OFFICE OF SURFACE MINING RECLAMATION AND … · it performs for coal mines. MMD received 100...

OFFICE OF SURFACE MINING

RECLAMATION AND ENFORCEMENT

Annual Evaluation Report For The

Regulatory Program

Administered by the State

Of

New Mexico

For

Evaluation Year 2013

(July 1, 2012, through June 30, 2013)

Prepared by

Program Support Division

(October 30, 2013)

EXECUTIVE SUMMARY

New Mexico’s Regulatory Program


The following summary captures the highlights of the Evaluation Year 2013 (EY 2013) Annual

Evaluation Report for the New Mexico Regulatory Program. The report covers the period July 1, 2012, to

June 30, 2013. Based on the oversight topics evaluated for EY 2013, the New Mexico Mining and

Mineral Division (MMD) continues to achieve the regulatory and reclamation goals of the Surface

Mining Control and Reclamation Act of 1977 (SMCRA), including the protection of the public and the

environment from the adverse effects of coal mining.

Overview of Public Participation and Outreach Efforts

MMD performed outreach to citizens and communities, operators, and stakeholders by providing

opportunities to discuss issues, participating in programs that help to educate the public about mining, and

coordinating with other state and federal agencies involved in coal extraction. MMD also has completed

scanning all its paper records and placed all of this information into an electronic records management

system. This system now enables MMD to provide electronic formatted copies of all historic and current

permit information to mine operators, OSM, and the public.

Major Accomplishments and Innovations

The New Mexico Coal Program continues to be a progressive leader on technology, as demonstrated

through their current technology development of Coal Combustion Byproduct (CCB) Disposal

Reclamation and Geomorphic Reclamation. New Mexico’s Coal Program Manager, Dave Clark, was

awarded OSM’s Environment, Community, Humanity, and Ownership (ECHO) Award for his continued

work to enhance environmental protection and coal mine reclamation. Mr. Clark was also elected by the

Western Region Technology Team (WRTT) to represent the team as a member of the Applied Sciences

proposal review team.

In 2010, MMD made significant progress in an on-going investigation into the practice of using Coal

Combustion Byproducts (CCBs) or “coal ash” as part of mine fill at coal mines. MMD, in cooperation

with U.S. Geological Survey (USGS) and the University of New Mexico (UNM), initiated a multi-year

hydrologic investigation to evaluate the potential impacts of coal ash to groundwater at the San Juan Mine

because of concerns expressed by citizens and regulatory agencies. Based on the final UNM report in

2012, there is evidence that the potential for contamination of the underlying regional aquifer at the San

Juan Mine (SJM) site is minimal. Still to come is the USGS groundwater modeling study at SJM which is

anticipated to extend through FY 2014. The results of that report are expected to show whether or not

groundwater flow from the mine could allow metals that may be leached from CCBs disposed of in

reclaimed mine pits to reach wells or aquifers offsite. The final USGS study findings will utilize the

UNM hydrology and water quality findings related to CCB disposal practices at SJM to produce a

predictive model for impacts of CCB disposal on an aquifer and a guide for long-term water monitoring

efforts. Both of these studies provide MMD invaluable unbiased scientific data and will be used to ensure

that long-term groundwater quality is protected and off-site impacts are prevented.

Off-Site Impacts

One hundred percent of the eight inspectable units were free of negative off-site impacts during the

evaluation year. Accordingly, no negative off-site impacts were recorded.

Reclamation Success

OSM’s Directive Reg-8 uses acres of phased bond release as a measurement for successful reclamation.

Specifically, how many acres have achieved return to land form/ approximate original contour, land

capability (post-mine land use) and hydrologic reclamation. According to the New Mexico Coal Rules

and Regulations, phased bond release is defined as:

Phase I – When the permittee completes the backfilling, regrading (which may include the

Replacement of topsoil) and drainage control of a bonded area in accordance with the approved

reclamation plan, 60 percent of the bond or collateral for the applicable area.

Phase II – When the permittee has established vegetation on the regraded mined lands in accordance

with the approved reclamation plan.

Phase III – The remaining portion of the bond may be released after the permittee has successfully

completed all surface coal mining and reclamation activities.

In New Mexico, the following figures address the cumulative totals for bond release by phase:

Phase I – 10,845 ac. or 38.1 percent of total disturbance,

Phase II – 6,882 ac. or 24.2 percent of total disturbance,

Phase III – 4,201 ac. or 14.8 percent of total disturbance.

