Supporting Statement A
30 CFR Part 800 - Bond and Insurance Requirements for
Surface Coal Mining and Reclamation Operations
under Regulatory Programs
OMB Control Number 1029-0043
Terms of Clearance: None
Introduction
The Office of Surface Mining Reclamation and Enforcement (OSMRE or we) are submitting this information collection clearance request to renew our authority to collect information for 30 CFR Part 800 - Bond and Insurance Requirements for Surface Coal Mining and Reclamation Operations under Regulatory Programs. The Office of Management and Budget (OMB) previously reviewed and approved this collection of information and assigned it control number 1029-0043.
The
regulations at 30 CFR Part 800 primarily implement §509 of the
Surface Mining Control and Reclamation Act of 1977 (SMCRA or the
Act), which requires that persons planning to conduct surface coal
mining operations first post a performance bond to guarantee
fulfillment of all reclamation obligations under the approved permit.
The regulations also establish bond release requirements and
procedures consistent with §519 of the Act, liability insurance
requirements pursuant to §507(f) of the Act, and procedures for
bond forfeiture should the permittee default on reclamation
obligations.
Total
estimated responses per year are dependent on the number of active
permits. The total number of active mining permits under bond
insurance has fallen since 2017 by about 7% (from 6,073 to 5,628).
This is a result of those permits released from bonds that satisfy
reclamation requirements exceeding the number of newly bonded
permits. Based on State annual reports permits applications decreased
from 80 to 60 per year. This reduction in current permits and new
permits directly affects the estimated number of annual responses for
both the permittees and State Regulatory Authorities.
General Instructions
A completed Supporting Statement A must accompany each request for approval of a collection of information. The Supporting Statement must be prepared in the format described below, and must contain the information specified below. If an item is not applicable, provide a brief explanation. When the question “Does this ICR contain surveys, censuses, or employ statistical methods?” is checked "Yes," then a Supporting Statement B must be completed. OMB reserves the right to require the submission of additional information with respect to any request for approval.
Specific Instructions
Justification
1. Explain
the circumstances that make the collection of information necessary.
Identify any legal or administrative requirements that necessitate
the collection.
Section
509(a) of the Act and 30 CFR 800.14 of the regulations require that
the regulatory authority determine the amount of bond required for
surface coal mining and reclamation operations
Section
509(e) of the Act provides that the regulatory authority must adjust
the amount of bond required and the terms of acceptance from time to
time as the acreage of affected land increases or decreases or the
cost of future reclamation changes. Paragraph (a) of §800.15
includes a similar provision. Paragraph (c) clarifies that bond
reductions under this provision need not be processed as bond
releases.
Paragraph (b) of §800.15 requires that, prior to ordering an adjustment, the regulatory authority notify the permittee, the surety, and any person with an interest in collateral posted as bond. This paragraph also allows the permittee to request an informal conference on the proposed adjustment. These provisions are intended to protect the rights of the permittee and parties with an interest in the bond.
Paragraph
(d) of §800.15 requires that the regulatory authority reevaluate
bond adequacy as part of the process of reviewing an application for
a permit revision. This provision is intended to ensure that the
bond amount remains sufficient to complete the reclamation plan in
the event of bond forfeiture, as required by §509(a) of the Act.
Section 201(c)(2) of SMCRA, which provides that the Secretary must
promulgate rules and regulations to carry out the purposes and
provisions of the Act, authorizes collection of this
information.
Under 30 CFR 800.16(e), a bank or surety
company that underwrites a performance bond under SMCRA must promptly
notify the regulatory authority and the permittee if the bank is
declared insolvent, the surety company files for bankruptcy, or
either entity loses its charter or license to do business. The
permittee also has an obligation to report any such incapacity to the
regulatory authority, which must then notify the permittee of the
need to obtain a replacement bond within 90 days.
These
requirements are necessary to ensure that all surface coal mining and
reclamation operations remain fully bonded in accordance with §509
of the Act. Section 201(c)(2) of SMCRA, which provides that the
Secretary must promulgate rules and regulations to carry out the
purposes and provisions of the Act, authorizes collection of this
information.
Under §509(a) of the Act and §§800.11,
800.17, and 800.70, a person seeking a permit to conduct surface coal
mining operations must file a performance bond to guarantee faithful
performance of all of the requirements of the regulatory program, the
permit and the reclamation plan. The bond must be filed on a form
prescribed and furnished by the regulatory authority. The Act and
regulations allow the bond to be filed on an incremental schedule as
mining operations progress. Section 509(e) of the Act and §800.15
provide that the regulatory authority must adjust the amount of bond
required and the terms of acceptance from time to time as the acreage
of affected land increases or decreases or the cost of future
reclamation changes. Section 800.30 allows permittees to replace
bonds for any reason when authorized by the regulatory authority.
