Title: State of Fla., Executive Office of the Governor, Office of Planning and Budgeting Program Evaluation Office
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/WL00004164/00001
 Material Information
Title: State of Fla., Executive Office of the Governor, Office of Planning and Budgeting Program Evaluation Office
Physical Description: Book
Language: English
 Subjects
Spatial Coverage: North America -- United States of America -- Florida
 Notes
Abstract: Jake Varn Collection - State of Fla. Executive Office of the Governor Office of Planning and Budgeting Program Evaluation Office (JDV Box 43)
General Note: Box 18, Folder 2 ( Water Management - 1977-1983 ), Item 6
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
 Record Information
Bibliographic ID: WL00004164
Volume ID: VID00001
Source Institution: Levin College of Law, University of Florida
Holding Location: Levin College of Law, University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Full Text













































PROCESS EVALUATION: INDUSTRIAL MINERALS

AND MINE RECLAMATION

MARCH 1980













STATE OF FLORIDA

EXECUTIVE OFFICE OF THE GOVERNOR

OFFICE OF PLANNING AND BUDGETING

PROGRAM EVALUATION OFFICE

LAUREY STRYKER, DIRECTOR



SDeborah Athos, Project Manager






















PROCESS EVALUATION: INDUSTRIAL MINERALS

AND MINE RECLAMATION

MARCH 1980







STATE OF FLORIDA

ffire of thle Woernror
THE CAPITOL
TALLAHASSEE 32301

BOB GRAHAM
GOVERNOR


February 26, 1980




Honorable Bob Graham
Governor
State Capitol
Tallahassee, Florida 32301

Dear Governor Graham:

I am pleased to submit the evaluation report on the State's mine
reclamation program. This program was requested by you through approval
of the Evaluation Selection Report, September 1979.

The report by the Program Evaluation Office was prepared by Deborah
Athos. The Department of Natural Resources has provided excellent coopera-
tion and assistance from Dr. Elton Gissendanner, Bud Hendry, Bureau Chief,
and Bill Yon, Program Manager.

The findings and recommendations have been reviewed by the Executive
Director and staff of the Department of Natural Resources and they fully
support them. The recommendations in this report are designed to both
improve the program administratively and also provide guidance in policy
and budget decisions.

Sincerely



m Tait, Director
rfice of Planning
ind Budgeting

JT/lsh

Enclosure


An Affirmative Action/Equal Opportunity Employer




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TABLE OF CONTENTS

Page
I. PROJECT DESCRIPTION . . .. . .

A. Scope of Evaluation . . . .... ... 1

B. Evaluation Questions. . . . . 2

C. Methodology . . . . . 2

II. DATA PRESENTATION AND ANALYSIS OF FINDINGS. . . 3

A. Program Setting . . . .... .. 3

B. Program Description . . . . . 11

C. Program Procedures and Related Problems . . 14

D. Summary of Problem Findings . . . .. 26

III. PROGRAM ALTERNATIVES AND EVALUATION RECOMMENDATIONS . .. 27

A. Decision-Making Framework . . . ... 27

B. State Alternatives. . . . . .. 28

C. Evaluation Recommendations. . . . ... 33

IV. APPENDICES . . . . . ... 38

A. Glossary of Terms . . . . ... 38

B. Performance Measurement . . . . .. 40








LIST OF FIGURES AND TABLES


Page
Figure 1 Location of Known Solid Mineral Resources . . 5

Figure 2 Reclamation: Process Diagram (with Problem Issues
Identified) . . . . . .. 15

Table 1 Mine Reclamation: A Legislative Summary Chapter 211,
Part II, Tax on Severance of Solid Minerals . .. 10

Table 2 Program Definition Industrial Minerals and Mine
Reclamation 06.01.01.03 . . . . .. 12

Table 3 Program Resources and Measures. . . 13

Table 4 Estimated Acres Disturbed by Mining. .. . . 16

Table 5 Relationship of Mining to Reclamation . . .. 17

Table 6 Summary of Program Problems and Source of Problem .. 26

Table 7 Matrix of Policy Alternatives/Options . .. .. 32








PROCESS EVALUATION: INDUSTRIAL MINERALS
AND MINE RECLAMATION

I. PROJECT DESCRIPTION

Scope of Evaluation

Reclamation is the process of converting lands disturbed by mining to

some beneficial postmining use. By definition, reclamation presupposes the

mining of an essential mineral and that such mining irreversibly changes the

land it occupies. The State has a mine reclamation program in the Bureau of

Geology, Department of Natural Resources. Reflecting the objectives of recla-

mation, the goal of this program is to ensure the restoration of lands disturbed

in surface mining to useable acreage.