Contemporaneous Reclamation

Currently in New Mexico, a total of 80,253 acres have been permitted, with approximately 28,457 acres

(35.4%), disturbed by mining activity to date. Of these disturbed acres, approximately 19,998 acres have

been backfilled, graded, topsoiled and seeded; or 70.3 percent of the lands disturbed have been reclaimed

to the point of establishing vegetation. This ratio of disturbed vs. reclaimed (seeded) acres is a measure of

how contemporaneous (timely) the State’s mines are reclaiming acres to the point of establishing

vegetation. Once the revegetated acres have fulfilled their 10 year liability period and met other

requirements, they may be available for Phase III or final bond release. Approximately 8.6 percent of the

cumulative disturbed lands on New Mexico coal mines consist of facilities, such as buildings, ponds, haul

roads, soil and overburden stockpiles and other long-term disturbances. These disturbances are necessary

in the operation of the mine until mining operations are completed. The total current size of all New

Mexico coal facilities is reported as 2,457 acres. When subtracting the acreage of the facilities from the

cumulative disturbance, the ratio of reclamation to net disturbance is 0.77, or 77 percent of the cumulative

acres disturbed (minus coal facilities) in New Mexico have been reclaimed to the point of being

backfilled, graded and seeded.

Customer Service

During EY 2013, New Mexico did not receive any citizen complaints.

Program Amendments

During EY 2013, New Mexico did not have any state program amendments.

Topic Specific Oversight Reviews

For EY 2013, an on-going topic-specific oversight review included the San Juan Coal Combustion

Byproduct (CCB) Disposal Evaluation because of concerns raised in 2010, by citizen and regulatory

agencies. Also for EY 2013, the Permitting Process Review for the San Juan Mine Significant Permit

Revision was evaluated as a topic-specific oversight element. The OSM review of San Juan’s CCB

Disposal found that San Juan Mine was meeting permit requirements for CCB disposal and monitoring of

those CCB disposal sites; therefore, OSM concluded that MMD was effectively implementing its New

Mexico Program through compliance with reclamation performance standards pursuant to New Mexico

Administrative Code (NMAC) 19.8.20.2054. OSM’s Permitting Process Review for the San Juan Mine

Significant Permit Revision tentatively found that MMD is successfully implementing its New Mexico

program through compliance with regulatory requirements of NMAC 19.11.1100 through 19.11.1106.

However, MMD’s approval of this significant permit revision took place after the current evaluation year;

therefore, OSM will finalize its evaluation of the significant permit revision process in EY 2014.

Regulatory Program Issues

During EY 2013, New Mexico did not have any regulatory program issues.

OSM Assistance

For the 12-month grant period starting July 1, 2012 (Fiscal Year 2012), New Mexico received an

Administration and Enforcement Grant of $850,000.00 for permitting, inspection, and other activities that

it performs for coal mines. MMD received 100 percent funding from OSM for the New Mexico

Abandoned Mine Lands (AML) Program for Fiscal Year 2012 in the amount of $4,819,272.08. OSM

also provided MMD with free-of-charge technical training courses, use of technical equipment, and

library reference materials upon request.

TABLE OF CONTENTS

I. Introduction………………………………………………………………………….…………6

II. Overview of Coal Mining in New Mexico…………………………………………………......7

III. Overview of Public Participation in the New Mexico Program…………………………..…....8

A. Evaluation process……………………………………………………………………..8

B. New Mexico program………………………………………………………………….8

IV. Major Accomplishments and Innovations in the New Mexico Program………….....................8

A. Accomplishments…………………………………………………………………..…..…..8

B. Innovations………………………………………………………………………..…..…....8

V. Success in Achieving the Purposes of SMCRA……………………………………………......8

A. Preventing Off-site Impacts………………………………………………………..…..9

B. Ensuring Reclamation Success…………………………………………………….…10

C. Providing Customer Service………………………………………………………….11

VI. National Measurement Elements and Topic-Specific Reviews………………………………11

A. Off-site impacts – Program Effectiveness in Preventing Off-site Impacts…………..12

B. Reclamation Success – Program Effectiveness in Ensuring Reclamation Success

Procedures……………………………………………………………………………12

C. Customer Service – Program Effectiveness in Providing Customer Service as it

Relates to Citizen Complaints and Outreach………………………………………....13

D. San Juan Mine CCB Disposal Evaluation – Program Effectiveness in

Ensuring Compliance with Regulatory Requirements for CCB Disposal

Reclamation…………………………………………………………………………..14

E. Permitting Process Review for the San Juan Mine Significant Revision – Program

Effectiveness in Compliance with Regulatory Requirements………..……………....15

VII. Regulatory Program Problems and Issues…………………………………………………….15

VIII. OSM Assistance……………………………………………………………………………….15

Appendix 1: Tabular Summary of Core Data to Characterize the New Mexico Program………….…17

Appendix 2: EY 2013 New Mexico Reclamation Status Table…………………………………….…56

I. Introduction

The Surface Mining Control and Reclamation Act of 1977 (SMCRA) created the Office of Surface

