TITLE economic-regulation

Part I. Railroad Commission of Texas

Chapter 12. Coal Mining Regulations

The Railroad Commission of Texas proposes repeals of §12.804, relating to reclamation objectives and priorities; §12.805, relating to reclamation project evaluation; §12.806, relating to consent to entry; §12.807, relating to entry for studies or exploration; §12.808, relating to entry and consent to reclaim; §12.809, relating to land eligible for acquisition; §12.810, relating to procedures for acquisition; §12.811, relating to acceptance of gifts of land; §12.812, relating to management of acquired lands; §12.813, relating to disposition of reclaimed lands; §12.814, relating to operations on private land; and §12.816, relating to liens. The Commission also proposes new §12.804, relating to reclamation objectives and priorities; §12.805, relating to utilities and other facilities; §12.806, relating to limited liability; §12.807, relating to contractor responsibility; §12.808, relating to eligible noncoal lands and water; §12.809, relating to reclamation priorities for noncoal program; §12.810, relating to exclusion of certain noncoal reclamation sites; §12.811, relating to land acquisition authority - noncoal; §12.812, relating to lien requirements; §12.813, relating to written consent for entry; §12.814, relating to entry and consent to reclaim; §12.816, relating to liens; §12.818, relating to entry for emergency reclamation; §12.819, relating to land eligible for acquisition; §12.820, relating to procedures for acquisition; §12.821, relating to acceptance of gifts of land; §12.822, relating to management of acquired land; and §12.823, relating to disposition of reclaimed lands. The Commission also proposes amendments to §12.801, relating to definitions; §12.803, relating to eligible coal lands and water; and §12.815, relating to appraisals.

All of the proposed changes and additions are required for the commission to continue to demonstrate that its program is no less effective than the requirements of the Office of Surface Mining Reclamation and Enforcement (OSM), United States Department of the Interior, for surface coal mining regulation processes.

Amendments to §12.801 include new definitions of "abandoned mine reclamation fund or fund," "eligible lands and water," "emergency," "extreme danger," "left or abandoned in either an unreclaimed or inadequately reclaimed condition - lands and water," "OSM," "permanent facility," "project," "reclamation activity," and "state reclamation program." The amended definition of "Texas abandoned mine reclamation fund" substitutes the word "account" for "fund."

Amendments to §12.803 include deleting subsection (b), relating to the reclamation of noncoal lands, and adding paragraphs (4) through (8), relating to reclamation of coal lands mined after August 3, 1977.

Section 12.804, relating to reclamation objectives and priorities, is proposed to be repealed. Proposed new §12.804, relating to reclamation objectives and priorities, requires that reclamation be accomplished in accordance with OSM's "Final Guidelines for Reclamation Programs and Projects."

Section 12.805, relating to reclamation project evaluation, is proposed to be repealed. This section sets out factors to be considered in prioritizing potential reclamation projects. These issues are addressed by proposed new §12.804. Proposed new §12.805, relating to utilities and other facilities, addresses adverse effects on water supplies. It also authorizes enhancement of facilities or utilities during reclamation if necessary to meet applicable public health and safety standards.

Section 12.806, relating to consent to entry, is proposed to be repealed. Matters relating to entry and consent are addressed in proposed new §12.814. Proposed new §12.806, relating to limited liability, provides that the commission shall not be responsible for costs and damages associated with reclamation activities under certain circumstances.

Section 12.807, relating to entry for studies or exploration, is proposed to be repealed. Entry for studies or exploration is addressed in proposed new §12.814. Proposed new §12.807, relating to contractor responsibility, requires that a bidder for an abandoned mine land (AML) contract must be eligible at the time of contract award to receive a permit to conduct surface coal mining operations.

Section 12.808, relating to entry and consent to reclaim, is proposed to be repealed. Entry and consent to reclaim is addressed under proposed new §12.814. Proposed new §12.808, relating to eligible noncoal lands and water, specifies the circumstances under which the commission can reclaim lands or water impacted by mining for materials other than coal.

Section 12.809, relating to land eligible for acquisition, is proposed to be repealed. Land eligible for acquisition is addressed under proposed new §§12.811 and 12.819. Proposed new §12.809, relating to reclamation priorities for noncoal lands and water, sets out the commission's reclamation priorities for protection of public health, safety, general welfare and property, restoration of land and water resources and previously degraded environment, enhancement of facilities or utilities, grants for these activities or construction, and qualifications for these grants.

Section 12.810, relating to procedures for acquisition, is proposed to be repealed. Procedures for acquisition are addressed in proposed new §12.820. Proposed new §12.810, relating to exclusion of certain noncoal reclamation sites, prohibits use of abandoned mined land reclamation funds for remediation of sites subject to regulation under the federal Uranium Mill Tailings Radiation Control Act or the federal Comprehensive Environmental Response Compensation and Liability Act.

