OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT Annual Evaluation Summary Report for the Regulatory Program Administered by the State of MISSISSIPPI for Evaluation Year 2006 July 1, 2005 to June 30, 2006 July 2006 EXECUTIVE SUMMARY During the 2006 Evaluation Year (EY), the Office of Surface Mining (OSM), Birmingham Field Office (BFO), conducted oversight evaluations of the Mississippi Department of Environmental Quality (MDEQ), Office of Geology, the State coal mine regulatory authority. The oversight studies focused on the success of Mississippi in meeting the Surface Mining Control and Reclamation Act’s (SMCRA) goals for environmental protection of land mined for coal. An evaluation plan was cooperatively developed by the BFO and the State to tailor the oversight activities to the unique conditions of the state program. Through oversight activities, the need for financial, technical, and other program assistance to the State is identified and provided to strengthen its program. In support of OSM’s national initiatives, the BFO conducted studies in the areas of off-site impacts and customer service. OSM’s national initiative on reclamation success was not reviewed because Mississippi has not processed any bond release actions since its first mining permit was issued on August 25, 1998. • The off-site impacts study demonstrated that no off-site impacts had occurred on the Red Hills Lignite Mine during the review period. No off-site impacts have been identified on the coal mining permit since mining commenced in 1998. To evaluate the effectiveness of Mississippi’s customer service, the BFO evaluated the Office of Geology’s public participation process required as part of the permit modification procedures. The modification involving the beneficial use of coal combustion by-products (CCBs) is the first modification to be processed by the program. Since the public review period did not end during EY 2006, the review will be completed in EY 2007. Several requirements were addressed during the year including notification of landowners, filing the modification at the county chancery court, and publishing notice of the modification in two local newspapers and a regional newspaper. • OSM conducted assistance activities as follows: • The Mid-Continent Regional Office provided technical assistance on hydrology and soil issues relating to the modification to the permit for the beneficial use of CCBs on the mine site and the mid-term permit review. The BFO provided program assistance in the areas of permitting review processes, CCB beneficial use on the mine site, and the inspection and documentation of the mining and reclamation processes. • To assure that all written notifications and consultations for public participation are conducted as required, the Office of Geology produced a guidance document that captures all actions required by their regulations. An appendix to the guide was also developed that identifies all agencies to be contacted including their addresses. i The OSM Mid-Continent Regional Office (MCR) performed a review of the Office of Geology’s drawdown and disbursement of Federal funds for the period September 1, 2004, through April 30, 2006. The objectives of the review were to determine that the cash amount of advances were not excessive and timed to immediate needs. The analysis determined that the cash advances were limited to the amounts needed and were timed to immediate need. TABLE OF CONTENTS ii Executive Summary ....................................................................................................... i Table of Contents......................................................................................................... iii List of Acronyms Used in Report ................................................................................ iv I. II. III. IV. V. Introduction....................................................................................................................1 Overview of Coal Mining Industry................................................................................1 Overview of Public Participation in the Program..........................................................2 Major Accomplishments/Issues/Innovations.................................................................3 Success in Achieving the Purposes of SMCRA ............................................................4 A. Off-site Impacts .................................................................................................4 B. Reclamation Success..........................................................................................4 C. Customer Service ...............................................................................................4 