Mining Reclamation and Enforcement (OSM) in the Department of the Interior. SMCRA provides

authority to OSM to oversee the implementation of and provide Federal funding for state regulatory

programs that have been approved by the Secretary of the Interior as meeting the minimum standards

specified by SMCRA. OSM’s Program Support Division (PSD) located in the Western Region (WR) and

the New Mexico Mining and Minerals Division (MMD) work together to conduct annual evaluations of

MMD’s Coal Regulatory Program (Program). Our team approach is used to evaluate how effective MMD

is in ensuring that off-site impacts are prevented, coal mine reclamation is successful, and service to its

customers is provided. OSM and MMD make recommendations for improving the administration,

implementation, and maintenance of the Program. OSM and MMD cooperatively solicit public

participation; select evaluation topics and inspection sites; conduct topic evaluations and joint inspections;

and report, discuss, and track off-site impacts. This evaluation method fosters a shared commitment to the

implementation of SMCRA.

This report contains summary information regarding the New Mexico Program and the effectiveness of

the New Mexico Program in meeting the applicable purposes of SMCRA as specified in section 102.

This report covers the period July 1, 2012, through June 30, 2013. Detailed background information and

comprehensive reports for the program elements evaluated during the period are available for review and

copying at OSM’s WR-PSD, 1999 Broadway, Suite 3320, Denver, Colorado, 80202 or at the following

OSM website: http://odocs.osmre.gov/.

The following abbreviations and acronyms are used in this report:

AML Abandoned Mine Land

APR Apparent Completeness Review

AVS Applicant Violator System

BTU British Thermal Unit

CCBs Coal Combustion By-products

CFR Code of Federal Regulations

CMRB Coal Mine Reclamation Bureau

CO Cessation Order

ECHO Environment, Community, Humanity, and Ownership

EMNRD Energy, Minerals and Natural Resources Department

EY Evaluation Year

FY Fiscal Year

GIS Geographic Information System

GPRA Government Performance Review Act

GPS Global Positioning System

JPEG Joint Photographic Experts Group

MMD Mining and Minerals Division

MOU Memorandum of Understanding

NMAC New Mexico Administrative Code

NOV Notice of Violation

NTTP National Technical Training Program

NTTT Nation Technology Transfer Team

OSM Office of Surface Mining Reclamation and Enforcement

PDF Portable Document Format

PSD Program Support Division

SJM San Juan Mine

http://odocs.osmre.gov/

SMCRA Surface Mining Control and Reclamation Act of 1977

TDN Ten-Day Notice

TIPS Technical Innovation and Professional Services

UNM University of New Mexico

USGS United States Geological Survey

WR Western Region Office

WRTT Western Region Technology Transfer

II. Overview of Coal Mining in New Mexico

Coal production has played a significant role in the economic development of New Mexico beginning in

the 1850s and continuing to the present. It is one of the four mineral fuels produced in New Mexico,

ranking third in value behind natural gas (including coalbed methane) and crude oil. Coal resources

underlie 12 percent (14.6 million acres) of the state's total area. The demonstrated coal reserve base in

New Mexico is 4.65 billion tons or about one percent of the national reserves.

Most of the coal is in northern New

Mexico, primarily in the San Juan and

Raton basins. Several minor coal fields

outside these basins have had significant

production in the past, and some may

become important in the future, in

particular for coalbed methane

production.

The main coal-bearing strata are the

Mesa Verde and Fruitland formations in

the San Juan Basin and the Raton and

Vermejo formations in the Raton area.

San Juan Basin coal generally ranges

from sub-bituminous A to high volatile

bituminous C. Bituminous coal burns

hotter (11,500 to 13,000 BTU) than the

sub-bituminous varieties (8,300 to

11,500 BTU).

There are nine permitted coal mines in New Mexico. Four mines, Lee Ranch, Navajo, San Juan

Underground, and El Segundo were producing coal at the end of 2012. The Navajo Mine is located on the

Navajo Indian Reservation. OSM, not the State of New Mexico, regulates this mine. The other five mines

are in reclamation and are awaiting final bond release; they are Ancho, York Canyon Surface, York

Canyon Underground, McKinley, and La Plata.

The mines mentioned above are in an arid and dry climate with an average annual precipitation ranging

from 7.72 to 9.80 inches. Most of the precipitation is in the form of thundershowers from July to

September. Re-vegetation in parts of the San Juan Basin is extremely difficult because of low rainfall

amounts and highly erodible soil types.