Section 12.811, relating to acceptance of gifts of land, is proposed to be repealed. Acceptance of gifts of land is addressed in proposed new §12.821. Proposed new §12.811, relating to land acquisition authority - noncoal, provides that provisions of §§12.813, 12.814, and 12.818 through 12.823 (relating to written consent to entry; entry and consent to reclaim; entry for emergency reclamation; land eligible for acquisition; procedures for acquisition; acceptance of gifts of land; management of acquired land; and disposition of reclaimed land) apply to the commission's noncoal program.

Section 12.812, relating to management of acquired lands, is proposed to be repealed. Management of acquired lands is addressed under proposed new §12.822. Proposed new §12.812, relating to lien requirements, provides that the lien requirements of §§12.815 through 12.817 (relating to appraisals, liens, and satisfaction of liens), apply to the noncoal reclamation program.

Section 12.813, relating to disposition of reclaimed lands, is proposed to be repealed. Proposed new §12.813, relating to written consent for entry, requires written consent from landowner prior to entry on land for purposes of conducting reclamation activities.

Section 12.814, relating to operations on private land, is proposed to be repealed. Conditions for entry to land are incorporated into proposed new §§12.813 and 12.814. Proposed new §12.814, relating to entry and consent to reclaim, sets out the conditions that must be met before the commission can enter and reclaim property.

The commission proposes to amend §12.815(d), relating to appraisals, to update internal references.

Section 12.816, relating to liens, is proposed to be repealed. Proposed new §12.816, relating to liens, requires that the commission notify the land owner prior to placing a lien on reclaimed property.

Proposed new §12.818, relating to entry for emergency reclamation, authorizes the commission to enter land to conduct remedial work where an emergency exists or if necessary to gain access to land upon which an emergency exists.

Proposed new §12.819, relating to land eligible for acquisition, sets out conditions under which the commission may acquire land to conduct reclamation.

Proposed new §12.820, relating to the procedures for acquisition by commission, sets out the procedures the commission must follow to acquire land for reclamation.

Proposed new §12.821, relating to the acceptance of gifts of land by commission, sets out the conditions under which the commission may accept gifts of land.

Proposed new §12.822, relating to the management of acquired land by commission, authorizes the use of acquired land for any lawful purpose consistent with necessary reclamation activities.

Proposed new §12.823, relating to the disposition of reclaimed lands by commission, establishes procedures for sale of land acquired by commission for reclamation.

Melvin Hodgkiss, Director, Surface Mining and Reclamation Division, has determined that during each year of the first five years the proposed repeals, amendments, and new sections are in effect, there will be no fiscal impacts to state or local governments as a result of their adoption. The new requirements applicable to the commission will impose no new costs on the commission.

Mr. Hodgkiss has determined that for each year of the first five years the proposed repeals, amendments, and new sections are in effect, there will be no increased costs of compliance with the amended rules. These amendments are largely housekeeping measures that are anticipated to have no practical effect in Texas but will keep the Texas program in compliance with OSM requirements. Further, the rules relate to reclamation activities of the commission, not the regulated industry.

Mr. Hodgkiss has also determined that the public benefit from the adoption of the proposed amendments will be continued compliance with requirements of OSM.

The commission has not requested a local employment impact statement, pursuant to Texas Government Code, §2001.022.

Comments on the proposed sections should be submitted to Melvin Hodgkiss, Director, Surface Mining and Reclamation Division, Railroad Commission of Texas, P. O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted until 5 p.m. on the 15th day after publication in the Texas Register .

Subchapter R. Texas Abandoned Mine Land Reclamation Program

16 TAC §§12.804-12.814, 12.816

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under §134.013 of the Texas Natural Resources Code, which provides the commission the authority to promulgate rules pertaining to surface coal mining operations.

The Texas Natural Resources Code, §134.013, is affected by the proposed repeals.

§12.804. Reclamation Objectives and Priorities.

§12.805. Reclamation Project Evaluation.

§12.806. Consent to Entry.

§12.807. Entry for Studies or Exploration.

§12.808. Entry and Consent to Reclaim.

§12.809. Land Eligible for Acquisition.

§12.810. Procedures for Acquisition.

§12.811. Acceptance of Gifts of Land.

§12.812. Management of Acquired Lands.

§12.813. Disposition of Reclaimed Lands.

§12.814. Operations on Private Land.

§12.816. Liens.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on April 16, 1999.

TRD-9902224

Mary Ross McDonald

Deputy General Counsel, Office of the General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 30, 1999

For further information, please call: (512) 463-7008


16 TAC §§12.801, 12.803-12.816, 12.818-12.823

The amendments and new sections are proposed under §134.013 of the Texas Natural Resources Code, which provides the commission the authority to promulgate rules pertaining to surface coal mining operations.

The Texas Natural Resources Code, §134.013, is affected by the proposed amendments and new sections.

§12.801. Definitions.

The following words and terms, when used in this subchapter (relating to the Texas Abandoned Mine Land Reclamation Program), shall have the following meanings unless the context clearly indicates otherwise:

(1)

Abandoned Mine Reclamation Fund or Fund - A special fund established by the United States Treasury for the purpose of accumulating revenues designated for reclamation of abandoned mine lands and other activities authorized by Title IV of the Federal Act.