The questions of depletion of an exhaustible resource and future foreign

dependency must be considered within the national policy-making forum.1 The

State's role, in contrast, is to minimize the impact of mining activities on

the environment--specifically alteration of surface/ground water supplies,

future land use, potential for contamination, disturbance of wetlands, and

negative aesthetic changes. Given this role, and the goal of the current
reclamation program, the purpose of the evaluation is to examine the effective-

ness of State action to remedy, through reclamation, the adverse effects of

mining.

The scope of this evaluation is limited to analysis of program-related

impacts on reclamation. It does not systematically address mining technology,

quality of reclamation, and the interrelationship between tax mechanisms, acres

mined and acres reclaimed, simply because acceptable performance standards are

not developed and empirical data are not available.

1For a timely discussion of this important issue see Comptroller General's
Report to the Congress of the United States, "Phosphates: a Case of a Valuable,
Depleting Mineral In America," U.S. General Accounting Office, November 30, 1979.

1








Evaluation Questions

As part of the OPB Program Evaluation Office's program selection process,

the Governor, the Executive Director of DNR, and their staffs endorsed the

evaluation of the State's mine reclamation program, and directed that the

following major questions be addressed:

What are the major problems associated with the State's
current mine reclamation program? Are such problems
inherent due to the statutory integration of the severance
tax and reclamation? To what extent are problems attribu-
table to program implementation? Can problems be addressed
by rule changes?

Would the effectiveness of the State's mine reclamation pro-
gram be enhanced if the regulation of reclamation was statu-
torially separated from the provision for a severance tax
on solid minerals?

Can the mandatory reclamation provisions of Chapter 211 be
transferred to Chapter 378 without altering provisions for,
and related to, the severance tax?

What has been the impact of the exclusion provisions of
Chapter 211 on the number of acres mined to the number of
acres reclaimed?

Are enforcement remedies to address violations of reclamation
standards and schedules adequate and reasonable? Has the
Department of Natural Resources successfully integrated
enforcement functions into program administration?

Methodology

The determination of the appropriate roles of government and private interests

in reclamation and the relative responsibility to be borne by each interest are

not issues which are amenable to solution by analysis of statistical data. Even

after accepting as fact that the benefits of reclamation must exceed the costs

of the additional investment, such costs are qualitatively determined based on

environmental and societal benefits. Such benefits can not, in most cases, be

subjected to absolute measurement; and in those cases where numerical values can

be assigned it is extremely difficult to distinguish between program and other

intervening causes.







Even with these limitations, we can still assess the extent to which the

current program pursues the objectives for which it was established and identify

factors affecting the achievement of these objectives. This evaluation examines

what goes on within the reclamation program and the results which affect program

impact. Additionally, this evaluation, supported by site-visit confirmation of

the current standards of reclamation, does identify program-related weaknesses

which have the potential to negatively impact the quality of reclamation.

The first step in this evaluation was to identify program objectives;

specify criteria for their measurement; and identify resources including staff,

procedures, statutes, rules, dollars, etc.

Data collection activities included review of Bureau files and information,

examination of other state programs, staff interviews, and two on-site reviews

during which several interviews with industry representatives were conducted.

The analysis of findings section is presented in a planned versus actual

format, to allow for ease in identification of process-related problems.

Established program goals and objectives and the subsequent process for achieving

them depict the "planned" mine reclamation program.


II. DATA PRESENTATION AND ANALYSIS OF FINDINGS

Program Setting

Phosphate is primary among Florida's solid minerals since the Bone Valley

formation in Central Florida is the nation's principal production center for

phosphate rock, accounting for 81 percent of total U.S. production.2 Histori-

cally, ten to fifteen companies have accounted for 80-90 percent of total U.S.

phosphate production, and over half of this production has occurred in the last

COSMAR, Surface Mining of Non-Coal Minerals, National Research Council,
1979, p. 76 (1977 data).








3
twelve years. It is estimated that U.S. production accounts for 41 percent

of the world production of phosphate, even though the U.S. has only 8.1 percent
4
of the world reserves.

