Natural Resources, Oil, Gas and Mining; Coal

Section R645-303-300

Transfer, Assignment, or Sale of Permit Rights

Notice of Proposed Rule

(Amendment)

DAR File No.: 35999
Filed: 03/30/2012 10:18:55 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule establishes standards for coal mine permit transfers, assignments or sale of rights within Utah. This rule is being amended at the request of the Office of Surface Mining to be as effective as federal regulation, in order to retain state primacy.

Summary of the rule or change:

This rule amendment allows a prospective successor operator to engage in coal mining operations under a permit if the party can demonstrate sufficient bond coverage remains in place. This amendment is in accordance with Office of Surface Mining regulations.

State statutory or constitutional authorization for this rule:

• Section 40-10-12

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings to the state budget. The amendment clarifies the Division's ability to approve a prospective successor mining operator if bond coverage remains in place, and no measurable impact is expected to the state cost in such situations.

local governments:

No local government costs or savings are anticipated. Local government is not impacted by this rule.

small businesses:

There are no anticipated costs or savings to small businesses because coal mining in Utah normally is not conducted by a small business.

persons other than small businesses, businesses, or local governmental entities:

Persons other than small businesses, businesses, or local government entities are not anticipated to incur costs or savings. These regulations impact the Division and coal mining companies in Utah.

Compliance costs for affected persons:

Coal mine operators within Utah are regulated via the R645 rules. This amendment clarifies the Division's ability to approve a successor mining operator for an existing permitted coal mine, and therefore no measurable impact on compliance costs is expected for coal mine operators. This amendment is in accordance with Office of Surface Mining regulations.

Comments by the department head on the fiscal impact the rule may have on businesses:

No measurable fiscal impact upon businesses is expected from this rule change.

Michael Styler, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Natural Resources
Oil, Gas and Mining; CoalRoom 1210
1594 W NORTH TEMPLE
SALT LAKE CITY, UT 84116-3154

Direct questions regarding this rule to:

• Steve Schneider at the above address, by phone at 801-538-5328, by FAX at 801-359-3940, or by Internet E-mail at steveschneider@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/15/2012

Interested persons may attend a public hearing regarding this rule:

• 04/25/2012 09:00 AM, Sevier County Admin. Bldg, 250 N Main St, Richfield, UT

This rule may become effective on:

05/23/2012

Authorized by:

John Baza, Director

R645. Natural Resources; Oil, Gas and Mining; Coal.

R645-303. Coal Mine Permitting: Change, Renewal, and Transfer, Assignment, or Sale of Permit Rights.

R645-303-300. Transfer, Assignment, or Sale of Permit Rights.

310. General Information. No transfer, assignment, or sale of rights granted by a permit will be made without the prior written approval of the Division. At its discretion, the Division may allow a prospective successor in interest to engage in coal mining and reclamation operations under the permit during the pendency of an application for approval of a transfer, assignment, or sale of permit rights submitted under R645-303-320, provided that the prospective successor in interest can demonstrate to the satisfaction of the Division that sufficient bond coverage will remain in place.

320. Application Requirements. An applicant for approval of the transfer, assignment, or sale of permit rights will:

321. Provide the Division with an application for approval of the proposed transfer, assignment, or sale including:

321.100. The name and address of the existing permittee and permit number or other identifier;

321.200. A brief description of the proposed action requiring approval; and

321.300. The legal, financial, compliance, and related information required by R645-301-100 for the applicant for approval of the transfer, assignment, or sale of permit rights;

322. Advertise the filing of the application in a newspaper of general circulation in the locality of the operations involved, indicating the name and address of the applicant, the permittee, the permit number or other identifier, the geographic location of the permit, and the address to which written comments may be sent; and

323. Obtain appropriate performance bond coverage in an amount sufficient to cover the proposed operations, as required under R645-301-800.

330. Public Participation. Any person having an interest which is or may be adversely affected by a decision on the transfer, assignment, or sale of permit rights, including an official of any federal, state, or local government agency, may submit written comments on the application to the Division, within 30 days of the advertisement publication described under R645-303-322.

340. Criteria for Approval. The Division may allow a permittee to transfer, assign, or sell permit rights to a successor, if it finds in writing that the successor:

341. Is eligible to receive a permit in accordance with R645-300-132 and R645-300-133;

342. Has submitted a performance bond or other guarantee, or obtained the bond coverage of the original permittee, as required by R645-301-800; and

343. Meets any other requirements specified by the Division.

350. Notification.

351. The Division will notify the permittee, the successor, commentators, and the Office of its findings.

352. The successor will immediately provide notice to the Division of the consummation of the transfer, assignment, or sale of permit rights.

360. Continued Operation Under Existing Permit. The successor in interest will assume the liability and reclamation responsibilities of the existing permit and will conduct the coal mining and reclamation operations in full compliance with the State Program and the terms and conditions of the existing permit, unless the applicant has obtained a new or revised permit as provided in the R645-200, R645-300, R645-301, R645-302-100 through R645-302-290, R645-302-310, R645-302-320, and R645-303.

 

KEY: reclamation, coal mines

Date of Enactment or Last Substantive Amendment: [February 6, 2004]2012

Notice of Continuation: February 3, 2012

Authorizing, and Implemented or Interpreted Law: 40-10-1 et seq.