Pennsylvania
Department of Environmental Protection
Coal Remining and Reclamation XL Project
FINAL PROJECT AGREEMENT
September 22, 2000
Final Project Agreement
Pennsylvania Department of Environmental Protection
Coal Remining and Reclamation XL Project
I.
Introduction to the Agreement
A.
Executive Summary
B. Purpose of the XL Program
C. Purpose of this Final Project Agreement
D. Project
Signatories and Contacts
II.
Description of the Project
III.
Project XL Acceptance Criteria
A. Anticipated Superior Environmental Performance
B. Cost Savings, Paperwork Reduction and Operational
Flexibility
C. Stakeholder Involvement and Support
D. Innovative Approach and Multi-Media Pollution
Prevention
E. Transferability of the Approach to Other Entities
or Sectors
F. Feasibility of the Project
G. Monitoring, Reporting, Accountability, and
Evaluation Methods to be Used
H. Avoidance of Shifting the Risk Burden to Other
Areas or Media
IV. Description
of the Requested Flexibility and the Implementing Mechanisms
A. Requested
Flexibility
B. Legal
Implementation Mechanism
V. Project Schedule and Reporting
A. Schedule
B. Reporting,
and Evaluation
VI.
Legal Basis for the Project
A. Authority to Enter Into Agreement
B. Legal Effect of Agreement
C. Other Laws and Regulations that May Apply
D. Retention of Rights to Other Legal Remedies
VII. FPA Implementation Issues
A. Withdrawal from or
Termination of the FPA
B. Procedures for Withdrawal or
Termination of the FPA
C. Modification of the FPA
D. Duration of the Agreement
E. Dispute Resolution
F. Transfer of the Project Benefits and
Responsibilities to a New Owner
G. Project Completion or Termination
H. Periodic Review
I. Effective Date
I. Introduction to the Agreement
A. Executive
Summary
The Pennsylvania Department of Environmental Protection
(PADEP), has proposed this XL Project to explore a new approach to
encourage the remining and reclamation of abandoned coal mine sites. The approach would be based on compliance with
in-stream pollutant concentration limits and implementation of best management practices
(BMPs), instead of National Pollutant Discharge Elimination System
(NPDES) numeric effluent limitations measured at individual discharge points. This XL project would provide for a test of this
approach in up to eight watersheds with significant acid mine drainage (AMD)
pollution. The project will collect data to
compare in-stream pollutant concentrations versus the loading from individual discharge
points and provide for the evaluation of the performance of BMPs and this alternate
strategy in PADEPs efforts to address AMD.
B. Purpose
of the XL Program
This Final Project Agreement (FPA) states
the intentions of the Project Signatories to carry out a pilot project as part of
EPAs Project XL which tests innovative approaches to environmental
protection. Project XL is an EPA initiative
to test the extent to which regulatory flexibility, and other innovative environmental
approaches, can be implemented to achieve both superior environmental performance and
reduced economic and administrative burdens. (See
Federal Register: May 23, 1995 (Volume 60, Number 99 page 27282-27291).
C. Purpose
of this Final Project Agreement
This FPA is a joint statement of the Project
Signatories plans and intentions with respect to the PADEP Coal Remining and
Reclamation XL Project. This FPA outlines the
details of how this project is expected to be implemented and how the superior
environmental performance is to be measured and sets forth the regulatory flexibility that
is necessary to implement this project.
The Project Signatories expect significant environmental
benefits from the implementation of this project, including:
· the
encouragement of the reclamation of scarred and abandoned mine land,
· the reduction of acid mine drainage
and improvement of in-stream water quality,
· the
opportunity to test the effects of using best management practices in remining, and
· the
emphasis on pollution prevention and watershed approaches in coal remining.
This FPA sets forth the plans of the Project Signatories
and represents the firm commitment of each signatory to support the XL process, to
implement the necessary regulatory flexibility in a timely fashion and to follow the terms
of this FPA. This FPA is not, however,
intended to create legal rights or obligations and is not a contract, a final agency
action or a regulatory action such as a permit or rule.
This FPA does not give anyone a right
to sue the Project Signatories for any alleged failure to implement its terms, either to
compel implementation or to recover damages.
This FPA and materials relating to this project are available on the Project XL Web Site at www.epa.gov/projectxl
and www.dep.state.pa.us/dep/deputate/minres/Districts/homepage.htm
D. Project
Signatories and Contacts
The Project Signatories to this Final Project Agreement
(FPA or Agreement) are EPA, Region III and the Pennsylvania Department of Environmental
Protection. The Project contacts are:
Steven J. Donohue (3EI00)
Office of Environmental Innovation
US EPA Region III
1650 Arch Street
Philadelphia, PA 19103-2029
(215) 814-3215 FAX 814-2783
donohue.steven@epa.gov
Ted Cochin (1802)
Office of Environmental Policy Innovation
US EPA Waterside Mall
401 M Street SW
Washington, DC 20460
(202) 260-0880 fax 260-9284
cochin.ted@epa.gov
Michael Smith, District Mining Manager
Moshannon District Office
186 Enterprise Drive
Phillipsburg PA 16866
(814) 342-8200 fax 342-8216
MichaeSmit@state.pa.us
II. Description of the Project
The Pennsylvania Department of Environmental Protection
(PADEP), together with the EPA Office of Water and the Interstate Mining
Compact Commission (IMCC)-member states, have been exploring a new approach to
encourage remining. The approach would be
based on compliance with in-stream pollutant concentration limits and implementation of
best management practices (BMPs), instead of National Pollutant Discharge
Elimination System (NPDES) numeric effluent limitations measured at individual
discharge points. The project will collect
data to compare in-stream pollutant concentrations versus the loading from individual
discharge points and provide for the evaluation of the performance of BMPs and this
alternate strategy in PADEPs efforts to address AMD.