Section
509(b) of the Act and §800.12 provide that one acceptable type
of bond is a surety bond. Like §509(b) of the Act, §800.20(a)
requires that a surety bond be executed between the operator and a
corporate surety licensed to do business in the State in which the
operation is located.
Under §509(a) of the Act and
§§800.11, 800.17, and 800.70, a person seeking a permit to
conduct surface coal mining operations must file a performance bond
to guarantee faithful performance of all of the requirements of the
regulatory program, the permit and the reclamation plan. The bond
must be filed on a form prescribed and furnished by the regulatory
authority. The Act and regulations allow the bond to be filed on an
incremental schedule as mining operations progress. Section 509(e)
of the Act and §800.15 provide that the regulatory authority
must adjust the amount of bond required and the terms of acceptance
from time to time as the acreage of affected land increases or
decreases or the cost of future reclamation changes. Section 800.30
allows permittees to replace bonds for any reason when authorized by
the regulatory authority.
Section
509(b) of the Act and §800.12 provide that one acceptable type
of bond is a surety bond. Like §509(b) of the Act, §800.20(a)
requires that a surety bond be executed between the operator and a
corporate surety licensed to do business in the State in which the
operation is located.
Section 509(b) of the Act provides
that an operator may elect to deposit cash, negotiable State or
Federal government bonds, or negotiable certificates of deposit of
any bank in lieu of a surety bond. The definition of “collateral
bond” at 30 CFR 800.5(b) expands the list of acceptable
alternatives to a surety bond to include municipal bonds, irrevocable
letters of credit from a bank, a perfected first-lien interest in
real property in favor of the regulatory authority, and certain
investment-grade securities. This expansion is based on section
509(c) of the Act, which authorizes the Secretary to approve
alternatives that will meet the objectives and purposes of the
bonding program.
Section 509(b) of the Act specifies that cash and the market value of securities must be equal to or greater than the amount of bond required for the bonded area. To implement this provision and to ensure that the collateral is unencumbered, financially viable, and fully accessible in the event of forfeiture, §800.21 requires that the permittee submit either the collateral itself or assorted descriptive and explanatory information to the regulatory authority. For the same reason, §800.21(e)(2) requires that the regulatory authority reevaluate the bond value of all collateral at the time of permit renewal. Section 201(c)(2) of SMCRA, which provides that the Secretary must promulgate rules and regulations to carry out the purposes and provisions of the Act, authorizes collection of this information.
Under
§800.21(f), persons (normally a financial institution) with an
interest in collateral posted as a bond who desire notification of
regulatory authority actions concerning the bond must request such
notification at the time that the collateral is offered as a bond.
This provision, which also is authorized by §201(c)(2) of the
Act, is intended to ensure that the regulatory authority is aware of
all persons with an interest in the collateral.
Section
509(b) of the Act provides that an operator may elect to deposit
cash, negotiable State or Federal government bonds, or negotiable
certificates of deposit of any bank in lieu of a surety bond. The
definition of “collateral bond” at 30 CFR 800.5(b)
expands the list of acceptable alternatives to a surety bond to
include municipal bonds, irrevocable letters of credit from a bank, a
perfected first-lien interest in real property in favor of the
regulatory authority, and certain investment-grade securities. This
expansion is based on section 509(c) of the Act, which authorizes the
Secretary to approve alternatives that will meet the objectives and
purposes of the bonding program.
Section 509(b) of the Act specifies that cash and the market value of securities must be equal to or greater than the amount of bond required for the bonded area. To implement this provision and to ensure that the collateral is unencumbered, financially viable, and fully accessible in the event of forfeiture, §800.21 requires that the permittee submit either the collateral itself or assorted descriptive and explanatory information to the regulatory authority. For the same reason, §800.21(e)(2) requires that the regulatory authority reevaluate the bond value of all collateral at the time of permit renewal. Section 201(c)(2) of SMCRA, which provides that the Secretary must promulgate rules and regulations to carry out the purposes and provisions of the Act, authorizes collection of this information.
Under
§800.21(f), persons (normally a financial institution) with an
interest in collateral posted as a bond who desire notification of
regulatory authority actions concerning the bond must request such
notification at the time that the collateral is offered as a bond.
This provision, which also is authorized by §201(c)(2) of the
Act, is intended to ensure that the regulatory authority is aware of
all persons with an interest in the collateral.
