Colorado Legislative Council Staff

STATE and LOCAL

FISCAL IMPACT

TITLE:            CONCERNING THE ALTERATION OF POSTMINING RECLAMATION PLANS, AND, IN CONNECTION THEREWITH, NOTIFYING AFFECTED LANDOWNERS.

Summary of Legislation

            This bill revises the statutory provisions of the "Colorado Mined Reclamation Act" and the "Colorado Land Reclamation Act for the Extraction of Construction Materials". The provisions of these acts are administered by the Mined Land Reclamation Board in the Division of Minerals and Geology in the Department of Natural Resources.

            The bill expands the board's duties to include certification of the correctness and accuracy of data and technical assistance necessary to evaluate the performance of total reclamation, enforcement duties, and compliance with any change in a reclamation plan. The bill authorizes a local governing authority, in addition to the board, to initiate a rule-making hearing. The bill requires the operator to be responsible for assuring that the mining and postmining land use comply with special use permits. The bill requires the board to address any written objections to any proposed changes raised by the local governing authority or affected parties.

            The bill requires an application for reclamation permit to include an accurate and current map that does not conflict with existing maps or surveys, and that includes all obtainable subsurface geologic and hydrologic features of the affected land. The bill specifies certain conditions that must be met in determining whether a change to an existing reclamation permit is a revision or an amendment. The board must consider whether the proposed change requires additional notice and hearing, and the long-range effect on land use beyond the area encompassed by the permit. Applications for renewal or amendment of a reclamation permit are to be approved by the local authorities in addition to the board. The applicant is required to provide notice to all owners of surface and ground water rights, all owners within an affected flood zone or drainage basin, and any other person designated by the board.

            The bill extends the time period from twenty days to thirty days from notification to file a protest or objection to an application. The board, or at the request of the local governing authority, may hold a hearing which must take place in the county of the affected lands.

            The bill requires the operator to submit a copy of the annual report and map to the local governing authority, and a brief summary of the report to a newspaper in the locality of the mining operation. The bill allows the local board of county commissioners or the board of supervisors of the soil conservation district, in addition to the board, to determine the suitability of topsoil to be replaced on a backfill area. The bill requires the operator to obtain written proof of satisfactory reclamation compliance at each phase of final reclamation.

State Revenues

            The Minerals Program under the Division of Minerals and Geology in the Department of Natural Resources regulates mining and reclamation activities at metal, aggregate, and other minerals sites throughout the state. The seven member Mined Land Reclamation Board oversees the annual activities of the Minerals Program which is funded by moneys from the state General Fund, cash fund permit fees, and the operational account of the state Severance Tax Trust Fund. This bill will not affect these sources of state revenue.

State Expenditures

            This bill expands the duties of the Mined Land Reclamation Board and authorizes a local governing authority (board of county commissioners), in addition to the board, to initiate rule-making hearings. In some cases, the bill requires the board to perform administrative and assessment tasks that are currently being accomplished by staff of the Division of Minerals and Geology. In those cases where the local governing body initiates a rule-making hearing, the board and division will be required to participate in the same manner as if the board initiated the hearing. In all cases, the division will be required to fully support the board's expanded duties. Current law requires the permit applicant, under penalty of perjury, to attest to the accuracy of the data in reclamation plan changes. This bill shifts that burden to the board by requiring the board to certify the accuracy of reclamation plan changes.

            The division's expenditures for FY 1999-2000 and FY 2000-01 to support the provisions of this bill are based upon the following assumptions:

            •   the board will annually hear an average of 89 new permit applications and 414 requests for permit revisions, and will issue 118 new permits and amendments and 108 technical revisions;

            •   the board will be required to publish an increased number of public notices of monthly hearings;

            •   a local governing body will initiate two rule-making hearings per year;

            •   the board and division will hear and resolve six local land use or special use disputes per year;

            •   the board and division will assess all maps and surveys submitted with all applications for permits and revisions, and resolve associated disputes;

            •   the board will determine whether a change is an amendment or technical revision;

            •   the board will conduct land use reviews;

            •   the board and local governing authorities will review all amendments to applications;

            •   the board and division will make findings as to what owners of record may be affected;

            •   the board and division will hold hearings for every permit in the county where the mining operation is proposed; and

            •   the board and division will provide proof of satisfactory compliance at each phase of final reclamation.

            Table 1 provides a summary of the board's and division's expenses for FY 1999-2000 and FY 2000-01 to support the provisions of this bill.

Expenditures Not Included

            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

            •   health and life insurance costs of $26,532;

            •   short-term disability costs of $1,036;

            •   inflationary cost factors;

            •   leased space; and

            •   indirect costs.

Local Government Impact

            This bill authorizes a board of county commissioners to initiate rule-making hearings regarding reclamation permit applications, and to request public hearings regarding application protests. The bill requires a board of county commissioners to review and approve applications for renewal or amendment of a reclamation permit in the same manner as applications for new reclamation permits. The bill requires the board of county commissioners or the board of supervisors of the soil conservation district to review and make determinations regarding the sufficiency of topsoil replacements. The bill also requires the board of county commissioners to prove the compliance at each phase of final reclamation.

            The Department of Natural resources indicates all 63 counties will be required to perform these activities.

State Appropriations

            This fiscal note would imply the Department of Natural Resources would require a General Fund appropriation of 4.8 FTE and $271,601, and cash fund spending authority of 7.2 FTE and $407,402 for FY 1999-2000. Of these amounts, the Department of Law would require cash fund exempt spending authority of $30,840.

Departments Contacted

            Natural Resources                              Local Affairs