Under this project, PADEP would continue to apply
current effluent limitations/permitting requirements to pre-existing discharges that are
physically encountered and collected with discharges during active remining operations. PADEP is requesting regulatory relief from numeric
effluent limits for preexisting discharges that are not directly encountered during
remining, and for all preexisting discharges after completion of remining, including both
those discharges that were encountered and were not encountered during remining.
For this project reminers will be required to meet or
improve water quality at an in-stream monitoring point (or points) rather than at each
individual discharge to the stream. In
certain circumstances, in-stream water quality monitoring is the most effective way to
measure the performance of AMD remediation activities within the watershed, as the water
quality impact of all remining, reclamation, and abatement activities are manifest there. The XL Project will use concentration, rather than
loading data, because: 1) in-stream
concentration data are more stable than load data; 2) concentration data are much easier
and less costly to collect than load data (however for this test load data will also be
collected); 3) pollution loads from individual discharges are manifested in the in-stream
concentration; and 4) loading data, particularly in large streams, tend to be dominated by
flow, which makes it difficult and impractical to monitor actual changes in in-stream
quality. Accordingly, when using in-stream monitoring as a measure of environmental
performance, concentration data are much more practical and sensitive than loading data. This would not be an appropriate method of
monitoring if a stream were so large that massive dilution was taking place that would
mask the effect of the remining. As stated
previously, the testing required by the project will provide for the collection of both
in-stream concentration and individual discharge loading data in order to assess the BMP
approach to remining permits.
BMPs are pollution prevention tools rather than end of
pipe treatments. Practices such as preventing or diverting water from contacting acid
forming rock materials, applying lime to the rock to neutralize its acid potential, or
segregating and isolating acid producing rock strata during mining will stop water from
picking up acidity and leaching iron, aluminum and manganese from the mine overburden.
Reclaiming, regrading and revegetating the land can eliminate ponding water, reduce water
infiltration and provide for water transpiration/respiration by plants. The goal of the BMPs is to reduce or eliminate the
formation of acid mine drainage that would otherwise have to be collected and treated. Remining may be the only economically viable
solution for reducing highly degraded or high volume abandoned mine discharges,
since long term end of pipe treatment is usually not viable or is cost prohibitive. For each watershed project, a set of BMPs will be
designed that are expected to significantly improve water quality. Pennsylvanias past experience with
Subchapter F mining permits demonstrates the potential effectiveness of BMP implementation
on remining projects.
This XL project will include remining pilot sites in up
to eight different watersheds with significant AMD pollution that will be selected
throughout Pennsylvania. The first three of
these pilot projects are expected to be ready for implementation very soon. As many as five more pilot projects may be
implemented within the next year. PADEP will
select appropriate remining participants and sites for these pilot projects, in
consultation with EPA Office of Water and Project XL staff, to ensure that the sites will
provide useful and reliable information on the success of the BMP approach to remining, as
well as to ensure that the participating companies have an acceptable environmental
compliance history. The potential pilot
projects are:
1. Amerikohl
Rathmel Operation, Soldier Run Watershed, Butler County.
2. River
Hill Mid Penn #1 Operation, Pine Run Watershed, Clearfield County.
3. Sky
Haven Coal Company Surveyor Run and Ridge Road Operations, Surveyor Run Watershed,
Clearfield County.
Each remining site selected will be an abandoned
previously mined area that was left unreclaimed and is not expected to be remined in the
future under the existing permitting program. In
addition, each of the watersheds for the remining sites that will be selected for this XL
Project is severely degraded by acid mine
drainage from abandoned mine discharges and will either be currently listed on
Pennsylvanias Clean Water Act (CWA) Section 303(d) list[1]
or will have been identified as a water body that does not meet water quality criteria due
to abandoned mine drainage. Each watershed
will also have significant remining and reclamation potential, suitable overburden and
geology and have viable additional options for offsetting increased pollution if the
specified BMPs are not fully successful.
States are required to develop Total Maximum Daily Loads
(TMDL) for impaired water bodies identified on their CWA Section 303 (d)
lists. A TMDL defines the load that can be
delivered to a stream from all sources within the watershed while still achieving federal
and state water quality standards. The
development and implementation of a TMDL for watersheds containing abandoned mine lands
presents a unique challenge because in most cases there is no viable responsible party
available to control AMD from an abandoned mine. For
each watershed, it is expected that remining efforts will be an integral part of a water
quality remediation plan following the development of TMDL limitations. Water quality improvements from remining will be
achieved by implementing BMPs which are described in the recently drafted
Coal Remining Best Management Practices Guidance Manual, EPA, March 2000[2].
This XL Project is a way for the sponsor and
stakeholders to test and obtain data on the effectiveness of using the BMP approach to
address in-stream water quality in up to eight AMD degraded watersheds. The flexibility being provided for this testing
for these eight sites should not be seen as a precedent for this approach or as EPAs
endorsement of this approach in areas or sites outside the scope of this XL Project.
