NOTICES
DEPARTMENT OF
ENVIRONMENTAL PROTECTION
Bond Rate Guidelines for the Calculation of Land Reclamation Bonds on Coal Mining Operations
[54 Pa.B. 1425]
[Saturday, March 16, 2024]
The Department of Environmental Protection (Department) announces the 2024 land reclamation bond rate guidelines for anthracite and bituminous coal mining operations. These rates become effective April 1, 2024. The authority for bonding coal mining operations is found under The Clean Streams Law (35 P.S. §§ 691.1—691.1001), the Surface Mining Conservation and Reclamation Act (52 P.S. §§ 1396.1—1396.19b), the Coal Refuse Disposal Control Act (52 P.S. §§ 30.51—30.66) and the regulations promulgated thereunder at 25 Pa. Code Chapter 86, Subchapter F (relating to bonding and insurance requirements).
The unit costs listed in these guidelines will be used in calculating the land reclamation bonds for surface coal mining operations including, surface mines, coal refuse disposal sites, coal refuse reprocessing sites, coal processing facilities and the surface facilities associated with underground mining operations.
The procedures for calculating land reclamation bonds are described in the Department's Technical Guidance Document 563-2504-001, ''Conventional Bonding for Land Reclamation—Coal,'' which is available on the Department's web site at http://www.elibrary.dep.state.pa.us. The Department calculated the rate of inflation using 5-year averages. For the rate of inflation, the Consumer Price Index (Northeast Urban) from the United States Department of Labor, Bureau of Labor Statistics, was averaged for the calendar years 2019—2023, resulting in a rate of 3.45%. This rate of inflation will be used in calculating bond amounts for permit renewal or permit mid-term bond liability reviews on or after April 1, 2024.
The Department may review the adequacy of bonds on existing permits based on the bond rate guidelines at any time. The Department will conduct these reviews before issuing permit renewals. The Department may conduct similar reviews at the midterm of a permit and before approving a permit revision.
These bond rate guidelines do not apply to bonds ensuring replacement of water supplies under section 3.1(c) of the Surface Mining Conservation and Reclamation Act (52 P.S. § 1396.3a(c)) or to bonds ensuring compliance with the requirements of The Bituminous Mine Subsidence and Land Conservation Act (52 P.S. §§ 1406.1—1406.21).
General Methodology
The Department developed the bond rate guidelines for 2024 from the unit costs for competitively bid contracts for abandoned mine reclamation projects using the lowest total bid for each contract. Contract bid data is available for various unit operations needed to complete reclamation of a mine site for the years 1998—2023. For most categories, a 3-year (2021—2023) average was used to calculate the guidelines. Some categories require another approach due to limited data represented in the bid contracts, such as selective grading. As discussed with the Department's Mining and Reclamation Advisory Board in 2023, the Department had quantified the cost increases for 2022 compared to 2021 and calculated a 17% increase for any items not represented in a bid contract that year. For example, there were no contracts in 2022 that included selective grading. Therefore, using the 17% increase factor, the selective grading bond rate cost went up $300. Prior to this increase, the selective grading cost per acre had remained at $1,700 for the last 8 years. It was likely this amount did not represent the actual cost. If a project with selective grading occurs, the actual rate would be higher and be reflected in a dramatic increase for this rate. The Department has used this 17% increase factor for any items that were not represented in a bid contract in 2023. The new approach by the Department is intended to minimize these dramatic increases by ensuring bond rates stay reasonable based on increases seen in other unit operations. For any items that were represented in a bid contract in 2023, the Department used the weighted average of the lowest total bid contract for the previous 3 years for the 2024 bond rate guidelines.
If a unit operation necessary to calculate a reclamation bond is not listed in Tables 1 or 2, then additional cost information available may be used. Unit costs (such as haulage over 1 mile for grading) may be calculated using a standard reference such as the most recent edition of Means Building Construction Cost Data or the most recent version of the Office of Surface Mining Handbook for Calculation of Reclamation Bond Amounts. Specific unit costs may be adjusted using information provided by other stakeholders including permittee-provided reclamation cost estimates which include supporting calculations such as prevailing wage costs, installation costs and the like.
The fees associated with the Land Maintenance Bond Program are presented in Table 3. There has been no change in these rates for 2024.
The bond rate guidelines are available electronically at http://www.dep.pa.gov/Business/Land/Mining/Bureauof MiningPrograms/Bonding/Pages/BondRates.aspx. For background information and supporting documentation regarding bonding rate guidelines, contact the Bureau of Mining Programs, Division of Permitting and Compliance, P.O. Box 8461, Harrisburg, PA 17105-8461, (717) 787-5103.
Mine Sealing Costs
The mine sealing bond rate guidelines are presented in Table 2.
Effective Date
The bond rate guidelines in this notice become effective April 1, 2024.