Section
509(c) of the Act provides that the regulatory authority may accept
the bond of the applicant itself (a “self-bond”) without
separate surety when the applicant demonstrates to the satisfaction
of the regulatory authority the existence of a suitable agent to
receive service of process and a history of financial solvency and
continuous operation sufficient for authorization to self-insure or
bond the requisite amount. To implement this provision, OSMRE
adopted 30 CFR 800.23, which prescribes the documentation, financial
statements, and affidavits that a company must submit to demonstrate
that it meets the requirements for self-bonding.
Under
§800.23(g), the permittee must notify the regulatory authority
any time that the financial conditions of the permittee or corporate
guarantor change in a manner that would render the pertinent entity
ineligible for self-bonding. The permittee must then obtain a
replacement bond within 90 days. These requirements are necessary to
ensure that all surface coal mining and reclamation operations remain
fully bonded in accordance with section 509 of the Act. Section
201(c)(2) of SMCRA, which provides that the Secretary must promulgate
rules to carry out the purposes and provisions of the Act, authorizes
collection of this information.
Section 519 of the Act
establishes numerous application and procedural requirements for
release of performance bonds filed under §509 of SMCRA. The
corresponding procedural requirements in 30 CFR 800.40 essentially
track these provisions, adding (1) a requirement that the permittee
submit a certification that all applicable reclamation activities
have been completed in accordance with the approved program and
reclamation plan, and (2) an opportunity for an informal conference
on a proposed bond release. Section 201(c)(2) of SMCRA, which
provides that the Secretary must promulgate rules and regulations to
carry out the purposes and provisions of the Act, authorizes
collection of the additional information. Also, the informal
conference provisions are consistent with §102(i) of the Act,
which encourages public participation in regulatory program
proceedings.
Section 519 of the Act establishes
numerous application and procedural requirements for release of
performance bonds filed under §509 of SMCRA. The corresponding
procedural requirements in 30 CFR 800.40 essentially track these
provisions, adding (1) a requirement that the permittee submit a
certification that all applicable reclamation activities have been
completed in accordance with the approved program and reclamation
plan, and (2) an opportunity for an informal conference on a proposed
bond release. Section 201(c)(2) of SMCRA, which provides that the
Secretary must promulgate rules and regulations to carry out the
purposes and provisions of the Act, authorizes collection of the
additional information. Also, the informal conference provisions are
consistent with §102(i) of the Act, which encourages public
participation in regulatory program proceedings.
Section
519 of the Act establishes numerous application and procedural
requirements for release of performance bonds filed under §509
of SMCRA. The corresponding procedural requirements in 30 CFR 800.40
essentially track these provisions, adding (1) a requirement that the
permittee submit a certification that all applicable reclamation
activities have been completed in accordance with the approved
program and reclamation plan, and (2) an opportunity for an informal
conference on a proposed bond release. Section 201(c)(2) of SMCRA,
which provides that the Secretary must promulgate rules and
regulations to carry out the purposes and provisions of the Act,
authorizes collection of the additional information. Also, the
informal conference provisions are consistent with §102(i) of
the Act, which encourages public participation in regulatory program
proceedings.
Section 509(a) of the Act provides that the
amount of bond required for surface coal mining and reclamation
operations under SMCRA must be sufficient to assure completion of the
reclamation plan if the work had to be performed by the regulatory
authority in the event of forfeiture. To implement this provision,
30 CFR 800.50 establishes notification procedures and related
requirements governing forfeiture of bonds and reclamation of sites
for which bonds have been forfeited. Section 201(c)(2) of SMCRA,
which provides that the Secretary must promulgate rules and
regulations to carry out the purposes and provisions of the Act,
authorizes collection of this information.
Section 507(f) of SMCRA mandates collection of the information required by 30 CFR 800.60, which implements this section of the Act. Section 507(f) specifies that each application for a surface coal mining permit must contain either a certificate of personal injury and property damage liability insurance or evidence of self-insurance. Both this section and 30 CFR 800.60 provide that the policy must be maintained in full force and effect during the terms of the permit and any renewal, including the length of all reclamation operations. The regulations further specify that the policy must include a rider requiring that the insurer notify the regulatory authority whenever substantive changes are made in the policy, including termination or failure to renew.
2. Indicate
how, by whom, and for what purpose the information is to be used.
Except for a new collection, indicate the actual use the agency has
made of the information received from the current collection. Be
specific. If this collection is a form or a questionnaire, every
question needs to be justified.
Section
800.14:
OSMRE and State regulatory authorities under SMCRA use
this information to ensure that persons who conduct or intend to
conduct surface coal mining and reclamation operations file the
amount of performance bond required by §509(a) of the Act and
§800.14; i.e., an amount sufficient to ensure completion of the
reclamation plan in the event that the regulatory authority has to
perform the work under conditions of bond forfeiture.