This project will not change the conventional effluent
limitation requirements for discharges that are physically encountered [3] by the mining operation, including pit water
discharges or discharges from sedimentation ponds. Any
pre-existing pollution discharges[4] that are encountered
during the course of mining operations and any pit water will be monitored and treated (as
necessary) to meet numerical effluent limitations. With
respect to these discharges, the pilot projects will regulate the same chemical parameters
as a typical remining permit. The
pre-existing discharges that are not physically encountered
will be addressed by the in-stream pollutant concentration compliance monitoring
points. The in- stream monitoring will
capture the combined pollution loading of the pre-existing discharges. For the purposes of testing the effectiveness of
the BMP approach during the XL pilot projects, the pre-existing discharges will be
monitored in order to compare these results with the in-stream concentrations.
III. Project XL Acceptance Criteria
A. Anticipated
Superior Environmental Performance
This pilot project is expected to provide superior
environmental performance (SEP) because it will encourage coal operators to
undertake remining projects that otherwise would have been too risky or expensive because
of the potential to have to treat pre-existing acidic discharges. It is hoped that, in return for this lessening of
the risk of discharge treatment, the reminers will implement more reclamation activities
in the watershed than existing Pennsylvania regulations require. The reminers will still
be responsible for an equally protective standard of maintaining overall water quality but
will accomplish this via BMPs. Under this
project, treatment of discharges will only be undertaken as a last resort if the BMPs fail
(or were not implemented) and water quality is degraded.
Remining (with reclamation to present-day standards) is an effective way to reclaim
abandoned mine lands and improve water quality, at little or no cost to taxpayers. These pilots are designed to increase the number
of remining operations providing reclamation and to enhance the degree of reclamation and
AMD-abatement measures taken on remining operations.
The source of the water discharging from acid mine
drainage seeps or point sources is generally water infiltrating from surrounding areas
within the watershed. Application of one or
more BMPs to the watershed, should have a positive effect on the loading of AMD that is discharged in the watershed. PADEP has an extensive body of scientific
knowledge and experience in successfully remining and reclaiming abandoned mine lands to
eliminate acid mine drainage.
A recent study by PADEP of 116 completed remining
operations with 233 discharges or hydrologic units showed that approximately 47% of the
projects resulted in statistically significant reduction in discharge loadings, while less
than 1% resulted in degraded water quality. Although
the balance of the remining discharges may not have shown any statistically significant
improvement in water quality, no degradation occurred and many other public safety and
environmental improvements were implemented with the remining. These included removal of dangerous highwalls,
pits and ponded water; sealing mine openings, and regrading and vegetating abandoned mine
lands. Overall, remining on these 116 sites
reduced acidity load by 15,918 lbs/day (61%), iron load by 517 lbs/day (35%), manganese
load by 31 lbs/day (13%), and aluminum load by 302 lbs/day (43%). Of the 283 remining permits issued by PADEP as of
December, 1999, only five of the reminers, or less than 2%, ever incurred the cost of
long-term treatment due to increased pollution loading.
These Project XL pilot projects are expected to yield
results as good as or better than Pennsylvanias existing remining program, while
allowing the program to expand into watersheds and undertake projects that otherwise would
not have been attempted. Many potential
remining projects are never undertaken due to concerns about the possibility of being
required to assume the cost of discharge
monitoring or treatment, and site constraints or site conditions that make it infeasible
to write permits with conventional numeric effluent limits.
For example, at sites where the pre-existing mine drainage discharges directly as
subsurface baseflow into the groundwater, it
may be difficult or impossible to monitor and develop a loading-based numeric effluent
limit.
Initial pilot projects are limited to Clean Water Act §
303(d) impaired watersheds where remining is anticipated to be one component of a TMDL
driven watershed restoration plan.[5] In addition, the streams in the pilot sites
selected will be small enough so that PADEP can easily evaluate the impact of the use of
BMPs on the water quality. The pilot projects
should, at a minimum, result in equivalent environmental performance but are expected to
demonstrate significant environmental improvement. The
chief purpose of the projects, however, is to determine the extent to which superior
environmental results can be obtained.
The beneficial water quality impacts of remining are
documented in Hawkins (1994, 1995) and Smith and Dodge (1995). Studies on the effectiveness of remining as a mine
drainage pollution abatement tool are summarized in Hawkins (1998). These studies are contained and referenced in Coal
Mine Drainage Prediction and Pollution Prevention in Pennsylvania,1998, a book published
by PADEP[6].
The promise of water quality improvement is only part of
the superior environmental performance expected from
the project. The reclamation and
revegetation of the abandoned mining areas,
and possibly other areas of the watershed, will result in reduced erosion and
sedimentation in adjacent streams, create habitat for flora and fauna, eliminate physical
hazards such as high walls and pits, improve aesthetics through restoration of a barren
landscape and removing the remaining coal reserves from scarred land instead of mining in
virgin areas.
