[Federal Register Volume 61, Number 185 (Monday, September 23, 1996)]
[Notices]
[Pages 49793-49798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24262]


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DEPARTMENT OF THE INTERIOR

Fern Lake Watershed, Tennessee, Lands Unsuitable for Surface Coal 
Mining And Reclamation Operations; Availability of Record of Decision 
and Statement of Reasons

AGENCY: Office of Surface Mining Reclamation and enforcement, Interior.

ACTION: Notice of availability of record of decision and the statement 
of reasons on the petition to declare certain lands in the Fern Lake 
Watershed, Tennessee, unsuitable for surface coal mining.

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SUMMARY: The Director of the Office of Surface Mining Reclamation and 
Enforcement (OSM) has reached a decision on a petition to designate an 
area as unsuitable for surface coal mining operations in the Fern Lake 
watershed, Claiborne County, Tennessee.

ADDRESSES: Copies of the decision and the statement of reasons for the 
decision may be obtained from the Assistant Director, Program Support, 
Office of Surface Mining Reclamation and Enforcement, 1951 Constitution 
Avenue, HDQ01, Washington, D.C. 20240, or Willis L. Gainer, Supervisor, 
Technical Group, Knoxville Field Office, 530 Gay Street, SW, Suite 500, 
Knoxville, Tennessee 37902.

FOR FURTHER INFORMATION CONTACT: Willis L. Gainer, Office of Surface 
Mining Reclamation and Enforcement, 530 Gay Street, SW, Suite 500, 
Knoxville, Tennessee 37902; telephone: 423/545-4074.

SUPPLEMENTARY INFORMATION: The petition was submitted to OSM on 
February 14, 1994, by the City of Middlesborough, Kentucky, and the 
National Parks and Conservation Association to designate 3780 acres of 
land lying in the Fern Lake watershed, Caliborne County, Tennessee, as 
unsuitable for all types of surface coal mining operations. OSM 
determined the petition to be complete on March 15, 1994, and initiated 
evaluation of the petition allegations.
    The petition was filed in accordance with Section 522 of the 
Surface Mining Control and Reclamation Act of 1977 (SMCRA) and the 
implementing regulations at 30 CFR 942.764. The petitioners alleged 
that: (1) Surface coal mining operations would affect fragile lands and 
could result in significant damage to important scientific or esthetic 
values or natural systems; (2) surface coal mining operations would 
affect land in which the surface coal mining operations could result in 
a substantial loss or reduction in the long-range availability of water 
supplies; (3) surface coal mining operations would be incompatible with 
the local land use plans of the Cumberland Gap National Historic Park; 
and (4) surface coal mining operations should not be allowed because 
the area constitutes a natural hazard land. Pursuant to 30 CFR 942.764, 
OSM analyzed the allegations of the petition and on March 12, 1996, 
held a public hearing. OSM filed the final petition evaluation 
document/environmental impact statement (PED/EIS) for the Fern Lake 
petition with the Environmental Protection Agency (EPA) on August 2, 
1996. The EPA subsequently published the notice of availability on 
August 9, 1996 (61 FR 41607).
    A copy of the decision signed by the Director appears as an 
appendix to this notice. Additional copies of the decision and copies 
of the statement of reasons (not attached to this notice) are available 
at no cost from the offices listed above under ADDRESSES OSM has sent 
copies of these documents to all interested parties of record.
    Prior Federal Register notices on the Fern Lake unsuitability 
petition were the notice of intent to prepare an EIS published in the 
Federal Register dated April 6, 1994 (50 FR 31177), and the notice of 
availability of the draft combined PED/EIS dated January 26, 1996 (61 
FR 2531).

    Dated: September 13, 1996.
Mary Josie Blanchard,
Assistant Director, Program Support

Appendix: Copy of Decision

Petition To Designate Certain Lands in the Fern Lake Watershed, 
Tennessee, as Unsuitable for Surface Coal Mining Operations