Section
800.15:
OSMRE and State regulatory authorities under SMCRA use
this information to ensure that persons who conduct or intend to
conduct surface coal mining and reclamation operations maintain the
amount of performance bond required by §509(a) of the Act, i.e.,
an amount sufficient to ensure completion of the reclamation plan in
the event that the regulatory authority has to perform the work under
conditions of bond forfeiture. Persons receiving notification of
proposed bond adjustments pursuant to §800.15(b) use this
information to protect their rights and interests. Timely
notification is essential to ensure that potentially affected parties
are able to exercise their informal review and appeal
rights.
Section 800.16:
OSMRE and State regulatory
authorities rely upon notifications from permittees, banks, and
surety companies to determine when a properly executed surety or
collateral bond ceases to be viable because of the incapacity of the
bank or surety company. Subsequent regulatory authority notification
of the permittee of the need to obtain replacement coverage is
essential to ensure that funds are available to complete the
reclamation plan in the event of bond forfeiture, as required by
§509(a) of SMCRA.
Section 800.20:
Permittees use
surety bonds to meet the performance bond requirements of the Act and
regulatory program. OSMRE and State regulatory authorities rely upon
properly executed surety bonds with viable corporate surety firms to
ensure that funds are available to complete the reclamation plan in
the event of bond forfeiture.
Section
800.21:
Permittees use collateral bonds to meet the performance
bond requirements of the Act and regulatory program. OSMRE and State
regulatory authorities rely upon properly executed collateral bonds
to ensure that funds are available to complete the reclamation plan
in the event of bond forfeiture. OSMRE and State regulatory
authorities also rely upon the collateral documents or related
information submitted by the permittee to determine the value,
financial viability, liquidation costs, and accessibility of the
proffered collateral.
Persons
with an interest in the collateral, normally a financial institution,
rely upon the notification provision of §800.21(f) to ensure
that they are informed of any regulatory authority actions that may
affect their interest in the bond. Timely notification is necessary
to preserve that person's informal review and appeal rights.
Section
800.23:
Permittees use self-bonds to meet the performance bond
requirements of the Act and regulatory program. OSMRE and State
regulatory authorities rely upon the information submitted under
§800.23 to ensure that only eligible entities receive approval
to self-bond and that the self-bond documents are legally binding on
the permittee or corporate guarantor. These information collection
requirements are necessary to ensure that funds are available to
complete the reclamation plan in the event of bond forfeiture.
OSMRE and State regulatory authorities also rely upon the notification required by §800.23(g) as the most expeditious means of determining when a permittee with a properly executed self-bond ceases to be eligible for self-bonding because of changes in the financial position of the permittee or corporate guarantor. Obtaining replacement coverage is essential to ensure that funds are available to complete the reclamation plan in the event of bond forfeiture, as required by §509(a) of SMCRA.
Section
800.40:
OSMRE and State regulatory authorities use the
information collected for §800.40 to determine whether an
applicant for bond release has met all applicable release criteria,
and how much of the bond must be retained to ensure completion of the
remaining reclamation requirements. Persons with an interest in the
bond, property owners, local governmental bodies, planning agencies,
sewage and water treatment authorities, water companies, and the
public at large use the required letters of notification and
newspaper notices to decide whether to participate in the bond
release process or appeal the final agency decision to ensure
protection of their interests. Permittees likewise use the
application, notification, and appeal processes to protect their
interest in securing bond release.
Section 800.50:
OSMRE
and State regulatory authorities under SMCRA use the information
required under §800.50 to collect the funds needed to complete
the reclamation plan when the regulatory authority has to perform the
work under conditions of bond forfeiture. Other persons, such as the
surety or persons with an interest in collateral posted as bond, rely
upon the notifications required by §800.50(a) as a warning
system that allows them to take action to avoid forfeiture if
desired.
Section 800.60:
OSMRE
and State regulatory authorities use the certificate required by this
section to verify that persons conducting or proposing to conduct
surface coal mining and reclamation operations have a valid insurance
policy in effect to provide compensation for any personal injury or
property damage that may result from surface coal mining operations,
to the extent that the injured party is entitled to compensation
under State law.
3. Describe
whether, and to what extent, the collection of information involves
the use of automated, electronic, mechanical, or other technological
collection techniques or other forms of information technology, e.g.,
permitting electronic submission of responses, and the basis for the
decision for adopting this means of collection. Also describe any
consideration of using information technology to reduce burden and
specifically how this collection meets GPEA requirements.
Collection
of information by automated methods generally is not practical
because regulatory authorities, mining companies, and financial
institutions normally use paper forms as bonding instruments, in part
because of legal implications. Almost all respondents are (1)
individual mining companies that submit bonds and apply for bond
release on an as-needed basis, or (2) State regulatory authorities
that determine bond amounts, review bond documents, and process bond
release applications. An increasing number of respondents use
automated media to store information relevant to the collections of
information required for part 800. Some State regulatory authorities
use automation to calculate bond amounts.