VI. VII. OSM Assistance.............................................................................................................5 General Oversight Topic Reviews .................................................................................8 Appendix A: Tabular Summary of Core Data to Characterize the Program Appendix B: State Comments on the Report and Responses to Comments iii LIST OF ACRONYMS USED IN THE REPORT BFO - Birmingham Field Office CCBs - Coal Combustion By-Products CHIA - Cumulative Hydrologic Impact Assessment EY - Evaluation Year FAM – Federal Assistance Manual MCR – Mid-Continent Regional Office MDEQ - Mississippi Department of Environmental Quality MLMC - Mississippi Lignite Mining Company OLW – Office of Land and Water OPC - Office of Pollution Control OSM - Office of Surface Mining Reclamation and Enforcement PHC - Probable Hydrologic Consequences RHGF - Red Hills Generating Facility RHPP - Red Hills Power Project SMCRA - Surface Mining Control and Reclamation Act USFWS – U. S. Fish and Wildlife Service iv I. INTRODUCTION The Surface Mining Control and Reclamation Act of 1977 (SMCRA) created the Office of Surface Mining Reclamation and Enforcement (OSM) in the Department of the Interior. SMCRA provides authority to OSM to oversee the implementation of and provide Federal funding for State regulatory programs that have been approved by OSM as meeting the minimum standards specified by SMCRA. This report contains summary information regarding the Mississippi Regulatory Program and the effectiveness of the Mississippi Program in meeting the applicable purposes of SMCRA as specified in section 102. The Mississippi Department of Environmental Quality (MDEQ), Office of Geology, administers the program. This report covers the period of July 1, 2005, to June 30, 2006. Detailed background information and comprehensive reports for the program elements evaluated during the period are available for review and copying at OSM’s Birmingham Field Office (BFO), 135 Gemini Circle, Suite 215, Homewood, AL 35209. II. OVERVIEW OF THE MISSISSIPPI COAL MINING INDUSTRY The State of Mississippi was one of the first States to be awarded primacy to regulate coal mining within its borders after passage of SMCRA in August 1977. For a number of years after primacy was awarded, no serious interest surfaced for mining the lignite deposits found in Mississippi. Exploratory drilling throughout the Mississippi lignite fields began in the mid-1970's and culminated in the issuance of a permit to mine lignite in Choctaw County in August 1998. Coal is present in Mississippi in the form of lignite, a brownish black coal that is intermediate between peat and bituminous coal. The lignite found in Mississippi is part of a band of lignite that extends from south Texas through Louisiana, Arkansas, Tennessee, Mississippi, and into central Alabama. Essentially all of the economically significant lignite in Mississippi is found in the Eocene Wilcox and Claiborne groups, which come into the State just east of Memphis, Tennessee, and proceed through the State in a shallow eastern-progressing curve, exiting into Alabama approximately midway down the State. Typically, lignite beds or seams that can be mined for economic purposes range from two to nine feet in thickness. The 1978 estimates of the total lignite resources for the State in lignite beds two feet thick or greater and less than 200 feet in depth were 5 billion tons. Mississippi lignite resources equal about 13 percent of the total U.S. lignite resources of 40 billion tons. For the foreseeable future, lignite will primarily be used for the generation of electricity. The Red Hills Power Project (RHPP) in Choctaw County developed as a result of an initiative by the Tennessee Valley Authority to explore options for additional power generation. The generation facility, with a net output of 440 megawatts of electricity, was estimated to consume about 3 million tons per year of lignite from the Mississippi Lignite Mining Company (MLMC), Red Hills Lignite Mine. The lignite mine is located between the generation facility and the Natchez Trace Parkway near the town of Ackerman, Mississippi. It is projected that over the 30-year life of the 5,809-acre mine, 1 about 4,700 acres will be disturbed; 1,400 acres by mine development activities and 3,300 by lignite removal operations. The remaining 1,109 acres will be used for buffer zones. Mine development began in September 1998 with construction of access roads, mine support facilities, a lignite handling facility, temporary stream diversions, a stormwater runoff control pond, and sedimentation control ponds. Overburden removal began in 1999 with actual lignite mining beginning in 2000. The