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Reclamation Meeting
    May 17, 2010
Legal Direction

Very little statutory direction;
most laws do not address
reclamation of locatable, or
“hardrock” minerals

Forest Service regulatory
direction is at 36 CFR 228
Part A (228.8, and 228.13),
and in the 2800 Section of
the Forest Service Manual.
228.8 (g) Reclamation. Upon
exhaustion of the mineral deposit or
at the earliest practicable time
during operations, or within 1 year of
the conclusion of operations, unless
a longer time is allowed by the
authorized officer, operator shall,
where practicable, reclaim the
surface disturbed in operations by
taking such measures as will prevent
or control onsite and off-site damage
to the environment and forest
surface resources including…
(1) Control of erosion
and landslides;
(2) Control of water
runoff;
(3) Isolation, removal
or control of toxic
materials;
(4) Reshaping and
revegetation of
disturbed areas, where
reasonably practicable;
and
(5) Rehabilitation of
fisheries and wildlife
habitat.
228.13 Bonding
(a) Any operator required to file a plan of operations
shall, when required by the authorized officer, furnish a
bond conditioned upon compliance with 228.8(g), prior
to approval of such plan of operations. In lieu of a bond,
the operator may deposit into a Federal depository, as
directed by the Forest Service, and maintain therein,
cash in an amount equal to the required dollar amount of
the bond or negotiable securities of the United States
having market value at the time of deposit of not less
than the required dollar amount of the bond. A blanket
bond covering nationwide or statewide operations may
be furnished if the terms and conditions thereof are
sufficient to comply with the regulations in this part.
(b) In determining the amount of the bond,
consideration will be given to the estimated cost of
stabilizing, rehabilitating, and reclaiming the area of
operations.
(c) In the event that an approved plan of operations is
modified in accordance with 228.4 (d) and (e), the
authorized officer will review the initial bond for adequacy
and, if necessary, will adjust the bond to conform to the
operations plan as modified.
(d) When reclamation has been completed in accordance
with 228.8(g), the authorized officer will notify the
operator that performance under the bond has been
completed: Provided, however, that when the Forest
Service has accepted as completed any portion of the
reclamation, the authorized officer shall notify the
operator of such acceptance and reduce proportionally the
amount of bond thereafter to be required with respect to
the remaining reclamation.
Forest Service Manual Direction (Sections
2800 and 6500)
Reclamation is an activity that is performed during or
after mineral activities, to shape, stabilize, revegetate or
otherwise treat lands disturbed by minerals activities. It
should achieve safe and ecologically stable conditions and
land use that’s consistent with long-term forest land and
resource management plans and local environmental
conditions…
Reclamation shall be undertaken in a timely
fashion and occur sequentially with ongoing
mineral activities

To the extent practicable, reclaimed National
Forest System land shall be free of long-term
maintenance requirements…
Reclamation should reclaim disturbed areas to a
condition that’s consistent with applicable State air
and water quality requirements

Reclamation requirements included in a Plan of
Operations should include measurable
performance standards. Requirements should be
designed to attain those standards
Reclamation bonds,
sureties, or other financial
guarantees shall ordinarily
be required for all mineral
activities that require a
Plan of Operations; dollar
amounts of such
guarantees shall be
sufficient enough to cover
the full cost of reclamation
Other Forest Service Guidance:

Training Guide for Reclamation Bonding Estimation and
Administration for Mineral Plans of Operation under 36 CFR
228A (USDA - Forest Service, April 2004)
Training guide developed to address problems with mine closure
that came to light in the mid to late 1990s, when precious metal
prices plummeted and the Forest Service had to use reclamation
bond monies to reclaim abandoned operations. The experience
demonstrated that reclamation requirements and bonds for mining
operations on federal lands in the Western U.S. were inadequate,
particularly in….