4. Describe
efforts to identify duplication. Show specifically why any similar
information already available cannot be used or modified for use for
the purposes described in Item 2 above.
The
requested information is time-sensitive and unique to each applicant
or surface coal mining operation. Since it is collected infrequently
(generally only at the time of application for a permit, permit
revision, permit renewal, or release of bond), duplication is
minimal. OSMRE is not aware of any other Federal agency that
collects this information. OSMRE is the only Federal agency charged
with implementation of SMCRA with respect to performance bonds for
surface coal mining operations.
If
the collection of information impacts small businesses or other
small entities, describe any methods used to minimize burden.
There
are no special provisions for small businesses or other small
entities. Nor are any appropriate because the requested information
is essential to ensuring and maintaining the integrity of the
performance bond and liability insurance required for each surface
coal mining operation.
6. Describe
the consequence to Federal program or policy activities if the
collection is not conducted or is conducted less frequently, as well
as any technical or legal obstacles to reducing burden.
If
the requested information was not collected or was collected less
frequently, OSMRE and State regulatory authorities would be less able
to ensure that surface coal mining operations post and maintain
viable performance bonds and liability insurance policies as required
by §§509 and 507(f) of the Act. OSMRE and State regulatory
authorities also would be less able to ensure that all necessary
reclamation has been completed before all or part of a bond is
released in accordance with §519 of the Act. Finally, the
ability of OSMRE and State regulatory authorities to forfeit bond and
reclaim the affected acreage would be adversely impacted.
7. Explain any special circumstances that would cause an information collection to be conducted in a manner:
* requiring respondents to report information to the agency more often than quarterly;
* requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;
* requiring respondents to submit more than an original and two copies of any document;
* requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than three years;
* in connection with a statistical survey that is not designed to produce valid and reliable results that can be generalized to the universe of study;
* requiring the use of a statistical data classification that has not been reviewed and approved by OMB;
* that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or
* requiring
respondents to submit proprietary trade secrets, or other
confidential information, unless the agency can demonstrate that it
has instituted procedures to protect the information's
confidentiality to the extent permitted by law.
No
collection of information for part 800 is inconsistent with the
guidelines at 5 CFR 1320.5(d)(2) as summarized in the instructions
for this item of the supporting statement.
8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and in response to the PRA statement associated with the collection over the past three years, and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.
Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported.
Consultation
with representatives of those from whom information is to be obtained
or those who must compile records should occur at least once every
three years — even if the collection of information activity is
the same as in prior periods. There may be circumstances that may
preclude consultation in a specific situation. These circumstances
should be explained.
OSMRE
contacted the following respondents to obtain their views on the
information collection burden imposed by part 800 and the clarity of
the regulations:
Reclamation & AML Divisions
North Dakota Public Service Commission
Bismarck, ND 58505-0480
Office of Surface Mining Reclamation and Enforcement
One Denver Federal Center, Building 41
Lakewood, CO 80225-0065
Kentucky Department for Natural Resources
Division of Mine Permits
2 Hudson Hollow Road
Frankfort, KY 40601
Office of Surface Mining Reclamation and Enforcement
Knoxville Field Office, Technical Group
Knoxville, TN 37902
We used information provided by these individuals as part of the process of calculating the total burden identified in the responses to items 12 and 13. All respondents indicated that self-bonding applications were dramatically reduced due to financial uncertainties. We received no comments or suggestions from these individuals regarding the availability of data, frequency of collection, clarity of instructions, nor data elements reported.
On May 3, 2021, OSMRE published in the Federal Register (86 FR 23427) a notice requesting comments from the public regarding the need for the collection of information, the accuracy of the burden estimate, ways to enhance the information collection, and ways to minimize the burden on respondents. This notice gave the public 60 days in which to comment. No comments were received during this comment period.
9. Explain
any decision to provide any payment or gift to respondents, other
than remuneration of contractors or grantees.
OSMRE
and State regulatory authorities provide no payments or gifts to
respondents.
10. Describe
any assurance of confidentiality provided to respondents and the
basis for the assurance in statute, regulation, or agency
policy.
The
Act and Federal regulations do not authorize information concerning
performance bonds and insurance to be kept confidential. Under 30
CFR 840.14(b), copies of all information obtained by the regulatory
authority must be made immediately available to the public in the
area of mining until at least five years after expiration of the
period during which the operation is active or is covered by any
portion of a performance bond. The only exceptions are for (1)
information protected by other Federal laws or (2) certain permit
application information specified in 30 CFR 772.15 and 773.6(d). The
latter exception does not apply to performance bonds and insurance
policies.
