This three-part blog series on California SB 108, a bill which changes provisions in the Surface Mining and Reclamation Act of 1975 (SMARA) pertaining to "idle" mines, is based on a paper I first presented at the CalCIMA Conference in October 2011. If you have not yet read part one of this three-part series, which gives background on the Interim Management Plan problem, you will want read that first.
SB 108: What it Does
Revised Definition of "Idle": SB 108 addresses only one of the substantive issues discussed above, by changing the current definition of "Idle" in SMARA Section 2727.1 to look at the curtailment of production by more than 90 percent of the maximum annual production within any of the last five years, rather than by more than 90 percent of the previous historical maximum annual production. See SB 108 (a copy is attached to this paper). This avoids some of the record problems discussed above and likely limits the
number of operations falling within the definition of idle.
Additional Renewals of IMPs: Currently SMARA allows for renewal of an IMP for an additional 5-year period. SB 108 clarifies that an IMP may be renewed for additional 5-year periods at the expiration of each 5-year period. SMARA Section 2770(h)(2)(A)
Limited Window to Change Mine Status: Although not a substantive change to address the overall IMP problem, perhaps the most significant and practical benefit of SB 108 is the change of status provision. SB 108 adds new SMARA Section 2777.5, to authorize operators to file amended annual reports for prior years in order to revise mineral production or to change mine status from active to idle. One impact of this is to allow mine operators that may have failed to timely file an IMP in prior years (and thus could be subject to claims by OMR of abandonment notwithstanding resumption of production in subsequent years) to either correct production numbers for prior years (thereby avoiding claims of past idleness and failure to prepare a timely IMP) or to properly identify, i.e., change the status of the mine as having been idle in prior years and allow for the filing of a "retrospective" or "late" IMP (thereby avoiding potential claims of abandonment).