proposed during this evaluation year was $20,366,695. 4. AML Grant Fiscal and Administrative Reviews OSMRE awards grants to the states annually. These grants have a term of three years. The KYDAML program maintains a procedure to ensure that grant dollars are used efficiently to maximize the use of the funds before they expire. OSMRE did not conduct a review of KYDAML 54 drawdowns and disbursements of the OSMRE grant funding during EY 2017; however, OSMRE reviewed and approved several grant actions through the year which included the review and approval of both the FY2017 grant award and the application for the AMLER grant. A single audit conducted by the Kentucky Auditor of Public Accounts in 2012 identified an issue with tracking data associated with sub-recipients involved with AML waterline projects. Kentucky developed new policies and procedures including a tracking system to ensure timely submittal of A-133 monitoring reports. To ensure all data was captured for active projects, Kentucky developed an action plan to ensure the appropriate information for these active projects would be collected and provided, as requested, to the OSMRE Lexington Field Office and the Appalachian Regional Office Grants staff. Kentucky has implemented the approved action plan which has a schedule for documentation to be provided to OSMRE regarding the grant sub-recipients. This process will include the future AMLER projects. More information will be provided in the next annual report as the projects are approved for funding and ATP’s are completed. 5. e-AMLIS The KYDAML fully supports direct access to the electronic Abandoned Mine Land Inventory System (e-AMLIS), which allows the state to directly upload AML problem area data. KYDAML has been directly updating the e-AMLIS since the fall of 1995. On July 6, 2004, KYDAML submitted a letter certifying that there is a process to ensure the accuracy of data input into the eAMLIS. This data is used in compliance with current OSMRE e-AMLIS guidelines. The eAMLIS database allows OSMRE staff to update the database for new sites and/or review proposed entries as soon as they are entered into the inventory by KYDAML. When new AML problems are identified, information on the site conditions and estimated costs for project construction is entered into the e-AMLIS database. The problem area information is updated between the project proposal and project completion phases. In EY 2017, KYDAML updated or entered 462 problem areas into the e-AMLIS. The proposed budgets for all new projects are entered as “unfunded” until the project is approved via the ATP process. Once approved, the project budget is changed to “funded” status. Lastly, after the construction is completed and final inspections confirm that the project goals have been met, the budget status is changed to reflect a “completed” status. 55 XI. Appendix 1 Summary of Core Data to Characterize the Program 56 Kentucky EY ?3131?. ending June 30. 2017 TABLE 1 PRODUCED FOR SALE TRANSFER, OR SE A. Mllmi Calendar Year Surface Mines Underground Mines Total 2013 35.6 55.6 31.3 mm 24.3 54.4 79.2 2015 43.7 61.5 21116 10.0 34.3 44.3 Coal production is the gross tonnage short tons) and includes coal produced during the calendar year Y) for sale, transfer or use. The con] produced in each CT quarter is reported by each mining company to 05M during the following quarler on line 3(a) of I'm-m ?(Trial Reclamation Fee Report." Groin; tonnage does not provide for a moisture reduction. 05M veri?es tonnage reported through routine auditing of mining corn panics. This production may vary from that reported by other sources due to varying mediode of determining and reporting coal production. 57 100 80? 60 4o- 20? Kentucky EY 2017, ending June 30, 2017 TABLE 1 COAL PRODUCED FOR SALE, TRANSFER, OR USE DURING THE CALENDAR YEAR (Millions of short tons) Calendar Year 2013 2014 2015 2016 2014 2015 2016 201? Surface Mines Underground Mines Total COAL PRODUCED FOR SALE TRANSFER, OR USEA (Millions of Surface Mines Underground Mines Total 25.6 55.6 81.2 24.8 54.4 79.2 17.7 43.7 61.5 TABLE I 10.0 34.8 44.8 A Coal production is the gross tonnage (short tons) and includes coal produced during the calendar year (CY) for sale, transfer or use. The coal produced in each CY quarter is reported by each mining company to OSM during the Following quarter on line 8(a) of Form "Coal Reclmnalion Fee Report," Gross tonnage does not provide for a moisture reduction. OSM veri?es tonnage reported through routine auditing of mining companies This production may vary from that reported by other sources due to varying methods of determining and reporting coal production. 58 Kenlurlo' E?i' Jim: 30? IIJIT TABLE 2 PERMANENT FROG RAM PERMITS, INITIAL PROGRAM SITES, INSPECTA ELF, INITS, AND EXPIDRAT ION .?lumhen' Iil' Permanenl Program Permits and Initial Program Sites Area In Acres' . . . .. Permanent Pmai'am InilialPrograul I?ermunenl I rngrani l?rrniils Program 5mm P?'l'nil? [Permil Arm} Statet Slateif Tribal Tribal and and Mmt's and Aban? Ahan- inap. Federal Private Federal Private Active Inactive doncd 'I?olal Active Inacli'ri: cloned 'I'olul llnitsi1 Laredo Lands Land: launch Total Area Sirl?aee Mines 638 3? 