11. Provide
additional justification for any questions of a sensitive nature,
such as sexual behavior and attitudes, religious beliefs, and other
matters that are commonly considered private. This justification
should include the reasons why the agency considers the questions
necessary, the specific uses to be made of the information, the
explanation to be given to persons from whom the information is
requested, and any steps to be taken to obtain their consent.
There
are no questions of a sensitive nature.
12. Provide estimates of the hour burden of the collection of information. The statement should:
* Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business practices.
* If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens.
* Provide
estimates of annualized cost to respondents for the hour burdens for
collections of information, identifying and using appropriate wage
rate categories. The cost of contracting out or paying outside
parties for information collection activities should not be included
here.
Estimated
Information Collection Burden
a. Burden Hour Estimates for Respondents
Permitting
activity for bond insurance is comprised of four components: (1)
bonds for new permits, (2) bond adjustment related to permit
revisions without acreage change, (3) bond adjustments with acreage
revisions, and (4) replacement bonds for the transfer, assignment, or
sale of permit rights.
Total estimated responses per
year are dependent on the number of active permits. The total number
of active mining permits under bond insurance has fallen since 2017
by about 7% (from 6,073 to 5,628). This is a result of those permits
released from bonds that satisfy reclamation requirements exceeding
the number of newly bonded permits. Based on State annual reports
permits applications decreased from 80 to 60 per year. This
reduction in current permits and new permits directly affects the
estimated number of annual responses for both the permittees and
State Regulatory Authorities.
Accordingly,
total responses 8,158
(permittee 3,056 + state 5,102) decreased roughly by the same
percentage (7%) as the decrease as bonded permits. However, in some
instances estimated responses is disproportionately reduced. The
number of permittee responses were reduced disproportionately from 24
to 5. This is largely from long-term financial uncertainty reducing
credit ratings of nearly all mining entities reliant on coal sales,
making them ineligible for self-bonding. Previously, OSMRE estimated
that permittees would file 24 self-bonds each year (0.02 x 1,223
total bonds of all types). This rule of thumb is no longer
applicable. OSMRE now determined that at most 5 applicants would
apply for self-bonding though it would be unlikely they would be
deemed eligible under stricter financial criteria that States are
imposing.
Burden Hour Summary by Section for CFR 800 |
|||||||||
Section |
Permittee responses |
Hours per response |
Permittee Hours |
State responses |
Hours per State |
State Hours |
Total hours |
Current hours |
Change to hours |
800.14 |
60 |
25 |
1,500 |
59 |
30 |
1,770 |
3,270 |
3,970 |
-700 |
800.15 |
0 |
0 |
0 |
3,192 |
4 |
12,768 |
12,768 |
13,085 |
-317 |
800.16 |
4 |
2 |
8 |
4 |
2 |
8 |
16 |
15 |
1 |
800.2 |
793 |
12 |
9,516 |
844 |
2 |
1,688 |
11,204 |
11,960 |
-756 |
800.21 |
317 |
12 |
3,804 |
310 |
4 |
1,240 |
5,044 |
4,931 |
113 |
800.23 |
5 |
16 |
80 |
4 |
16 |
64 |
144 |
754 |
-610 |
800.4 |
675 |
12 |
8,100 |
664 |
35 |
23,240 |
31,340 |
34,050 |
-2,710 |
800.5 |
0 |
0 |
0 |
25 |
10 |
250 |
250 |
249 |
1 |
800.6 |
1,202 |
2 |
2,404 |
0 |
0 |
0 |
2,404 |
2,626 |
-222 |
Totals |
3,056 |
|
25,412 |
5,102 |
|
40,830 |
66,440 |
71,639 |
-5,199 |
b. Estimated
Annual Wage Cost to Respondents
OSMRE
uses the U.S. Department of Labor’s Bureau of Labor Statistics
(BLS) figures for calculating cost burden placed on respondents. For
industry occupation cost are derived from
http://www.bls.gov/oes/current/naics4_212100.htm.
State government occupation wages are found at
http://www.bls.gov/oes/current/naics4_999200.htm.
We have also included a benefits factor at a rate of 1.4 of
salaries for the industry and a benefits factor of 1.6 for state
government employees based on BLS news release USDL-21-1094, dated
June 17, 2021, Employer Costs for Employee Compensation – March
2021 (http://www.bls.gov/news.release/pdf/ecec.pdf).
We opted to use a simple-average wage based upon
representative occupations for permittee wage cost comprised of
mining engineers, administrative assistants, engineering technicians,
management, and environmental scientists. Similarly, for state
workers we estimated the wage rate from a composite drawn from wages
for state hydrologist, biological scientist, mining engineers,
engineering technologist, and administrative assistants.