(2)

Eligible lands and water - Land and water eligible for reclamation or drainage abatement expenditures which were mined for coal or which were affected by such mining, wastebanks, coal processing, or other coal mining processes and left or abandoned in either an unreclaimed or inadequately reclaimed condition prior to August 3, 1977, and for which there is no continuing reclamation responsibility. Lands and water damaged by coal mining operations after August 3, 1977, and on or before November 5, 1990, may also be eligible for reclamation if they meet the requirements specified in §12.803 of this title (relating to Eligible Coal Lands and Water). Following certification of the completion of all known coal problems, eligible lands and water for noncoal reclamation purposes shall be those sites that meet the eligibility requirements specified in §§12.808 and 12.810 of this title (relating to Eligible Lands and Water Prior to Certification and to Eligible Lands and Water Subsequent to Certification). For additional eligibility requirements for water projects, see §12.805 of this title (relating to Utilities and Other Facilities), and for lands affected by remining operations, see Section 404 of the Federal Act.

(3)

[ (1) ] Emergency - A sudden danger or impairment that presents a high probability of substantial physical harm to the health, safety or general welfare of people before the danger can be abated under normal program operation procedures.

(4)

[ (2) ] Extreme danger - A condition that could reasonably be expected to cause substantial physical harm to persons, property, or the environment and to which persons or improvements on real property are currently exposed.

(5)

[ (3) ] Left or abandoned in either an unreclaimed or inadequately reclaimed condition - Lands and water:

(A)

which were mined or which were affected by such mining, wastebanks, processing or other mining processes prior to August 3, 1977, or between August 3, 1977 and November 5, 1990, as authorized pursuant to Section 402(g)(4) of the Federal Act, and on which all mining has ceased; [ where all mining processes ceased and no current permit for continuing operations existed as of August 3, 1977, or, if a permit did exist on that date, but all mining processes had ceased, it has since lapsed and has not been renewed or superseded by a new permit as of the date of the request for reclamation assistance; and ]

(B)

which continue in their present condition, to substantially degrade the quality of the environment, prevent or damage the beneficial use of the land or water resources, or endanger the health or safety of the public; and

(C)

for which there is no continuing reclamation responsibility under state or federal laws, except as provided in Sections 402(g)(4) and 403(b)(2) of the Federal Act.

(6)

OSM - The Office of Surface Mining Reclamation and Enforcement.

(7)

Permanent facility - Any structure that is built, installed, or established to serve a particular purpose, or any manipulation or modification of the surface that is designed to remain after the reclamation activity is completed, such as a relocated stream channel or diversion ditch.

(8)

Project - A delineated area containing one or more abandoned mine land problems. A project may be a group of related reclamation activities with a common objective within a political subdivision of the state or within a logical, geographically defined area, such as a watershed, conservation district, or county planning area.

(9)

Reclamation activity - The reclamation, abatement, control, or prevention of adverse effects of past mining.

(10)

State reclamation program - A program established by the state in accordance with this chapter for reclamation of lands and water adversely affected by past mining, including the reclamation plan and annual applications for grants.

(11)

[ (4) ] Texas Abandoned Mine Reclamation Fund or State Fund - A separate account [ fund ] established by the state for the purpose of accounting for moneys granted by the Director under an approved state reclamation program and other moneys authorized by these Regulations to be deposited in the Fund.

§12.803. Eligible Coal Lands and Water.

(a)

Coal mined lands and associated waters shall be [ are ] eligible for reclamation activities if:

(1)

they were mined for coal or affected by coal mining processes;

(2)

they were mined prior to August 3, 1977, and left or abandoned in either an unreclaimed or inadequately reclaimed condition; [ and ]

(3)

there is no continuing responsibility for reclamation by the operator, permittee, or agent of the permittee under statutes of the state or federal government, or the state as a result of bond forfeiture. Bond forfeiture shall [ will ] render lands or water ineligible only if the amount forfeited is sufficient to pay the total cost of the necessary reclamation. In cases where the forfeited bond is insufficient to pay the total cost of reclamation, additional moneys may be sought from the Texas Abandoned Mine Land Fund.

(b)

Notwithstanding subsection (a) of this section, coal lands and waters in the state damaged and abandoned after August 3, 1977, by coal mining processes shall also be eligible for funding if the Secretary finds in writing that:

(1)

they were mined for coal or affected by coal mining processes; and

(2)

the mining occurred and the site was left in either an unreclaimed or inadequately reclaimed condition between August 4, 1977, and either:

(A)

the date on which the Secretary approved the state regulatory program pursuant to Section 503 of the Federal Act, and that any funds for reclamation or abatement that are available pursuant to a bond or other form of financial guarantee or from any other source are not sufficient to provide for adequate reclamation or abatement at the site; or

(B)

November 5, 1990, and that the surety of the mining operator became insolvent during such period, and that, as of November 5, 1990, funds immediately available from proceedings relating to such insolvency or from any financial guarantee or other source are not sufficient to provide for adequate reclamation or abatement at the site; and

(3)

the site qualifies as a priority 1 or 2 site pursuant to Section 403(a)(1) and (2) of the Federal Act. Priority shall be given to those sites that are in the immediate vicinity of a residential area or that have an adverse economic impact upon a community.