III. Overview of Public Participation and Outreach Efforts

Public Participation Evaluation Process

Each year OSM and MMD solicit comments or suggestions through an annual mailing to interested

parties and through outreach notifications published on OSM’s web page. We seek comments from

persons and groups who may have an interest in coal mining and, specifically, an interest in the oversight

process. OSM mailed outreach letters to coal mining stakeholders (state, federal, and local governmental

agencies, coal mine permittees, environmental groups, consulting firms, and coal mining trade groups)

soliciting input for topics to evaluate during EY 2013, and soliciting any questions or comments on

previous oversight reports or the OSM/MMD oversight process. OSM received no responses to its letters

soliciting comments, nor did OSM receive any comments in response to the outreach through our web

page. Copies of Performance Agreements and Annual Evaluation Summary Reports are available for

review in the evaluation files maintained at the WR-PSD. Also, these reports are available at the

following OSM website: http://odocs.osmre.gov/.

New Mexico’s Public Participation Outreach Efforts

Public outreach is an important component of New Mexico’s Program. To support its public outreach

effort MMD has had a public facing web page for many years. During EY 2013, outreach to mine

operators and the public regarding current and proposed mining operations has been expanded by making

more information available on MMD’s webpages. Projects can now be tracked by status or county, and

project documents are downloadable.

IV. Major Accomplishments and Innovations in the New Mexico Program

Accomplishments

MMD’s Coal Program Manager, Dave Clark, was awarded OSM’s Environment, Community, Humanity,

and Ownership (ECHO) Award for his continued work to enhance environmental protection and coal

mine reclamation. This is the first time OSM has recognized an individual for advocacy of the appropriate

balance between meeting the Nation’s need for energy without compromising protection of people, the

environment, and the surrounding community. OSM chose the honoree after receiving nominations from

OSM staff. Nominations and the final choice were based on the individual’s demonstration of one or

more of the following attributes: public service, sustained engagement, non-partisan, major contribution,

advocate of the law, protection of society, innovative solutions, and environmental protection.

During EY 2013, the New Mexico Coal Program had no off-site impacts, met or exceeded the required

inspection frequency, and had no citizen complaints because of its successful customer service.

Innovations

In 2010, MMD initiated a four year program to characterize coal combustion by-product (CCB) disposal

at SJM because citizen and regulatory concerns about CCB disposal at San Juan Mine (SJM), as well as a

lawsuit brought by the Sierra Club. The CCB disposal has been ongoing for the past 35 years at SJM and

is a high profile issue throughout the United States. As part of this four year program, MMD funded two

research grants; one with the University of New Mexico (UNM) and the other with the U.S. Geological

Survey (USGS). The focus of both of these studies is the effects of CCB impacts to hydrology. The

research findings will provide MMD invaluable unbiased scientific data, which will be used to ensure that

long-term groundwater quality is protected and off-site impacts are prevented.


The UNM study at San Juan Mine (SJM) was completed in March 2012, and the final report, titled

Analysis of Coal Combustion By-Products Disposal Practices at the San Juan Mine: Hydrologic & Water

Quality Issues, was submitted to MMD in the Fall of 2012. The UNM final report described results of an

investigation of CCBs generated by the San Juan Generating Station in northwestern New Mexico. CCBs

from the power plant are disposed in mined out areas of the SJM. UNM’s objective was to determine the

potential for leachate from CCB disposal to contaminate underlying groundwater. This was done by: 1)

measuring the physical characteristics of fresh and buried CCBs that affect their unsaturated hydraulic

properties; 2) determining the chemical, mineralogical, and leaching characteristics of these materials,

and 3) developing a numerical simulation of water migration through an unsaturated column of cover

material and buried CCBs. The results of the study showed very low (or possibly zero) downward flow of

ground water through the unsaturated waste predicted by the modeling study and low concentrations of

contaminants in leachates from buried CCBs. These results provide evidence that the potential for

contamination of the underlying regional aquifer at this site is small.

For this evaluation year, the USGS is continuing to compile groundwater recharge modeling data at SJM.

At the completion of the USGS study, anticipated to extend through FY 2014, there will be an

explanation of whether or not the groundwater flow paths would allow metals from CCBs stored in

reclaimed mine pits to impact groundwater offsite. USGS’s final groundwater flow findings, in

combination with UNM’s final hydrology and water quality findings will be used to develop a predictive

model for impacts of CCB disposal on an aquifer and a guide for long-term water monitoring efforts.

State Program Amendments

For this evaluation year (EY 2013) MMD had no state program amendments.

V. Success in Achieving the Purposes of SMCRA

OSM and MMD evaluated the number and extent of observed off-site impacts; the number and

percentage of inspectable units free of off-site impacts; the number of acres that have been mined,

reclaimed, met the bond release requirements, and have been released for the various phases of bond

release; and the effectiveness of customer service provided by the State.

To validate the credibility of state regulatory programs and enhance federal oversight improvement

efforts, OSM announced in November 2009 that it would immediately increase the number of oversight

inspections that it performs. OSM also began conducting independent, unannounced oversight

inspections. OSM schedules and conducts these inspections at independently selected mine sites.