2 61"? 0 0 67? 5,934 458.319 0 0 464,353 Underground Mines 9 1 523 0 2 2 53-1 134.253 1.29 .996 0 l0 H.358 Other Facilities 305 L019 53.429 0 0 51.448 Total 1L205 1-804.244 0 l0 1.93.5.4 59 Permanent Program Permits and Initial Program Total Number: I Average Acres per Site: Sites (Nilnber on Federal Lands: ll} Auntie Nilnber ol'Permaneirl Program Permits and To1al Number: 1.00 Al'erage Acre: per l'lT: Initlnl Program Sites: per [napectohle Unit ngm" ?mm j" Total Number. 134 Number More than .1 Yours: esaalion: EXPIDRATION SITES Total Number ol'Sitoe Sites on Federal Lands? Exploration Impettable Exploration Sites with Permits: 0 ll 11 Exploralion Sllea with [\?olleea: 2-113 (J Ina?pwloblo Unit may include multiple small Lind neighboring Pcnnanunl Pcn?nits or Initial Program Silos thallium: been grouped together uric Inapoctablc Unit. or cum-enact]; an ll'l?il'l?l'l?l'lld Unit may 11:: Inspected-ll: l'nila witi'un a Pcrmanenl Program l?crrnil. I inollitlca l'lx?plnratum Silt-r: Inna .1 Permanent Program Pcnnit or Initial Program Em: contains h-otli Federal and Slate and Pni-?atc lands: the acreage for each type of land In the applicable column *rha number of Exploration Sites on Federal Ianda includes sites with exploration permits or notices an},r part ofwhich regulated by the state under a cooperative agreement or by (EM pursuant to the Federal Lands Program, but excludes exploration sues [hat are: regulated by Ihc Bureau of Land Managua cm 59 Kentu eky LY 2017. ending June 30, 2017 CHART 2A HISTORICAL TRENDS NUMBER OF INITIAL PROGRAM SITES AND PERMANENT PROGRAM PERMITS 2000 1500 1000? 500? 0 . 2014 2015 2016 2017 Initial Program Sites Surface Mines Underground Mines Other Facilities Total TABLEZA NUNIBER OF INITIAL PROGRAM SITES AND PERMANENT PROGRAM PERMITS Permanent Program Permits Year Surface Mines Und?qrignrgund Other Facilities Total 2014 2 832 590 324 1748 2015 2 755 554 316 1627 2016 6 712 532 315 1565 2017 2 6?77 522 310 1511 60 Kentu cky LY 2017. ending June 30, 2017 CHART 2B HISTORICAL TRENDS AREA OF INITIAL PROGRAM SITES AND PERMANENT PROGRAM PERMITS 2500000 2000000 1500000 1000000 500000 2014 2015 2016 2017 Inital Program Sites Permitted Underground Mines Permitted Other Sites Total Permitted Surface Mines TABLE 2B AREA OF INITIAL PROGRAM SITES AND PERMANENT PROGRAM PERMITS Permanent Program Permits Year Surface Mines ma?a-3nd Other Facilities Total 2014 90 5079670 14922030 554130 20555920 2015 90 4829890 14548150 540920 19919050 2016 90 4717980 14478390 545800 19742260 2017 100 4647530 14162480 544480 19354590 61 TABLE 3 Keillu city EY 201?. ending, June 3D, 20] 7? PERMITS ALLOWING CATEGORIES OF MINING Special Calegury of Mining Experimental Practice Mnumeinmp Rem 0le Mining Steep Slope Mining ADC for Steep Slope Mining Prime Farmland}; Hislnrieelly Used for (Irnpland (Tnntempnraneom Reclamation Variant: es Mining on or Adjacent to Alluvial Valley Flume Auger Mining Coal Prepamti L1H Plants Neil. Located at 3 Mine Site ln-Snu Processing Ren'iining Activities in or Within 100 Feet of Perennial Ull' Intermittent SLream 30 CFR Citation De?ning Permits Allowing Special Mining Pra etic es 735. 1331) 73:3. l4(e)(5) 785.1513?) iss. 16mm} 735. 1 in) 735. 19mg) 7352(ch manic) 333522133 and T8525 T80.28(d) andfor 784.28(d) 62 Numbers 0f Permits Issued During EY [l [i 0 Total Active and Inactive Permit; SW) 143 Kentucky EY 2017, ending June 30, 2017 CHART 3A HISTORICAL TRENDS PERMITS ALLOWING SPECIAL CATEGORIES OF MINING 12014 2015 2016 2017 Experimental Practices Sleep Slope Mining Prime Fermiands Mountaintop Removal Mining Steep Slope Variances TABLE 3A NUMBER OF PERMITS ISSUED AND REVISIONS APPROVED Ye?lr Experimental Mountaintop Steep Slope Steep Slope Prime Practices Removal Mining Mining Variances Farmlands 2014 2016 0 0 0 0 2017 0 1 0 0 0 63 35? 30 25? 20? 15 10? Year 2014 2015 2016 2017 Kentucky EY 2017, ending June 30, 2017 CHART 3B HISTORICAL TRENDS PERMITS ALLOWING SPECIAL CATEGORIES OF MINING 2014 Contemporaneous Reclamation Variances AVF Mining 2015 2016 2017 Auger Mining Remining Preparation Plants Perennial or Intermittent In?Situ Operations Stream TABLE 3B NUMBER OF PERMITS ISSUED AND REVISIONS APPROVED Contcm poranco us Reclamation Variances 6 AVF Mining A er ln-Situ 9g. Operation Rem ining Intermittent Not at Stre?lm? Mine Site Kentucky 135' ion, caning JuntJ?. 10H TABLE 4 NG ALTIVITY Surface Mlnus Underground Mines ?0er Facllilics Totals App. Issuedl' App. Issued! App. IssuI-di' App. Issued! Type Rec. App'vd Mm Rec. Appvd ?ml Rec. Appvd Rec. Appvd Acres New Permim 13 5 933-5 .5 5 549 20 1? H.084 Renewals 'n 55 as - 54 47 219 Truml?cm sula. and of permit risks 24 54 3'4 - 20 LEGO Sma]l operalul a?islancc -- ExPluralion ?dices: Rcvisims that do not add 23 31 mrcugc lo ihc arcs Revisions Ihal add stowage lo?lcpen'nltarca bularc not .. ., .. incidental 130??er 41. 3? 3.336 .I 3.906 5 11 I58 revisions lncidcnlal bounds? .. .. revisions I3I 223 196 199 TDt?l'l 309 303 5,353 23'? 24] 13.666 113 I 1 1? 