    Under Section 522 of the Surface Mining Control and Reclamation Act 
of 1977 (SMCRA), 30 U.S.C. 1272, the Office of Surface Mining 
Reclamation and Enforcement (OSM) was petitioned by the City of 
Middlesborough and the National Parks and Conservation Association to 
designate certain private lands in the Little Yellow Creek (Fern Lake) 
watershed, Claiborne County, Tennessee, as unsuitable for all surface 
coal mining operations.
    As required by Section 522(c) of SMCRA, public comments were 
solicited on the Fern Lake unsuitability petition; a public hearing was 
held near the petition area in Middlesborough, Kentucky; and a detailed 
petition evaluation document/environmental impact statement (PED/EIS) 
was prepared by OSM. The PED/EIS evaluated the petition allegations, 
the potential coal resources of the petition area, the demand for coal 
resources, and the impacts of alternative petition decisions available 
to the decision maker on the entire range of resource elements in the 
social and physical environment.
    I have considered the following information in the course of making 
this decision on the petition: The draft and final PED/EIS documents; 
the allegations of the petitioners; comments in the form of oral 
testimony at the public hearing; and written submissions received 
during the comment period (which ended March 26, 1996) by Federal 
agencies, State agencies, local agencies, and members of the public and 
industry. Other information considered in my decision included meetings 
with the petitioners, landowners, leaseholders, and officials of the 
Cumberland Gap National Historical Park. On the basis of all 
information that is in the record of this proceeding, I have reached 
the following decision: Designate the entire petition area as 
unsuitable for all surface coal mining operations but allow underground 
mining from outside the petition area.
    OSM has previously approved permits to extract approximately 3.4 of 
the estimated 4.3 million tons of the petition area's underground 
minable

[[Page 49794]]

reserves from entries located outside the petition area. Permits for 
these operations were in effect prior to the receipt and processing of 
the Fern Lake petition. As a result, these and similar operations which 
propose to mine coal by underground methods from entries located 
outside the petition area will not be affected by this decision.
    Copies of this decision will be sent to all parties in this 
proceeding. The decision will become effective on the date of the 
signing of the ``Statement of Reasons.'' Any appeal from this decision 
must be filed within 60 days from the date in the United States 
District Court for the Eastern District of Tennessee, as required by 
Section 526(a)(1) of SMCRA, 30 U.S.C. 1276(a)(1).

    Dated: September 13, 1996.
Robert J. Uram,
Director, Office of Surface Mining Reclamation and Enforcement.

Petition To Designate Certain Lands in the Fern Lake Watershed, 
Tennessee as Unsuitable for Surface Coal Mining Operations; Statement 
of Reasons