(c)

The commission may expend funds made available under paragraphs 402(g)(1) and (5) of the Federal Act for reclamation and abatement of any site eligible under subsection (b) of this section if the commission, with the concurrence of the Secretary, makes the findings required in subsection (b) of this section and the commission determines that the reclamation priority of the site is the same or more urgent than the reclamation priority for the lands and water eligible pursuant to subsection (a) of this section that qualify as a priority 1 or 2 site under Section 403(a) of the Federal Act.

(d)

With respect to lands eligible pursuant to subsection (b) or (c) of this section, moneys available from sources outside the Abandoned Mine Reclamation Fund or that are ultimately recovered from responsible parties shall either be used to offset the cost of the reclamation or transferred to the Abandoned Mine Reclamation Fund if not required for further reclamation activities at the permitted site.

(e)

If reclamation of a site covered by an interim or permanent program permit is carried out under the Abandoned Mine Land Program, the permittee of the site shall reimburse the Abandoned Mine Land Fund for the cost of reclamation that is in excess of any bond forfeited to ensure reclamation. Neither the Secretary nor the commission performing reclamation under subsec tion (b) or (c) of this section shall be held liable for any violations of any performance standards or reclamation requirements specified in Title V of the Federal Act nor shall a reclamation activity undertaken on such lands or waters be held to any standards set forth in Title V of the Federal Act or Subchapter K of the State Act.

(f)

Surface coal mining operations on lands eligible for remining pursuant to Section 404 of the Federal Act shall not affect the eligibility of such lands for reclamation activities after the release of the bonds or deposits posted by any such operation as provided by §12.312 and §12.313 of this title (relating to Procedure for Seeking Release of Performance Bond and to Criteria and Schedule for Release of Performance Bond). If the bond or deposit for a surface coal mining operation on lands eligible for remining is forfeited, funds available under this title may be used if the amount of such bond or deposit is not sufficient to provide for adequate reclamation or abatement.

[ (b)

Lands and water which were mined or affected by mining for minerals and materials other than coal shall be eligible for reclamation activities if:]

[ (1)

the conditions of subsection (a) of this section have been met;]

[ (2)

the reclamation has been requested by the Governor; and]

[ (3)

all reclamation with respect to abandoned coal mine land and water has been accomplished within the state or the reclamation is necessary for the protection of the public health, and safety.]

§12.804. Reclamation Objectives and Priorities.

(a)

Reclamation projects should be accomplished in accordance with OSM's "Final Guidelines for Reclamation Programs and Projects" (45 Federal Register 14810-14819, March 6, 1980).

(b)

Reclamation projects shall reflect the priorities of Section 403(a) of the Federal Act. Generally, projects lower than a priority 2 should not be undertaken until all known higher priority coal projects either have been accomplished, are in the process of being reclaimed, or have been approved for funding by the Secretary, except in those instances where such lower priority projects may be undertaken in conjunction with a priority 1 or 2 site in accordance with OSM's "Final Guidelines for Reclamation Programs and Projects."

§12.805. Utilities and Other Facilities.

(a)

If the adverse effect on water supplies referred to in this section occurred both prior to and after August 3, 1977, the project shall remain eligible, notwithstanding the criteria specified in §12.803 of this title (relating to Eligible Coal Lands and Water), if the commission finds in writing, as part of its eligibility opinion, that such adverse affects are due predominately to effects of mining processes undertaken and abandoned prior to August 3, 1977.

(b)

Enhancement of facilities or utilities under this section shall include upgrading necessary to meet any local, state, or federal public health or safety requirement. Enhancement shall not include any service area expansion of a utility or facility not necessary to address a specific abandoned mine land problem.

§12.806. Limited Liability.

The commission shall not be liable under any provision of federal law for any costs or damages as a result of action taken or omitted in the course of carrying out an approved commission abandoned mine reclamation plan. This section shall not preclude liability for costs or damages as a result of gross negligence or intentional misconduct by the commission. For purposes of this section, reckless, willful, or wanton misconduct shall constitute gross negligence or intentional misconduct.

§12.807. Contractor Responsibility.

To receive AML funds, every successful bidder for an AML contract must be eligible under §12.215 of this title (relating to Review of Permit Applications) at the time of contract award to receive a permit or conditional permit to conduct surface coal mining operations. Bidder eligibility must be confirmed by OSM's automated Applicant/Violator System for each contract to be awarded.

§12.808. Eligible Noncoal Lands and Water.

(a)

Following certification by the commission of the completion of all known coal projects and the Director's concurrence in such certification, eligible noncoal lands, waters, and facilities shall be those:

(1)

which were mined or processed for minerals or which were affected by such mining or processing, and abandoned or left in an inadequate reclamation status prior to August 3, 1977; and

(2)

for which there is no continuing reclamation responsibility under state or other federal laws.