363 664 7?22 terminated linr to Initiate Numb-cr- Acrcc: Acres of Phas: hand rckascs (Auas no to be disturbed): Acres: 8382,!) P?n111ts [mm-y Nuuccs reocwcd- 13] 'l'minahms- reviews Number. 384 ?Include: only The number afacm; ofpruposcd surface disturbance Gm: approval not required. Involves removal of Ices than 250 tons ofcoal and does not affect lands claimed unsuitable to: running. 65 507 40? 30? 20 10? Year 2014 2015 2016 2017 Kentu cky LY 2017, ending June 30, 2017 CHART 4A HISTORICAL TRENDS NEW PERMITS ISSUED 2014 2015 2016 2017 Surface Mines Underground Mines Other Total TABLE 4A NEW PERMITS ISSUED Surface Mines Underground Mines Other Total Kentu cky LY 2017, ending June 30, 2017 CHART 4B HISTORICAL TRENDS 100000 7 80000 60000 40000 20000 0 2014 2015 2016 2017 Surface Mines Underground Mines Other Total TABLE 413 NEW ACREAGE PERRIITTED Year Surface Mines Underground Mines Other Total 2014 15340.0 81634.0 1794.0 98768.0 2015 10422.0 19065.0 3287.0 32774.0 2016 6889.0 35557.0 2770 42723.0 2017 53580 136660 8630 19887.0 67 Katuch? Fr to?, racing IOU TABLE 5 IMPACTS EXCLUDING BOND FORFEITITRE BITESI Land 'tht?' Structures DEGREE OF IMPACT Minor Moderate Major Minor Moder-ate Major Minor Moderate Mlnor Moderate Major mi l-Il-l-ll- EVENT Blasting I it It I Land Stability Hydrology 124 Other Total 256 104 Total Numbct Units': 14% Uruts wtlJ'I on: at morn: ul'l'vsilt: unpuuls. 153 Explotalim't lns?pectabie Units with one at more off-site impacts? Units free ofotff-siltc impacts: l323 of Inmctahlc Units Free of off-sit: impactt?: 90 1TuJutztl number oflna'paclable UniLs is (I) the number of active and imdive immutable unils at the end of Evaluation Year and (2) the number Unils IJ'tal. went final bClI'Id r?l?as?d or rcmm'cd during the Evaluation Year thJlotaliun Inspeclablc Units wilh on: DI more GIT-silt: impacts is a subset uflquctablt Units with one Ul' mot: off-site impacts OFF-SITE IMPACTS AT BOND FORFEITCRE SITES RESOURCES AFFECTED People Land Structures l?l EGR Minnr Minn- Mndt?ra?l! Major Minnr Mmkm'tc Mint-r Mandel-alt: mm mm" EVENT Hams Blasting. 0 Land Stability I13 Hydrology Encroachment Otlm ?l?ntal I13 Tram] Number ofInspecmble Units?: IZS lnspectable Units with one or more off-site impacts: 13 hmpectable Units free aloft-site impacts: 12 of Units free of oflLsile impacts?: 'l?otnl number at [mp-enable Units. :5 the number ot'bmtl t'ort'citurc autos that were reclaimed during the Evaluation ?t'car and the number or bond sites that were at the and oflhc Evaluation Year 68 Katuch' EY till racing JunrJu. mu TABLE 5 (Continued) TOTAL IMPACTS INCLUDING BOND FDRFEITURE SITES RESOURCES AFFECTED Fooplt Land Water Structures DEGREE 0F IWACT Minor Major Mlnor Modem Major Mlnur Moderate Major Minor Moderate Major IMPACT EVENT Blasting Land Stability I35 '3 I04 1'Hydrology I24 'Cit-hat Total 369 Total Number Units?. 1601 Units with one or murt tiff-sit: impacts. 266 Exploration lnq?hodahle ?Milli. with mic or Imm nt'F-sil: ill1j'k?ch' Units free ol?ol?fvaite impacts: 1335 ol? Lnspectablc Units tree of oflis'tle impacls': $3 'ri: ol' Inspoclablc Units I'm: nf off-sit: impacts is on the numl'icr of Inspecta hli: [hits during ?valuation Year. The num of [Suits may vary daring the Evaluation Year. Total number of Unlls is (I) the number of active and Inactive Units al the: and 0f the limitation Year and the number of Inapoctahlc L'nlts that were ?nal band released 0: removed dating the Evaluation Year and the mm her band site: that were reclaimed during Evaluation Year and (4) the munbut ufbund 1?01 fuiturr sites that uncclainwd 31 U1: end oflhc Evaluiltiun Ycar. 69 Kentu eky LY 2017. ending June 30, 2017 CHART 5A HISTORICAL TRENDS PERCENT OF INSPECTABLE UNITS FREE OF OFF-SITE IMPACTS 100 2014 2015 2015 2017 Initial Program and Permitted Bond Forfeiture Sites Sites TABLE 5A PERCENT OF WSPECTABLE UNITS FREE OF OFF-SITE IMPACTS Initial Program and Year Permanent Program Bond Forfeiture Sites Permits 2014 869 31 2015 87.1 32 2016 86.5 181 2017 89.6 9.6 70 TABL E6 himtacla' EDIT. emf-13 June 30? Jul? COAL Ml NI NC ANT) REFLAM ATION VITV Areas ofPhase 1. IL and Bond Releases During the Evaluation Year (BY) Phase] Releases: Phase II Releases Phase Releases: Tolal Acres Tolal Acres Acres no! 'l'olal Acres Acres not Released i1 Released in previously in previously Approved Appmved released Approved released I?hase' I Phase II Phase Releases Releases Phase I Releases Phase [1473 ofPeanancnt Program Permits widi Jurisdiction Terminated Under Phase Bond Release During Hoe Evaluation Year Initial Program Sites with Jurisdicljon Terminated During die livalualiem Year 1":er of Impeetablc Units Remus ed Acres not Fmi?l?l" released Total Acres Released During the EY Phase I or Phase I 31,635 Hm JELSIUE 3,282 Uther Releases - Nerves Adm Adjustment 1'5 Bun-:1 Forfciuo'c (1 Areas of Perm its Bond ed for Disturbance by Surface Cua] Mining and Herlamalilm (I peraliuns New Area Bonded for Disturbance Tulal Alta Bonded lb] Dislullmnu: Area Bonded l'ur Disturbance without PhaseI Bond Release Area Bonded for Disturbance for which Phase I Bond Release llas Been Approved Area Bonded l'nr for which Phase ll Bond Release Hos Fiecn Amovcd Area Bonded l'ur Disturbance with Bonds Forfeited Durirg Evaluation Year Area Bonded for Rem ining 11mm 33698 Total Acre-s at Total Acres al Change in Acre-3 Start of ET End of EY 223.199 2381530 219,474 207,525 31.933 33,3?l 5,535 3,302 0 Areas ofPermils Disturbed by Surface Coal Mining and Reelarnaliun Operations Disturbed Area 71 2241 221.06] During EY 26,399 5.33] I: I LESS lti'l' 936 Kentucky 2017. ending J1me 30, 2017 CHART 6A HISTORICAL TRENDS ACRES OF PHASE I, II, AND 111 BOND RELEASES 350007 30000? 