2016-02-19_ENFORCEMENT - C1982057 (5)

Home Browse Search

�r �WILDEARTH GUARDIANS A FORCE FOR NATURE Joe Pizarchik Director Office of Surface Mining Reclamation and Enforcement 1951 Constitution Ave. NW Washington, D.C. 20240 February 8, 2016 BY U.S. EXPRESS MAIL OVERNIGHT DELIVER�,EIVE® FEB 19 2016 DMSION OF RECTION MINING AND SAFLAMAETYY Re: Citizen Complaint Under Surface Mining Control and Reclamation Act Over Peabody Energy's Self -bonding in Colorado, New Mexico, and Wyoming Pursuant to the Surface Mining Control and Reclamation Act ("SMCRA"), 30 U.S.C. §§ 1267(h)(1) and 1271(a)(1), and regulations thereunder, 30 C.F.R. § 842.12(a), WildEarth Guardians hereby writes to inform the Office of Surface Mining Reclamation and Enforcement ("OSMRE") that violations of U.S. Surface Mining Control and Reclamation Act ("SMCRA") appear to be occurring in the states of Colorado, New Mexico, and Wyoming, and that these violations be inspected and remedied. Specifically, it appears that reclamation bonding requirements under SMCRA are not being met with regards to operations at permitted mines owned by Peabody Energy. Peabody appears to have failed to notify respective state regulatory agencies that the company no longer qualifies for self -bonding, and to post an alternative bond within 90 -days, as required by 30 C.F.R. § 800.23(g). Under SMCRA regulations, if a company fails to post an adequate bond, it must "cease coal extraction." 30 C.F.R. § 800.16(e)(2). Below, we provide a written statement of the apparent violations necessitating inspections and remediation. I. BACKGROUND Under SMCRA, before a company can mine coal, they are required to post bonds covering the full cost of reclamation in case mining operations are abandoned prior to the completion of reclamation. See 30 U.S.C. § 1259 and 30 C.F.R. § 800.11. Although normally, companies post surety bonds or offer collateral to ensure the costs of reclamation can be covered, SMCRA allows companies to post self -bonds, or corporate guarantees. See 30 C.F.R. § 800.23. Self -bonds are essentially agreements between companies and regulatory authorities where the mining companies guarantee to cover the costs of reclamation, but do not actually provide direct funds, collateral, or third -party guarantees to cover such costs. See 30 C.F.R. § 800.5(c) (defining 1536 Wynkoop, Suite 310 Denver CO, 80202 303-437-7663 fax 505-213-1895 www.wildearthguardians org DENVER • LARAMIE • MISSOULA • PORTLAND • SAN DIEGO • SAN FRANCISCO • SANTA FE • SALT LAKE CITY • TUCSON