power plant became fully operational on February 28, 2002. The mine plans to supply the RHPP with approximately 3.3 to 3.6 million tons of lignite per year through 2030. Of the 5,809 acres permitted, 3,625 acres are bonded. As of June 30, 2006, 1,921 acres of the Red Hills Lignite Mine had been disturbed. Lignite is being mined from six seams. Mississippi has a small inventory of abandoned lignite mines. Nine sites have been identified in five counties. All of the sites for which acreage was available were listed as less than one acre in size. Three of the sites involved the underground mining of lignite. The lignite was typically used for blacksmithing and home heating. III. OVERVIEW OF THE PUBLIC PARTICIPATION OPPORTUNITIES IN THE OVERSIGHT PROCESS AND THE STATE PROGRAM Opportunities for public participation occur at various points throughout the Mississippi regulatory program. They include the ability of the public: • • • • • • • • To request that areas be designated as unsuitable for mining; Notification by advertisement of receipt of permit application; To review permit and modification applications; To request a formal hearing concerning actions of the Mississippi Environmental Quality Permit Board; To request an inspection of a mine site; To object to proposed bond releases; To initiate citizen suits; and To petition to initiate rulemaking. By letter dated April 20, 2005, the BFO sought public comment from four organizations/agencies on OSM’s 2006 evaluation year (EY) oversight process and the State regulatory program. These were the Mississippi Wildlife Federation, the Sierra Club, the National Park Service, and the U.S. Fish and Wildlife Service (USFWS). The four entities were requested to contact the BFO if they had any questions, issues or concerns that the BFO’s oversight studies could address. No responses were received. 2 IV. MAJOR ACCOMPLISHMENTS/ISSUES/INNOVATIONS IN THE MISSISSIPPI PROGRAM Accomplishments: The State is implementing the coal mine regulatory program in an effective manner. Inspections were conducted as required, and conditions on the mine site were thoroughly documented. No violations of the Mississippi surface mining law or regulations were noted during the year. On September 2, 2003, the Director of MDEQ approved the limited use of 67,000 cubic yards of coal combustion by-products (CCBs) for stabilizing dragline benches, truck backfill areas, and haulroads at the Red Hills Mine. The current uses of CCBs and the amounts deposited on the permit exceed the scope and intent of the Director of MDEQ’s previously approved coal mine permit revision. The Office of Geology determined an amendment to the mining permit in the form of a modification was necessary to expand the use of CCBs at the mine. The modification necessitated change to the operations plan, submission of data and discussions on new probable hydrologic consequences (PHC), and the preparation of a cumulative hydrologic impact assessment (CHIA) by the State. The public participation process for the modification was begun in EY 2006 and should be completed by September 2006. The Office of Geology reached an agreement with MLMC to file quarterly reports incorporating aerial photography which shows: the limit of complete coal removal and the beginning and end points of rough grading and backfilling. This will allow them to evaluate MLMC’s timeliness of reclamation as related to the mining operation. Contemporaneous reclamation is key in achieving the regulatory goal of on-the-ground success. Issues: Hurricane Katrina was the costliest and one of the deadliest hurricanes in the history of the United States. It ranked as the sixth strongest Atlantic hurricane ever recorded. Katrina made landfall as a Category 3 storm on the morning of August 29, 2006. The storm surge caused major or catastrophic damage along the coastline of Mississippi, including the cities of Biloxi and Gulfport. The hurricane lost strength inland near Jackson. Two-hundred and thirty-eight deaths in Mississippi were attributed to Katrina. Clean-up and reconstruction continues along Mississippi’s coast. Due to the location of the mine in northeast Mississippi, there was limited effect on coal production and related power plant production resulting from Hurricane Katrina. There were no significant impacts to the mining operations. Although the State Office was not operational immediately following the hurricane, there were no significant impacts to program operations. 