25000 200007 15000 10000? 5000 2017 Phase I Phase II Phase TABLE 6A ACRES OF PHASE I, 11., AND BOND RELEASES Year Phascll Phase] 2017 8282 10502 31685 72 Kentu cky LY 2017. ending June 30, 2017 CHART 6B HISTORICAL TRENDS 250000 200000 150000 100000 50000 0 2017 Unreleased Phase 1 Released Phase II Released Total Bonded Acres Disturbed Acres TABLE GB AREAS BONDED FOR DISTURBANCE AND DISTURBED AREA ACRES BONDED FOR DISTURBANCE . Phase 1 Phase II Total Bonded . . Year Unreleased Released Released Area DIStUl?th Area 2017 1529750 33271.0 8802 2285800 73 Kentucky BY 2017, ending. June 30, 201? TABLE 7 li?Nll FORFEITII th ACTIVITY (Permanent Program Permits) Bond Forfeiture and Reclamation Activity Sites with bonds forfeited and collected that were Lei-reclaimed at the start of the current Evaluatim Year (Le, end of previous Evaluation Year) Sites with bonds I'ort'eiled and collected during the current Evaluation Year Sites with bonds forfeited and collected that were repermitted during the current Evaluation Year Sites with bonds lorlieited and collected that were reclaimed during the current Evaluation Year Sites with bonds forfeited and collected that were tin-reclaimed at the end ol' the current Evaluation Tear Sites with bonds l'orl'eiled but urn-collected at the end of the current Evaluation ?r?ear Forfeiture Sites with Long-Term Water Pollution Bowls forfeited? lands reclaimed1 but water pollution is still occuring Bonds forfeited, lands reclaimed, and water treatment is ongomg Suretyt?ther Reclamation Activity In Lieu ot' Forfeiture Sites being reclaimed by suretyfother party at the start of the current Iivaluation ?r?ear (Le, the end of previous Evaluation Year] 1 Sites where suretyfother part3.r agreed during the current Evaluation Year to do reclamation Sites be ing reclaimed by suretyfother party that were re-perm itted during the current Evaluation Year Sites with reclamation completed by suretytother party during the current Evaluation Year 3? Sites being reclaimed by suretyfother part)r at the end of the ctu'rcnt Evaluation Year 2 includes data only for nurse forfeiture sites not fully reclaimed. Num her of Sites 118 12 Dollars Acres 3376 3,000,?1 0 936 33,693 (38,936) 3 Includes all sites where surety or other party has agreed to complete reclamation and the site is not lull},r reclaimed. 3 These sites are also reported in Table 6, Surface Coal Mining and Reclamation Activity, because Phase bond release would be granted on these sites. 74 Ke ntu cky EY 2017, ending June 30, 2017 CHART 7A HISTORICAL TRENDS NUMBER BOND FORFEITURE SITES 35? 30? 257 20? 15? 10 2014 2015 2016 2017 Forfeiture Sites TABLE 7A NUMBER OF BOND FORFEITURE SITES Year Bond Forfeiture Sites 2014 8 2015 31 2016 15 2017 7 75 Ke ntu cky EY 2017, ending June 30, 2017 ACREAGE OF BOND FORFEITURE SITES 1400 1200 1000 800 600 400 200 2014 2015 2016 2017 Bond Forfeiture Acres TABLE 73 ACREAGE OF BOND FORFEITURE SITES Year Acres 2014 273 2015 1331 2016 382 201'? 36 76 Kentucky EY 2017, ending June 30, 2017 CHART 7C HISTORICAL TRENDS NUMBER OF SITES WITH WATER POLLUTION STILL OCCURRING 2014 2015 2016 2017 Bond Forfeiture Sites TABLE 7C NUMBER OF SITES WITH WATER POLLUTION STILL OCCURRING Year Sites 2014 0 2015 0 2016 4 2017 77 0.8 0.6? 0.4? 0.2? Kentucky EY 2017, ending June 30, 2017 CHART 7D HISTORICAL TRENDS NUMBER OF SITES WITH WATER TREATMENT ONGOING 2014 2015 2016 2017 Bond Forfeiture Sites TABLE 7D NUMBER OF SITES WITH WATER TREATMENT ONGOING Year Sites 2014 0 2015 0 2016 0 2017 0 78 Kentucky EY 201 ending June 30, 201? TABLE 8 AND PROGRAMS Function Number of FTEs Permit Review and Maintenance 30.00 Inspection 03.00 Other (supervisem, elcrieaL awninistmtive, ?scal, personnel, ete.) 4200 Regulatory Program Total 180.00 Program Total 31.00 TOTAL 261.00 79 Ke ntu cky EY 2017, ending June 30, 2017 CHART 8A HISTORICAL TRENDS REGULATORY AND AML PROGRAMS STAFFING 300 250 200 2014 2015 2016 2017 Permitting Staff Inspection Staff Admin Staff Regulatory Total AML Total TABLE 8A REG LATORY AN AML PROGRAMS STAFFING Regulatory Program Year Permitting Inspection Admin Total AML Program 2014 63 157 26 246 88 2015 63 154 36 252 9 3 2016 61 134 38 233 84 2017 30 108 42 180 81 80 Kentucky EY 101?. ending June 30. 