Hourly Wage Cost for Industry |
|
|
Occupation |
BLS Wage Rate $ |
Wage rate $ with benefit (1.4) |
Mining Engineers |
43.73 |
61.22 |
Administrative Assistants |
20.59 |
28.83 |
Engineering Technicians, |
29.97 |
41.96 |
Management Occupations |
53.41 |
74.77 |
Environmental Scientists |
40.37 |
56.52 |
Average |
|
52.66 |
Hourly Wage Cost for State Workers |
|
|
Occupation |
BLS Wage Rate $ |
Wage rate $ with benefit (1.6) |
Hydrologist |
34.76 |
55.62 |
Biological Scientists |
29.38 |
47.01 |
Mining Engineers |
61.26 |
98.02 |
Engineering Technologist |
24.21 |
38.74 |
Administrative Assistants |
21.90 |
35.04 |
Average |
|
54.88 |
The
composite wage rate averaged (across occupation categories) with
benefits for industry permittees is $54.88 per hour. Total permittee
wage cost is $1,338,196 (25,412 hours x $52.66/hour). We estimate
that State workers hourly wage with benefits (factor of 1.6) is
$54.88 per hour. Total state wage cost is therefore $2,240,750
(40,830 hours x $54.88/hour).
Total wage cost (permittee and state) is estimated at $3,578,946($1,338,196 permittee + $2,240,750 state wage cost).
13. Provide an estimate of the total annual non-hour cost burden to respondents or recordkeepers resulting from the collection of information. (Do not include the cost of any hour burden already reflected in item 12.)
* The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life) and (b) a total operation and maintenance and purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information (including filing fees paid for form processing). Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.
* If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.
* Generally,
estimates should not include purchases of equipment or services, or
portions thereof, made: (1) prior to October 1, 1995, (2) to achieve
regulatory compliance with requirements not associated with the
information collection, (3) for reasons other than to provide
information or keep records for the government, or (4) as part of
customary and usual business or private practices.
a. Annualized
Capital and Start-Up Costs
We estimate that the annual non-wage cost burden to the permit applicants and the is $50 per new permit application and for permit revision applications, principally gathering mine site information, updating reference materials, and copying. Non-wage cost burden to respondents for compliance is $3 per notification, principally for delivery charges. The information collection requirements for section 800.20 – 800.23 do not involve any capital or start-up costs apart from expenditures associated with customary business practices.
Based
on past experience and consultations, OSMRE estimates that the annual
non-wage cost burden to permittees
for compliance with 30 CFR 800.40 comprises about 94% of total
non-wage costs.
Cost to permittee’s amounts to
$408,375
or $605/response with the following components:
notification letters
public notices in local newspapers
mapping expenses, duplication costs, notary fees, delivery charges, and other costs associated with preparing and submitting a bond release application
Based on past consultations, OSMRE estimates that the annual non-wage cost burden to the 24 State regulatory authorities for compliance with 30 CFR 800.40 totals $81,735 or $664/response, with the following components:
travel to the minesite, duplication expenses, and miscellaneous costs associated with review and processing of a bond release application
decision notification letters to the permittee, the municipality, persons with an interest in the bond, and objectors to State regulatory authorities
public notices in local newspapers for public hearings
for court reporter services for preparation of a verbatim record for public hearings
furnishing written findings for each informal conference to all parties to the conference
Therefore, OSMRE estimates that the annual non-wage cost burden to all respondents for compliance with 30 CFR 800.40 totals $490,427 ($408,375 for permittees + $81,735 for State regulatory authorities).
Non-Wage Cost Summary |
||||||||
Section |
Permittee responses |
Cost $ per response |
State responses |
Permittee cost per Response |
State cost per Response |
Non-wage permittee cost |
Non-wage state cost |
Total non-wage costs |
800.14 |
60 |
50 |
59 |
50 |
50 |
3,000 |
2,950 |
5,950 |
800.15 |
|
|
3,192 |
|
8 |
|
25,480 |
25,480 |
800.16 |
4 |
|
4 |
9 |
3 |
36 |
12 |
48 |
800.2 |
|
|
|
|
|
|
|
|
800.21 |
|
|
|
|
|
|
|
|
800.23 |
|
|
|
|
|
|
|
|
800.4 |
675 |
123 |
664 |
605 |
123 |
408,375 |
81,735 |
490,110 |
800.5 |
|
|
25 |
|
6 |
|
147 |
147 |
800.6 |
|
|
|
|
|
|
|
|
Totals |
739 |
|
1,402 |
|
|
411,411 |
110,324 |
521,735 |
Total non-wage cost in total amounts to $521,735 ($490,427 for section 800.40 + $31,625 for all other sections.
b. Operation and Maintenance Costs
The requirements of 30 CFR 800 do not involve any operation and maintenance costs apart from expenditures associated with customary business practices.