I. Introduction
    In response to a petition filed by the City of Middlesborough, 
Kentucky, and the National Parks and Conservation Association, I have 
decided to designate the entire petition area as unsuitable for all 
surface coal mining operations while allowing underground mining from 
entries located outside the Fern Lake petition area in Claiborne 
County, Tennessee. This decision takes into account all of the 
information contained in the petition; the draft and final petition 
evaluation document/environmental impact statement (PED/EIS); 
information provided by the petitioners; comments in the form of oral 
testimony at the public hearing; and written submissions received 
during the comment period (which ended March 26, 1996) by Federal, 
State and local agencies, and members of the public and industry. Other 
information considered in my decision included meetings with the 
petitioners, landowners, leaseholders, and officials of the Cumberland 
Gap National Historical Park. The following is a discussion of the 
reasons supporting my decision.
II. Legal Background
    Section 522(c) of the Surface Mining Control and Reclamation Act of 
1977 (SMCRA) allows any person having an interest that is or may be 
adversely affected to petition to have an area designated unsuitable 
for surface coal mining operations. The Secretary of the Interior is 
responsible, under Section 504 of SMCRA, for designating lands in 
Tennessee as unsuitable. Specific procedures for processing a petition 
to designate private lands in Tennessee appear in 30 CFR 942, 
Subchapter F. The Office of Surface Mining Reclamation and Enforcement 
(OSM) has followed those procedures in reaching its decision on the 
Fern Lake petition. The Secretary of the Interior has delegated to the 
Director of OSM the authority to make a final decision on lands 
unsuitable petitions except for noncoal mining [216 DM.1.1].
    The regulatory authority shall designate an area unsuitable if it 
determines that reclamation pursuant to the requirements of SMCRA is 
not technologically and economical feasible [Section 522(a)(2)]. The 
regulatory authority may designate any area unsuitable if such 
operations would: (1) Be incompatible with existing State or local land 
use plans or programs [Section 522(a)(3)(A)]; (2) affect fragile or 
historic lands in which such operations could result in significant 
damage to important historic, cultural, scientific, and esthetic values 
and natural systems [Section 522(a)(3)(B)]; (3) affect renewable 
resource lands in which such operations could result in a substantial 
loss or reduction of long-range productivity of water supply or of food 
or fiber products [522(a)(3)(C)]; or (4) affect natural hazard lands in 
which such operations could substantially endanger life or property 
[Section 522(a)(3)(D)].
    The petition in this case requests that the designation of the Fern 
Lake watershed be made on the basis of criteria cited under 522(a)(3) 
(A), (B), (C) and (D). The petition contained numerous suballegations 
and documentation to support its claim that the area should be 
designated under these discretionary criteria.
III. Events
    The petition area encompasses a portion of the Little Yellow Creek 
watershed, an area of approximately 5.9 square miles, located in north-
central Claiborne County, Tennessee. Little Yellow Creek drains into 
Fern Lake, a 110-acre public water supply lake for Middlesborough, 
Kentucky. Approximately 45 acres of this lake is in the petition area 
while the remainder of the lake is in Kentucky. Because the lake 
constitutes the most significant feature of the watershed, the petition 
is herein identified as the Fern Lake petition.
    The Fern Lake unsuitability petition was submitted to OSM on 
February 14, 1994, by the City of Middlesborough, Kentucky, and the 
National Parks and Conservation Association. OSM determined the 
petition to be complete on March 15, 1994, and initiated evaluation of 
the petition allegations.
    Because the decision on this petition may have a major effect on 
the quality of the human environment, OSM decided to prepare a combined 
petition evaluation document and environmental impact statement. A 
notice of intent to prepare a draft PED/EIS, including a request for 
public participation in determining the scope of the issues to be 
addressed, was published in the April 6, 1994, Federal Register (50 FR 
31177) and in the local newspaper. It was also mailed to all persons 
with an identifiable ownership interest in the petition area and 
interested State and Federal agencies. A scoping meeting was held on 
April 18, 1994, in Middlesborough, Kentucky. Approximately 140 persons 
attended the scoping meeting, 40 of whom presented oral comments.
    By the close of the comment period on May 18, 1994, OSM had 
received 31 scoping comment letters. All comments contained in the 
public record for the petition and the proposed PED/EIS were used in 
determining the scope of the PED/EIS.
    OSM announced the availability of the draft PED/EIS and requested 
public comments in the January 26, 1996 (61 FR 2531), Federal Register, 
in the February 1996, Tennessee Administrative Register; and in local 
newspapers. Notice of the March 12, 1996 public hearing also was made 
in these notices and newspaper advertisements. The public comment 
period on the draft officially closed on March 26, 1996; however, OSM 
did consider comments received until July 1, 1996.
    Approximately 30 persons attended the March 12, 1996 hearing with 7 
persons presenting oral comments. During the comment period, 111 
letters (with more than 300 signatures) provided written comments on 
the draft PED/EIS. All comments were considered by OSM in the final 
PED/EIS.
    The notice of availability of the final PED/EIS was published in 
the Federal Register on August 9, 1996 (61 FR 41607); in the 
Middlesboro Daily News on August 9, 1996; and in the Claiborne Progress 
on August 14, 1996.
IV. The Petition
    The Fern Lake petition contained four primary allegations, with a 
number of suballegations. The petition is printed in appendix C of the 
final PED/EIS. The petitioners allege that: (1) The petition

[[Page 49795]]