1013' TABLE 9 FUNDS GRANTED TO STATE OF. TRIBE BY OSM (Actual Dollars Rounded to the Nearest Dollar) Federal Funds Awarded Type of Funding Federal Funds Awarded 'I'otal Program Cost as a Percentage of Total Frngam Costa Regulatory Funding Administration and Enforcement Grant I LEAGUE) Other Regulamry 0 Funding, if applicable Subtotal {Regulatory Funding) Small Operator Assistance Program 0 0 ra nt Funding 11,632,000 21,832,199 53 Abandoned Mine Land Reclamation Funding I 10331577 10:] Watershed Cooperative 0 0 Agre emenl Program 81 Kentu ck)- EY 2017, ending June 30, 2017 CHART 9A HISTORICAL TRENDS FUNDS GRANTED TO STATE OR TRIBE BY OSM 50000000 40000000 30000000 20000000 10000000 0 2014 2015 2016 2017 Regulatory Program SOAP AML Program Watershed Agreement Tota? TABLE 9A FUNDS GRANTED TO STATE OR TRIBE BY OSM Year Regulatory SOAP AML Program Total Program 2014 11.798,237 0 36,613,301 48,411,538 2015 12,000,854 0 36,613,301 48,614,155 2016 11,631,247 0 18,201,399 29,832,646 2017 11,632,000 0 17,088,577 28,720,577 82 Kentucky ET Hiding Lrne WI 1i] el'l FOR WI Ii FREQUENCY ON AN INSPECTABLE UNIT hail-rt um.- 'T'nlal numbn- at Nun-Ir. .nuqu-rlhu I: m1]: 111w! . In. Mr! Pull-I Inga-run. I: \h-I run-pm.- uni Putin] mail-run. [lnlh In :1le mil: can I I 3 Nln'bcr Partill Comp-Ick- t-?arijal . 'l'olal Ind ?nal-actions Inapetlluns ?mm? II ?nub" DI [L's lnapr?lnn Int-Irwin}: COAL MINES HAD Active 1455 5221] [640 521% lul?3 [454 100 [15.5 93 [155 1354 93 Itladiuc IDU TDTALS 3 15? 603-6 11640 [510 100 93 [Ell ]-ll0 93 that Activities Complete Inspections Partial lmpectiarn Explmation site-i with pennila 531! 1-14 lixplmatlnn sites with notices Cawleted on a site-speci?c basis. 1 Total number includes both permanent pregnam permits and initial pmgn'u'n sites. 1 05M i3 summing that all mates have gone throtgl'l the process dwribed in 30 CFR 340. I01) and. 84M to reduce inspection ?'equtmcy cm abandoned'l'urfc its-:1 silcs Includes all valid ntitioes and pen-n its No inepeelion frequency clam are provided smee does not L'Slahll?l'l a minimum numerical inspoelimi frequent?:3r coal exploretim activities. 5 NA - Not Available 83 Kentu cky LY 2017. ending June 30, 2017 CHART 10A HISTORICAL TRENDS STATE OR TRIBAL INSPECTION ACTIVITY 25000 20000 7 15000 10000 5000 0 . . . 2014 2015 2016 2017 Inspections Conducted Exploration Inspections TABLE 10A STATE OR TRJBAL INSPECTION ACTIVITY Year Inspections Conducted Exploration Inspections 2014 20722 1097 2015 19013 998 2016 18253 802 2017 16682 724 84 Kentucky 2017?, ending June 30. TABLE 11 STATE OR TRIBAL ENFORCEMENT ACTIVITY 'I'ype of Enforcement Adieu Num her of Actions Number 01' Violations Notice of Violation 796 1,335 Failure?to-Abate Cessation Order 16? 275 1mm inent Harm Cessation Order 7" 9 Dues not include actions and violation?. that were vaeHLeLL 85 Kentucky EY 2017, ending June 30, 2017 CHART l'lA HISTORICAL TRENDS STATE OR TRIBAL ENFORCEMENT ACTIVITY 2000 1500 1000 500 0 2014 2015 2010 2017 Notices of Violation Year 2014 2015 2016 2017 PTA Cessation Orders Imminent Harm Cessation Orders Violations TABLE 11A STATE OR TRIBAL ENFORCEMENT ACTIVITY Notices of Violation 962 903 960 796 Imminent Harm Violations FTA Cessation Orders Cessation Orders 1619 281 3 1509 203 9 1634 260 22 1335 167 7 86 TABLE 11 Kcnlucky EY 2017, cnding Jun: 30, 2017? LANDS UNSUITABLE ACTIVITY Activity Pctitions Petitions Rejected Petitions Accepted Decisims Danying Petititm Dccisims Declaring Lands Unsuitable Decisions Terminating Unsuitable Designations Number Acres 87 (360000 1.2 0.8 0.6 0.4 0.2 Kentucky EY 2017, ending June 30, 2017 CHART 12A HISTORICAL TRENDS LANDS UNSUITABLE ACTIVITY 2014 2015 2016 2017 Petitions Received Petitions Rejected Unsuitability Declarations TABLE 12A LANDS UNSUITABLE ACTIVITY Year Petitions Received Petitions Rejected 1131;211:2323 1.2? 0.8? 0.6 0.4? 0.2 Kentucky EY 2017, ending June 30, 2017 CHART 12B HISTORICAL TRENDS ACRES DECLARED UNSUITABLE 2014 2015 2016 2017 - LU Decisions Declaring Acres TABLE 12B ACRES DECLARED UNSUITABLE Acres Declared nsu itahle Year 20 4 0.0 2015 0Kentucky EY 201?, ending June 30, 2017? TABLE 13 05M OVERSIGHT ACTIVITY Oversight Inspections and Site TVisits. Complete Partial .Toint Non-Joint Joint Non-Joint Total Oversight inspections ?34 0 IZO 7 361 Technical Assistance Other Total Site Visits ID 5 5 Violations Observed by and Citizen Req nests for Inspection1 Type of Action How many violations were observed by USM on oversight inspections? 299 Of the violations observed: howr many did defer to State action during inspections? 134 Of the violations observed, how manyr did OSM refer tothe State through Ten?Day 16 Notices? 1 How many Ten?Day Notices did 03M Issue for observed violations? 9 llow many ten?Day Notices did USM issue to refer citizen requests for inspection?r 3 How many Notices of Violation did 03M issue? 0 llow many Ii'ailure-to-Ahate Cessation Orders did issue? llow many Imminent llarm Cessation Orders did 03M issue? 0 DSM Action for Delinquent Reporting or Non?Payment of Federal AML Roclam ation Fora; How many Ten?Day Notices for delinquent reporting or non?paym ent of Federal AIME (J reclamation fees did 03M issue? How many Notices of Violation for delinquent reporting or non?payment of Federal AIVIL 4 reclamation fees did 05M issue? How many Federal Failure-to?Abate Cessation Orders for delinquent reporting or non? 2 payment of Federal AMI, reclamation fees did DSM issue? This section does not include actions for delinquent reporting or non-payment of Federal fees that are reported in the last section ol'lhe table. 