3 V. SUCCESS IN ACHIEVING THE PURPOSES OF SMCRA AS DETERMINED BY MEASURING AND REPORTING END RESULTS To further the concept of reporting end results, the findings from performance standards and public participation evaluations are collected for a national perspective. For the majority of primacy States, these findings include descriptions of the number and extent of observed off-site impacts; the number of acres that have been mined, reclaimed and meet the bond release requirements for the various phases of reclamation; and the effectiveness of customer service provided by the State. Since there have been no requests for bond release by the MLMC, only the evaluations of off-site impacts and customer service apply. Individual topic reports are available in the BFO that provide additional details on how the following evaluations and measurements were conducted. A. Off-site Impacts: OSM annually evaluates and reports on the effectiveness of State regulatory programs in protecting the environment and the public from off-site impacts resulting from surface coal mining and reclamation operations. Data are gathered nationwide in order to portray the on-the-ground success of State programs in preventing or minimizing off-site impacts. An off-site impact is defined as anything resulting from coal mining that causes a negative effect on resources (people, land, water, structures). The impact must also be regulated or controlled by the State regulatory program. The impact must be mining related and must occur outside the area authorized by the permit for conducting mining and reclamation activities. The BFO conducted two joint inspections of the mine site during EY 2006. No off-site impacts were identified during these inspections. No off-site impacts were noted on any of the 14 inspection reports prepared by the Office of Geology. No enforcement actions were issued by the Office of Geology during the evaluation period. The mine site in Mississippi was free of off-site impacts. B. Reclamation Success: The company has not requested that any bonds be released since the start up of the mine. Therefore, no bond release actions were processed during the review period. C. Customer Service: The Office of Geology is processing its first permit modification. Under Mississippi’s regulations, a permit modification requires public participation. The modification involves the beneficial use of CCBs at the Red Hills Mine to stabilize haul routes, dragline benches, and haul-back areas. Due to the complex issues associated with the use and disposal of CCBs on the mine site, the State determined the permit revision met the modification criteria. 4 Major steps in the public comment process include: • • The company places a copy of the application for the modification at the county chancery court. Public notice of the modification must be published in a local newspaper and a regional newspaper for four consecutive weeks. The modification advertisement is published in two local newspapers and the regional newspaper, The Jackson Clarion Ledger. The State’s notification is a dual notice(s) by Office of Pollution Control (OPC), described as coal ash beneficial use determination, and the Office of Geology (permit MS-002). The Office of Geology provides written notification to all entities specified in their regulations. Written objections from the public and other interested parties must be provided to the Permit Board within 30 days after the last publication of the required newspaper notice. A public hearing must be requested within 45 days after the last publication of the required newspaper notice. A public hearing will be held in Ackerman, Mississippi, if requested. Any comments received as a result of the public newspaper notices, the written notifications, and the public hearing, if held, are addressed by the Office of Geology. • • • • The Mississippi Lignite Mining Company provided written notices to the individual landowners whose land is located within the five year permitted area addressing the use of CCBs on the mine site. These notices were provided to the landowners prior to the public comment process. Any landowner comments will be addressed by the Office of Geology. Since the public review process was not completed during EY 2006, the BFO will complete the review in Evaluation Year 2007. VI. OSM ASSISTANCE The focus of OSM’s oversight role is on-the-ground reclamation success and end results rather than on processes. OSM’s role emphasizes assisting the State in improving its regulatory program by identifying program needs and offering financial, technical, and programmatic assistance as necessary to strengthen the State program. The BFO routinely provided information to Mississippi regarding new policy guidelines and procedures, as well as changes in existing guidelines and procedures. The following assistance activities were conducted during EY 2006: During EY 2005, the Office of Geology requested technical assistance with the review of a revision/modification