14. Provide
estimates of annualized cost to the Federal government. Also,
provide a description of the method used to estimate cost, which
should include quantification of hours, operational expenses (such as
equipment, overhead, printing, and support staff), and any other
expense that would not have been incurred without this collection of
information.
Typically,
a regulatory program specialist (GS, 13 step-5) will perform reviews
to evaluate the State program, and prepare the written response. An
hourly rate of $50.04 is based on the Federal employee pay tables
from the Office of Personnel Management’s website at
https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2021/RUS_h.pdf.
We adopt a benefit factor of 1.6 for Federal benefits based
on BLS news release USDL-21-1094, dated June 17, 2021, Employer Costs
for Employee Compensation – March 2021
(http://www.bls.gov/news.release/pdf/ecec.pdf).
Applying
the benefit factor (1.6) to the base hour rate we arrive at a Federal
cost rate of $80.06 per hour.
Oversight:
It is expected OSMRE will conduct one oversight review of a
State program each year ranging in time and technical complexity from
80 hours for section 800.14 to least burdensome of 4 hours for
section 800.16. Most commonly an oversight review will take 30 hours
(sections 800.20, 800.21, 800.23, and 800.40). Annual oversight
review hours are not dependent of the number of permitting actions
and therefore have not changed from the previous three years. Annual
hours for oversight reviews are estimated to be 260 for all sections.
Federal
Programs:
OSMRE
has primary regulatory responsibility for two States and three Tribal
nations with active mining with direct responsibility for bond and
insurance requirements for surface coal mining and reclamation
operations under regulatory programs. Hours required under Federal
programs range from 220 hours for 11 applications per year for bond
release (section 800.40) to just 1.5 hours based on one bond
replacement notification (section 800.16) per year. No substantive
changes were made in estimated hours required for Federal programs as
the permit count has remained steady. Annual hours for total Federal
programs amount to 570 hours.
Federal government burden
hours and cost:
Total Federal government hours are 830
(260
+ 570). Total annualized wage cost to the Federal government is
$66,410
(830 hours x $80.06 per hour).
In addition, there are
non-wage cost of $450 for travel to mine sites and $830 for
conducting public hearing associated with sections 800.15 and 800.40,
respectively.
Total annualized cost to the Federal government
is therefore $67,690
($66,410
+ $450 + $830).
Annualized Wage Cost to Federal Government |
||||
Section |
Oversight Hours |
Federal Program Hours |
Total Hours |
Total Wage Cost @80.06 |
800.14 |
80 |
50 |
130 |
10,407.80 |
800.15 |
40 |
218 |
258 |
20,655.48 |
800.16 |
4 |
1.5 |
5.5 |
440.33 |
800.20 |
30 |
36 |
66 |
5,283.96 |
800.21 |
30 |
28 |
58 |
4,643.48 |
800.23 |
30 |
16 |
46 |
3,682.76 |
800.40 |
30 |
220 |
250 |
20,015.00 |
800.50 |
10 |
|
10 |
800.60 |
800.60 |
6 |
|
6 |
480.36 |
Totals |
260 |
570 |
830 |
66,410 |
15. Explain
the reasons for any program changes or adjustments in hour or cost
burden.
The
currently approved information collection package for 30 CFR Part 800
includes burden of 71,639 hours, OSMRE is now requesting 66,440
burden hours. This reduction is directly related to reductions in
active permits with bond requirements and new permits per year.
Therefore, total burden hours will change as follows:
71,639 hours currently approved
- 5,199 hours due to an adjustment
66,440 hours requested
Similarly,
this request will reduce the currently approved non-wage cost of
$565,096 to $521,735
($43,361) due primarily from fewer expected responses from less
permitting actions.
16. For
collections of information whose results will be published, outline
plans for tabulation and publication. Address any complex analytical
techniques that will be used. Provide the time schedule for the
entire project, including beginning and ending dates of the
collection of information, completion of report, publication dates,
and other actions.
OSMRE
has no plans to publish the information collected.
17. If
seeking approval to not display the expiration date for OMB approval
of the information collection, explain the reasons that display would
be inappropriate.
OSMRE
is not seeking a waiver from the requirement to display the
expiration date of the OMB approval of the information collection.
18. Explain
each exception to the topics of the certification statement
identified in "Certification for Paperwork Reduction Act
Submissions."
There
are no exceptions to the “Certification for Paperwork Reduction
Act Submissions.”
File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
Author | Felch, Steve M. |
File Modified | 0000-00-00 |
File Created | 2021-10-17 |