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Report of the Executive Director

Throughout 2004, the Interstate Mining Compact Commission (IMCC) continued to pursue programs and initiatives targeted at our primary purpose: to assist the states in fulfilling their dual responsibilities of assuring development of their abundant and strategically important natural resources while protecting and improving the environment. IMCC has striven to be an effective advocate for the member states and, in advancing this goal, has pursued several new initiatives while at the same time staying the course on a myriad of key issues that the states have identified as deserving special attention and focus. We have made significant strides in many of these areas and the future will see additional challenges and opportunities that should pay dividends to each of the member states as we continue to work together to advance our mutual interests and goals.

Once again, the issue capturing the most time and attention throughout 2004 was reauthorization of fee collection authority under Title IV of the Surface Mining Control and Reclamation Act of 1977 (SMCRA) (the Abandoned Mine Lands (AML) Program), which was set to expire on September 30, 2004. IMCC worked closely with the National Association of Abandoned Mine Land Programs (NAAMLP) to advocate the position of the states and tribes concerning reauthorization. IMCC coordinated conference calls of IMCC and NAAMLP member states and tribes throughout the year to discuss legislative strategy. IMCC staff also attended the Mid-Winter meeting of the NAAMLP in Annapolis, Maryland, during which extensive discussions were undertaken concerning the states’ and tribes’ legislative positions and strategy. Throughout this period of time, IMCC also developed draft documents for consideration by the states and tribes; prepared and distributed minutes of meetings and conference calls; and gathered and processed input from the states and tribes on the various legislative proposals that were distributed for review and comment.

Two important developments on AML reauthorization came in the way of hearings on pending legislation in both the House and Senate. The Senate legislative hearing was held on March 11 before the Energy and Natural Resources Committee and the House oversight hearing was held on March 30 before the Energy and Mineral Resources Subcommittee. IMCC and NAAMLP were represented at both hearings by Steve Hohmann of Kentucky, the current President of the NAAMLP. In preparation for both hearings, IMCC met with OSM and Capitol Hill staff to discuss the nature of the hearings and the IMCC/NAAMLP testimony. Witness preparation was conducted on the day before each hearing. A meeting with key House congressional staff was also held prior to the Senate hearing on March 10. Meetings with Senate congressional staff and with a representative of the Office of Management and Budget were held on March 11 following the Senate hearing.

IMCC also attended the annual conference of the NAAMLP in Flagstaff, Arizona from September 26 - 30, during which extensive discussions concerning the states’ and tribes’ legislative position and strategy were again undertaken. As the September 30th deadline drew closer, IMCC was in almost daily contact with OSM personnel to discuss and coordinate legislative strategy. Weekly briefings and discussions with Congressional staff also occupied a significant amount of time. Several proposed bills and amendments thereto were reviewed and comments were provided. IMCC also worked with the Washington DC staff of several Governors’ offices to facilitate the preparation of a letter signed by 17 Governors urging reauthorization and extension of fee collection authority and that letter figured significantly in action by the Senate.

Perhaps the most important development on AML reauthorization was a scheduled markup of pending legislation on September 15 before the Senate Energy and Natural Resources Committee, which IMCC staff attended. At the outset of the meeting, Committee Chairman Pete Domenici announced that the Committee would forgo the markup in light of action by the Senate Appropriations Committee the night before, at which time a nine-month extension of fee collection authority was approved. This extension was ultimately included in an Omnibus Appropriations Bill for Fiscal Year 2005 that was signed by the President in December, thereby extending fee collection authority under Title IV of SMCRA for the AML program until June 30, 2005.

Throughout the course of the year, IMCC worked closely with OSM to coordinate the states’ and tribes’ position on reauthorization with that of the Administration. In addition, IMCC also pursued discussions with other interested parties in the debate, including the Bituminous Coal Operators Association, the National Mining Association, the environmental community and the United Mine Workers.

It is anticipated that the issue of AML reauthorization will continue to see a plethora of activity throughout 2005 as the states attempt once again to seek comprehensive legislation to address the matter prior to the new expiration date. In this regard, IMCC developed a side-by-side comparison of key pieces of legislation introduced in the 108th Congress along with an analysis of the states’ likely position on key provisions of that legislation as we prepared for the next round of negotiations and debate about reauthorization in the 109th Congress.

On a related topic, IMCC was asked to pull together and moderate a panel presentation on reauthorization of the AML program for the Conference of Government Mining Attorneys (COGMA) held on September 24th in Denver, Colorado. In addition to IMCC, other participants included Steve Hohmann of Kentucky, Evan Green of Wyoming, David Young of the Bituminous Coal Operators Association and Danny Lytton and Rod Vieira of the Interior Department.

On a further related topic, IMCC submitted a proposal to OSM on February 14th requesting funding for a study that would focus on developing enhanced opportunities for coordinating and expanding AML reclamation funding. OSM approved funding for this project in early March and the project commenced on May 15. Our contractor for this study is Nina McCormick of the Center for Rural Strategies in Lexington, Kentucky. A Peer Review Team consisting of state and federal government representatives has been formed to help guide the study. A meeting of the Team was held in conjunction with the NAAMLP Annual Conference on September 27th in Flagstaff. The Executive Director and Nina McCormick presented a paper on the status of the study during the conference.

