BILL ANALYSIS �
SB 108
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Date of Hearing: July 13, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 108 (Rubio) - As Amended: June 20, 2011
Policy Committee: Natural
ResourcesVote:9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill makes statutory definitions and reporting requirements
to ensure active mines are not inaccurately classified as idle.
Specifically, this bill:
1)Defines idle, when used to refer to a surface mine, as one at
which operations are curtailed for a period of one year or
more by more than 90% of the maximum annual mineral production
compared with production during any of the last five years and
where there is an intent to resume surface mining operations
at a future date. (This differs from the current statutory
definition of idle, which determines curtailment by comparing
current operations with maximum annual mineral production over
the life of the mine.)
2)Allows a mine operator who has failed to properly report a
mine's mineral production or mine status prior to January 1,
2012, to correctly report production or mine status in the
mine's 2012 annual report if it is submitted on or before July
1, 2013, and if the lead agency makes certain findings, in
writing, to the Department of Conservation.
FISCAL EFFECT
Potential one-time costs of an unknown amount to the Department
of Conservation during 2011-12 and 2012-13 to inspect mines for
which the owners seek to change the mine's status from abandoned
to idle.
Actual costs will depend upon the number of mines seeking a
change in status. The department indicates there are 306 mines
SB 108
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that would be affected by this bill. The department estimates
that, should half of those 306 mines require inspection, the
department would face costs of about $350,000-equivalent to the
work of 2.5 positions. However, the department would not be
able to recover these increased costs through fees on mine
operators because the annual budget of the department's Office
of Mine Reclamation currently reaches its statutory cap of $3.5
million, adjusted for inflation. (See Public Resources Code
Section 2207(d)(3).) Therefore, the department would have to
absorb any costs resulting from this bill, possibly to the
detriment of other department functions.
COMMENTS
1)Rationale . The author intends this bill to prevent productive
or potentially productive surface mines from being legally
defined as abandoned.
2)Background. Under the Surface Mining and Reclamation Act
(SMARA), lead agencies must have adopted a surface mining
ordinance, approved by the Department of Conservation's State
Mining and Geology Board, before approving mining operations
in their jurisdictions. The ordinance must specify
requirements for mine operation permits, as well as
requirements for reclamation plans and maintenance of
financial assurances.
In order to legally operate a mine, a mine operator must
possess a surface mining permit and an approved reclamation
plan. In general, a reclamation plan describes the nature of
the surface mining operation and explains how the land will be
restored after mining ceases, noting such concerns as
controlling groundwater contamination, rehabilitating habitat,
and stabilizing geological features. Operators must also
provide financial assurances to cover the costs the local
government or the state would incur if either has to reclaim
the land in the event the operator fails to do so.
SMARA also requires lead agencies annually to inspect all
mines in their jurisdictions. These inspections in part are to
determine whether mine operators are operating in accordance
with the approved reclamation plan and mining permit. Mine
operators are responsible for the cost of inspection.
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In addition, mine operators are required to report annually to
the lead agency and the department's Office of Mine
Reclamation. The report must describe the mining operation
during the previous calendar year and must include specified
information pertaining to ownership, production, land
disturbance and documentation of financial assurances,
reclamation plans and inspections.
A mining operation is legally considered idle if production is
curtailed by more than 90% of the previous maximum annual
mineral production for a period of one year or more and there
is intent to resume surface mining operations at a future
date. An idle mine differs from an abandoned mine, in that
the latter is considered an active mine for which production
permanently has ceased and that must undergo reclamation,
consistent with a reclamation plan.
A recent report by the State Mining and Geology Board noted
that, because of the failure of mine operators to follow
reporting requirements, many mines that have temporarily cut
back on production become legally classified as abandoned and
subject to reclamation requirements, despite mine owners'
intention to resume mining operations.
3)Support . This bill is supported by organizations representing
mining interests.
4)There is no formal opposition registered to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081