Independent inspections are intended to provide observations and insight into the effectiveness of state

regulatory programs by evaluating the current compliance status of mines in each state. OSM continued

these oversight efforts during EY 2013.

OSM conducted one independent complete and two joint partial inspections of coal mining and

reclamation operations in New Mexico during EY 2013. Additionally, OSM conducted one special focus

oversight evaluation topic site visit to evaluate SJM’s compliance with regulatory requirements for ash

disposal reclamation and ash disposal monitoring. No enforcement actions were taken by OSM as a result

of the field inspections or the special focus oversight evaluation, indicating that MMD is effectively

implementing and enforcing its Program. During EY 2013, one notice of violation (NOV) was issued to

Lee Ranch Mine for failure to protect a cultural resource site until written approval from MMD to disturb

the site was obtained. However, no Ten-day notices (TDN’s) were issued by OSM.

A. Off-site Impacts

An “off-site impact” is anything resulting from a surface coal mining and reclamation activity or

operation that causes a negative effect on resources (people, land, water, structures) outside the area

authorized by the permit for conducting mining and reclamation activities.

Table 5, Appendix 1 shows the number and types of off-site impacts that were observed and documented

as having occurred during EY 2013, both for permitted sites and bond forfeiture sites. No off-site impacts

were observed at New Mexico mines.

Sites Where Reclamation Performance Bonds Have Not Been Forfeited

OSM and MMD assessed whether off-site impacts had occurred on each of the eight non-forfeited mine

sites that existed at some time during the evaluation period. This was accomplished through the

following on-the-ground observations: one independent, unannounced complete OSM inspection; 32

MMD complete inspections, 64 MMD partial inspections, including two OSM and MMD joint, partial

inspections (Table 10, Appendix 1); and one special focus evaluation observation discussed in section VI

below. Based on the above observations and OSM’s monthly review of all MMD inspection reports and

enforcement actions, OSM finds that there have been no off-site impacts associated with any New Mexico

mines during this evaluation period as reflected in Table 5 of Appendix 1. OSM also finds that MMD has

met or exceeded the required inspection frequency on all inspectable units, which would identify and

assess any off-site impacts.

Sites Where Reclamation Performance Bonds Have Been Forfeited

Since 1980 when OSM approved the New Mexico permanent regulatory program, MMD has processed a

single bond forfeiture, and then reclaimed the mine (Arroyo No. 1), beginning in 1980.

During EY 2013, there were no forfeited mines to inspect in New Mexico, see Table 10, Appendix 1. The

absence of forfeited mines results in no forfeited mine off-site impacts, which is represented on the

bottom half of Table 5, Appendix 1. For previous evaluation years, OSM and MMD found no forfeited

mine off-site impacts.

B. Reclamation Success

Sites Where Reclamation Performance Bonds Have Not Been Forfeited

1. Bond Releases

For operations where reclamation performance bonds have not been forfeited, OSM and MMD

used the measure of reclamation success to be the disturbed acreage that had received bond

release. Specifically, how many acres have achieved return to land form/ approximate original

contour, land capability (post-mine land use) and hydrologic reclamation. According to the New

Mexico Coal Rules and Regulations, phased bond release is defined as:

Phase I – When the permittee completes the backfilling, regrading (which may include the

replacement of topsoil) and drainage control of a bonded area in accordance with the approved

reclamation plan, 60 percent of the bond or collateral for the applicable area.

Phase II – When the permittee has established vegetation on the regraded mined lands in

accordance with the approved reclamation plan.

Phase III – The remaining portion of the bond may be released after the permittee has

successfully all surface coal mining and reclamation activities.

Historically, the amount of bond release acreage in New Mexico is well above the western region

average in spite of the 10-year minimum for a bond liability period. The following figures address

the cumulative totals for bond release by phase:

Phase I – 10,845 ac. or 38.1 percent of total disturbance,

Phase II – 6,882 ac. or 24.2 percent of total disturbance,

Phase III – 4,201 ac. or 14.8 percent of total disturbance.

This historical cumulative reclamation data is shown within the Reclamation Status Table in

Appendix 2.