   • Interim management of process fluids

   • Need for and cost of water treatment

   • Detoxification and rinsing of spent ore from heap leach piles

   • Closure of tailings impoundments
• Removal, isolation, and treatment of hazardous materials such
as chemicals, spent ore, and waste rock

• Site drainage (both interim and long term)

• Monitoring and maintenance of the mine site during and after
closure

• Indirect costs of closure and reclamation, and

• Lack of site specific information in plans of operation
The training guide recognizes the reasons for historical inadequate
bonding of locatable mining operations including:

    • A perception that Forest Service regulations limit what can be
    bonded, including long term maintenance and monitoring, and
    interim management of a mining operation

    • Incomplete plans of operation

    • Bonding based on conceptual project design

    • Erroneous assumptions about environmental effects

    • Lack of Forest Service guidance on how to estimate bonds

    • Lack of education, training or experience in personnel estimating
    bonds
The guide provides guidance in:

    • What detailed information should be included in a Plan of
    Operations

    • Determining the period of operation that should be covered by
    bonding

    • Bond adjustments through time, in response to changing
    reclamation needs

    • Determining what is to be reclaimed and what the reclamation
    tasks are

    • What standards are to be met in reclamation

    • What long term site maintenance and monitoring should be done

    • Estimates of direct and indirect costs of reclamation, particularly,
    cost to agency to reclaim if operator does not
Further information
from the training guide
can be found at:




www.fs.fed.us/geology/
  bond_guide_042004.pdf
Coronado National Forest Plan
          direction is to:
Support environmentally sound energy
     and mineral development
Arizona State Reclamation Plan
              Requirements

State of Arizona statute for reclamation and bonding of
operations on private and state lands (Arizona Revised Statutes
§§ 27-901-997 and Arizona Administrative Code R11-2-201
through R11-2-822)


Primarily concerned with
safety (such as slope
stability), shaping and
revegetation

Jurisdiction on private
lands

Other state regulation and
bonding for reclamation
through ADEQ and ADWR
Rosemont reclamation plan at:
www.asmi.az.gov/documents_forms/default.asp
 (under Rosemont Reclamation Plan Review)
Bottom line…




Most conditions of reclamation will be developed
 as mitigation through National Environmental
Policy Act analysis and incorporated in the final
            Mine Plan of Operations
Comments and
    other
  Discussion