3 Number of violations contained in Ten?Day Notices not including those issued to re for citizen requests for inspection. 3 Number of Ten?Day Notices issued not including those to refer citizen requests [or inspectitm. 90 Kentucky EY 2017, ending June 30, 2017 CHART 13A HISTORICAL TRENDS OSM OVERSIGHT ACTIVITY 500 400 300 - 200 100 0 I I 2014 2015 2016 2017 Observed Violations Violations deferred to state Violations referred to state by TDN Number issued Number of TDNs referring requests for inspection Number of Federal NOVs, IHCOs. FTACOS Number of oversight inspections TABLE 13A OS OVERSIGHT ACTIVITY Number 01 Number Number 01 Nu mher (If Number of TDN 5 Fe deml observed on Vitli?lti0n?i violations Number of issued to Number of Year OSM referred to TDN's refer oversight . deferred . FTACOs, . . state by 19.3qu rcqcuests inspections . . to state IHCOs inspecction . TDN for . action . . ed 1118110613011 2014 298 111 0 0 11 0 4-51 2015 2016 268 168 6 2 5 0 327 2017 299 13-TABLE 14 STATUS OF PLANS Acliun Plan Problelm Problem Title Problem Description Type None Problem 'l'ype: indicates a required Program change under subchapter 1' or 3?33 indicates a Regulatory Program implementation or administrative problem 92 Kentucky 2017. ending 2017 Dal Scheduled Actual Action . . . .om pletlon Completion a a TABLE 15 (Opiiu nul) Kentucky FY 2017, ending June 30. 20W LAND USE ACREAGE 0F SITES FULLY RECLAIMED (Phase bend release or termination of jurisdiction under the Initial Program} Land Use-1 Cmpland PasturefI-Iayland Urazingland Residential Reerealion Fish 3: ?Wildlil?e Habitat Developed Water Undeveloped lam] or no current use or land management OLher - Public UIilities Other - Unidenti?ed other - OLher - Other - Other - ULher - Other Sub-'l'oh'll Other Tutu] Acres Released 0.00 2.01254 0.00 542.00 5.1 1 130.38 0.00 5,539. 80 0.00 0.00 0.00 40.04 0.00 0.00 0.00 0.00 0.00 41.3.04 8,232.3? Land uses as defined in 30 CPR ??015 or "Other" as defined under the state or tribal megram 93 Kentucky EY 2017, ending June 30, 2017 CHART 15A HISTORICAL TRENDS POST MINING LAND USE ACREAGES 10000 8000 6000 4000 2000 5?7?1? 0 I 2014 2015 2016 2017 Cropland Forestry Recreation Water Resources Other Pasture Hayland Residential Habitat Undeveloped Grazingland industrial Commercial TABLE 15A POST MINING LAND USE ACREAGES Water sources 2014 53 3413 4 1003 57 435 510 7386 0 0 0 2015 14-4 5579 0 1091 22 157 4 9071 0 0 0 2016 0 2659 0 346 54 219 59 4671 0 0 34 2017 0 2013 0 542 5 137 0 554-0 0 0 46 94 XII. Appendix 2 State Comments on the Report 95 Mn?l?l?l-EEW G. Bavm CHARLES G. Swav ELY 5er Law II SECRETARY ENERGY AND ENVIRONMENT CABINET DEPARTIHENT FOR NATURAL RESOURCES ALLEN WWISSIDNEH 300 Some Boulevann FRANKFURT. KENTUCKY 40% September l8, 20! 7 Mr. Robert Evans, Director Lexington Field Of?ce Of?ce of Surface Mining Reclamation and Enforcement 2675 Regency Road Lexington, Kentucky 40503-2922 Dear Mr. Evans: The Department for Natural Resources o?'crs the following comments regarding the draft Evaluation Year 2017 Annual Report: Page 9, Bond Forfeiture Report: Please refer to this report as ?draft,? as DNR is still compiling comments on this report before ?nalization. Also it should be noted that the cost estimates are preliminary cost estimates. Pages 15, paragraph: Please change ?through decreasing time" to ?since l985.? Pages 19, paragraph: Please insert an additional bullet after the ?rst bullet to state-"As a result of a more robust review of contemporaneous reclamation variance requests, 157,000 feet of potential highwall was found not to be justi?ed.? Page 25, paragraph: In the :1 third paragraph, 297 CRl?s is correctly.r stated. With the 55 complaints unresolved as stated in the second paragraph, the total number of complaints investigated should read 352, rather than 355. Pages 38, 3. Bond Forfeiture Report: same comments as given above for Page 9. Page 45, 3rd paragraph- Please add to the end of the second sentence ?..unless the permittee opts for full cost bonding.? Page 56, 4. AML Grant Fiscal and Administrative Reviews, paragraph: The ?rst sentence should be revised to single audit conducted by the Kentucky Auditor of Public Accounts in 2012 identi?ed an issue. . Wdf?h?n An Equal 0mm?? Employer r-o - 96 I appreciate the opportunity to comment on the EY 2017 draft Annual Report. If you have any questions, please do not hesitate to contact my of?ce or contact Richard J. Wahrer at {502) 732-6799 Sincerely, 51M inll'L? Allen Luttrell Commissioner c: John Small Jeff Baird Courtney Skaggs Bob Scott Richard Wahrer 97 Appendix 3 State Non-Compliance Data (Listed by Descending Number of Non-Compliances) 98 Commonwealth of Kentucky EPPC DNH REVELATION ENERGY LLC IKERD MINING. ILC PREMER EIKIIORN COAL IIBERTY MANACELIENTIIC APEX ENERGY INC MINING. LLC ALDEN RESOURCE LLC COALIIC VIKING ACQUISITION GROUP LLC 13 S: RESOURCESINC PATRIOT COAL