Table 1
Standard Bond Rate Guidelines for Year 2024
| Unit Operation | Unit Measure | Unit Costs ($) |
|---|
| Mobilization/Demobilization | Job | 4.5% of direct costs or $45,000, whichever is less |
| Grading (< 500 ft. push) | Cubic Yard | 1.50 |
| Load/Haul/Dump/Grading (≥500 ft.) | Cubic Yard | 2.50 |
Load/Haul/Dump/Grading
(1,000 ft. up to 1 mile)
Underground and Refuse Only | Cubic Yard | 3.00 |
Load/Haul/Dump/Grading ( > 1 mile)
Underground and Refuse Only | Cubic Yard | Use Standard References |
| Selective Grading | Acre | 2,350.00 |
| Revegetation | Acre | 3,200.00 |
| Tree Planting | Tree | 1.00 |
| Ditch Excavation | Cubic Yard | 7.00 |
| Jute Matting | Square Yard | 6.00 |
| High Velocity Erosion Control | Square Yard | 3.00 |
| AASHTO No. 1 | Ton | 45.00 |
| AASHTO No. 57 | Ton | 90.00 |
| R3 Rock Lining | Square Yard | 48.00 |
| R4 Rock Lining | Square Yard | 39.00 |
| R5 Rock Lining | Square Yard | 50.00 |
| Geotextile/Filter Fabric | Square Yard | 17.00 |
| Subsurface Drain | Lineal Foot | 26.00 |
| Erosion and Sedimentation Control (Temporary Installation) | Job | Lump sum (5% of direct costs for site) |
| Pond Removal Active Phase1 | Pond | 3,800.00 |
| Stage 3 Maintenance Bond Non-Cropland Areas (Land Uses Where Crop Yields Are Not Required) | Acre | 100.00 |
| Stage 3 Maintenance Bond Cropland (Not Row Crops) Pastureland or Land Occasional Cut for Hay (Excludes Seed Cost) | Acre | 500.00 |
| Stage 3 Maintenance Bond Cropland Area-Row Crops (includes seed cost) | Acre | 1,200.00 |
| Stage 3 Mobilization | Job | 2,500.00 |
| Pond Removal—Stage 3 | Cubic Yards
(Embankment Volume) Plus Top Soiling and Revegetation Cost | Use <500 Grading for Pond Embankment Volume Plus
Top Soiling and Revegetation Cost for
the Area Disturbed |
| Ditch Removal—Stage 3 | Lineal Foot | 0.75 |
| Equipment Tire Removal and Disposal | Tire | 300.00 |
| Structure Demolition | Costs Will Be Calculated Using Costs Listed in the
Construction Industry's Latest Annual Cost
Publications, such as
Means Building Construction Cost Data. |
Table 2
Mine Sealing Bond Rate Guidelines for Year 2024
| Sealing Bituminous Underground Mine Drift and Slope Openings |
|---|
| Unit Operation | Unit Measure | Unit Costs ($) |
| Concrete Work | Cubic yard | 114.00 |
| Masonry Work | Square foot | 16.50 |
| Fill Material & Earthwork2 | Cubic yard | 19.00 |
| Security Fencing | Lineal foot | 32.50 |
| Mobilization Cost | Job | 5% of Total Amount |
| Sealing Bituminous Underground Mine Shaft Openings |
|---|
| Concrete Material | Cubic Yard | 110.00 |
| Aggregate Material | Cubic Yard | 32.50 |
| Fill material and Earthwork2 | Cubic Yard | 8.50 |
| Security Fencing | Lineal Foot | 32.50 |
| Mobilization Cost | Job | 5% of Total Amount |
| Sealing Boreholes at Bituminous Underground Mines |
|---|
| Dimension | Minimum Cost Per Hole ($) | Unit Cost ($) Per Lineal Foot |
| 12 Inch or Less Diameter | 1,850 | 6.50 |
| Larger Than 12 Inch Diameter | 2,450 | 9.00 |
1 Unit cost not from the Department's Bureau of Abandoned Mine Reclamation (BAMR) bids; includes dewatering, grading, topsoil placement and revegetation.
2 Mine sealing costs are minimum costs. Additional costs per mine seal will be assessed based on specific design criteria, such as the thickness of the seal and the volume of backfill material required, using appropriate material, equipment and labor costs from BAMR bid abstracts or from an industry-standard cost estimation publication, for example, Means Estimating Handbook or Walker's Building Estimator's Reference Book.
Table 3
Land Maintenance Financial Guarantee Fees for Year 2024
| Fee Category | Fee ($) |
|---|
| Publication | 1,000.00 |
| Administrative | 300.00 |
JESSICA SHIRLEY,
Interim Acting Secretary
[Pa.B. Doc. No. 24-354. Filed for public inspection March 15, 2024, 9:00 a.m.]
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