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Reclamation Requirements

  • 1. Reclamation Meeting May 17, 2010
  • 2. Legal Direction Very little statutory direction; most laws do not address reclamation of locatable, or “hardrock” minerals Forest Service regulatory direction is at 36 CFR 228 Part A (228.8, and 228.13), and in the 2800 Section of the Forest Service Manual.
  • 3. 228.8 (g) Reclamation. Upon exhaustion of the mineral deposit or at the earliest practicable time during operations, or within 1 year of the conclusion of operations, unless a longer time is allowed by the authorized officer, operator shall, where practicable, reclaim the surface disturbed in operations by taking such measures as will prevent or control onsite and off-site damage to the environment and forest surface resources including…
  • 4. (1) Control of erosion and landslides; (2) Control of water runoff; (3) Isolation, removal or control of toxic materials; (4) Reshaping and revegetation of disturbed areas, where reasonably practicable; and (5) Rehabilitation of fisheries and wildlife habitat.
  • 5. 228.13 Bonding (a) Any operator required to file a plan of operations shall, when required by the authorized officer, furnish a bond conditioned upon compliance with 228.8(g), prior to approval of such plan of operations. In lieu of a bond, the operator may deposit into a Federal depository, as directed by the Forest Service, and maintain therein, cash in an amount equal to the required dollar amount of the bond or negotiable securities of the United States having market value at the time of deposit of not less than the required dollar amount of the bond. A blanket bond covering nationwide or statewide operations may be furnished if the terms and conditions thereof are sufficient to comply with the regulations in this part. (b) In determining the amount of the bond, consideration will be given to the estimated cost of stabilizing, rehabilitating, and reclaiming the area of operations.
  • 6. (c) In the event that an approved plan of operations is modified in accordance with 228.4 (d) and (e), the authorized officer will review the initial bond for adequacy and, if necessary, will adjust the bond to conform to the operations plan as modified. (d) When reclamation has been completed in accordance with 228.8(g), the authorized officer will notify the operator that performance under the bond has been completed: Provided, however, that when the Forest Service has accepted as completed any portion of the reclamation, the authorized officer shall notify the operator of such acceptance and reduce proportionally the amount of bond thereafter to be required with respect to the remaining reclamation.
  • 7. Forest Service Manual Direction (Sections 2800 and 6500) Reclamation is an activity that is performed during or after mineral activities, to shape, stabilize, revegetate or otherwise treat lands disturbed by minerals activities. It should achieve safe and ecologically stable conditions and land use that’s consistent with long-term forest land and resource management plans and local environmental conditions…
  • 8. Reclamation shall be undertaken in a timely fashion and occur sequentially with ongoing mineral activities To the extent practicable, reclaimed National Forest System land shall be free of long-term maintenance requirements…
  • 9. Reclamation should reclaim disturbed areas to a condition that’s consistent with applicable State air and water quality requirements Reclamation requirements included in a Plan of Operations should include measurable performance standards. Requirements should be designed to attain those standards
  • 10. Reclamation bonds, sureties, or other financial guarantees shall ordinarily be required for all mineral activities that require a Plan of Operations; dollar amounts of such guarantees shall be sufficient enough to cover the full cost of reclamation
  • 11. Other Forest Service Guidance: Training Guide for Reclamation Bonding Estimation and Administration for Mineral Plans of Operation under 36 CFR 228A (USDA - Forest Service, April 2004)
  • 12. Training guide developed to address problems with mine closure that came to light in the mid to late 1990s, when precious metal prices plummeted and the Forest Service had to use reclamation bond monies to reclaim abandoned operations. The experience demonstrated that reclamation requirements and bonds for mining operations on federal lands in the Western U.S. were inadequate, particularly in…. • Interim management of process fluids • Need for and cost of water treatment • Detoxification and rinsing of spent ore from heap leach piles • Closure of tailings impoundments
  • 13. • Removal, isolation, and treatment of hazardous materials such as chemicals, spent ore, and waste rock • Site drainage (both interim and long term) • Monitoring and maintenance of the mine site during and after closure • Indirect costs of closure and reclamation, and • Lack of site specific information in plans of operation
  • 14. The training guide recognizes the reasons for historical inadequate bonding of locatable mining operations including: • A perception that Forest Service regulations limit what can be bonded, including long term maintenance and monitoring, and interim management of a mining operation • Incomplete plans of operation • Bonding based on conceptual project design • Erroneous assumptions about environmental effects • Lack of Forest Service guidance on how to estimate bonds • Lack of education, training or experience in personnel estimating bonds
  • 15. The guide provides guidance in: • What detailed information should be included in a Plan of Operations • Determining the period of operation that should be covered by bonding • Bond adjustments through time, in response to changing reclamation needs • Determining what is to be reclaimed and what the reclamation tasks are • What standards are to be met in reclamation • What long term site maintenance and monitoring should be done • Estimates of direct and indirect costs of reclamation, particularly, cost to agency to reclaim if operator does not
  • 16. Further information from the training guide can be found at: www.fs.fed.us/geology/ bond_guide_042004.pdf
  • 17. Coronado National Forest Plan direction is to: Support environmentally sound energy and mineral development
  • 18. Arizona State Reclamation Plan Requirements State of Arizona statute for reclamation and bonding of operations on private and state lands (Arizona Revised Statutes §§ 27-901-997 and Arizona Administrative Code R11-2-201 through R11-2-822) Primarily concerned with safety (such as slope stability), shaping and revegetation Jurisdiction on private lands Other state regulation and bonding for reclamation through ADEQ and ADWR
  • 19. Rosemont reclamation plan at: www.asmi.az.gov/documents_forms/default.asp (under Rosemont Reclamation Plan Review)
  • 20. Bottom line… Most conditions of reclamation will be developed as mitigation through National Environmental Policy Act analysis and incorporated in the final Mine Plan of Operations
  • 21. Comments and other Discussion