COMPANY. LP STRAIGHT CREEK COAL MINING INC ENERGY LI KENTUCKY FUEL CORPORATION NAT .1 NAME IT ON ENTERPRISES INC ACPKYI LLC INC I MINING INC ICC KENTUCKY EMPIRE COAL PROCESSING ILC NI 1' TNCORMRATFIJ IEERD TERMINAL COMPANY. ILC ENERGY LLC COAT. OPERATORS I FORTRESS RESOURCES DEA MCCOY ELKIIORN COAL OD ENERGY LLC PINE 13 RANCIIMINING. LLC HUI-VIE REEINED COAL. L15: DDB ENERGY RESOURCES LLJLI MINING INC KENTUCKY DIVISION COAL COMPANY INC COOK AND SONS MINING INC MINE LLC I-EENAMIERICAN RESOURCES ENERGY, LLC INFINITY ENERGY. INC MEADOW MINING CO LLC ADAMS BURKE CONTRACTORS DEVELOPERS LLC POUR STAR REMIEJRCES . COMPANY. INC ICG HAZARD LLC MINING OXFORD MINING .1. Surface Mining Information System 05M - Violations between 0T10112016 and 0613012017 lea?ms Permit: in WandaLII) b-J Li Total Permiln 2.I?m-Initial Aura? 341.303.30 [2155.86 52.641111 26.48354 18545.18 29111.12 12249.14 6.4T7.93- 903.56 945.32 51343.95 415315.119 176.42 16536.90 120.23 5.332.551 356.15 3115.91 10.70 I 22964.14 411.36 35933.40 636.95 8.5962? 4-10.33 41% 4,4 37.15 $3.51 $1,599.33 2.0??659 93.33 25.3593 352.26 1.099.111 427.93 112.91 3413.15 115.90 33,933.66 32511.1 5 5,193.60 Page 1 of 4 OTIITIZDIT DiilurherI Ann-s 41914.34 531.97 9.53-0.34 13.??639 4.00.130 1.05.40 1.551.891I 3.5?950 225.86 {(100.01 3310.00 5,513.39 5.938.151 14.1 I732. 35.00 430.03 51.00 mama 159.00 134.50 3.00 50.00 953.33 9.59m 2.50.113 6.02.434 1110.33 5.00 1:14.55 1.5.0.00 494.33 $0.00 394.30 505.00 450.25 300.00 159.00 1299.2}! 11.41-33.92 H1111 2,595.13 Commonwealth of Kentucky EPPC DNH Famine;- BIG PROCESSES. INC CLAY LAUREL MINING INC ET FUEL COAL COMPANY LLC APPMCIHAN WC IILND GULF STREAM ENERGY LLC 1.4; JUST IIROVF. INIE IIARLAN SERVICES LLC . ETD [Nil SIDNEY COAL COMPANY INC IAIJRH. MOUNTAIN LIL: RAVEN ENERGY INC APPALACHIAN MINING WOOD EJJUIDRN LLC EVANS CURL CORP 0: MINES LLC MIDDLESBORO MINING OPERATIONS R10 MINING STURGECIN WING CDMPAIW INC 'l'Rl'lUN ENERGY COAL. INC PHOENIX REEOURCES. LLC LIAM LLC Adi COAL CORPORATION CAMBRLAN DUAL DAWS ENERG Y. DIME. LLC hl?NE RITE COAL CO INC 02.5.11 COAL GENESIS GROUP LLC MIDDLE FORK SERVICES I .1 RFITEJIM AND CONSTRUCTION LLC ROAD FORK DEVELEIPMIENT COMPANY INC REJUKHAMEVIIJN HERE-EFF. MINING Ll'l'l'LE ELK FORK CARBUNADU MINE 3- JNIE It EH MUN COAL INC RIVER SAND AND GRAVE. ROUGH CREEK MINING LLC ft NCR wan-+1420 LA IA .J, [11 Surface Mining Information Systom 05M - Violations between 0T10112016 and 0613012017 leatinnt waamumrm=hhaa 51035 bi Permit: in ?011110015 100 t3 t3 Lg L..: [4 Total Permiln t-J l-J 14 31 ~10 12 2'1 Familial. harm 3.62. T5113 4,100.31. 1,050.50 3,019.50. 3 [395.61 43,145.01 2,004.00 32.30 14,209.00 15,420.53 01.51 2,201.26 10.4 3 [54 .03 30,140.41 590.55 301.00 1 113.04 05,110.20 633.26 00,011.01 45.50 400.21 20.44059 3,011.50 101,010.15 3100.19 11511.00 203350 444.13 10.55 5,015.11 5,405.30 10.00 41009.9? Page 2 of =1 011?171'2017 Diilurher] Arrest 3.62 29.00 $2.15 1,113.21: 1,150.12 1,055.10 1,051.42 105.00 1,021.13 030.10 20.00 1,031.24 0,901.33 11.50 910.04 0.00 130.00 1,914.49 130.00 012.00 250.00 1,013.65 435.00 3,000.51 3.00 345.00 110.00 338.23 44.40 510.10 0.00 00.00 100.00 4.14.1.3 3.00 7115.00 11.03 0.10 606.30 Commonwealth of Kentucky EPPC DNH T6: COAL INC COUNTY COAL LLC KENTUCKY MINERALS. INC EASTERN KENTUCKY MINING INC IAND. 114C IIARLAN mm COAL COMPANY 11!: MCMINING RIVER VIEW COAL, LLC .I . ENERGY . COMPANY, BEECH CREEK COMPANY, 111". FORK COVOT. NO 3111'! (KY1 DOUBLE ENERGY DIAMOND F. 11?. CORPORATION INC COAI . 1 .I KAMCO TLC HAKKFN VIRGINIA FUEL CORPORATION MORE Ml. I DBA THE. BLACK CHI ENERGY AND COAL LLC ELEOSOE COAL CORPORATION BLUE DIAMOND MINING, LLC BLUEERIDGE MINING GROUP LLC OF CHEYENNE MINING. INC COVENANT COAL CORPORATION INC CUE COALCOMPANY LLC 5: .T COAL COMPANY LLC DEAN COAL STONE. LEWIS PROCESSING INC ERP FUND INC FM ENE ROY LLC HENDRICKS CORDIN RIDGE MWG 1C1 MINING LLC KY2. ENERGY, LANDMARK COMPANY INC MARTIN COUNTY COAL CORPORATION NOBLE CONSTRUCTION LLC PRAIRIE DOCK RED ROCK ENTERPRISES INC SMITH COAL fr NCR Surface Mining Information Systom 05M - Violations between 0T1'01r?2016 and 0613012017 "Inlminnt Permit: in Till-Indian 101 {4 Total Permiln boom 41 Inch? Familial Aura? [81.31 65.05039. [530170 329.93- 9252.3 11985.78 30346.11 Ll 33.25 1 1,544.23 43132.35 film.? 111111131 5.50 713,531.51 551.00 3,055.51: 17.15.33.131 15924.15 91.3?9 152,046.05 24.50 4.666.13- 1311.95 13115.19 1,990.92 55.90 5.00 23244.01 2:13.93 410.50 2,123.71 529.32 365.50 95156.14 12,517.13 153.15 10,369.60 6.10 10.90 Page 3 of 4 011?171'2017 Ditturher] Arrest 98.00 ?4.60 1.04100 9074 194.73 550.15 411.00 006.27 19500 25.13.1113 4:55.35 Hi. It 1511.511 1211.111: 5.511 5,555.35 153.00 11551.41 Wl?l 4131.11: [15.00 4,136.24 3.00 135.80 [9.00 ?22.0.00 335.00 [2.00 5.00 1354.40 4.50 4150.50 108.34 9.00 8.25 ?2.30.01 3,141.91 53.00 175.00 6.10 [0.00 Commonwealth of Kentucky EPPC DNH COAL GOAL CO ENERG LL12 SIMTA MINING TORCE EIGHT Y. INC WARRIOR COAL IAND HOLDING INC Sunaee Mining Information System 05M - Violations between 0?10112016 and 0613012017 fl NCR Tmln?nm Permit: in Viehcien 102 Total Permils P??lill?'l Agra? $57.29 3.19131 517.36 3.000.138 122.29 35.53838 203.90 Page 4 of 4 07f17l201?7 Disturbed hen-s 55.00 1150.34 147.00 46:11.08 11.00 698.00 20.00 Appendix 4 State Non-Compliance Data (Listed by Permittee Alphabetically) 103 Commonwealth of Kentucky EPPC DNH IST CAPITAL ENERGY AND COAL LLC 113: COAL CORPORATION LL12 ADAMS ISL BURKE CONTRACTORS DEVELOPERS LLC ALDEN APEX ENERGY INC APPALACHIAN MINING AND MMNG ING (POAI . NY 81' RFSUI HEEIZTH IIRHEEC IICJAI . IJ .EI BEECH FORK TNT.I FORK EETI-TEI. COAT. THE BIG IE IHEI ELFIJSOF. 