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IBIA 94-366 <br />• concluded that the applicable statutory standard is whether they can be <br />considered facilities "resulting fran or incident to" PWCC's surface coal <br />mining activities at the Black Mesa/Kayenta Mines, under section 701(28)(B) <br />of SMCRA, 30 U.S.C. ~ 1291(28)(B) (1994), as that standard is explicated in <br />the preamble to 1988 final nzlemaking, 53 Fed. Reg. 47377 (Nov. 22, 1988). <br />(Decision at 1-2, 3.) Applying this standard, the Acting Director held <br />that neither the railroad nor the pipeline can be considered to result from <br />or be incident to PWCC's m;n;ng activities since a substantial portion of <br />each facility is located well beyond the minesite, the primary function of <br />the facility is to supply coal to a power plant, and, because the facility <br />is not owned or operated by ACC, it is more economically dependent on the <br />generating station than on the mine. (Decision at 3; see id. at 4, 5.) <br />The Acting Director also noted that weighing against SMCRA regulation is <br />the fact that neither the statute nor the regulations explicitly cover <br />either facility and that regulating them at this point would "reverse <br />longstanding decisions by [OSM] which have been relied upon" by the <br />operator of the facility. Id. at 3, 5. <br />r 1 <br />~J <br />In their SOR, Appellants contend that the railroad and pipeline should <br />be considered "surface coal mining operations," within the meaning of <br />section 701(28)(B) of SMCRA, 30 U.S.C. ~ 1291(28)(B) (1994), because they <br />are "facilities 'resulting fran or incident to' surface coal mines that <br />[FWCC] operates on Navajo lands." (SOR at 2 (quoting from 30 U.S.C. ~ <br />1291i28)(B) (1994)).) They argue that this is so because each facility is <br />"functionally integrated with the mine it serves because it provides the <br />sole means of transporting coal from the mine site directly to the mine's <br />only castanet" and serves no other mine, and each is "economically <br />dependent upon the mine they serve because the mine is their sole source of <br />cargo, and thus presumably their sole source of revenue." (SOR at 29, 30.) <br />Appellants distinguish this situation from that of a c..omceion carrier, <br />noting that each transportation facility and its respective mine and power <br />plant are a "closed, unified industrial operation." Id. at 14, 16. They <br />argue that to find that the facilities at issue here do not result from or <br />are not incident to the mines, would exclude all such facilities from SMCRA <br />jurisdiction. Since the railroad and pipeline are section 701(28)(B) <br />facilities, Appellants assert that OSM must require PWCC to either amend <br />its existing or proposed mine permits to enca~ass them or obtain separate <br />permits for them. Failing such amendment or pernit, OSM must preclude any <br />further operation of these facilities. <br />[1] Section 701(28)(A) of SMCRA provides that "surface mining <br />operations" are "activities conducted on the surface of lands in connection <br />with a surface coal mine," including "excavation * * *, and * * * chemical <br />or physical processing, and the cleaning, concentrating, or other <br />processing or preparation, [and] loading of coal for interstate cacmerce at <br />or near the mine site." 30 U.S.C. ~ 1291(28)(A) (1999). Subsection B <br />further provides that such operations include the "areas upon which such <br />activities occur or where such activities disturb the natural land <br />surface." It also states that <br />142 IBIA 35 <br />• <br />WWW Version <br />