Through 1971, Florida ranked sixth in the United States in terms of the

number of acres disturbed by mining.5 Approximately 165,000 acres of land have

been mined or disturbed by phosphate removal, with only 28 percent of the dis-

turbed lands being reclaimed.6 With the knowledge that at least an additional

5,000 acres are being mined annually, coupled with an existing +120,000 acres

unreclaimed, the importance of reclamation can not be overstated. Phosphate

operations are highly visible, land-intensive, and cause some very significant

and difficult environmental problems.

The products of the phosphate industry are exported from the State, and

thus subject to a 10 percent severance tax. The severance tax generates

approximately $40 million annually, with 75 percent going into the General

Revenue Fund, 20 percent going into the Nonmandatory Reclamation Trust Fund

("old lands"), and 5 percent going into the Phosphate Research Trust Fund.

Since none of the severance tax now goes into the Land Reclamation Trust Fund,

phosphate companies are no longer eligible for severance tax refunds for the

reclamation of lands mined post-1975. DNR has on file a total of 168 approved

reclamation programs involving approximately 34,000 acres of land disturbed by

phosphate mining. Refunds for reclamation of old lands, lands mined prior to

July 1, 1975, (Chapter 378, Florida Statutes) will be available upon DNR's

completion of a Master Reclamation Plan.


3GAO Report, p. 11.

4GAO Report, pp. 5 and 35.

5Department of Commerce, 1968.

6The COSMAR study found that only 21 percent of the acres disturbed by the
mining of phosphate had been reclaimed; again, illustrating the inexactness of
data.








Figure 1. Location of Known Solid Mineral Resources


LEGEND


Clays
Limestone
Phosphate
Peat
Sand and Gravel
Titanium Ore
Zircon
Concentration ot


Mineral


Source: Bureau of Mines, Minerals in the Economy of Florida


C
LS
P
PT

T
Z
C07>


I


.T -Q?.A "'-








For other solid minerals, such as sand, gravel, limestone, dolomite,

clay, and heavy minerals, Chapter 211 assesses a 5 percent severance tax,

with 50 percent of the tax going to the General Revenue Fund and 50 percent

going to the Land Reclamation Trust Fund. Approximately $1 million annually

is generated by this severance tax. Despite the availability of refunds of

up to 100 percent of the cost of reclamation, only 30 non-phosphate reclamation

programs are on file with DNR. Mining which produces a product for in-state

consumption is not subject to a severance tax; and subsequently most of these

mining operations are not under the mandatory reclamation provisions of

Chapter 211.


HISTORY OF LEGISLATION

Florida's phosphate mining industry dates back to the late 1880's. Concern

over the lack of the systematic reclamation of mined lands did not culminate in

legislation until 1971. However, during the two decades prior to the 1971 law,

it is estimated that from 20,000 to 35,000 acres were reclaimed voluntarily by

the phosphate industry.

Through passage of Part II of Chapter 211 in 1971, the Legislature enacted

the first State law directly affecting the severance of solid minerals. While

this legislation addressed reclamation, it was given a very weak, secondary

emphasis. Revenue generation, by imposition of a 5 percent tax on the value

of the solid mineral at the site of severance, was its major thrust. Distribution

of the tax was 50 percent to General Revenue, and 50 percent to the Land Recla-

mation Trust Fund. Reclamation was voluntary, tied to two financial incentives.

If a taxpayer had a DNR approved reclamation program, refunds from the

Reclamation Trust Fund were available in an amount of up to 100 percent of the

reclamation costs but not to exceed 25 percent of the severance taxes paid.

At year end, funds not obligated were transferred from the Land Reclamation

Trust Fund to General Revenue. Thus, in a rather arbitrary and indirect manner,

6







75 percent of the severance taxes paid ended up in the General Revenue Fund.

This is further evidence that the 1971 law had a revenue versus reclamation

emphasis.

The second incentive for reclamation was, and continues to be, an ad

valorem tax credit of up to 20 percent of the severance taxes paid. A single

DNR-approved reclamation program for a small area of the mine site triggers an

ad valorem tax credit for the entire site of severance.