to the current mining permit and with its upcoming mid-term permit review. Mississippi requested assistance in order to process the hydrology portion of the mid-term review addressing the PHC and preparation of the CHIA. In addition, assistance was requested to address the hydrology and soils issues related to the 5 modification to the permit regarding the beneficial use of CCBs and the topsoil substitution plan portion of the revision. The technical staff of the MCR initiated action to provide the requested assistance and during EY 2006 provided the State with three reports. The following information was provided to the State addressing the revision/modification and the mid-term review: Beneficial Use of Coal Ash The MCR’s review found that the laboratory tests indicated the ash could potentially release certain dissolved materials at concentrations of concern when the ash comes into contact with water while on the surface or when buried. However, it was determined the water will not easily move through the hardened ash deposits and those materials that dissolve out of the ash would tend to be captured by the abundant clay particles in the mine soils. The analysis of the available data suggested the continued use of ash should not adversely affect local water resources. The review identified concerns relating to hydrology and made recommendations for the State to consider. These included: • • • • Requiring adjustments to methodologies used in the analysis of surface and ground water sampling and data reporting, Increase the number of constituents to be tested for water quality analysis, Installation of additional monitoring wells at the mine, and Increase sampling frequency to twice a year, and additional discussions on the locations and burial of the coal ash. The MCR found the post mining land use should not be affected by the coal ash if a minimum of ten feet of suitable cover material is placed over the ash. Planting of pine trees is the major revegetation effort, and the rooting and growth of the trees should not be inhibited with this cover requirement. The Office of Geology adopted the MCR’s recommendations and discussed the deficiencies with the mining company. The company is currently addressing the State’s concerns and requirements. The Office of Geology and the BFO continued to discuss approaches to monitoring CCB use and disposal on the mine site. Currently, the permittee is restricted to the original approvals for the beneficial use of CCBs until the permit modification, Modification 1, is approved. A seven month extension was granted by MDEQ on the original use submittal to allow for the MCR review and the State’s subsequent deficiency letters and replies from MLMC. The time extension was granted to allow for MCR assistance. An additional extension was given to cover the time required by regulations for the request of a public hearing subsequent to public notice procedures. MLMC has disposed of approximately 50 percent of the maximum approved annual CCB tonnage. Topsoil Substitution Plan 6 The mining company had previously submitted a topsoil substitution plan that included overburden materials that were not acceptable as a topsoil substitute. The MCR made the following recommendations from its review: • • • • • • • Substitution of selected oxidized overburden materials were acceptable but no salvage and use of un-oxidized spoil could be used as a substitute, Maximum level of < 0.1 of pyritic sulfur be retained, Adoption of a pH range 4.5 to 7.0 for overburden materials, All topsoil materials that are not on upland sloping soils must be salvaged according to the approved Mississippi regulatory program, Propose a methodology to prevent contamination of topsoil when it is being salvaged by being pushed over the highwall, Submission of a plan that will prove the restoration of productivity for one year of the deepest rooted row crop in accordance with the approved Revegetation Success Standards and consultation with the NRCS, and Correction of five editorial issues in the MCR report. The Office of Geology adopted some but not all of the report’s recommendations. A few of the recommendations adopted include the use of specific substitution materials and the salvaging of certain materials. Mid-Term Permit Review The MCR was requested to review the current PHC as contained in the approved mining permit. The review recommendations included the following: • • • • • Revisions should be made to the PHC, Revisions should be made to the surface and ground water monitoring plans, Address concerns/questions of the data relating to the quality and quantity of surface and ground water under seasonal flow conditions for the permit and adjacent areas, Address questions/concerns