2. Contemporaneous Reclamation

Currently in New Mexico, a total of 80,253 acres have been permitted, with approximately

28,457 acres (35.4%), disturbed by mining activity to date. Of these disturbed acres,

approximately 19,998 acres have been backfilled, graded, topsoiled and seeded; or 70.3 percent

of the lands disturbed have been reclaimed to the point of establishing vegetation. This ratio of

disturbed vs. reclaimed (seeded) acres is a measure of how contemporaneous (timely) the State’s

mines are reclaiming acres to the point of establishing vegetation. Once the revegetated acres

have fulfilled their 10 year liability period and met other requirements, they may be available for

Phase III or final bond release. Approximately 8.6 percent of the cumulative disturbed lands on

New Mexico coal mines consist of facilities, such as buildings, ponds, haul roads, soil and

overburden stockpiles and other long-term disturbances. These disturbances are necessary in the

operation of the mine until mining operations are completed. The total current size of all New

Mexico coal facilities is reported as 2,457 acres. When subtracting the acreage of the facilities

from the cumulative disturbance, the ratio of reclamation to net disturbance is 0.77, or 77 percent

of the cumulative acres disturbed (minus coal facilities) in New Mexico have been reclaimed to

the point of being backfilled, graded and seeded.

Sites Where Reclamation Performance Bonds Have Been Forfeited

Since 1980, when OSM approved the New Mexico permanent regulatory program, MMD has

processed a single bond forfeiture and then reclaimed the mine (Arroyo No. 1), beginning in 1980.

During EY 2013, there was no bond forfeiture activity in New Mexico; see Table 7, Appendix 1.

C. Customer Service

In June 2011, MMD completed scanning all its paper records and placed all of this information into an

electronic records management system. This system now enables MMD to provide electronic formatted

copies of all historic and current permit information to mine operators, OSM and the public. For this

evaluation period, EY 2013, MMD continued to scan coal records into PDF or JPG format, as

appropriate.

VI. National Priority and General Oversight Topics Reviews

No National Priority Topics were selected for review this evaluation year. The three general oversight

topics for EY 2013, evaluated MMD’s effectiveness in preventing off-site impacts, ensuring reclamation

success, and providing effective customer service. Additionally, for EY 2013, OSM conducted two topic-

specific oversight reviews of the following: San Juan Mine CCB Disposal Evaluations and the Permitting

Process Review for the San Juan Mine significant permit revision.

A. Off-site Impacts – Program Effectiveness in Preventing Off-site Impacts

This evaluation was based on OSM Directive REG-8 for determining whether MMD is effective in

preventing off-site impacts.

Topic for Review: Preventing Off-site impacts

Population size: All surface coal mining operations over which MMD has jurisdiction.

Sample size: All surface coal mining operations over which MMD has jurisdiction.

Purpose for Review: OSM and MMD evaluated and reported on the effectiveness of the Program in

protecting the environment and public from off-site impacts resulting from surface coal mining and

reclamation operations.

Review Scope and Methodology: MMD identified and reported the number and degree of off-site

impacts to OSM. OSM and MMD determined the cause of the impacts and identified where

improvements may be made to lessen the number and degree of impacts. If evaluation of data related to

off-site impacts indicates programmatic or implementation related problems, MMD implemented

changes, where possible, to minimize recurring impacts. The goal of this effort was for OSM and MMD

to decrease the occurrence of off-site impacts. OSM and MMD evaluated state and OSM inspection

reports, enforcement actions, penalty assessment data, citizen complaints, special oversight studies and

information from other environmental agencies. OSM explained how the number of off-site impacts was

identified in the Off-Site Impacts and Annual Evaluation Reports.

If any off-site impacts occur, an off-site impact report would be prepared by OSM which would include

detailed information on data collection, verification, and analysis; discuss any conclusion on the

effectiveness of the Program in preventing off-site impacts; and discuss measures taken to address any

identified program or implementation deficiencies.

Period for which state actions and documents were reviewed: July 1, 2012, through June 30, 2013.

Dates of Review: OSM conducted three field inspections during the week of May 20, 2013.

Findings/Conclusions: There were no observed off-site impacts for this evaluation period. The off-site

impacts table (Table 5) within New Mexico’s 2013 Annual Evaluation Report, Appendix A, shows no

off-site impacts.

OSM concludes that MMD is effectively implementing the Program in preventing off-site impacts.

B. Reclamation Success – Program Effectiveness in Ensuring Reclamation Success Procedures

Topic for Review: Ensuring Reclamation Success

Subelement: Acres of reclamation meeting bond release standards.



Purpose for Review: OSM and MMD evaluated and reported on the effectiveness of the Program in

ensuring successful reclamation on lands affected by surface coal mining and reclamation operations.

Review Scope and Methodology: OSM and MMD collected data and measured program performance in

the areas of: (1) Land form/approximate original contour, (2) Land capability, (3) Hydrologic

reclamation, and (4) Contemporaneous reclamation. In addition, impacts from mine subsidence would be

evaluated.

OSM and MMD collected data on the reclamation status of areas disturbed by each mining operation

under the jurisdiction of MMD during EY 2013 and cumulatively for all years. The data included the

acreage of areas disturbed (during EY 2013 and cumulatively for all years), long-term mining or

reclamation facilities, active mining areas, and areas where phase I, II and III bond releases have been

granted. This data was targeted to provide data for tables in REG-8 and was used to fulfill the reporting

obligations under the Government Performance Review Act (GPRA).