area is a fragile area, and mining could result in significant damage 
to important historical, cultural, scientific, and esthetic values and 
natural systems; (2) surface mining would result in a substantial loss 
or reduction in the long-range availability of water supplies; (3) 
surface mining would be incompatible with local land use plans and 
programs, including the Cumberland Gap National Historical Park; and 
(4) surface coal mining operations would affect natural hazard lands 
which are subject to frequent flooding.
V. Decision Alternatives
    OSM evaluated several decision alternatives ranging from 
designating all lands in the petition area unsuitable for all or 
certain types of surface coal mining operations to not designating any 
of the lands in the area as unsuitable. The alternatives include the 
option of designating only parts of the area as unsuitable for all or 
certain types of surface coal mining operations. However, underground 
mining from entries located outside the petition area would not be 
precluded regardless of a decision by the Director. This was based on 
the fact that 3.4 million of the petition area's estimated 4.3 million 
tons of underground recoverable reserves are already under permits 
which allow extraction by this method. The full text discussion of the 
decision alternatives and their environmental impacts are found in 
Chapter V of the final PED/EIS.
VI. Preferred Alternative
    The Council on Environmental Quality regulations for implementing 
the procedural provisions of the National Environmental Policy Act 
require an agency preparing an environmental impact statement to 
identify its preferred alternative [40 CFR 1502.14(e)]. OSM's preferred 
alternative for the Fern Lake unsuitability petition is alternative 1 
in the final PED/EIS. This alternative includes the designation of all 
parts of the petition area as unsuitable for surface coal mining 
operations while allowing the continuation of underground mining from 
entries located outside the petition area. A detailed discussion of the 
existing environmental resources and the impacts of the preferred 
alternative can be found in the final PED/EIS in chapter II and chapter 
V, section A, respectively.
VII. Findings
    These findings are based upon all the information contained in the 
public record of the proceedings on the petition. In accordance with 30 
CFR 942.764.13(b)(1)(v), OSM assumed that contemporary mining practices 
under the Federal Program for Tennessee would be followed if the area 
were to be mined. The petition allegations and my findings with regard 
to each allegation and suballegations follow.
    A. Allegation No. 1 is that surface coal mining operations will 
affect fragile lands in which such operations would result in 
significant damage to important scientific or esthetic values or 
natural systems. The petitioners supported this allegation with five 
suballegations. However, several of these suballegations were 
repetitive so the allegations were grouped into four broader 
suballegations for the purpose of analysis and are described and 
answered as follows:
    1. The petitioners allege that Little Yellow Creek is a water body 
of high quality in chemical, biological, and ecological terms, both 
regionally and specifically within the Yellow Creek watershed. The 
petitioners have specifically identified Little Yellow Creek as having 
a unique water quality making it a good reference stream for comparison 
with other heavily mined watersheds in the region. They also state that 
the water quality has resulted in the preservation of sensitive aquatic 
species. Data collection showed that the blackside dace species, listed 
as an endangered fish species in Tennessee and a Federally listed 
threatened species, exists in the petition area; however, no other 
sensitive aquatic species were identified. The blackside dace are 
susceptible to changes in water chemistry and sedimentation associated 
with surface coal mining. The petitioners further stated that the water 
quality and aquatic ecosystem act to replenish degraded downstream 
reaches of Yellow Creek.
    Based on the results of the sedimentation investigations conducted 
during the course of the PED/EIS, it was found that the Fern Lake 
watershed would be subjected to increased sediment loading as a result 
of surface coal mining operations. It has also been determined that a 
large portion of this sediment loading would be from uncontrolled 
drainage associated with haul roads and would be clay faction colloidal 
material which could not easily be retained by standard sediment ponds 
without additional water treatment techniques. Any additional 
treatment, such as flocculants to remove the colloidal clay material, 
could affect water chemistry and affect the blackside dace [PED/
EIS:page IV-3]. As a result, I have determined that potential increase 
in sediment loading, in the absence of extraordinary control measures, 
would dramatically impact the thriving population of blackside dace in 
Little Yellow Creek. [PED/EIS:page V-9].
    The PED/EIS determined that the waters in Fern Lake basin are of 
higher water quality than many adjacent watersheds. The effects of 
mining on the surface-water quality of Little Yellow Creek can already 
be seen. Future mining would increase the nutrient levels in the stream 
and lake. Specific aquatic toxicity from metals and trace elements is 
not projected from mining the watershed. However, local toxicity in 
some tributaries is possible. More importantly, the nutrient loading 
caused by the mining would change the aquatic ecosystem. Large influxes 
of sulfates and other dissolved solids would be expected to affect the 
competitiveness of some aquatic species. The lack of toxicity data on 
the blackside dace makes predictions difficult, but experience in the 
Little Clear Creek watershed suggests that mining and the blackside 
dace are not compatible. As a result of the sedimentation and water 
quality investigations, I have determined that the sedimentation of 
Little Yellow Creek, more so than the changes in water chemistry, would 
adversely affect the blackside dace [PED/EIS: page V-9].
    The petitioners have also alleged that the high water quality and 
diverse aquatic biota of the Fern Lake watershed help to restore the 
downstream reaches of Yellow Creek and the Upper Cumberland River basin 
which have already had a major impact from surface coal mining 
operations. The baseline information in chapter II indicates that 
Little Yellow Creek above Fern Lake provides little flow during the dry 
months and has been seen to go completely dry in some segments. 
Furthermore, the lake discharges water only from the emergency 
spillway. During summer and fall when rains become infrequent, the 
evaporation and pumpage from the lake exceed the inflows to the lake. 
This causes lake water levels to drop below the spillway elevation 
eliminating any surface-water discharge to lower stream segments. As a 
result, during low flow periods Little Yellow Creek below the Fern Lake 
dam flows as a result of dam seepage and ground-water recharge. 
Sampling of water below the dam in the summer of 1994 revealed fair 
water quality but high total dissolved solids, elevated sulfates, and 
some iron. Thus, the data does not support the petitioners' allegation 
that the Fern Lake watershed helps replenish the downstream degraded 
reaches. While contributions do occur during high flows and spring 
runoff events, the contribution during chemically critical