of data relating to the presence of acid or toxic materials that may contaminate surface or ground water supplies, and Address presentations in the PHC related baseline hydrologic, geologic, and other information collected for the permit, including data statistically representative of the site. The State is studying the report and will require those changes they determine to be appropriate. The Office of Geology and the Office of Land and Water will develop the CHIA with assistance from the MCR. Permitting Reviews 7 The BFO provided assistance to the State regarding permitting reviews. The Office of Geology, OPC, and Office of Land and Water (OLW) are effectively working together on permit revisions and a permit modification. During the year, the State began the midterm review. Also, deficiency letters were sent to MLMC requiring additional explanations and data submittals in order to approve, modify, or deny the revisions on soils and the modification on CCBs. With assistance from the MCR, OLW will assume the responsibility for writing the State’s CHIA for the modification and future permitting actions. With encouragement from OSM, the Office of Geology is working to improve the coordination between other offices or branches within MDEQ in relation to the coal mining review and decision-making processes. A coordinated effort will assure that all permit findings are made and all environmental safeguards are identified. In addition, the Office of Geology and the BFO met to discuss a revision submitted by MLMC concerning a request for a time variance for backfilling and rough grading. The variance would result in a considerable delay in completing all phases of reclamation. The State determined the company failed to demonstrate a need for the variance. Due to lack of supporting data, a portion of the revision request was withdrawn. Inspection and Reclamation Documentation Process The BFO provided assistance to the State regarding the inspection and reclamation documentation process. The process of identifying and documenting the milestones during the mining and reclamation process is to determine if the mining operation and reclamation activities are in accordance with the approved plans. This is critical in identifying and resolving issues as they occur, not after actions are completed and bond releases are requested. The BFO assisted the State through reviews of the permit modification and revisions as well as through joint mine inspections. As a result, the Office of Geology agreed to continue to study the time required for backfilling and rough grading to assure contemporaneous reclamation. MLMC will file quarterly reports with the State incorporating quarterly aerial photography showing: the complete removal of the lowest seam of lignite mined and the beginning and end of rough grading and backfilling. These reports from the MLMC will allow the State to more accurately assess mining and reclamation as it occurs. VII. GENERAL OVERSIGHT TOPIC REVIEWS Grant Review The MCR performed a review of the Office of Geology’s drawdown and disbursement of Federal funds for the period September 1, 2004 through April 30, 2006. The focus of the review was to determine if drawdowns of Federal funds were in accordance with the actual, immediate requirements and to determine if funds were immediately disbursed as 8 required by the Federal Assistance Manual (FAM). The State Treasurer disburses State funds to pay the Office of Geology’s Title V Administrative and Enforcement expenses. The Office of Geology’s Federal grant fund drawdowns are reimbursements to the State Treasury. Their drawdowns are one to two months after the State Treasurer has disbursed State funds for expenses. The study compared monthly drawdown amounts to monthly expense amounts and comparing the timing of drawdown request to the date of immediate need. The analysis determined the cash advances were limited to the amounts needed and were timed to immediate needs. Therefore, the Office of Geology is in compliance with FAM requirements for drawdown and disbursement of Federal funds. Coordination with the U. S. Fish and Wildlife Service The Office of Geology addressed the concerns resulting from an EY 2005 review of their procedures for coordinating with the USFWS. The BFO recommended the State develop procedures to assure all written notifications and consultations are conducted as required in their regulations at Section 3103 (c) (1). Section 3103 (c) (1) specifies that written notification of permit application must be made to certain Federal, State, and local agencies, including the USFWS. The Office of Geology produced a guidance document based on their regulations entitled “Actions Required by the State of Mississippi Surface Coal Mining Regulations”. The document captures all actions required by Section 3103. This document will be utilized to assure all permit processing requirements are addressed by the State. An appendix to the guide, “Section 3103 Mailing List”, has been developed that identifies all agencies to be contacted including their addresses. 