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ACTION PLAN ID # U T-017-001 <br /> that the reduced costs of reclamation created by structure or building removal <br /> is not related to activities governed by Phase I, It or III bond release, the <br /> operator may be eligible for a bond reduction. <br /> Since 1983, OSMRE has consistently required that any reduction of the bond amount,for <br /> activities characterized as reclamation work performed, must occur through the bond release <br /> process. In 1983,OSMRE revised the language in 30 C.F.R. § 800.I5(c) "to clarify that bond <br /> adjustments which involve only undisturbed land or revision of the cost estimate of reclamation <br /> are not considered bond release subject to procedures of§ 800.40.s4 <br /> In the early 1990s, OSMRE addressed the issue of bond reductions subsequent to structure <br /> removal in Colorado. In 1991, OSMRE Headquarters provided an internal memorandum <br /> consistently deeming bond adjustments under 30 C.F.R. § 800.15 appropriate where justification <br /> for the bond reduction included changes to acreage to be affected or a permittee's showing that <br /> the reclamation cost estimate is "no longer valid for reasons other than the performance of <br /> reclamation work."5 The 1991 memorandum also explained that while "an argument could be <br /> made that performance of reclamation obligations reduces the cost of future reclamation,the <br /> structure of SMCRA, the language of the Federal regulation and the preambles to this rule <br /> clearly indicate that this is not the interpretation envisioned by Congress or[OSMRE]."b <br /> By implementing this section of Tech-007, DOGM inappropriately allows a bond reduction <br /> through bond adjustment procedures for the removal of structures from disturbed areas, rather <br /> than through the required bond release process. This not only conflicts with the SMCRA <br /> mandate at 509(e) and Federal regulations at 30 C.F.R. § 800.15(c),but also contradicts the <br /> approved State program requirements as the provisions mirror the Federal regulations at Utah <br /> Code Ann. § 40-10-15(5) and the Utah rules at UAC R645-301-830.430. <br /> Thus,bond reductions requested as a result of reclamation work performed must be processed as <br /> an application for bond release under 30 C.F.R. § 800.40. The request cannot be approved <br /> unless the criteria specified in 30 C.F.R. § 800.40(c) and section 519(c) of SMCRA, or in <br /> DOGM's case, the Utah rules at UAC R645-301-880, are satisfied. <br /> Moreover, SMCRA and the Federal regulations distinguish between instances where the operator <br /> revises its reclamation plan to replace a structure on a disturbed area and where a structure is <br /> simply demolished under an approved reclamation plan. When an operator submits a permit <br /> revision application to alter the reclamation plan, such as to replace one structure with another or <br /> to construct a materials storage area on a former building pad,the costs of future reclamation <br /> may change and the bond amount may be properly adjusted to reflect the changing costs of <br /> future reclamation. In this case,the area is still considered a long-term facility and is not subject <br /> to contemporaneous reclamation requirements until it is no longer needed in support of mining or <br /> d 48 Fed.Reg.32945(July 19, 1983). <br /> 5 OSMRE Internal Memorandum at 1 (Jan.9, 1991). <br /> 6 Id.(clarifying that"To be approved under the bond adjustment provisions of 30 C.F.R. § 800.15(c),a proposed <br /> bond reduction must be justified solely upon either changes in the acreage to be affected(not the acreage remaining <br /> to be reclaimed or a demonstration that the reclamation cost estimates upon which the current bond amount is based <br /> are no longer valid for reasons other than the performance of reclamation work. Any bond reduction requested as a <br /> result of reclamation work performed must be processed as an application for bond release under 30 C.F.R.§ 800.40 <br /> 4 <br />