[[Page 49796]]

low flows does not appear to be major. As a result of these studies, I 
have determined that the petition area does not significantly 
contribute to the restoration of downstream reaches of Yellow Creek. 
[PED/EIS: page IV-9]
    Associated with the other suballegations, the petitioners contend 
that the high water quality in the petition area makes it a biological 
refuge for fish and aquatic species. This refuge acts to replenish 
degraded downstream reaches. OSM findings show that Little Yellow 
Creek, including Davis Branch, supports aquatic resources that are more 
diverse than most of the Yellow Creek watershed. Of principle 
significance is the diverse fishery which supports a population of the 
blackside dace in Davis Branch which is a tributary to lower Little 
Yellow Creek. Additionally, the presence of blackside dace in Little 
Yellow Creek upstream of Fern Lake also represents an aquatic refuge 
for that species. Although Fern Lake is a high quality aquatic 
resource, the lake itself is less important as an aquatic refuge in 
that it serves as a barrier to downstream translocation of native 
species and promotes potentially nuisance aquatic species. As a result 
of these findings, I have determined that Fern Lake itself acts as a 
barrier to the successful translocation of upstream species in the 
petition area to the degraded downstream reaches. However, the high 
water quality in the Little Yellow Creek watershed upstream of the Lake 
does act as a biological refuge for various species which are 
intolerant of water chemistry alterations associated with mining. [PED/
EIS: page IV-11-12]
    The petitioners allege that the high water quality and aquatic 
systems of the petition area make it a reference stream for comparing 
to other impacted watersheds in the area. The PED/EIS determined that, 
based on the evidence provided by the petitioners, there is 
insufficient rationale to consider Little Yellow Creek suitable as a 
reference stream. The findings do verify that Fern Lake and the Little 
Yellow Creek tailwaters immediately below Fern Lake are high quality 
water bodies. They also find that water chemistry and physical habitat 
characterization of Little Yellow Creek upstream of Fern Lake are 
indicative of a relatively higher quality than most of Yellow Creek 
proper and its major tributaries. However, OSM's analyses of biological 
communities in upper Little Yellow Creek indicate moderate reduction in 
biological diversity when compared with that in Davis Branch, which is 
a protected tributary within the boundaries of the national park. 
Additionally, habitat alteration and associated shift in the biological 
community as a result of impoundment of Little Yellow Creek limit the 
importance of Fern Lake as a reference water body in the Yellow Creek 
drainage. The fact that mining has already occurred and is having some 
impact on the water quality and aquatic ecosystem further reduces the 
viability of the area as a reference stream. Based on these findings, I 
have determined that Little Yellow Creek in the petition area would not 
meet the criteria needed to be a reference stream and that there are 
better streams available in the general area which are less affected by 
previous mining and afford higher biological diversity. [PED/EIS: page 
IV-12-14]
    2. The petition states that surface coal mining operations would 
result in visual impacts resulting from the alteration of the land 
surfaces associated with mining and reclamation activities. They state 
that these visual impacts would be incompatible with the goals of the 
Cumberland Gap National Historical Park, which depend on the natural 
unspoiled, scenic splendor of the vistas from the Pinnacle and other 
overlooks to help convey a sense of the historic and cultural 
importance of the Cumberland Gap in American history. They also state 
that the deforestation and mining-related activities will alter the 