(b)

If eligible coal problems are found or occur after certification, the commission shall address the coal problem utilizing state share funds no later than the next grant cycle, subject to the availability of funds distributed to the commission in that cycle. The coal project shall be subject to the coal provisions specified in Sections 401 through 410 of the Federal Act.

§12.809. Reclamation Priorities for Noncoal Program.

(a)

This section applies to reclamation projects involving the restoration of lands and water adversely affected by past mineral mining; projects involving the protection, repair, replacement, construction, or enhancement of utilities (such as those relating to water supply, roads, and other such facilities serving the public adversely affected by mineral mining and processing practices); and the construction of public facilities in communities impacted by coal or other mineral mining and processing practices.

(b)

Following certification by the commission of the completion of all known coal projects, the projects and construction of public facilities identified in subsection (a) of this section shall reflect the following priorities in the order stated:

(1)

the protection of public health, safety, general welfare, and property from the extreme danger of adverse effects of mineral mining and processing practices;

(2)

the protection of public health, safety, and general welfare from the adverse effects of mineral mining and processing practices; and

(3)

the restoration of land and water resources and the environment previously degraded by the adverse effects of mineral mining and processing practices.

(c)

Enhancement of facilities or utilities shall include upgrading necessary to meet local, state, or federal public health or safety requirements. Enhancement shall not include any service area expansion of a utility or facility not necessary to address a specific abandoned mine land problem.

(d)

Notwithstanding the requirements specified in subsection (a) of this section, if the governor determines that there is a need for activities or construction of specific public facilities related to the coal or minerals industry, and the governor or the commission at the governor's request submits a grant application as required by subsection (e) of this section and the Director concurs with the application as set forth in subsection (e) of this section, the Director may grant funds made available under section 402(g)(1) of the Federal Act, 30 U.S.C. 1232, to carry out such activities or construction.

(e)

To qualify for funding pursuant to the authority in subsection (d) of this section, the governor, or the commission at the governor's request, must submit a grant application that specifically sets forth:

(1)

the need or urgency for the activity or the construction of the public facility;

(2)

the expected impact the project will have on the coal or minerals industry in the state;

(3)

the availability of funding from other sources and, if other funding is provided, its percentage of the total costs involved;

(4)

documentation from other local, state, and federal agencies with oversight for such utilities or facilities regarding what funding resources they have available and why this specific project is not being fully funded by those agencies;

(5)

the impact on the state, the public, and the minerals industry if the activity or facility is not funded;

(6)

the reason why this project should be selected before a priority project relating to the protection of the public health and safety or the environment from the damages caused by past mining activities; and

(7)

an analysis and review of the procedures used by the commission to notify and involve the public in this funding request and a copy of all comments received and their resolution by the commission.

§12.810. Exclusion of Certain Noncoal Reclamation Sites.

Money from the Fund shall not be used for the reclamation of sites and areas designated for remedial action pursuant to the Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. 7901, et seq.) or that have been listed for remedial action pursuant to the Comprehensive Environmental Response Compensation and Liability Act of 1980 (42 U.S.C. 9601, et seq.).

§12.811. Land Acquisition Authority - Noncoal.

The requirements specified in §§12.813, 12.814, and 12.818 - 12.823 of this title (relating to Written Consent for Entry; Entry and Consent to Reclaim; Entry for Emergency Reclamation; Land Eligible for Acquisition; Procedures for Acquisition; Acceptance of Gifts of Land; Management of Acquired Land; and Disposition of Reclaimed Lands, respectively) shall apply to the commission's noncoal program except that, for purposes of this section, the references to coal shall not apply. In lieu of the term coal, the word noncoal should be used.

§12.812. Lien Requirements.

The lien requirements in §§12.815 - 12.817 of this title (relating to Appraisals; Liens; and Satisfaction of Liens, respectively), shall apply to the commission's noncoal reclamation program under §12.808 of this title (relating to Eligible Noncoal Lands and Water), except that for purposes of this section, references made to coal shall not apply. In lieu of the term coal, the word noncoal should be used.

§12.813. Written Consent for Entry.

Written consent from the owner of record and lessee, or their authorized agents, is the preferred means for obtaining agreements to enter lands in order to carry out reclamation activities. Nonconsensual entry by exercise of the police power shall be undertaken only after reasonable efforts have been made to obtain written consent.

§12.814. Entry and Consent to Reclaim.

(a)

The commission, its agents, employees, or contractors may enter upon land to perform reclamation activities or conduct studies or exploratory work to determine the existence of the adverse effects of past coal mining if consent from the owner is obtained.

(b)

The commission shall be entitled to enter any property to conduct studies or exploratory work to determine:

(1)

the existence of adverse effects of past coal mining practices; and

(2)

the feasibility of restoration, reclamation, abatement, control, or prevention of those adverse effects.

