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~n <br />~~ <br />1. Section 502 of the SMCRA does not <br />apply to SEI's McClane Canyon exploration <br />operation. Section 512 (a) and 512 (e) of the <br />SMCRA make it clear that exploration opera- <br />tions on federal lands are not regulated by <br />the Act. Exploration operations on federal <br />lands are regulated under the Mineral Leasing <br />Act of 1920 ("idLA"), as amended. The regula- <br />tions which implement the MI,P„ as amended, <br />give the USGS the authority to regulate explor- <br />ation operations on federal lands. Accord- <br />ingly, the OSM has no authority to regulate <br />SEI's exploration activities. <br />2. Alternatively, the Secretary of the <br />Interior is estopped from a retroactive appli- <br />cation of OSM's regulations to SEI's McClane <br />Canyon exploration operation. The Secretary <br />(through his agents, the USGS and the BLM) has <br />treated SEI's activities at McClane Canyon as <br />exploration activities rather than mining <br />activities. SEI has relied on USGS assurances <br />that it was conducting exploration activities <br />in compliance with all applicable federal <br />statutes, rules, and regulations. <br />B. Alternatively, SEI requests that the Adminis- <br />trative Law Judge vacate Alleged Violation Nos. 2, 3, and 5 <br />of Notice of Violation No. 79-V-1-12 on the ground that SEI <br />was utilizing the best technology currently available to <br />eliminate additional contributions of suspended solids to <br />streamflow as required by the SMCRA [§ 515(10)(b)(i)]. The. <br />specific design criteria required by the Secretary and the <br />OSM regulations represent an arbitrary and capricious exercise <br />of power in excess of statutory authority, and contrary to law, <br />-7- <br />