landscape as seen from overlooks, adversely affecting the primitive 
experience of park visitors. Because of the regrouping of allegations, 
the alleged incompatibility of surface coal mining with the goals of 
the Cumberland Gap National Historical Park's Master Plan is addressed 
in this document under Allegation No. 3 which concerns local land use 
plans.
    In response to this allegation, OSM determined that surface coal 
mining within the petition area would adversely affect the area as a 
landscape resource. Surface mining would affect both the visual quality 
and value of the Pinnacle Overlook, and the subjective response of the 
visitor. OSM determined that the Fern Lake petition area is not a 
pristine viewshed, based on the number of past mining activities both 
within and adjacent to the petition area. However, OSM also determined 
that much of this older mining is now reclaimed and not readily 
visible, giving the current undisturbed appeal. Should surface mining 
activity occur in the petition area, the current wooded appearance of 
Fern Lake watershed would change following mining, particularly in the 
short to medium time frame, decreasing the scenic quality of the view. 
However, reclamation to approximate original contour and postmining 
revegetation would minimize most of the long-term impacts as it has 
with the previous mining in the petition area. Based on this 
information, I have determined that there would be an adverse impact on 
visual quality associated with the park. However, these types of 
impacts, which have been historically occurring within the petition 
area, are generally of a short to medium duration and should not cause 
any permanent impact to the visual quality of the area. [PED/EIS: page 
IV-14-16]
    3. The petitioners allege that surface coal mining would 
significantly diminish the recreational experience of visitors to 
Cumberland Gap National Historical Park. The petitioners support this 
by stating that surface coal mining activities would alter the visual 
quality of the park which depends on the natural unspoiled, scenic 
splendor of the vistas from the Pinnacle and other overlooks to help 
convey a sense of the historic and cultural importance of the area in 
American history. They state that deforestation and mining-related 
disturbances would alter the landscape and adversely affect the 
primitive experience of the park visitor. They further allege that the 
area of ``recreational value due to high environmental quality'' and 
should be considered as fragile lands.
    OSM findings support the petitioners' allegation in that surface 
coal mining operations would be expected to affect the visual quality 
of the Cumberland Gap National Historical Park, thus impacting the 
visitor's recreational experience [PED/EIS: page IV-16-17]. OSM also 
recognized that Cumberland Gap is a unique feature which provides 
special recreational opportunities because of its historical and 
cultural background. The Cumberland Gap is a break in the Appalachian 
Mountains that allowed westward expansion of the United States to occur 
in the late 1700's. The route through the gap also played an important 
role for Colonists to move westward prior to the Revolutionary War. 
Because of this historical and cultural association with the gap, I 
have determined that the area is unique and that similar esthetic 
values and recreational opportunities at other public use lands would 
not provide an appropriate substitute for those found at the Cumberland 
Gap National Historical Park. For these historical and cultural values 
of the park, I conclude that its natural visual character is important. 
However, for recreationists who are not concerned with historical or 
cultural aspects, the Cumberland Gap National Historical Park is not 
considered unique, nor would mining be expected to drastically reduce 
the recreational