IMCC continued to pursue the development and sponsorship of benchmarking workshops, which are intended to provide an opportunity for states to share their expertise in various regulatory areas with the goal of improving and enhancing the overall state regulatory program implementation process nationwide. IMCC has sponsored two such workshops to date, one on probable hydrologic consequences and cumulative hydrologic impact assessments and another on underground mine mapping. As a follow-up to the underground mine mapping workshop in October of 2003, IMCC distributed copies of a CD with the proceedings from the workshop in late March. IMCC also held two meetings with OSM to discuss follow-up actions based on issues identified during the workshop, one on February 6th and another on April 14th. It was agreed that another workshop should be offered as a follow-on to the successful October 2003 workshop and it will be held in the spring of 2005. A Steering Committee consisting of state and federal government representatives has been working with IMCC to develop the program and format for the workshop. IMCC staff was assisting the state of Ohio with development of a benchmarking workshop on AML drilling and grouting, also scheduled for the spring of 2005.

IMCC continued its involvement as a member of OSM’s National Technology Transfer Team (NTTT), among whose purposes is the coordination of the work of the National Technical Training Program and the Technical Innovation and Professional Services (TIPS) program. The mission of NTTT is to improve communications between the various OSM directorates and between OSM and the states, so as to enhance technology development and transfer programs and products and provide more efficient use of resources. Eight conference calls of the NTTT were held throughout the year and a meeting of NTTT members was held on February 18 and 19 at OSM’s offices in Washington, DC.

Among the topics where IMCC has stayed the course in terms of representing the states’ interests is the development of new performance measures for the Title V (active mining) program under SMCRA. A draft of these measures was prepared in late 2003 and distributed to the states for comment. Comments were received throughout early 2004. A conference call of the OSM/states working group that has been monitoring this effort was held on April 15th to discuss next steps, especially in light of the comments received. A meeting of state and federal government representatives facilitated by IMCC was held on May 25 and 26 in Cincinnati that focused on refining the measures and discussing how the states and OSM will gather the information needed for the new measures, as well as implementation issues. The states have been represented by a cross-section of states from around the country and the results of their work has been shared with the full membership of IMCC for review and input. As of the end of 2004, future action on the measures was left with OSM to determine.

The issue of mine placement of coal combustion wastes (CCW) continue to see a flurry of activity throughout the year as the U.S. Environmental Protection Agency (EPA) and OSM moved closer to a decision whether to initiate federal rulemaking on this critical matter. EPA sponsored a series of “Listening Sessions” throughout the country during the spring of 2004 and several IMCC member states worked with EPA to help facilitate those sessions, including Pennsylvania, Indiana and Texas. The newest development has been the initiation of an 18-month study by the National Academy of Sciences (NAS) pursuant to Congressional direction looking at the mine placement of CCW. IMCC provided input to NAS about the importance of including the states’ perspective and input on this critical study, as well as a potential list of nominees for the Committee on Mine Placement of Coal Combustion By-Products. The first meeting of the Committee was held on October 27 in Washington, DC at which IMCC presented an overview of state regulatory concerns. Additional field meetings were expected in New Mexico (December), Texas, Indiana and Pennsylvania.

The states have worked diligently to inform the NAS Committee about the efficacy of exiting state regulatory programs under SMCRA and the Resource Conservation and Recovery Act (RCRA) and about the importance of maintaining appropriate incentives to place CCW at mine sites, rather than create new land disposal areas for this material. IMCC staff also met with mining and utility industry representatives on several occasions during the year to discuss the states’ perspective on mine placement of CCW. IMCC also facilitated the development of a panel presentation for the Conference of Government Mining Attorneys on September 23 in Denver, Colorado addressing mine placement of CCW. In preparation for this panel presentation (and the aforementioned panel on AML reauthorization), conference calls with the presenters were held on July 13, September 8 and September 9.

IMCC also continued to pursue work on its bonding initiative, working closely with OSM to identify options for long-term treatment associated with acid mine drainage (AMD). A bonding forum was held on April 28 and 29 in conjunction with IMCC’s Annual Meeting in Virginia Beach to discuss practical, market-based solutions for reclamation bonding at both coal and noncoal operations. Representatives from several states, the federal government, the surety industry and the mining industry participated.

The effort initiated by IMCC in the summer of 2001 to develop a single source coal reporting (SSCR) form continued to see significant action during the year. IMCC is working with three key federal agencies (OSM, MSHA, and IRS) on the initiative and several conference calls and meetings were held during the period, including a meeting at MSHA’s offices in Roslyn, Virginia on January 8 and on May 12 and 13, which IMCC staff attended. A memorandum of understanding concerning next steps in the SSCR initiative has been developed for signature by the participating parties. IMCC is represented on the work group by Bob Agnew of the Pennsylvania Department of Environmental Protection. Virginia and Illinois are also participating.