B. Cost
Savings, Paperwork Reduction and Operational Flexibility
This project will significantly reduce the expenditure
of public monies for reclamation of abandoned mine lands by encouraging remining by
private parties. Remining reclaims land to
current standards. Through the extraction of
remaining coal reserves and the reclamation and revegetation of the land through remining,
remaining coal reserves are utilized, land is reclaimed at no public expense, and water
quality can be improved. Further, the
proposed project encourages remining by shifting or reducing some of the risk that
operators take when mining degraded land. This
risk of incurring the cost of treatment of
unencountered pre-existing discharges frequently discourages operators from remining areas
that would otherwise be prime candidates for
reclamation through remining. PADEP has shown
that it is more cost effective to implement BMPs than risk the long term financial
liability of treating an AMD discharge to meet numeric limits. If post mining treatment were required, it would
make these operations economically infeasible. For
example, the capital costs for treating AMD at the Amerikohl Rathmel site would be
$182,000, plus annual operating costs of $108,000, for an estimated 50 years. However, the estimated cost of implementing the
abatement plan based on BMPs is $56,686, and
this is economically feasible given the expected profit from the extraction of the coal in
the remining.
In addition, the BMPs will have an overall benefit to
the surrounding environment and enhance future land use and aesthetics, increase safety
and provide employment to local residents. Some
relatively minor cost savings and paperwork reduction will be gained through the BMP
approach, which will only require quarterly, rather than monthly, monitoring of
pre-existing discharges after permit issuance.
C. Stakeholder
Involvement and Support
PADEP sponsored a Project XL meeting for stakeholders on
June 6, 2000, to present the details of this proposed XL Project and to solicit
participation by stakeholders in the development of the project. Both before and after permit issuance, all water
quality data, the permit and supporting application materials, the Consent Order and
Agreement, inspection reports,
correspondence, and other associated materials will be maintained and made available for
public inspection at the appropriate PADEP district mining office for each pilot
watershed. In some cases, citizen watershed
organizations have formed around efforts to remediate AMD-impacted streams. Such organizations and other stakeholders, will be
invited to stakeholder meetings held by PADEP to consider the best watersheds to become
part of this pilot and possible BMPS to bring about water quality improvements.
In July 1999, the Mining and Reclamation Advisory Board
(MRAB) met and toured the Amerikohl Soldier Run Site in order to learn more about this BMP
approach to remining permits. The MRAB is
made up of a cross section of entities, from coal mining companies to environmentalists,
that are stakeholders in the remining of Pennsylvanias abandoned coal mine lands. Members of the MRAB will be invited to participate
in this project as stakeholders. In late
October 1999, PADEP issued a statewide press release to publicize the BMP approach in coal
remining permits.[7] PADEP also made a presentation on the BMP
approach in remining permits was also made by PADEP at the April 27, 2000 MRAB meeting in
Harrisburg, Pennsylvania.
D. Innovative
Approach and Multi-media Pollution Prevention
The project will be a test of an innovative approach to
encourage remining with an emphasis on BMPs as opposed to numeric effluent standards. The use of BMPs without numeric limits is an
innovative approach that focuses on preventing pollution at the source(s) in the abandoned
mine land areas of the watershed regardless of whether they will be disturbed
(encountered) during the remining. This
project will provide EPAs Office of Water with data and experience as it examines
coal mining effluent limitations and the effect of the BMP approach on the overall water
quality in degraded streams. This XL
project will also allow PADEP, EPA and the reminers to gain more experience in how to
implement BMPs, develop new BMPs and refine the application of existing BMPs, as well as
provide data on the most effective BMPs and information on possible improvements in their
use.
E. Transferability
of the Approach to Other Entities or Sectors
Pennsylvania
has over 2,400 miles of streams degraded by acid mine drainage and an estimated $15
billion public liability for the remediation of abandoned mine lands. There are significant reminable coal reserves in
the abandoned mine lands throughout the bituminous and anthracite regions of Pennsylvania
in AMD-degraded watersheds, where this pilot project could be directly transferred. In addition, as evidenced by the interest of the
Interstate Mining Compact Commission (IMCC) and a possibility noted in
EPAs current examination of coal mining effluent limitations, this project might be
applicable to all of the Appalachian coal producing states and to other states with
abandoned coal mines with AMD problems.
F. Feasibility
of the Project
The Sponsor has the financial capability, personnel and
senior management commitment necessary to implement and oversee the elements of this XL
Project. The Agencies, by signing this FPA,
agree to support the project, subject to any public review procedures necessary to
implement the legal mechanism for the project.
The proposed project watersheds are well-suited for the
application of this alternative remining approach for the following reasons: 1) the affected stream segments are not currently
meeting in-stream water quality standards; 2) remining, employing the appropriate BMPs is
likely to result in an overall improvement to in-stream water quality and reduce the total
daily load of mine drainage pollutants; 3) significant reminable coal reserves are present
in the watershed; 4) there is significant acreage in the watersheds in need of surface
reclamation; 5) there are numerous sources of mine drainage entering the watersheds,
making monitoring at each individual discharge point less practical than in-stream
performance monitoring, 6) discharges are in a location that makes monitoring and
establishment of numerical effluent limitations very impractical or impossible; and 7)
there are multiple mining and reclamation opportunities available in the watersheds,
making it more practical to monitor the combined effect of these projects rather than
focusing on the performance at smaller individual parts of the projects.
G. Monitoring,
Reporting, Accountability, and Evaluation Methods to be Used
EPA and PADEP intend to make all project information
available to stakeholders in a form that is accessible and easy to understand. EPA and PADEP Project contacts are listed in
Section I.D. of this FPA. Project
Information and Progress Reports for this project will also be posted on the PADEP web
site at http://www.dep.state.pa.us/dep/deputate/minres/Districts/homepage.htm and the EPA
website at http://www.epa.gov/ProjectXL/padep/index.htm. Project documents are also available for review
between 8:00 am and 4:00 pm at the Moshannon District Mining Office on
186 Enterprise Drive, Phillipsburg PA 16866. The telephone number of the office is (814)
342-8200.