Period for which State actions and documents were reviewed: July 1, 2012, through June 30, 2013.


Findings/Conclusions: MMD reported on all categories of information agreed upon in the 2013 Annual

Performance Agreement, including the cumulative history of bond release activity.

MMD provided New Mexico bond release activity data from 1999 through 2013. OSM inserted this

historical data into the Western Region cumulative reclamation status tables for computation, which is

shown in the cumulative New Mexico reclamation status table in Appendix 2. In addition to the data

table, the coinciding graph in Appendix 2 was produced to track the area of reclaimed mine lands that

were backfilled, topsoiled, seeded, and planted over time to represent the rate of reclamation of mine

lands in New Mexico. A rate of reclamation that closely mirrors the rate of disturbance indicates

contemporaneous reclamation efforts. Divergence of the two lines could indicate a drop in

contemporaneous reclamation.

OSM concluded from the information that successful reclamation is occurring on lands affected by

surface coal mining and reclamation operations; therefore, MMD is effectively implementing the Program

in meeting bond release standards.

C. Customer Service – Program Effectiveness in Providing Customer Service as it Relates to

Citizen Complaints and Outreach

Topic for Review: Providing Customer Service

Subelement: Citizen Complaints/Citizen Outreach.



Purpose for Review: OSM and MMD evaluated and reported on the effectiveness of customer service

provided by the state.

Review Scope and Methodology: OSM and MMD evaluated MMD’s responses to citizen complaints and

requests for assistance and services. During EY 2013, OSM and MMD evaluated the timeliness,

accuracy, completeness and appropriateness of actions taken by MMD in response to citizen complaints.

OSM also discussed, in the New Mexico annual evaluation report, any other citizen outreach efforts

undertaken by MMD. The evaluation could include reviewing permitting actions, bond releases, lands

unsuitable petitions, administrative and judicial reviews and Applicant Violator System (AVS)

determinations.



Findings/Conclusions: MMD received no citizen complaints during the evaluation period. As for citizen

outreach, MMD has continued, as a routine part of business, to scan coal records into PDF or JPG

formats, as appropriate, to place them on its website for public access. This online service, which was also

combined with interactive maps in a GIS application are being migrated from Map Guide to Arc Map for

general public use.

OSM concluded that MMD is providing effective customer service.

D. San Juan Mine CCB Disposal Evaluation – Program Effectiveness in Ensuring Compliance

with Regulatory Requirements for CCB Disposal and Monitoring

Topic for Review: Oversight

Subelement: Evaluation of coal combustion byproduct (CCB) disposal at the San Juan Mine.

Population size: One CCB disposal operation.

Sample size: One CCB disposal operation.

Purpose for Review: OSM and MMD summarized and reported on the permit requirements analysis for

CCB disposal and monitoring of ash disposal sites to determine compliance.

Review Scope and Methodology: Conducted a joint (OSM/MMD) review of the permit requirements for

CCB disposal and monitoring of ash disposal at San Juan Mine, as well as conducted a joint inspection to

determine on-the-ground compliance with those permit requirements.


Dates of Review: OSM conducted a site visit on May 22, 2013.

Findings/Conclusions: Results of the joint (OSM/MMD) third evaluation year review/field inspection of

ash disposal, monitoring of CCB disposal sites, and the groundwater monitoring program indicated that

San Juan Mine is in compliance with its approved permit for properly disposing of and monitoring CCB

from the San Juan Generating Station, as well as complied with groundwater monitoring permit

requirements. For further information see the “San Juan Mine CCB Disposal Evaluation” topic specific

evaluation report at the following OSM website: http://odocs.osmre.gov. As mentioned in the two prior

annual reports (EY 2011 and EY 2012), OSM continued to evaluate CCB disposal compliance at the San

Juan Mine as an on-going oversight evaluation topic.

OSM concluded that MMD was effectively implementing its New Mexico Program through compliance

with reclamation performance standards pursuant to New Mexico Administrative Code (NMAC)


19.8.20.2054.

E. Permitting Process Review for the San Juan Significant Permit Revision – Program

Effectiveness in Compliance with Regulatory Requirements

Topic of Review: Oversight

Subelement: MMD Permitting Process for the San Juan Mine Significant Permit Revision.

Population size: San Juan Mine.

Sample size: San Juan Mine.

Purpose for Review: OSM reviewed and reported on MMD’s permitting process for a significant permit

revision at San Juan Mine.

Review Scope and Methodology: The specifics of this review and report focused on the following

elements: public participation; the State’s administrative completeness review (ACR); technical review,

as well as the deficiency elements; coordination with other agencies; and the State’s findings.