(c)

The commission shall be entitled to enter property adversely affected by past coal mining practices or other property necessary to have access to that property to perform the activities necessary or expedient to restore, reclaim, abate, control, or prevent the adverse effects if the commission:

(1)

makes a finding of fact that:

(A)

land or water resources have been adversely affected by past coal mining practices;

(B)

the adverse effects are at a stage at which action to restore, reclaim, abate, control, or prevent the adverse effects of past coal mining practices should be taken to protect the public interest; and

(C)

the owners of the land or water resources where entry must be made to restore, reclaim, abate, control, or prevent the adverse effects of past coal mining practices either are not known or readily available or will not permit this state or a political subdivision to enter the property to restore, reclaim, abate, control, or prevent the adverse effects of past coal mining practices; and

(2)

gives written notice of intent to enter at least 30 days prior to entering the property:

(A)

to the owner, if known, by certified mail, return receipt requested. A copy of the findings required under paragraph (1) shall be included with the notice; or

(B)

if the owner is not known, or if the current mailing address of the owner is not known, notice shall be posted in one or more places on the property to be entered where the notice is readily visible to the public and advertised once in a newspaper of general circulation in the locality in which the land is located. The notice posted on the property and advertised in the newspaper shall include a statement of where the findings required under paragraph (1) of this subsection may be inspected or obtained

§12.815. Appraisals.

(a)-(c)

(No change.)

(d)

Appraisals for privately owned land which fall under §12.816 [ §§12.816 (a)(1),(2) and (3) ] of this title (relating to Liens) may be obtained from either an independent or staff professional appraiser.

§12.816. Liens.

(a)

Not later than six months after the date projects to reclaim privately owned land are completed, the commission:

(1)

shall itemize the money spent; and

(2)

may file a statement of the money spent with the clerk of the county in which the land lies, together with a notarized appraisal by an independent appraiser of the value of the land before the restoration, reclamation, abatement, control, or prevention of the adverse effects of past mining practices if the money spent will result in a significant increase in property value. However, prior to the time of the actual filing of a lien, the landowner shall be notified of the amount of the proposed lien and shall be allowed a reasonable time to repay that amount instead of allowing the lien to be filed against the property involved.

(b)

The statement shall be a lien on the land second only to a property tax lien. The amount of the lien shall not exceed the amount determined by either of two appraisals, as provided under §12.815 of this title (relating to Appraisals), to be the increase in the market value of the land as a result of the restoration, reclamation, abatement, control, or prevention of the adverse effects of past mining practices.

(c)

A lien shall not be filed under this section against the property of a person who:

(1)

owned the surface before May 2, 1977; and

(2)

did not consent to, participate in, or exercise control over the mining operation that necessitated the reclamation performed under this chapter.

(d)

Not later than the 60th day after the date the lien is filed, an affected landowner may petition the commission for a hearing on the amount of the lien. The hearing and any appeal shall be conducted pursuant to Chapter 2001, Government Code.

(e)

The commission may waive the lien if:

(1)

the cost of filing it, including indirect costs, exceeds the increase in fair market value as a result of reclamation activities; or

(2)

the reclamation work performed on private land primarily benefits health, safety, and environmental values of the grantee's community or area in which the land is located, or if reclamation is necessitated by an unforeseen occurrence and the work performed to restore the land will not result in a significant increase in the market value of the land as it existed immediately before the occurrence.

§12.818. Entry for Emergency Reclamation.

(a)

The commission may enter land where an emergency exists and other land necessary to have access to that land to:

(1)

restore, reclaim, abate, control, or prevent the adverse effects of coal mining practices; and

(2)

perform activities necessary or expedient to protect the public health, safety, or general welfare.

(b)

Entry under this section shall be considered an exercise of the police power and not an act of condemnation of property or trespass.

§12.819. Land Eligible for Acquisition.

(a)

This state may acquire by purchase, donation, or condemnation land that is adversely affected by past coal mining practices if:

(1)

it is in the public interest; and

(2)

the commission determines and makes written findings that:

(A)

acquiring the land is necessary for successful reclamation;

(B)

the acquired land, after restoration, reclamation, abatement, control, or prevention of the adverse effects of past coal mining practices, will:

(i)

serve recreational and historical purposes;

(ii)

serve conservation and reclamation purposes; or

(iii)

provide open space benefits; and

(C)

permanent facilities such as a treatment plant or a relocated stream channel will be constructed on the land for the restoration, reclamation, abatement, control, or prevention of the adverse effects of past coal mining practices or acquisition of coal refuse disposal sites and the coal refuse on those sites will serve the purposes of this subchapter, or public ownership is desirable to meet emergency situations and prevent recurrences of the adverse effects of past coal mining practices.

(b)

OSM approves the acquisition by purchase or condemnation in advance. The commission shall acquire only such interests in land under this subchapter as are necessary for the reclamation work planned or the postreclamation use of the land. Interests in improvements on the land, mineral rights, or associated water rights may be acquired if:

(1)

such interests are necessary for the reclamation work planned or for the postreclamation use of the land; and

(2)

adequate written assurances cannot be obtained from the owner of the severed interest that future use will not be in conflict with the reclamation to be accomplished.

§12.820. Procedures for Acquisition.

