BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 143                    HEARING DATE: August 23, 2012 
           
          AUTHOR: Rubio                      URGENCY: No  
          VERSION: June 11, 2012             CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Surface mining: idle mines.  
          
          BACKGROUND AND EXISTING LAW
          The Surface Mining and Reclamation Act was amended by SB 108 
          (Rubio) last year to amend the definition of an "idle" mine and 
          to make other conforming changes to SMARA. A key component of SB 
          108 was a provision that replaced a one-year window to determine 
          whether a mine is "idle" with a rolling average over a five-year 
          period in which the operator could assess whether or not a 
          mine's production dipped and could be defined as "idle." 

          The Surface Mining and Reclamation Act (SMARA) requires that a 
          mine operator prepare a reclamation plan that is approved by the 
          lead agency, which is usually a local government. When an 
          operator decides to idle a surface mining operation, SMARA 
          requires the operator to prepare an interim management plan 
          (IMP) for approval by the lead agency. Procedural provisions 
          detailing IMP submission and for the Department of 
          Conservation's approval of an IMP are also contained in SMARA. 

          An IMP is considered an amendment to a reclamation plan. 
          Typically, the IMP addresses public health and safety issues 
          that must be addressed until operations are resumed and often 
          includes runoff, drainage, erosion control, and temporary 
          fencing. An IMP is valid for 5 years at which time, pursuant to 
          SB 108, it may be renewed for successive 5 year periods. 

          Idle mines must maintain approved financial assurances for 
          reclamation and, like active mines, must file an annual report 
          with the department along with appropriate reporting fees.  Idle 
          mines are also subject to annual inspections.

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          As explained below, SB 108 did not limit the number of IMP 
          extensions an operator could obtain. 

          PROPOSED LAW
          This bill limits the renewal of an idle surface mining operation 
          IMP to one additional five-year renewal period at the expiration 
          of the first five-year renewal period.

          ARGUMENTS IN SUPPORT
          According to the Sierra Fund, this bill resolves the potential 
          problem of an idle mine applying for an unlimited number of 
          extensions which would allow the mine to remain indefinitely 
          idle and not be required to begin reclamation activities. The 
          bill would allow an operator to idle the mine when demand is low 
          and at the same time ensure that an idle mine will begin 
          remediation on a reasonable timeframe.  

          ARGUMENTS IN OPPOSITION
          None received

          COMMENTS 
          The discussions on this topic in 2011 did not successfully 
          resolve the question that this bill would resolve. The author 
          has worked with the department and the Governor's office and the 
          Sierra Fund to craft this proposed solution. 

               
          SUPPORT
          Sierra Fund

          OPPOSITION
          None Received















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