Dates of Review: OSM conducted its review during the week September 2, 2013.

Permitting Process Review for San Juan Mine Significant Revision Findings/Conclusions: The permitting

process performed by MMD was in compliance with New Mexico’s permitting regulations. OSM found

that to date MMD’s significant permit revision review process met the requirements of New Mexico

Administrative Code (NMAC) 19.11.1100 through 19.11.1106 of the New Mexico program. Note that

MMD’s permit revision approval was not completed by the end of the evaluation year. Therefore, OSM

will provide the final findings/conclusion for the San Juan significant permit revision oversight review in

the EY 2014 annual report. For further information see the “Permitting Process Review for the San Juan

Mine Significant Permit Revision” topic specific evaluation report at the following OSM website:

http://odocs.osmre.gov.

Based on actions taken by MMD to date, OSM concludes that MMD is successfully implementing its

program through compliance with regulatory requirements for significant permit revisions.

VII. Regulatory Program Problems and Issues

During EY 2012, there were no significant regulatory program problems or issues raised by OSM or

MMD.

VIII. OSM Assistance

Annual Grant Award

In accordance with section 705(a) of SMCRA, the Secretary of the Interior is authorized to make annual

grants to any state for the purpose of assisting such state in developing, administering, and enforcing state

programs under SMCRA. MMD received a grant from OSM for $850,000 for the operation of the Coal

Mine Reclamation Bureau (CMRB) which is the organizational subdivision of MMD responsible for

administering the state regulatory program. The grant award represents 73 percent of the total program


cost.

TIPS, Technology Transfer, and Technical and Librarian Assistance

Each year OSM provides services to MMD through its TIPS program, transfer of technology equipment

and software, and technical and librarian assistance. During EY 2013, three MMD employees took a total

of eight TIPS training class and two MMD employees took a total of three National Technical Training

Program classes. A service management visit to the MMD office provided staff with TIPS and

Technology Transfer information. Also, based on the TIPS and MMD Software/upgrades Memorandum

of Understanding (MOU), the State was provided the following: ArcGIS 10.1, SEDCAD, Global Mapper

14, AutoCAD 2013, Carlson 2013, and Groundwater Vistas 5.0. OSM’s librarian did not receive any

reference request from MMD.

Also, during EY 2013, MMD Title IV and Title V employees participated in the monthly Western Region

Technology Transfer (WRTT) team conference calls, which provide a forum to guide, coordinate, and

communicate Western Region activities, and to make OSM’s regional and national technology transfer

team members aware of technical challenges and solutions to problems encountered in Title IV and Title

V activities. The WRTT elected New Mexico’s Coal Program Manager, Dave Clark, to represent the team

as a member of the Applied Sciences proposal evaluation team.

EY 2013 NEW MEXICO EVALUATION TEAM MEMBERS

Dave Clark, MMD

Dawn Pacula, OSM WR-PSD

Cover Page Photo

The cover page photo was taken by OSM during the May 22, 2013, mine site evaluation at San Juan Mine

located near Farmington, New Mexico. A mine employee was monitoring the irrigation sprinklers and

pipes to ensure optimal irrigation.

New Mexico Annual Evaluation Report


APPENDIX 1

Summary of Core Data to Characterize the New Mexico Program

The following tables present summary data pertinent to mining operations and regulatory activities under

the New Mexico regulatory program. Unless otherwise specified, the reporting period for the data

contained in the tables is the Evaluation Year. Other data and information used by OSM in its evaluation

of New Mexico’s performance is available for review in the evaluation files maintained by OSM or at the

following OSM website: http://odocs.osmre.gov/.

Because of the enormous variations from state to state and tribe to tribe in the number, size, and type of

coal mining operations and the differences between state and tribal programs, the summary data should

not be used to compare one state or tribe to another.

List of Tables

Table 1 Coal Produced for Sale, Transfer, or Use

Table 2 Permanent Program Permits, Initial Program Sites, Inspectable Units, and Exploration

Table 3 Permits Allowing Special Categories of Mining

Table 4 Permitting Activity

Table 5 Off-site Impacts

Table 6 Surface Coal Mining and Reclamation Activity

Table 7 Bond Forfeiture Activity

Table 8 Regulatory and AML Programs Staffing

Table 9 Funds Granted to New Mexico by OSM

Table 10 New Mexico Inspection Activity

Table 11 New Mexico Enforcement Activity

Table 12 Lands Unsuitable Activity

Table 13 OSM Oversight Activity

Table 14 Status of Action Plans

Table 15 Land Use Acreage (Optional)


New Mexico Annual Evaluation Report


APPENDIX 2

New Mexico Reclamation Status Table

The following table & graph represents New Mexico bond release activity data from Calendar Year 1999

through 2012.

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