The success of the pilot projects in maintaining
compliance with environmental laws will be monitored and reported throughout the projects. In addition, each pilot project will be assessed
in terms of: 1) the amount of abandoned mine lands that have been reclaimed, 2) water
quality improvements that have been realized that would not have occurred under the
conventional remining permit program, 3) determining the effect of the BMPs on pollution
loads from pre-existing discharges, and 4) determining the impact/effectiveness of the
additional BMPs implemented that would not have been required under the conventional
Pennsylvania remining program. PADEP
will attempt to quantify the number of stream miles now meeting water quality standards as
a result of the project. The above criteria will allow a rigorous assessment of SEP.
Also, because implementation of the BMPs is such an
important component of these operations, PADEP recognizes that more frequent inspections
may be needed to oversee BMP sites versus standard remining permit sites. PADEP inspection frequencies will be increased
appropriately to ensure the BMPs have been fully implemented. The actual PADEP inspection frequency will depend
on the complexity of the BMPs selected for each site.
Periodic reports and updates regarding the activity on these pilot sites and water
quality monitoring results will be submitted to EPA.
For each pilot site, environmental performance will be
measured at one or more key in-stream monitoring points as well as at the pre-existing
pollution discharge monitoring points. In-stream
monitoring during baseline, active mining and post mining will be performed both upstream
(if available) and downstream of the pre-existing discharge monitoring points. A pre-project water quality baseline of at least
one years duration will be established at each of these points. During active mining, the principal in-stream
water quality station will be monitored at least twice a month for the key mine drainage
parameters (pH, acidity, alkalinity, specific conductance, iron, manganese, aluminum, and
sulfates). Individual discharges will be
monitored monthly before mining for the same parameters as well as flow rate, so that
pollution loading rates can be determined. A
pre-project statistical baseline will be established for the in-stream and discharge
monitoring points.
Following initiation of the project, monitoring of the
principal in-stream monitoring point(s) will continue twice a month. Individual discharges will continue to be
monitored quarterly. Water quality
performance will be reviewed with each quarterly site inspection. Annually, and for each request for release of
reclamation bonds, water quality data from before, during and after mining will be
statistically analyzed to determine whether or not there were any statistically
significant[8]
changes in water quality both at the in-stream monitoring point and for individual
discharge loadings. PADEP believes that
monitoring at in-stream monitoring points will provide a better indication of the overall
health of the streams and effects of remining on the watershed than monitoring several
individual discharge points, that may not
capture all the pollution loading inputs to the stream.
The main goal of this project is not just to demonstrate
that remining with the BMP approach can produce water quality improvements (this has
already been demonstrated in PADEP studies), but rather that implementation of a BMP-based
remining permit can further encourage remining in places that otherwise would not have
been worth the operators expense or risk of undertaking a remining project or where
a conventional numerical effluent limitation is infeasible.
Although water-quality performance will be evaluated, the overall success of the
project will also be evaluated based on the following criteria: Acreage of abandoned mine
lands remined and reclaimed that would not have been remined under the existing
Pennsylvania Remining Subchapter F program (Subchapter F); additional reclamation or
remediation projects done in the watersheds as a result of pilot projects; effects on
in-stream water quality; effects on pollution loads from pre-existing discharges and
additional BMPs implemented that would not have been required under the conventional
Subchapter F program. PADEP intends to survey
operators and permit writers to determine pilot project that would not have been done
under Subchapter F permits.
H. Avoidance
of Shifting the Risk Burden to Other Areas or Media
As stated above, there will be no transfer of pollution
from one media to another in this project but rather a prevention of degradation by
reducing or eliminating the contact of water with the acid forming rock overburden or by
taking measures to produce alkaline waters.
Information is available on the percentage of minority and low income populations in the areas
around the proposed mining sites. The areas generally have a low population and little if
any minority population. Both counties where
the sites are located have a higher percentage of below poverty population than the state
or Region III average
IV. Description
of the Requested Flexibility and the Implementing Mechanisms
A. Requested
Flexibility
In 1987, Congress amended the Clean Water Act (CWA) in
an effort to encourage remining. Section
301(p), known as the Rahall Amendment, grants remining operations an exception to NPDES
numeric effluent limits, as stated in 40 CFR 434, for iron, manganese and pH for
preexisting discharges from mines abandoned before 1977.
It allows less stringent numeric effluent limits, representing best available
technology, for iron, manganese and pH to be established on a case-by-case basis in
discharges affected by remining. These limits
are to be set by using best professional judgement (BPJ) but the limits for pH, iron, and
manganese may not exceed preexisting discharge levels.
Also, the applicant must demonstrate the potential for improved water quality from
the remining operation and assure that the discharges comply with state water quality
standards for the receiving stream. In some
cases, it may be necessary to seek a variance if achieving water quality standards is not
feasible even with improved discharge quality.
PADEP currently requires 40 CFR 434 numeric effluent
limits for preexisting discharges that are directly encountered by the remining operation. Less stringent BPJ numeric effluent limits are
required for preexisting discharges that are not directly encountered, such as adjacent
seeps, but which are hydrologically connected and may be affected by the remining
operation.