(a)

An appraisal of the fair market value of all land or interest in land to be acquired shall be obtained by the commission. The appraisal shall state the fair market value of the land as adversely affected by past mining.

(b)

When practical, acquisition shall be by purchase from a willing seller. The amount paid for land or interests in land acquired shall reflect the fair market value of the land or interests in land as adversely affected by past mining.

(c)

When necessary, land or interests in land may be acquired by condemnation. Condemnation procedures shall not be started until all reasonable efforts have been made to purchase the land or interests in lands from a willing seller.

(d)

The commission, when acquiring land under this title, shall comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. 4601 et seq., and 41 CFR Part 114-50.

§12.821. Acceptance of Gifts of Land.

(a)

The commission under an approved reclamation plan may accept donations of title to land or interests in land if the land proposed for donation meets the requirements set out in §12.819 of this title (relating to Land Eligible for Acquisition).

(b)

Offers to make a gift of land or interest in land to the commission shall be in writing and shall include:

(1)

a statement of the interest which is being offered;

(2)

a legal description of the land and a description of any improvements on it;

(3)

a description of any limitations on the title or conditions as to the use or disposition of the land existing or to be imposed by the donor;

(4)

a statement that:

(A)

the donor is the record owner of the interest being offered;

(B)

the interest offered is free and clear of all encumbrances except as clearly stated in the offer;

(C)

there are no adverse claims against the interest offered;

(D)

there are not unredeemed tax deeds outstanding against the interest offered; and

(E)

there is no continuing responsibility by the operator under state or federal statutory law for reclamation; and

(5)

an itemization of any unpaid taxes or assessments levied, assessed or due which could operate as a lien on the interest offered.

(c)

If the offer is accepted, a deed of conveyance shall be executed, acknowledged, and recorded. The deed shall state that the conveyance is made "as a gift under the Texas Surface Coal Mining and Reclamation Act." Title to donated land shall be in the name of the State of Texas.

§12.822. Management of Acquired Land.

Land acquired under this title may be used for any lawful purpose that is consistent with the necessary reclamation activities. Procedures for collection of user charges or the waiver of such charges by the commission shall provide that all user fees collected shall be deposited in the Texas Abandoned Mine Reclamation Fund.

§12.823. Disposition of Reclaimed Lands.

(a)

If land acquired under §12.819 of this title (relating to Land Eligible for Acquisition) is considered suitable for industrial, commercial, residential, or recreational development, this state may sell the land by public sale under a system of competitive bidding at not less than fair market value and under rules adopted to ensure that the land is put to proper use consistent with local plans, if any, as determined by the commission.

(b)

The land may be sold only when authorized by the Secretary of the Interior if federal money was involved in the acquisition of the land to be sold.

(c)

The commission may transfer administrative responsibility for land acquired under this subchapter (relating to Texas Abandoned Mine Land Reclamation Program) to any agency or political subdivision of the state with or without cost to that agency. The agreement, including amendments, under which a transfer is made shall specify:

(1)

the purposes for which the land may be used consistent with the authorization under which the land was acquired; and

(2)

that the administrative responsibility for the land shall revert to the commission if, at any time in the future, the land is not used for the purposes specified.

(d)

The commission, after appropriate public notice and on request, shall hold a public hearing in the county or counties in which land acquired under §12.819 of this title (relating to Land Eligible for Acquisition) is located. Prior to the disposition of any land acquired under this subchapter, the commission shall publish a notice of the proposed land disposition.

(e)

The hearing shall be held at a time that gives residents and local governments maximum opportunity to participate in the decision about the use or disposition of the land after restoration, reclamation, abatement, control, or prevention of the adverse effects of past coal mining practices.

(f)

All moneys received from disposal of land under this title shall be deposited in the Texas Abandoned Mine Reclamation Fund.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on April 16, 1999.

TRD-9902225

Mary Ross McDonald

Deputy General Counsel, Office of the General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 30, 1999

For further information, please call: (512) 463-7008


Part IX. Texas Lottery Commission

Chapter 401. Administration of State Lottery Act

Subchapter D. Lottery Game Rules

16 TAC §401.312

The Texas Lottery Commission proposes new section 16 TAC §401.312, relating to converting specific lottery prize installment payments. The proposed section will allow certain lottery prize winners to choose to accelerate the payment of all remaining installment prize payments, so long as the prize winner claimed its installment prize prior to October 21, 1998. The new section is intended to implement a portion of new federal legislation relating to acceleration of lottery prizes paid in installment payments.

Liz Day, Financial Manager, has determined that for the first five-year period the section as proposed will be in effect the additional estimated cost to the state and to local governments expected as a result of enforcing or administering the rule is, as follows: FY 1999, $0.00; FY 2000, $0.00; FY 2001, $0.00; FY 2002, $0.00; and FY 2003, $0.00.

Ms. Day also has determined that for each year of the first five-year period the section as proposed will be in effect the estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rules is, as follows: FY 1999, $0.00; FY 2000, $0.00; FY 2001, $0.00; FY 2002, $0.00; and FY 2003, $0.00.

