Federal Government says Ohio lagging in reclaiming

Federal Government says Ohio lagging in reclaiming

May 13--COLUMBUS -- By Steve Bennish, Dayton Daily News, Ohio Knight Ridder/Tribune Business News

The federal government is threatening to take over Ohio's coal mine regulation because the state isn't reclaiming closed mines fast enough, allowing environmental hazards to linger.

The problem has arisen because Ohio hasn't put enough resources into cleaning up old mines, officials with the U.S. Office of Surface Mining told the state.

In a May 4 letter, federal officials say Ohio has a 23-year history of inadequately ensuring timely coal mine reclamation through fees on industry and bond guarantees. The state has until August to come up with a plan.

If Ohio can't resolve the issue, the letter says, the federal government will take over "full or partial" control of the program and require compliance with federal rules.

Failing to reclaim the coal mines and clean them up can lead to poisoned streams, dangerous mine openings and even landslides, among other problems, according to the Ohio Department of Natural Resources.

Coal mine reclamation encompasses a variety of activities, including closing underground mines and disposing of hazardous mining byproducts.

Private companies normally handle the job, and states are responsible for overseeing the reclamation and ensuring that it meets state and federal standards.

But additional problems ensue when mining companies go bankrupt, as has happened in Ohio. The state is then forced to handle the cleanup, and the federal government says that's been taking too long in Ohio -- an average of more than five years, the letter said.

The state is millions of dollars short of funding for the timely reclamation of recently mined land, federal officials estimate. The state has, in its inventory, more than 20 sites in which the mining operator has not completed reclamation and mining ended within the past two decades.

A federal takeover in Ohio could also make the state ineligible for federal funds that pay for the reclamation of older mines classified as abandoned, the letter said.

Michael Sponsler, chief of Ohio's Division of Mineral Resources Management, said he's now in talks with the coal industry and federal officials to resolve the issue. A budget proposal by state officials to satisfy federal concerns met industry opposition in 2003, Sponsler said. The Ohio Legislature turned the proposal down.

"I'm hopeful we can get it resolved," Sponsler said Wednesday. He said one former 35-acre coal mine site in Belmont County has been awaiting reclamation since the mid 1980s.

The letter from federal officials says the state has failed to require that mining companies post a high enough bond to guarantee funding for cleanup once mining stops. The bond ensures a clean-up even if a company goes bankrupt or dissolves. Ohio's system requires that companies post a bond of $2,500 per acre and pay a 3-cent tax per ton of coal mined statewide, which is then deposited in a pool of funds. Cleanup costs are typically $7,000 per acre. The pool, which only takes in $1.7 million annually, has proven inadequate to fill the gap, Sponsler said.

Mike Gauldin, spokesman for the U.S. Office of Surface Mining, said potential financial liability and environmental impact could increase with time if Ohio doesn't resolve the issue.

"The intent of the surface mining law is to have coal mining and the destruction it caused to the environment and landscape be a temporary thing," he said. "Dragging it out like that means it takes longer and land is not returned to a useful purpose."

The federal government has resorted to taking over state mining regulation in only two cases in the past 20 years, in Oklahoma and Missouri.

In 2002, Ohio's coal mines produced more than 20 million tons worth $440 million, the Ohio Geological Survey said.

Mike Carey, president of the Ohio Coal Association, said Wednesday his group is committed to coming up with a solution.

"We understand there is an issue and we have been working for a while to address that issue," he said. "Hopefully, we can rectify it, and we are getting there."

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