9 APPENDIX A TABULAR SUMMARY OF CORE DATA TO CHARACTERIZE THE PROGRAM The following tables present data pertinent to mining operations and State regulatory activities within Mississippi. They also summarize funding provided by OSM and Mississippi staffing. Unless otherwise specified, the reporting period for the data contained in all tables is the same as the evaluation year. Additional data used by OSM in its evaluation of Mississippi’s performance is available for review in the evaluation files maintained by the Birmingham OSM Office. Mississippi EY 2006 ending June 30, 2006 TABLE 1 COAL PRODUCTION (Millions of short tons) Period Surface mines Underground mines Total Coal productionA for entire State: Annual Period 2003 2004 2005 Total 3.739 3.572 3.595 10.906 0.000 0.000 0.000 0.000 3.739 3.572 3.595 10.906 A Coal production as reported in this table is the gross tonnage which includes coal that is sold, used or transferred as reported to OSM by each mining company on form OSM-1 line 8(a). Gross tonnage does not provide for a moisture reduction. OSM verifies tonnage reported through routine auditing of mining companies. This production may vary from that reported by States or other sources due to varying methods of determining and reporting coal production. T-1 Mississippi EY 2006 ending June 30, 2006 TABLE 2 INSPECTABLE UNITS As of June 30, 2006 Number and status of permits Coal mines and related facilities Active or temporarily inactive Permitted acreage (hundreds of acres) Abandoned Totals Insp. Units IP 1 0 0 1 0 0 0 0 1 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Inactive Phase II bond release IP PP IP PP IP PP IP PP STATE AND PRIVATE LANDS REGULATORY AUTHORITY: STATE 0 1 0 0 0 0 0 Surface mines Underground mines 0 0 0 0 0 0 0 Other facilities 0 0 0 0 0 0 0 Subtotals 0 1 0 0 0 0 0 FEDERAL LANDS REGULATORY AUTHORITY: STATE Surface mines 0 0 0 0 0 0 0 Underground mines 0 0 0 0 0 0 0 Other facilities 0 0 0 0 0 0 0 Subtotals 0 0 0 0 0 0 0 ALL LANDS Surface mines 0 1 0 0 0 0 0 Underground mines 0 0 0 0 0 0 0 Other facilities 0 0 0 0 0 0 0 Totals 0 1 0 0 0 0 0 Average number of permits per inspectable unit (excluding exploration sites) Average number of acres per inspectable unit (excluding exploration sites) Number of exploration permits on State and private lands: Number of exploration notices on State and private lands: IP: Initial regulatory program sites PP: Permanent regulatory program sites PP 58.09 0 0 58.09 0 0 0 0 58.09 0 0 58.09 Total 58.09 0 0 58.09 0 0 0 0 58.09 0 0 58.09 1 5,809 On Federal lands: On Federal lands: 0 0 0 0 T-2 Mississippi EY 2006 ending June 30, 2006 TABLE 3 STATE PERMITTING ACTIVITY As of June 30, 2006 Type of Application Surface mines App. Rec. Issued 0 0 0 0 0 0 Acres 0 0 Underground mines App. A Rec. Issued Acres 0 0 0 0 0 0 0 0 Other facilities App. Rec. Issued 0 0 0 0 0 0 Totals Acres 0 0 App. Rec. Issued 0 0 0 0 0 0 Acres 0 0 New Permits Renewals Transfers, sales and assignments of permit rights Small operator assistance Exploration permits Exploration noticesB Revisions (exclusive of incidental boundary revisions) Incidental boundary revisions Totals 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 OPTIONAL - Number of midterm permit reviews completed that are not reported as revisions. A Includes only the number of acres of proposed surface disturbance. State approval not required. Involves removal of less than 250 tons of coal and does not affect lands designated unsuitable for mining. B T-3 Mississippi EY 2006 ending June 30, 2006 TABLE 4 OFF-SITE IMPACTS RESOURCES AFFECTED DEGREE OF IMPACT TYPE OF Blasting IMPACT Land Stability AND Hydrology TOTAL Encroachment NUMBER OF Other EACH TYPE Total People minor 0 0 0 0 0 0 0 0 0 0 0 0 moderate 0 0 0 0 0 0 major 0 0 0 0 0 0 1 1 minor 0 0 0 0 0 0 Land moderate 0 0 0 0 0 0 major 0 0 0 0 0 0 minor 0 0 0 0 0 0 Water moderate 0 0 0 0 0 0 major 0 0 0 0 0 0 minor Structures 0 0 0 0 0 0 moderate 0 0 0 0 0 0 major 0 0 0 0 0 0 Total number of inspectable units: Inspectable units free of off-site impacts: OFF-SITE IMPACTS ON BOND FORFEITURE SITES RESOURCES AFFECTED DEGREE OF IMPACT TYPE OF Blasting IMPACT Land Stability AND Hydrology TOTAL Encroachment NUMBER OF Other EACH TYPE Total People minor 0 0 0 0 0 0 0 0 0 0 0 0 moderate 0 0 0 0 0 0 major 0 0 0 0 0 0 0 0 minor 0 0 0 0 0 0 Land moderate 0 0 0 0 0 0 major 0 0 0 0 0 0 minor 0 0 0 0 0 0 