PADEP, as the Project XL sponsor, is requesting
regulatory relief from BPJ numeric effluent limits for preexisting discharges that are not
directly encountered during remining and for all preexisting discharges after completion
of remining, including both those discharges encountered and not encountered during
remining. For these pre-existing discharges,
the reminers will be required to implement specific BMPs as well as comply with in-stream
pollutant concentration limits. Implementation
of these BMPs at previous remining sites has been documented by PADEP to improve water
quality and achieve the BPJ numerical limits. PADEP
will continued to require the 40 CFR 434 numeric limits for the preexisting discharges
encountered during the remining operation.
Each of the proposed remining watersheds has been
severely degraded by acid mine drainage from abandoned mines or has been identified as a
water body that does not meet water quality criteria due to abandoned mine drainage. PADEP has indicated that the potential costs of
treatment, monitoring before and after remining, and unpredictable factors regarding
monitoring to verify permit compliance, may be such a great disincentive that remining would
probably not occur at these particular sites.
In return for the flexibility described above, the
reminers will implement more reclamation activities in the watershed than existing
Pennsylvania regulations require. These
pollution prevention activities that are applied on a watershed scale are a more cost
effective remedy than long term end of pipe treatment of
point-source discharges, as might be necessary to meet numeric effluent
limitations. Moreover, they will provide the
superior environmental performance of a sustainable remedy to the abandoned mine land. If environmentally responsible remining is
encouraged, society and the environment stand to gain by reclaiming these lands for little
if any cost to the taxpayer. The
signatories of this FPA believe this XL Project is consistent with the purposes and intent
of the CWA because it provides for the prevention, reduction or elimination of pollution
of surface and ground water.
PADEP will use best professional judgement to select the
appropriate BMPs to be applied in each of the remining areas, and possibly other areas of
the watersheds. PADEP and EPA expect that
this will result in an overall improvement to water quality from the remining operations.
If, after remining and the implementation of the BMPs, the in-stream concentrations show
statistically significant degradation of water quality, then PADEP will require the
remining company to implement additional BMPs. In
order to be selected, the eight XL pilot project sites must have multiple available
options available for remediation if the water quality in the stream is degraded. If the company fails to implement the required
BMPs then it will have to meet conventional remining effluent limitations.
B. Legal
Implementation Mechanism
PADEP intends to exercise its existing authority to
implement this XL Project. In addition to the
goals stated below, EPA enters into this Project XL Agreement because PADEP will use its
enforcement discretion as part of it's implementation strategy. Because of the nature of the candidate sites that
exemplify Pennsylvania's long-standing and continuing problems caused by abandoned mine
lands and acid mine drainage, EPA recognizes that PADEP's approach in this instance is
consistent with the goals of the Clean Water Act to protect and enhance water quality and
the goals of the XL Program to test innovative approaches to environmental protection. The
approach being taken is dissimilar to that used in the NPDES program and is of little
precedential value outside of the context of this XL Project. Stakeholders, including EPA, have been and will
continue to be involved in the development of this XL project. The legal mechanisms used to implement this
project will allow for the participation of stakeholders and will provide for public
notice and comment.
V. Project Schedule and Reporting
A. Schedule
PADEP is responsible for the schedule for the review and
permitting of mining applications. The PADEP
remining permit will include the permit issuance date and expiration date as well as the
permittee reporting and compliance schedules.
B. Reporting
and Evaluation
PADEP will provide a yearly report to notify EPA and the
other stakeholders on the status of the XL Project and the individual mining sites in the
pilot project. PADEP should provide the
information outlined in Section III. G. in the yearly report. PADEP will notify EPA and the stakeholders of new
mining permit applications proposing to use the Project XL BMP approach described in this
FPA. PADEP will provide any data and
information that EPA or stakeholders might request on the Project XL remining sites. PADEP will post Project XL information, including
the yearly reports and notification of new mining permit applications, on the website
listed in Section II. G.
VI.
Legal Basis for the Project
A. Authority to Enter Into the Agreement
By signing this Agreement, EPA, PADEP acknowledge and
agree that they have the respective authorities, discretion and resources to enter into
this Agreement and to implement all applicable provisions of this Project, as described in
this Agreement.
B. Legal
Effect of the Agreement
This Agreement in itself does not create or modify legal
rights and obligations, is not a contract or a regulatory action such as a permit or rule,
and is not legally binding or enforceable against any Project Signatory. Rather, it expresses the plans and intentions of
the Project Signatories without making those plans and intentions binding requirements. This applies to the provisions of this Agreement
that concern procedural as well as substantive matters.
However, while the Project Signatories fully intend to adhere to the provisions of
this agreement, they are not legally obligated to do so.
This Agreement is not a final agency action
by EPA or PADEP, because it does not create or modify legal rights or obligations and is
not legally enforceable. This Agreement
itself is not subject to judicial review or enforcement.
Nothing any Project Signatory does or does not do that deviates from a provision of
this Agreement, or that is alleged to deviate from a provision of this Agreement, can
serve as the sole basis for any claim for damages, compensation or other relief against
any Project Signatory.
C. Other
Laws or Regulations That May Apply
The Project Signatories do not intend this Final Project
Agreement to modify any existing or future laws or regulations.
D. Retention
of Rights to Other Legal Remedies
Nothing in this Agreement affects or limits EPAs
or PADEPs legal rights. These rights
may include legal, equitable, civil, criminal or administrative claims or other relief regarding the enforcement of present or future
applicable federal and state laws, rules, regulations or permits with respect to the
project sites/pilot sites.