Ms. Day also has determined that for each year of the first five-year period the section as proposed will be in effect the estimated increases in revenue to the state or to local governments as a result of enforcing or administering the rules is, as follows: FY 1999, $0.00; FY 2000, $30,000,000.00; FY 2001, $0.00; FY 2002, $0.00; and FY 2003, $0.00. This revenue estimate is made with the knowledge that the Commission has no precise information regarding the exact number of lottery installment prize winners who may choose to take advantage of the proposed section. Ms. Day also has determined that for each year of the first five-year period the section as proposed will be in effect the estimated decreases in revenue to the state or to local governments as a result of enforcing or administering the rule is, as follows: FY 1999, $0.00; FY 2000, $70,000.00; FY 2001, $70,000.00; FY 2002, $70,000.00; and FY 2003, $70,000.00.

Ms. Day also has determined that enforcing or administering the rule does not have foreseeable implications relating to cost or revenues of the state or local governments.

Ms. Day also has determined that for each year of the first five-year period the section as proposed will be in effect the public benefits anticipated as a result of adoption of the proposed rule is, as follows: FY 1999, $0.00; FY 2000, $0.00; FY 2001, $0.00; FY 2002, $0.00; and FY 2003, $0.00. This estimate is made with the knowledge that the specific lottery installment prize winners who choose to take advantage of the proposed section, have total control over the use of the converted installment lottery prize payments.

Ms. Day has also determined that for each year of the first five-year period the section as proposed will be in effect the probable economic cost to persons required to comply with the rule is, as follows: FY 1999, $0.00; FY 2000, $0.00; FY 2001, $0.00; FY 2002, $0.00; and FY 2003, $0.00.

Ms. Day has also determined that there will be no cost to small businesses or individuals who are required to comply with the section as proposed, and no effect on local employment is anticipated.

Comments on the proposed section may be submitted to Diane Weidert Morris, Assistant General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630.

The section is proposed under Texas Government Code, Section 466.015 which provides the Texas Lottery Commission with the authority to adopt rules governing the operation of the lottery. The proposed section has been reviewed by legal counsel and legal counsel has found that the proposed rule is within the agency's authority to adopt.

Texas Government Code, Chapter 466 is affected by the proposed amendments.

§401.312.Converting Specific Installment Payments.

(a)

Definitions.

(1)

"Lottery prizes which are paid in installments" - Lottery prizes that are paid in installment payments, in accordance with the lottery game procedures and Texas Lottery applicable agency rules.

(2)

"Win for Life" - A particular instant ticket game, identified as Game 21.

(3)

"Request to Convert Specific Installment Payments" - The form provided by the Texas Lottery to be completed by the claimant when choosing to request the Texas Lottery to convert specific installment payments.

(4)

"Section 451(h) of the Internal Revenue Code of 1986" - The applicable federal law, including the most recent addition of Section 451(h) enacted on October 21, 1998, as part of the Tax and Trade Release Extension Act of 1998.

(5)

"Specific Installment Payments" - Remaining installment payments attributed to a lottery prize which was claimed by a prize winner prior to October 21, 1998.

(6)

"Prize Winner" - The name of the claimant as it appears on the lottery claim form and recognized by the Texas Lottery as the prize winner.

(b)

A prize winner who claimed prior to October 21, 1998, a lottery prize which is paid in installments, may choose to request the Texas Lottery to accelerate the payment of all remaining installments. This rule does not apply to a "Win for Life" prize winner.

(c)

Procedures for a prize winner to request acceleration of all remaining installment payments. All of the following requirements must be met before the Texas Lottery will accelerate the specific installment payments:

(1)

The prize winner must submit the "Request to Convert Specific Installment Payments" to the Texas Lottery.

(2)

The "Request to Convert Specific Installment Payments" must include a certification that the prize winner meets the requirements of Section 451(h) of the Internal Revenue Code of 1986.

(3)

The "Request to Convert Specific Installment Payments" must contain a notarized signature of the person with authority to bind the prize winner and the person's official title.

(4)

The "Request to Convert Specific Installment Payments" must be received by the Texas Lottery no sooner than July 1, 1999 and no later than November 30, 2000. Receipt is determined by post-marked date.

(5)

Once received, the "Request to Convert Specific Installment Payments" will not be rescinded or amended.

(d)

Calculation of value. If the executive director accelerates the payment of all of the remaining installments, then securities and /or cash held for the prize winner, which represents the lesser of the Texas Lottery's book value (the daily recalculated amortized cost of investments under the interest method) or fair market value (the value of investments at any point in time as determined by the market place) of that portion of the future installment payments that are to be accelerated, less any applicable taxes, delinquencies, or other withholding as provided by the law, shall be distributed. The valuation of the securities at the lower of the Texas Lottery's book value or fair market value and determination of the net present value of the accelerated payments shall be at the sole determination and discretion of the executive director.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 16, 1999.

TRD-9902236

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Earliest possible date of adoption: May 30, 1999

For further information, please call: (512) 344-5113