Water moderate 0 0 0 0 0 0 major 0 0 0 0 0 0 minor Structures 0 0 0 0 0 0 moderate 0 0 0 0 0 0 major 0 0 0 0 0 0 Total number of inspectable units: Inspectable units free of off-site impacts: T-4 Mississippi EY 2006 ending June 30, 2006 TABLE 5 ANNUAL STATE MINING AND RECLAMATION RESULTS Bond release phase Phase I Applicable performance standard Acreage released during this evaluation period - Approximate original contour restored - Topsoil or approved alternative replaced - Surface stability - Establishment of vegetation - Post-mining land use/productivity restored - Successful permanent vegetation - Groundwater recharge, quality and quantity restored - Surface water quality and quantity restored A 0.00 Phase II 0.00 Phase III 0.00 Acres 3,625.00 0.00 0.00 0.00 Bonded Acreage Status Total number of acres bonded at end of last review period B (June 30, 2005) Total number of acres bonded during this evaluation year Number of acres bonded during this evaluation year that are considered remining, if available Number of acres where bond was forfeited during this evaluation year (also report this acreage on Table 7) A Bonded acreage is considered to approximate and represent the number of acres disturbed by surface coal mining and reclamation operations. Bonded acres in this category are those that have not received a Phase III or other final bond release (State maintains jurisdiction). B T-5 Mississippi EY 2006 ending June 30, 2006 OPTIONAL TABLE 6 T-6 Mississippi EY 2006 ending June 30, 2006 TABLE 7 STATE BOND FORFEITURE ACTIVITY (Permanent Program Permits) Bond Forfeiture Reclamation Activity by SRA Sites with bonds forfeited and collected that were unreclaimed as of June 30, 2005 (end of previous evaluation year) A Sites with bonds forfeited and collected during Evaluation Year 2006 (current year) Sites with bonds forfeited and collected that were re-permitted during Evaluation Year 2006 (current year) Sites with bonds forfeited and collected that were reclaimed during Evaluation Year 2006 (current year) Sites with bonds forfeited and collected that were unreclaimed as of June 30, 2006 (end of current year) A Sites with bonds forfeited but uncollected as of June 30, 2006 (end of current year) Surety/Other Reclamation (In Lieu of Forfeiture) Sites being reclaimed by surety/other party as of June 30, 2005 (end of previous evaluation year)B Sites where surety/other party agreed to do reclamation during Evaluation Year 2006 (current year) Sites being reclaimed by surety/other party that were re-permitted during Evaluation Year 2006 (current year) Sites with reclamation completed by surety/other party during Evaluation Year 2006 (current year) C Sites being reclaimed by surety/other party as of June 30, 2006 (current evaluation year) B A B Number of Sites Acres 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Includes data only for those forfeiture sites not fully reclaimed as of this date Includes all sites where surety or other party has agreed to complete reclamation and site is not fully reclaimed as of this date This number also is reported in Table 5 as Phase III bond release has been granted on these sites C T-7 Mississippi EY 2006 ending June 30, 2006 TABLE 8 STATE STAFFING (Full-time equivalents at the end of evaluation year) Function Regulatory Program Permit review Inspection Other (administrative, fiscal, personnel, etc.) Regulatory Program Total AML Program Total TOTAL 0.90 0.63 0.72 2.25 0.00 2.25 EY 2006 T-8 Mississippi EY 2006 ending June 30, 2006 TABLE 9 FUNDS GRANTED TO MISSISSIPPI BY OSM (Millions of dollars) EY 2006 Type of Grant Federal Funds Awarded Federal Funding as a Percentage of Total Program Costs Administration and Enforcement Small Operator Assistance $0.11 $0.00 50 0 Totals $0.11 T-9 Mississippi EY 2006 ending June 30, 2006 TABLE 10 STATE INSPECTION ACTIVITY PERIOD: JULY 1, 2005 - JUNE 30, 2006 Inspectable Unit Status Active Inactive Abandoned Total Exploration Number of Inspections Conducted Complete 4 0 0 4 0 Partial 10 0 0 10 0 T-10 Mississippi EY 2006 ending June 30, 2006 TABLE 11 STATE ENFORCEMENT ACTIVITY PERIOD: JULY 1, 2005 - JUNE 30, 2006 Type of Enforcement Action Notice of Violation Failure-to-Abate Cessation Order Imminent Harm Cessation Order Number of Actions 0 0 0 Number of Violations 0 0 0 T-11 Mississippi EY 2006 ending June 30, 2006 TABLE 12 LANDS UNSUITABLE ACTIVITY PERIOD: JULY 1, 2005 - JUNE 30, 2006 Number of Petitions Received Number of Petitions Accepted Number of Petitions Rejected Number of Decisions Declaring Lands Unsuitable Number of Decisions Denying Lands Unsuitable 0 0 0 0 Acreage Declared as Being Unsuitable 0 Acreage Denied as Being Unsuitable 0 0 T-12 APPENDIX B STATE COMMENTS ON THE REPORT AND RESPONSES TO COMMENTS