VII.
FPA Implementation Issues
A. Withdrawal
From or Termination of the FPA
Because this FPA is not legally enforceable, no Project
Signatory may be legally compelled to continue with the PADEP Coal Remining and
Reclamation XL Project. However, it is the
desire of the Project Signatories for the FPA to remain in effect and be implemented as
fully as possible, and it is not their intent to terminate or withdraw from the FPA unless
there is a compelling reason to do so.
The Project Signatories agree that appropriate grounds
to seek withdrawal from the FPA could include, but are not limited to:
1.
Substantial failure by any party to the Agreement to: a) comply with the provisions of the implementing
mechanisms for this Project, or b) to act in
accordance with the provisions of this Agreement;
2.
Substantial failure of any party to the Agreement to disclose material facts during
development of this Agreement;
3.
Substantial failure of the XL Project to provide superior environmental performance
consistent with the provisions of this Agreement;
4.
Enactment or promulgation of any environmental, health or safety law or regulation
after execution of the Agreement, that renders the Project legally, technically or
economically impracticable; and/or
5.
Decision by US EPA or PADEP to reject
the transfer of the Project to a new owner or operator of
a pilot site.
In addition, US EPA and PADEP do not intend to withdraw
from the Agreement unless actions by the remining companies constitute a substantial
failure to act consistently with intentions expressed in this Agreement and its
implementing mechanisms. The decision to
withdraw will take the failures nature and duration into account. The relevant remining companies will be given
notice and a reasonable opportunity to remedy any substantial failure before
EPAs or PADEPs withdrawal. If
there is a disagreement between the Project Signatories over whether a substantial
failure exists, the Project Signatories will use the dispute resolution mechanism
set forth in Section VII.E of this Agreement. US
EPA and PADEP retain their discretion to use
existing enforcement authorities, including withdrawal or termination of this Project, as
appropriate. The remining companies retain
any existing rights or abilities to defend themselves against any enforcement actions, in
accordance with applicable procedures.
B. Procedures
for Withdrawal or Termination of the FPA
The Project Signatories agree that the following
procedures will be used to withdraw from or terminate the Project before expiration of the
Project term. They also agree that the
implementing mechanism(s) will provide for withdrawal or termination consistent with these
procedures.
1.
Any Project Signatory that wants to terminate or withdraw from the Project is
expected to provide written notice to the other parties at least sixty (60) days before
the withdrawal or termination.
2.
If requested by any Project Signatory during the sixty (60) day period noted above,
the dispute resolution proceedings described in this Agreement may be initiated to resolve
any dispute relating to the intended withdrawal or termination. If, following any dispute resolution or informal
discussion, a Project Signatory still desires to withdraw or terminate, that Project
Signatory will provide written notice of final withdrawal or termination to the other
Project Signatories.
If any agency withdraws or terminates its participation
in the Agreement, the remaining agencies will consult with the reminers to determine
whether the Agreement should be continued in modified form, consistent with applicable
federal or state law, or whether it should be terminated.
3.
The procedures described in this Section apply only to the decision to withdraw or
terminate participation in this Agreement. Procedures
to be used in modifying or rescinding any legal implementing mechanisms will be governed
by the terms of those legal mechanisms and applicable law.
C. Modification
of the FPA
This Agreement may be modified by mutual agreement of
all of the Project Signatories at any time
during the duration of the Project. If the
Parties agree to make any substantial modification to this agreement, the general public
will receive notice of the modification and be given the opportunity to participate in the
process, as appropriate. The Project
Signatories recognize that modifications to this Agreement may also necessitate
modification of the legal implementing mechanisms or may require the development of new
implementation mechanisms and must be done in accordance with regulations and rules that
apply to those modifications of such legal implementation mechanisms.
This Agreement will be in effect for no longer than 10
years from the date of the signing of the FPA, unless it is terminated earlier or extended
by agreement of all Parties. (If the FPA is
extended, the comments and input of stakeholders will be sought and a Federal Register
Notice will be published.) Any Project
Signatory may terminate its participation in this Project at any time in accordance with
the procedures set forth in Sections VII. G. of this FPA.
E. Dispute
Resolution
Any dispute that arises under or with respect to this
Agreement will be subject to informal negotiations between the Project Signatories to the
Agreement. The period of informal
negotiations will not exceed twenty (20) calendar days from the time the dispute is first
documented, unless that period is extended by a written agreement of the parties to the
dispute. The dispute will be considered
documented when one party sends a written Notice of Dispute to the other parties.
In the event that the parties cannot resolve a dispute
through informal negotiations, the parties may invoke non-binding mediation by setting
forth the nature of the dispute with a proposal for resolution to the Regional
Administrator for EPA Region III. Prior to
the issuance of an opinion, the Regional Administrator may request an additional, informal
mediation hearing. If so requested, the
Regional Administrator will attempt to resolve the dispute by issuing a written opinion
that will be non-binding and does not constitute final EPA action. If this effort is not successful, the parties
still have the option to terminate or withdraw from the Agreement, as set forth in Section
VII.A.B.
F. Transfer
of Project Benefits and Responsibilities to a New Owner
The parties expect that the implementing mechanisms will
allow for a transfer of the remining companies benefits and responsibilities under
the Project to any future owner or operator of a pilot site upon request of the remining
companies and the new owner or operator, provided that the following conditions are met:
1.