00111. CURPORATION .IJE DIAMOND MINING, GROUP CRM IIP. (1AM BRIAN (THAI. MINE EI- I1 OF MINING. INII.1 (HAY LAUREL MINING INII HUIHUHN MINING Ill? I II ANIJ SUNS MINING MINING EIIJAI. (IEIVUI. FIIHIS NO '5 II (VAR. . k] IJJII ENERGY. DUI-I ENERGY LUII IJFJIN . MINING IJ-TWIS PROCESSING DU UBLE BRANCH ENERGY DIAMOND I CORPORATION fr NCR Surface Mining Information System 05M - Violations between 0011112015 and "In [31511151 104 Permits Vioh?on 051'301?2?1 Total Permits Pumitlu'l here: I 91.79 I 69(555 2 [76.42 I [12.9-1- PA 105049.14 29 18,345.18 53'. I I- 325 03,509.03. 3 I I ISISEJS I I,l 2515.85 3 5313(1- I3 I 35.90 I 311'}. I I9 30340.47. I I I6 6477.9] I 11.33.30 I 11:11.50 (1 4,000.13 3 71.8? 4U 2 421.3(1- 3 (1.59 I 3:5(3. I I $3.961- 9 :1 1,303.51 I I3 2.04 :1 Lesmm 11 3 4,4 31'. I 5 I 55.90 I 5.00 6 5,193.31 I 31.111131 I 3.30 Page 1 of 4 0711711017 Diimrhed Ann-s 10.00 2:10.00 35.00 00.00 1,551.09 0mm 02.15 0,401.20 umm 195.00 7.043.011 35.00 2506?. 4,000.20 ?140.33 1,914.40 0:12.00 3,510.50 100.00 3.00 155.89 444.213 29.00 1.1011713 1051.101 400.33 00.00 I000 030.05 011.11 0.9.0.111 3,010.5? 1135.111 9.50.111 14.1.55 1:200 0.01105 5.00 1:00.00 9.100.111 5.50 Commonwealth of Kentucky EPPC DNH EASTERN MINING INC ELY FUEL COMPANY EMBER ENERGY LLC EMPIRE COAL PROCESSING LLC ERP FUND INC EVANS COAL CORP FM ENERGY LLC FORTRIESS RESOURCES LLC DEA ELKIIORN COAL C0 I-IUIIR STAR RHMIIJRIIES MINES LLC GENESIS GULF STREAM ENERGY LLC 11 .A ICES COAL COMPANY LLC HHI SERVICES I .I HENDRICKS (FORBIN RIIMIH MINING I HOPKINS C01 COAT. MINING DIVISION HAZA RD IKHRI) INFINITY I MININH IITI MINING JMHG MINE ILIZ KAMCO KENTUCKY FIIH. LIL: KY1 LANDFAU. MINING MINING IAIJRI-TI. RFEUIIRI LIL: LIBERTY I MARTIN . . INC MITMINING MEADOW FORK WING CU LIJLI '43 Lei Ln' Surface Mining Information System 05M - Violations between emvzma and "In latinm 105 Permit): in Wendel-I IIBISOIQUI Total Permits Pumitlu'l Mara? I 339.93- 19 I 3.4 87.71 2 356.15 I4 21244.0? 6 2.00-4.05 I 203.92. I5 35.93340 '1 8153.1 5 I 32.30 I 43.59 1,1125039 5 13335.73 I [155 I 470.50 5 I I5 7.i63?.54 '1 523..? 2-1 7.3x932?fp 11 5,1135. I 5 I 3 IHIIJH I 2 93.513. I1 551.0? .1 95,3439}? 33 5&34335 7.451.390? I M15510 I 43.7.0 3 I I3 II seexsx 33 26,4 88.54 In 3 I4 3 22 1&53e90 3 11141130 I 412193 Page 2 of 4 0711711017 Diimrhed Arrest 90.74 5.5.23.8? 69.00 3.35-4.40 4.50 TWAD 1819.27. 20.00 1,1531}! $59.15 1m: 45n50 ?ease 163535 lemma anaaen 14511 am: 4&125 51m: 91m ?lm! 13311 HQLHU iyeael RIS 5m: Him: 13.39131 mietvz lmvvesy Livaxx 1345a $14191 Il?? JBQUE 300.00 Commonwealth of Kentucky EPPC DNH Permittin- IIETEIECTRIC ENERGY LLC MIDDLE FORK SERVICES NU 3 LLC MI MINI NIH INS MINE RITE COAL CO INC MONTANA. HAKKEN MOUNTAIN AND . NAIJX .T ON ENTERPRISES INC .F. JITII (JN OWENSE 0R0 RIVER SAND AND COMPANY OXFORD MINING COMPANY-KENTUCKY LLC GOAL Y, I .I:l PHOENIX PINE BRANCH MINING. TLC PRAIRIE PREMIER EI KI-IORN COM. RAVEN ENERGY RFD RIJITK KIWI-II ENERGY RIIJ MINING RIVER VIEW (ZIJAL REIAJJ INC RUCICI ENERGY LLC ROUGH CREEK MINING SANDIICK COAL COMPANY LLC SERRFE MINING ENERGY LDC SIDNEY 00111. COMPANY INC COAL PRUCERSDIG COAL. SOUTHEASTERN LLC COM. ('30 MINING. LLC ENERGY CREEK COAL INC INC SIURGECIN MINING COMPANY INC T10. COAL INF. T39. ENERGY. LLC IJTTIF KENTUCKY FIIK ENERGY. INC TRITON ENERGY COAT. INC VIKING ACQUISITION GROUP fr NCR I) Surface Mining Information System 05M - Violations between and "Inlatinn: 106 Permit): in Yiohn'un t3 bl Total Permiln I?m-Initial Mara? I 636.95 2 493.21 13242135? 2 633.26 5 innasx I [27.05 ?54952 H1315 I ?1.40 2 915.31]. I 103159.?! I l54.?li I3 37 I 215-111]. I (1.10 134'). I {0.51 3 Fl 911,440.59 2 3.307.55- 5 41099.9? 15 [2 ?22364.14 3' I 10.90 $57.29 6 9252.24 0 35 29.17112 I Km?? 6 2.204.26- 3 3 852.26 I $00.19 I [22.29 I I043- 3 903.56 Page 3 of 4 07117f201'? Arrest 250.00 3-15.00 435.00 7159.41 20.00 IJESYU lmllinn 531m El. In 2,593.13 IWIHIJ 175m 13421.0(! auzasa asaaAA Jusxx ?jn aLglagu Ila: mmav ssaax 4440 ??ash 5x110 953.33 lgalan [0.00 55.00 194.73 15034 1,015.40 147.00 4601.02 9?9.04 93.00 505.00 (i130 [1.00 6.00 2.25.86 Commonwealth of Kentucky Page 4 of 4 Surface Mining Information System EPPC DNH 05M - Violations between and 05:30:201? 071171?2017 Permi?ee fl NCR Tmln?nm Permit: in Total Permils Familial Agra? Diemrher] Ant-s Via-Indian VIRGINIA Fm CORPORATION 2 I I4 11633.31 WI WARRIOR COAL 1 I I 3 35.58338 698.00 COUNTY COAL LLC 2 2 '2 3 65050.32. 6-14. 50 COAL CORPORATION DDA 2' I [4 15224.75 431.00 THE BLACK DIAMOND OD KHNTI MINHHAI .5. 2 '1 HOLDINGS INC 1 I I ECG-.90 KUFJ.I.HNF.RHY I 3 I 107