[Federal Register Volume 84, Number 91 (Friday, May 10, 2019)]
[Proposed Rules]
[Pages 20595-20597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09560]


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DEPARTMENT OF INTERIOR

Office of Surface Mining Reclamation and Enforcement

30 CFR Part 917

[KY-260-FOR; Docket ID: OSM-2018-0008, S1D1S SS08011000 SX064A000 
190S180110, S2D2S SS08011000 SX064A000 19XS501520]


Kentucky Regulatory Program

AGENCY: Office of Surface Mining Reclamation and Enforcement (OSMRE), 
Interior.

ACTION: Proposed rule; public comment period and opportunity for public 
hearing on proposed amendment.

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SUMMARY: We, the Office of Surface Mining Reclamation and Enforcement 
(OSMRE), are announcing receipt of a proposed amendment to the Kentucky 
regulatory program, (herein referred to as `the Kentucky program'), 
under the Surface Mining Control and Reclamation Act of 1977 (SMCRA or 
the Act). Through this proposed amendment, Kentucky seeks to revise its 
program to include statutory changes that involve civil penalty escrow 
accounts, civil penalty fund distributions, self-bonding, and major 
permit revisions related to underground mining.
    This document gives the times and locations that the Kentucky 
program and this proposed amendment to that program are available for 
your inspection, the comment period during which you may submit written 
comments on the amendment, and the

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procedures that we will follow for the public hearing, if one is 
requested.

DATES: We will accept written comments on this amendment until 4:00 
p.m., Eastern Standard Time (e.s.t.), June 10, 2019. If requested, we 
will hold a public hearing on the amendment on June 4, 2019. We will 
accept requests to speak at a hearing until 4:00 p.m., e.s.t. on May 
28, 2019.

ADDRESSES: You may submit comments, identified by SATS No. KY-260-FOR, 
Docket ID: OSM-2018-0008, by any of the following methods:
     Mail/Hand Delivery: Mr. Michael Castle, Field Office 
Director, Lexington Field Office, Office of Surface Mining Reclamation 
and Enforcement, 2675 Regency Road, Lexington, Kentucky 40503.
     Fax: (859) 260-8410.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. For detailed instructions on 
submitting comments and additional information on the rulemaking 
process, see the ``Public Comment Procedures'' heading of the 
SUPPLEMENTARY INFORMATION section of this document.
    Docket: For access to the docket to review copies of the Kentucky 
program, this amendment, a listing of any scheduled public hearings, 
and all written comments received in response to this document, you 
must go to the address listed below during normal business hours, 
Monday through Friday, excluding holidays. You may receive one free 
copy of the amendment by contacting OSMRE's Lexington Field Office or 
the full text of the program amendment is available for you to read at 
www.regulations.gov.

Mr. Michael Castle, Field Office Director, Lexington Field Office, 
Office of Surface Mining Reclamation and Enforcement, 2675 Regency 
Road, Lexington, Kentucky 40503. Telephone: (859) 260-3900, Email: 
[email protected].

    In addition, you may review a copy of the amendment during regular 
business hours at the following location: Mr. John D. Small, Acting 
Commissioner, Kentucky Department for Natural Resources, 300 Sower 
Boulevard, Frankfort, Kentucky 40601, Telephone: (502) 564-6940, Email: 
[email protected].

FOR FURTHER INFORMATION CONTACT:  Mr. Michael Castle, Field Office 
Director, Lexington Field Office, Office of Surface Mining Reclamation 
and Enforcement, 2675 Regency Road, Lexington, Kentucky 40503. 
Telephone: (859) 260-3900, Email: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background on the Kentucky Program
II. Description of the Proposed Amendment
III. Public Comment Procedures
IV. Procedural Determinations

I. Background on the Kentucky Program

    Section 503(a) of the Act permits a State to assume primacy for the 
regulation of surface coal mining and reclamation operations on non-
Federal and non-Indian lands within its borders by demonstrating that 
its State program includes, among other things, State laws and 
regulations that govern surface coal mining and reclamation operations 
in accordance with the Act and consistent with the Federal regulations. 
See 30 U.S.C. 1253(a)(1) and (7). On the basis of these criteria, the 
Secretary of the Interior conditionally approved the Kentucky program 
effective May 18, 1982. You can find additional background information 
on the Kentucky program, including the Secretary's findings, the 
disposition of comments, and conditions of approval in the May 18, 
1982, Federal Register, (47 FR 21434). You can also find later actions 
concerning Kentucky's program and program amendments at 30 CFR 917.11, 
917.12, 917.13, 917.15, 917.16, and 917.17.