IMCC also continues its work with the Acid Drainage Technology Initiative (ADTI). Conference calls of the ADTI were held on June 15 and September 14. A meeting of the Coal Mining Sector of ADTI was held on November 3 and 4 in Morgantown, West Virginia. IMCC is represented on the ADTI Operations Committee by Roger Hornberger of Pennsylvania.

IMCC also continued its work with EPA to implement the coal remining rule that was published in final form in January of 2002. A meeting was held on January 21 in Charleston, West Virginia to discuss implementation concerns of the states and to explore solutions.

IMCC submitted a statement to the House and Senate Appropriations Committees on March 8 concerning OSM’s proposed FY 2005 budget. Letters were also sent to the House and Senate Appropriations Committees concerning MSHA’s proposed FY 2005 budget on March 24.

IMCC submitted comments on two rules proposed by the Office of Surface Mining: on January 28 we commented on a proposal concerning approval of state program amendments and on March 5 we submitted extensive comments on a proposal concerning the definitions of ownership and control as they relate to the Applicant/Violator System (AVS). A meeting of the Coal Section of the Environmental Affairs Committee was held on February 10 and 11 in St. Louis to prepare comments on the latter proposed rule. AVS was also the subject of a conference call facilitated by IMCC on March 24 concerning the impacts of the Cobell (Indian trust fund) litigation on the operation of AVS.

IMCC participated in a public policy forum at the Northeast/Southeast Regional Meeting of the Geological Society of America in McLean, Virginia on March 26 where IMCC discussed the importance of effective state/federal partnerships in the development of our Nation’s natural resources. In a related development, IMCC staff met with members of the Minerals Information Team at the headquarters of the U.S. Geological Survey in Reston, VA to discuss sharing of mineral development information.

The Executive Director participated as the keynote speaker at OSM’s Hydrologic Issues Workshop in Morgantown, West Virginia on August 2 - 4. The Executive Director also met with government officials from Indonesia at OSM’s offices in Washington, DC on October 19 to discuss state regulatory programs under SMCRA.

IMCC’s contract with OSM to complete incorporation of all of the primacy states’ rules and regulations onto OSM’s website as part of the COALEX system was extended for another year. This will allow the addition of four or five states, bringing the total to approximately 15 states. Under its contract with OSM, IMCC continues to work with OSM to update other critical parts of the COALEX system, including regulatory history, legislative history, OSM directives and ALJ and IBLA decisions. Joyce Scall continues to handle this work for IMCC.

On the membership front, New York has once again submitted legislation to bring it into the Compact as a full member. Utah joined IMCC as its newest associate member state in November and North Dakota had submitted legislation to bring it into the Compact as a full member. The state of Colorado continues to participate as a dues paying “interested” state for FY 2005 and will examine potential associate membership over the next year. Contacts continue with Mississippi and Wyoming.

At its Mid-Year Business Meeting in November, the Commissioners approved two new initiatives, one of which will enhance the effectiveness of state regulatory programs and the second of which will provide a valuable service to the member states. The Commissioners agreed to pursue the development and implementation of a state regulatory program peer review process pursuant to which each state’s regulatory program will be reviewed by a blue ribbon panel consisting of other state agency personnel with the objective of providing input and recommendations concerning the nature and content of the state’s program as well as its implementation. A working group of member states was established to work with the Executive Director to further investigate this proposal and to report back to the Commissioners throughout 2005.

The Commissioners also approved a facilitation and dispute resolution program that would be offered as a new service to member states. This service will fulfill one of the key purposes of IMCC, which is to “assist the party states in their efforts to facilitate the use of land and other resources affected by mining, so that such use may be consistent with sound land use, public health and public safety, and to this end to study and recommend, wherever desirable, techniques for the improvement, restoration or protection of such land and resources.” As part of this new service, IMCC would work directly with those states who desire to pursue partnerships or alliances that are critical to the accomplishment of certain initiatives or projects. Pursuant to this new service, IMCC staff has agreed to assist two member states with major workshops and conferences that will occur in 2005.

With each passing year, IMCC sees new opportunities and challenges presented that allow the organization to address those issues of highest priority to the member states. As we approach our 35th year of operation, we have seen IMCC become an organization of integrity and influence among those we work with in Washington, DC. We are consistently sought for our advice and counsel, complimented for our commitment to issues and initiatives, and respected for our positions concerning those matters on which we offer recommendations and input. In particular, we have achieved an excellent working relationship with those we do business with on a regular basis, including the federal government, Capitol Hill staff, the mining industry and the environmental community. I believe much of this is attributable to the dedicated public servants who represent the member states and who give so generously of their time and talent. Without the commitment of the member states to this organization, we would be ineffectual and overlooked. Instead, we are lauded and appreciated for what we do and how we do it. I look forward to the continuing privilege of working with all those in state government who support the Compact and believe in our cause.



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