BILL ANALYSIS Ó
SB 108
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Date of Hearing: June 27, 2011
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
SB 108 (Rubio) - As Amended: June 20, 2011
SENATE VOTE : 39-0
SUBJECT : Surface mining: idle mines
SUMMARY : Amends the definition of an idle mine by taking a
snapshot of a five year period, rather than the life of the
mine, to determine if production has been curtailed to the point
where the interim management plan requirements should apply;
allows a mining operator to come into compliance with the
Surface Mining and Reclamation Act's (SMARA) idle mine
requirements by July 1, 2013 if the operator has neglected to
prepare an interim management plan (IMP) as required by law.
EXISTING LAW:
1)Prohibits conducting surface mining operations without first
obtaining a permit, submitting a reclamation plan, and
providing financial assurances to a lead agency, which is
usually a local government.
2)Requires a surface mining operator to submit an IMP to the
lead agency for review and approval within 90 days of a
surface mining operation becoming idle.
3)Defines idle mines as those at which operations are curtailed
for a period of one year or more by more than 90% of the
previous maximum annual mineral production and where there is
an intent to resume surface mining operations at a future
date.
4)Requires that an IMP, among other things, provide measures for
maintaining the site in a safe and stable condition.
5)Establishes that an IMP is an amendment to the applicable
reclamation plan and is not subject to the California
Environmental Quality Act.
6)Allows an IMP to remain in effect for a period not to exceed
five years, at which time the lead agency shall either (1)
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renew the IMP for another period not to exceed five years if
the surface mining operator has complied fully with the IMP or
(2) require the surface mining operator to commence
reclamation in accordance with its approved reclamation plan.
7)Classifies a surface mining operation that remains idle for
over one year without an approved IMP as "abandoned" and
requires the operator to commence and complete reclamation in
accordance with the approved reclamation plan.
8)Requires the owner or the operator of a mining operation
within the state to annually provide the director of the
Department of Conservation with a report that identifies,
among other things, the mining operation's status (i.e.
active, idle, reclaimed, or in the process of being reclaimed)
and the commodities produced by the mine and the type of
mining operation.
THIS BILL:
1)Defines idle mines as those at which operations are curtailed
for a period of one year or more by more than 90% of the
maximum annual mineral production within any of the last five
years and where there is an intent to resume surface mining
operations at a future date.
2)Permits a mine operator who has failed to properly report a
mine's mineral production or mine status on its annual report
to the director of the Department of Conservation to correct
the report in its 2012 annual report if both of the following
occur:
a) The 2012 annual report is submitted on or before July 1,
2013.
b) The lead agency confirms in writing to the Department of
Conservation all of the following:
i) The operator has notified the lead agency that it
intends to continue surface mining operations.
ii) The operator has an existing, valid permit or a
vested right to conduct surface mining operations.
iii) The operator's reclamation plan has been approved
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and inspected by the lead agency. The Office of Mine
Reclamation may enter a mine site to conduct an
inspection.
iv) The operator demonstrates that there are
commercially useful mineral reserves remaining at the
permitted surface mining operation.
3)Requires payment of all unpaid fees for the years during which
the operation's status was not properly reported.
4)Allows a mine operation that is considered abandoned because
it became idle and did not have an approved IMP to return to
the idle status at the request of the operator if an IMP is
approved by July 1, 2013, and #2 and 3 above are met.
FISCAL EFFECT : Unknown
COMMENTS :
1)Background. According to a 2011 State Mining and Geology
Board report, lack of operator adherence to statutory
requirements can result in many surface mining operations
becoming abandoned even if such operations had an intent to
resume mining.
Currently, 97 mines should have IMPs but only 35 have them,
and 35 lead agencies (more than 28% of all lead agencies in
California) had mines that required IMPs but did not have them
in place.
Lack of operator compliance with SMARA's idle mine
requirements, and lack of IMP monitoring by SMARA lead
agencies, has resulted in many surface mining operations
becoming statutorily abandoned, even if such operations had an
intent to resume mining.
In the report's conclusion, the State Mining and Geology Board
highlights the need for legislative action to provide relief
to operators that failed to follow statutory requirements for
IMPs.
This bill provides a brief amnesty period for a mining
operator who did not adhere to SMARA's statutory requirements
regarding IMPs. Specifically, this bill will allow a mining
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operator to come into compliance with the idle mine
requirements by July 1, 2013. Without this amnesty, an
operator of a mine that has inadvertently become abandoned
will be forced to execute its reclamation plan. If an
operator wishes to resume mining, it would be able to do so
once reclamation is completed and new permits are obtained.
This would lead to an absurd and unproductive result since the
operator would have to essentially undue the reclamation work
it was required to complete.
This bill also amends the definition of an idle mine by taking
a snapshot of a five year period, rather than the life of the
mine, to determine if production has been curtailed to the
point where the interim management plan requirements should
apply. This amendment is in response to the recession and
will prevent a mine from becoming idle simply because the
demand for materials is significantly lower than usual.
REGISTERED SUPPORT / OPPOSITION :
Support
California Cement Manufacturers Environmental Coalition
California Construction and Industrial Materials Association
CalPortland Company
Sespe Consulting, Inc.
Specialty Minerals Inc.
Vulcan Materials Company, Western Division
Werner Corporation
West Coast Aggregates, Inc.
Opposition
None on file
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092