II. Description of the Proposed Amendment

    By letter dated September 19, 2018, Kentucky sent OSMRE an 
amendment to its program under SMCRA (30 U.S.C. 1201 et seq.) that 
includes changes to statutory provisions of the Kentucky Revised 
Statutes (KRS) (Administrative Record No. KY-2003-01). The General 
Assembly of the Commonwealth of Kentucky enacted statutory changes 
through House bill 261 and the changes became effective on July 14, 
2018. The statutory changes involve civil penalty escrow accounts, 
civil penalty fund distributions, self-bonding, and major permit 
revisions related to underground mining. These changes are codified at 
KRS Chapter 350, Surface Coal Mining, sections 350.0301, 350.064, 
350.070, 350.519, and 350.990. The Kentucky Department for Natural 
Resources was not required to promulgate administrative regulations as 
a result of the bill. The revised statutory provisions of 350 KRS are 
described below.
    A. KRS 350.0301, Petition Challenging the Determination of the 
Cabinet--Conduct of Hearings--Administrative Regulations--Secretary may 
Designate Deputy Secretary to Sign Final Orders. Kentucky seeks to 
revise KRS 350.0301(5) by removing language requiring civil penalty 
funds to be placed in escrow prior to a formal hearing on the amount of 
the assessment of the civil penalties. A provision allowing a waiver of 
the escrow amount for individuals demonstrating an inability to pay the 
proposed civil penalty assessment into escrow is also being removed.
    B. KRS 350.064, Reclamation Bond to be filed by Applicant. Kentucky 
seeks to revise KRS 350.064(2) by removing language that allows self-
bonding in the State. A self-bond is backed only by the company's name 
and overall financial health, not by sureties or specific pledges of 
collateral. Currently, in order to qualify and receive state approval 
for self-bond, the applicant must successfully demonstrate a history of 
financial solvency and continuous operation and the existence of a 
suitable agent to receive service of process.
    C. KRS 350.070, Permit Revisions. Kentucky seeks to revise 
350.070(1) by removing language that requires operators to submit a 
major permit revision application, for an extension of underground 
mining areas if certain conditions are met (area extension is not 
considered an incidental boundary revision and does not include planned 
subsidence or other new proposed surface disturbances). Kentucky also 
seeks to remove section (6)(b) that defines the maximum acres for a 
revision to be considered an incidental boundary revision involving 
underground mining.
    D. KRS 350.518, Permittee to submit permit-specific bond under KRS 
350.060(11)--Tonnage Fees--Assignment of Mine Type Classification--
Inclusion of Future Permits of Existing Classification--Inclusion of 
Future Permits of Existing Voluntary Bond Pool Members-- Permit-
specific Penal Bond--Administrative Regulations--Suspension of Permit 
for Arrearage in Fees, Rights and Remedies. Kentucky seeks to delete 
350.518(11), which allows penalty funds in excess of $800,000 to be 
equally divided between the AML supplemental fund and the Kentucky 
Reclamation Guaranty Fund, herein referred to as ``the Fund.''
    E. KRS 350.990, Penalties. Kentucky seeks to revise 350.990(1) by 
removing the requirement to allocate 50% of the civil penalties 
deposited in excess of $800,000 to the Fund for the purposes set forth 
in KRS 350.500 to 350.521, and 350.595 (which involve definitions, the 
Fund Commission, and other matters related to the Fund such as 
mandatory participation in the Fund, permit-

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specific bond requirements, forfeiture of bonds for permits covered by 
the Fund, and Fund coverage for the AML Enhancement Program) and 50% to 
the AML supplemental fund established under KRS 350.139(1),
    F. Deposit of Funds to State Treasury--Exceptions--Amount to be 
Transferred to Fiscal Courts--Remainder for Division of Mine Permits. 
Kentucky seeks to add new language that requires civil penalty funds 
collected over $800,000 to be redistributed to any mining program 
authorized by KRS Chapters 350, Surface Mining, 351, Department for 
Natural Resources, and 352, Mining Regulations. Chapters 351 and 352 
includes, among other things, mine safety provisions.
    In addition to the changes noted above, minor changes such as 
renumbering and grammatical edits are also included.
    The full text of the program amendment is available for you to read 
at the locations listed above under ADDRESSES or at 
www.regulations.gov.