[[Page 49797]]

experience of those who are involved with more conventional use of the 
park such as hiking, camping, picnicking, and fishing.
    4. The petitioners refer to analyses performed by the Commonwealth 
of Kentucky in granting the Lands Unsuitable Petition 87-2 for the 
Cannon Creek Lake watershed. Petitioners allege these analyses 
demonstrate that impacts from surface coal mining operations ``could 
result from the surface disturbances associated with coal mining 
activities and discharges of water which have been demonstrated to be 
major in terms of both the water supply systems and the natural systems 
with the lake.'' Petitioners argue that these impacts would result even 
if the operations were conducted in full compliance with all the 
environmental protection performance standards of Sections 515 and 516 
of SMCRA and the Secretary's regulations. They go on to provide a 
summary of the findings made by the Kentucky Division of Surface Mining 
Reclamation and Enforcement which showed major sediment loading to 
Cannon Creek Lake, which is the public water supply lake for Pineville, 
Kentucky.
    OSM recognizes the findings and the decision made by the 
Commonwealth of Kentucky to designate the watershed to the Cannon Creek 
lake as unsuitable for surface coal mining activities. OSM's findings 
do acknowledge that there are similarities between the petition areas; 
however, OSM also recognizes that each watershed has physical and 
ecological differences that need to be considered distinctly from each 
other. In conclusion, I have determined that the decision regarding the 
Cannon Creek Lake petition area is not precedent setting with regards 
to the Fern Lake petition area.
    Based upon: (1) The effects of the increase in sedimentation and 
water chemistry from mining, including adverse effects on the blackside 
dace; (2) the value of Little Yellow Creek as important habitat for the 
blackside dace; and (3) the short to medium term adverse impact on the 
visual quality of the views from the Cumberland Gap National Historic 
Park, I have determined that surface coal mining operations in the 
petition area will affect fragile lands resulting in damage to 
important estetic values and natural systems.
    B. Allegation No. 2 is that surface coal mining operations would 
affect land by causing a substantial loss or reduction in the long-
range availability of water supplies.
    The petitioners have alleged that surface mining could result in an 
increased sediment yield of as much as 2000 times that of baseline 
conditions during mining and 10-100 times that of baseline conditions 
after reclamation, and that such sedimentation would decrease the 
storage capacity and useful life of the lake. OSM's analysis determined 
that although some sediment loading would occur as a result of mining 
activities, there would not be any major impact to the storage capacity 
of Fern Lake nor would it dramatically alter the useful life of the 
lake from a water quantity standpoint.
    The petitioners alleged that surface mining could also alter the 
physical and chemical properties of the water stored in the lake, 
resulting in diminution of water quality and potentially increasing 
water treatment costs. Based on available information, OSM's findings 
support this allegation. Surface coal mining and reclamation operations 
conducted within the Fern Lake watershed would significantly impair the 
water quality of Fern Lake by altering both the physical and chemical 
characteristics of the water. If surface coal mining operations 
occurred, chemical changes to the water are predicted to last several 
hundred years. [PED/EIS: page V-5]
    The PED/EIS concluded that these effects would result in increased 
treatment costs to the City of Middlesborough to meet domestic water 
supply standards for the water supplied to its users. A sustained 
increase in turbidity of Fern Lake waters would require the city's 
treatment plant to operate longer hours and/or to modify equipment to 
process high turbidity water. The increase in water sediments would 
increase costs because it would require more frequent equipment 
cleaning and disposal of more sediment. In addition, the plant would 
have to add chemicals and/or other processing equipment to reduce the 
increased concentrations of metals and trace elements in the water from 
Fern Lake such as fluoride, lead, mercury, selenium, and sulfate. The 
use of additional chemicals and/or installation of processing equipment 
would be necessary to meet domestic water supply standards. The 
existing plant was not designed to treat water with elevated levels of 
sulfates, sediments, and turbidity. [PED/EIS: page V-11-13]
    The significant changes to the water quality of Fern Lake would 
require the city to make appropriate changes to the existing water 
treatment system to maintain current water quality. These changes are 
predicted to be costly to Middlesborough, with no guarantee that the 
existing water quality could be maintained. Furthermore, no other 
domestic water supply of the same quality was identified which it would 
be economically feasible for the city to utilize.
    The PED/EIS also concluded that underground mining, from outside 
the petition area, would cause a major alteration of the water quality 
or treatment costs of water in Fern Lake.
    According to the petitioners, surface coal mining operations could 
affect aquifers and recharge areas for the watershed, thus affecting 
the overall hydrology and water availability to the City of 
Middlesborough. The PED/EIS concluded that the Fern Lake watershed is a 
renewable resource land and that surface coal mining could result in a 
substantial loss and reduction in the long-range availability of water 
supplies for the community of Middlesborough. In evaluating the 
allegation, I was especially concerned with the predicted impact of 
mining in the petition area on the water supply for Middlesborough.
    Based on OSM's findings, I have determined that changes in sediment 
loading and water chemistry as a result of surface coal mining 
operations will affect both aquatic life and drinking water supplies. 
For the long term, the resource lands subject to the petition would no 
longer produce a water supply that existing facilities and budget could 
treat, as discussed above. Therefore, I conclude that surface mining 
operations on these lands would substantially reduce the long-range 
productivity of the community's water supply.
    C. Allegation No. 3 is that surface coal mining operations would be 
incompatible with existing local land use plans or programs, 
specifically those associated with the Cumberland Gap National 
Historical Park.
    The Cumberland Gap National Historical Park Master Plan (National 
Park Service, 1978) states that ``according to law, the purpose of the 
Cumberland Gap National Historical Park is to preserve * * * natural 
features for the benefit and inspiration of the people.'' Based on this 
objective, the stated goals of the master plan include the securing of 
a ``land base through acquisition or other means that is adequate to 
preserve the park's natural * * * resources and to provide for visitor 
use and enjoyment.''
    The petition area is visible from the Pinnacle Overlook, one of the 
most popular destinations in the park, and was judged to offer greater 
esthetic qualities than any of the other viewsheds visible from the 
Overlook. I have concluded that based on the stated overall objective 
and purpose of the park, esthetic impacts associated with surface coal 
mining operations in the