The remining companies will provide written notice of any such proposed transfer to
the EPA and PADEP at least ninety (90) days before the effective date of the transfer. The notice is expected to include identification
of the proposed new owner or operator, a description of its financial and technical
capability to assume the obligations associated with the Project, and a statement of the
new owner or operators intention to take over the responsibilities in the XL Project
of the existing owner or operator.
2.
Within forty-five (45) days of receipt of the written notice, the Project
Signatories expect that EPA and PADEP, in consultation with stakeholders, will determine
whether: a)
the new owner or operator has demonstrated adequate capability to meet EPAs
requirements for carrying out the XL Project; b) is
willing to take over the responsibilities in the XL Project of the existing owner or
operator; and c) is otherwise an appropriate Project XL partner. Other relevant factors, including the new owner or
operators record of compliance with Federal, State and local environmental
requirements, may be considered as well.
It will not
be necessary to modify the Agreement to reflect the new owner or operator however, it may
be necessary for PADEP to amend the implementing mechanisms (subject to applicable public
notice and comment) to transfer the legal rights and obligations of the remining companies
under this Project to the proposed new owner or operator.
G. Project
Completion or Termination
1.
Project Completion
The parties intend that there be an orderly return to
compliance upon completion, withdrawal from, or termination of the Project. EPA will conduct an evaluation of the project
before a decision is made that the project has been completed. If, after an evaluation, the Project is terminated
because the term has ended, the reminer will return to compliance with all applicable
requirements by the end of the Project term, unless the Project is amended or modified in
accordance with Section VII. C. of this Agreement (Amendments or Modifications). The reminers expected to anticipate and plan for
all activities to return to compliance sufficiently in advance of the end of the Project
term. The reminer may request a meeting with
EPA, and PADEP to discuss the timing and nature of any actions that the reminer will be
required to take. The parties should meet within thirty days of receipt of the written
request for such a discussion. At and
following such a meeting, the parties should discuss in reasonable, good faith, which of
the requirements deferred under this Project will apply after termination of the Project.
2.
Early Withdrawal, Termination or Project Failure
In the event of a withdrawal or termination not based on
the end of the Project term and where PADEP and the Project participants have acted in
good faith, PADEP will take steps to ensure that the reminer participants are brought into
compliance with the requirements of all applicable Federal and State laws and regulations. As necessary, PADEP will issue and/or enforce an
order, permit, or other legally enforceable mechanism establishing a schedule for the
remining company to return to compliance with otherwise applicable requirements including,
but not limited to, compliance with discharge treatment and
numerical effluent limitations requirements, as soon as practicable. EPA or PADEP will provide written notice of
final withdrawal or termination of the Project, in accordance with Section VII.A. and B.
of this Agreement.
H. Periodic
Review
The Parties will confer, on a periodic basis to assess
progress in implementing the XL Project. Unless
it is agreed otherwise, a Periodic Performance Review Conference by the Project
Signatories will take place at least every six months.
The six month status reports may take the place of the conference, if agreed to by
the Project Signatories. Not later than
thirty (30) days following the conference, EPA will post a summary of the minutes and/or
status reports on the Project XL Web Page and will provide identified and local
stakeholders with a copy of the summary minutes. Any
additional comments of stakeholders will be forwarded to EPA, PADEP and the remining
companies.
This FPA is effective on the date it is dated and signed
by EPAs Regional Administrator for Region III.
PADEP
Coal Remining and Reclamation XL Project Signatories:
_____________________________________________
________________
Bradley M. Campbell, Regional Administrator,
Date Signed
U.S. EPA Region III
_____________________________________________
_________________
James M. Seif, Secretary
Date Signed
Pennsylvania Department of Environmental Protection
(PADEP)
[1]
States are required under the Federal Water
Pollution Control Act (FWPCA or CWA) to establish a prioritized
list of those waters in the state that are impaired waters that do not meet water quality
standards.
[2]Coal Remining Best Management Practices Guidance
Manual, EPA, March 2000. This document is available on the EPA website at:
www.epa.gov/OST/guide/coal/
[3] A physically
encountered discharge is one that during the course of active surface mining, including
overburden removal, coal extraction, and backfilling, is diverted into or will be collected in a mine pit, pond. It will be considered encountered until the
surface mining area has been backfilled and graded and revegetation work has commenced. A diversion of surface water or shallow
groundwater from undisturbed areas is not considered an encountered discharge.
[4]
The CWA defines a pre-existing discharge as a
pollution discharge that results from mining activities prior to August 3, 1977.
[5]Section 303 (d) of the Clean Water Act requires that each state
identify those waters within its boundaries that might need effluent limitations that are
more stringent that the Federal standards in order to meet their designated uses and
assure protection and propagation of indigenous populations of shellfish, fish and
wildlife. Once these waters are
identified and prioritized, the state will then calculate the Total Maximum Daily Load of pollutants a water can accept and still meet water
quality standards.
[6]Coal Mine Drainage Prediction and Pollution Prevention in
Pennsylvania is available on the PADEP website at:
www.dep.state.pa.us/dep/deputate/minres/Districts/CMDP/main.htm.
[7]The
press release can be found at http://www.dep.state.pa.us/dep/deputate/polycomm/ pressrel/
2000/BaumgardnerCoal010500.html
[8] Statistically significant is defined as an approximate 95
percent confidence level above the median of the pre-mining baseline.
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