III. Public Comment Procedures

    Under the provisions of 30 CFR 732.17(h), we are seeking your 
comments on whether the amendment satisfies the applicable program 
approval criteria of 30 CFR 732.15. If we approve the amendment, it 
will become part of Kentucky's State program.

Electronic or Written Comments

    If you submit written or electronic comments on the proposed rule 
during the 30-day comment period, they should be specific, confined to 
issues pertinent to the proposed regulations, and explain the reason 
for any recommended change(s). We appreciate any and all comments, but 
those most useful and likely to influence decisions on the final 
regulations will be those that either involve personal experience or 
include citations to and analyses of SMCRA, its legislative history, 
its implementing regulations, case law, other pertinent State or 
Federal laws or regulations, technical literature, or other relevant 
publications.
    We cannot ensure that comments received after the close of the 
comment period (see DATES) or sent to an address other than those 
listed (see ADDRESSES) will be included in the docket for this 
rulemaking and considered.

Public Availability of Comments

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment including your personal identifying 
information, may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

Public Hearing

    If you wish to speak at the public hearing, contact the person 
listed under FOR FURTHER INFORMATION CONTACT by 4:00 p.m., e.s.t. on 
May 28, 2019. If you are disabled and need reasonable accommodations to 
attend a public hearing, contact the person listed under FOR FURTHER 
INFORMATION CONTACT. We will arrange the location and time of the 
hearing with those persons requesting the hearing. If no one requests 
an opportunity to speak, we will not hold a hearing.
    To assist the transcriber and ensure an accurate record, we 
request, if possible, that each person who speaks at the public hearing 
provide us with a written copy of his or her comments. The public 
hearing will continue on the specified date until everyone scheduled to 
speak has been given an opportunity to be heard. If you are in the 
audience and have not been scheduled to speak and wish to do so, you 
will be allowed to speak after those who have been scheduled. We will 
end the hearing after everyone scheduled to speak, and others present 
in the audience who wish to speak, have been heard.

Public Meeting

    If only one person requests an opportunity to speak, we may hold a 
public meeting rather than a public hearing. If you wish to meet with 
us to discuss the amendment, please request a meeting by contacting the 
person listed under FOR FURTHER INFORMATION CONTACT. All such meetings 
are open to the public and, if possible, we will post notices of 
meetings at the locations listed under ADDRESSES. We will make a 
written summary of each meeting a part of the administrative record.

IV. Procedural Determinations

Executive Order 12866--Regulatory Planning and Review

    Pursuant to Office of Management and Budget (OMB) Guidance dated 
October 12, 1993, the approval of State program amendments is exempted 
from OMB review under Executive Order 12866.

Other Laws and Executive Orders Affecting Rulemaking

    When a State submits a program amendment to OSMRE for review, our 
regulations at 30 CFR 732.17(h) require us to publish a notice in the 
Federal Register indicating receipt of the proposed amendment, its text 
or a summary of its terms, and an opportunity for public comment. We 
will conclude our review of the proposed amendment after the close of 
the public comment period and determine whether the amendment should be 
approved, approved in part, or not approved. At that time, we will also 
make the determinations and certifications required by the various laws 
and executive orders governing the rulemaking process and include them 
in the final rule.

List of Subjects in 30 CFR Part 938

    Intergovernmental relations, Surface mining, Underground mining.

    Dated: December 13, 2018.
Thomas D. Shope,
Regional Director, Appalachian Region.

    Editorial note:  This document was received for publication by 
the Office of the Federal Register on May 6, 2019.

[FR Doc. 2019-09560 Filed 5-9-19; 8:45 am]
 BILLING CODE 4310-05-P