[[Page 49798]]

petition area would be short to medium term, but would nevertheless be 
considered incompatible with the goals of the master plan which are to 
preserve the park's natural resources and minimize adverse effects on 
these resources and visitation because of strip mining (see previous 
discussion on page 7).
    D. Allegation No. 4 is that surface coal mining operations should 
not be allowed because the watershed, due to frequent flooding, 
constitutes a natural hazard land.
    The petitioners have alleged that any additional mining would 
increase surface water runoff and increase sediment loading and 
flooding to downstream areas in the Cumberland Gap National Historical 
Park and the City of Middlesborough. They support this by making a 
statement that, without any major surface disturbances within the 
watershed, there is still evidence of current sediment loading from the 
headwaters (identified as logging roads) which are depositing sediment 
in the stream channel of Little Yellow Creek.
    With regard to Allegation No. 4, OSM's findings in the PED/EIS 
demonstrated that mining in the petition area would not substantially 
affect the flooding potential in the Yellow Creek basin and that the 
Fern Lake watershed does not constitute a natural hazard land. Mining 
in the watershed would constitute a minor change in the overall land 
use, which, when coupled with the storage capacity of the required 
sediment basins, should not significantly alter surface water runoff to 
the Little Yellow Creek watershed. As a result, I have determined that 
the area does not constitute a natural hazard land and that mining 
would not significantly alter the flooding potential of the area.
VIII. Conclusion
    I find that surface coal mining operations in the petition area 
would affect the renewable resource lands in that area and result in a 
substantial loss in long-range productivity of Fern Lake, which serves 
as the Middlesborough public water supply. Surface mining would alter 
the physical and chemical properties of the water stored in the lake. 
Changes in sediment loading and water chemistry could degrade the water 
quality of the lake so as to be a major burden on the city's water 
treatment plant. Mining in the petition area would cause this loss in 
productivity even if conducted in full compliance with the 
environmental performance standards of SMCRA.
    In addition, I find that surface coal mining operations in the 
petition area would affect fragile lands resulting in damage to 
important esthetic values and natural systems and would be incompatible 
with the goals of the master plan for the Cumberland Gap National 
Historical Park. I considered these findings in my decision on the 
petition, but the most important consideration was the impact of 
surface coal mining operations in the petition area on productivity of 
the Fern Lake water supply.
    I find that alternative No. 1, designating the entire petition area 
as unsuitable for surface coal mining operations but allowing 
underground mining from outside the petition area, will best prevent 
the harms discussed in this decision. The other designation 
alternatives would not effectively address the adverse effects 
identified in Section V of the PED/EIS.
IX. Future Action
    OSM is responsible for approving or denying applications for 
proposed surface coal mining operations in the Fern Lake petition area. 
Under this decision, OSM would not receive and process applications for 
proposed surface coal mining operations on any coal seam within the 
Fern Lake petition area. However, if a petitioner provides information 
to terminate this designation, the petition would require new 
allegations of fact that would support such a termination.
X. Notification
    Pursuant to 30 CFR 942.764.19, this ``Statement of Reasons'' is 
being sent simultaneously by certified mail to the petitioners and by 
regular mail to every other party to the petition process. My decision 
becomes final upon the date of signing this statement. Any appeal from 
this decision must be filed within 60 days from this date in the Untied 
States District Court for the Eastern District of Tennessee, as 
required by Section 526(a)(1) of SMCRA.

    Dated: September 13, 1996.
Robert J. Uram,
Director, Office of Surface Mining Reclamation and Enforcement.
[FR Doc. 96-24262 Filed 9-20-96; 8:45 am]
BILLING CODE 4310-05-M