Based on the proportion of acres reclaimed to acres mined from 1971-1975

(14%), evidence indicates that the 1971 law lacked incentive for reclamation.7

In fact, the 25 percent limit on severance tax refunds and the single program/

ad valorem tax credit provision appear to have reduced the proportion of acres

reclaimed to acres mined realized prior to any State involvement. In sum, the

1971 law provided for incentive-based, voluntary reclamation. Since Chapter 211

F.S. provides for a tax on the severance of solid minerals, it has had no affect

on mining operations or reclamation of lands whose product is not subject to

such a tax.

In contrast, 1975 legislative amendments to Chapter 211 reflect a shift in

emphasis toward concern for reclamation. No changes were made in the revenue-

generating provisions of the law. Instead, the law was amended to make recla-

mation mandatory, on all lands mined after July 1, 1975, while still providing

for severance tax refund and ad valorem tax credit incentives. Further provisions

were added to assure the timely completion of reclamation projects. They included

a five-year limit on the transfer of funds from the Land Reclamation Trust Fund

to General Revenue Fund; an increase in proportion of taxes available for rebates;

the requirement for time schedules; withholding portions of eligible refunds; and

loss of eligibility for refunds.

7David Bullock, "The Florida Severance Tax on Solid Minerals: An Evaluation
of Taxing Strategies," in Financing Florida State Government, edited by Howard P.
Tuckman. Florida State University, 1979, p. 145. This is an excellent resource
on the historical impact of Chapter 211. Much of this discussion is based upon
its information.








The shifting emphasis of Chapter 211 continued in 1977. Revenue generation

again appears to be the major impetus behind the 1977 amendments. These changes

mark the beginning of the separate and distinct treatment of phosphate mining

from all "other" mining. In fact, changes to Chapter 211 in 1977 did not

affect the revenue or reclamation provisions for "other" mining.

In contrast, both the severance tax and its subsequent fund distribution for

phosphate mining were significantly altered. The severance tax for phosphate

was doubled (from 5 percent to 10 percent). Distribution of revenues was

changed to 75 percent General Revenue Fund and 25 percent Land Reclamation

Trust Fund. Further refunds, limited to the amount of taxes paid to the Land

Reclamation Trust Fund by the taxpayer, were available only for the reclamation

of lands mined prior to July 1, 1975. The end result of the 1977 version of

Chapter 211 was an increased severance tax rate for the phosphate industry, and

restriction on the eligibility for refunds on lands mined for phosphate rock.

The third, and most recent, amendment to Chapter 211 came in 1978. It

was a modest attempt to reemphasize the reclamation focus of the law. Changes

recognized the State's slowly-evolving dual strategy for the reclamation of lands

mined for phosphate. Chapter 211 requires the mandatory reclamation, without

rebate incentives, of lands mined for phosphate since 1975.8 The voluntary

reclamation of "old lands" is now separately addressed by Chapter 378 (1978).

However, Chapter 211, because it alone provides for the severance tax, remains

the funding/regulatory mechanism for all reclamation, including voluntary recla-

mation under Chapter 378. The distribution of phosphate severance taxes was

changed to reflect this dual strategy. Seventy-five percent continues to go

to the General Revenue Trust Fund. However, the 1978 amendment created a


8The ad valorem tax credit for all mining operations continues as provided
for in 1971.








Nonmandatory Reclamation Trust Fund (20 percent of severance taxes, rebates

for voluntary reclamation of old lands) and Phosphate Research Trust Fund

(5 percent to conduct applied research in problem areas related to phosphate

mining). Eligibility for refunds for reclamation of old lands is now in

terms of the current landowner versus the original taxpayer, and is not related

to amount of severance tax paid. Provision has been made for the possible

reduction in the severance tax rate for phosphate if reclamation of mined lands

under DNR's Master Reclamation Plan is accomplished.

It is evident from this legislative history that the State has not had

a consistent strategy toward the reclamation of mined lands. The impact of

this mixing of mandatory/voluntary, compulsory/incentive-based reclamation

provisions on the State's mine reclamation program is a major focus of this

process evaluation. The significant effect of this dual legislative strategy

on current program effectiveness can not be overstated.

The following summary traces historical changes to Chapter 211:

























9
















Table 1
MINE RECLAMATION: A LEGISLATIVE SUMMARY
CHAPTER 211, PART II, TAX ON SEVERANCE OF SOLID MINERALS


1971 Chapter 211, Part II* 1975 Amended 1977 Amended 1978 Amended

Voluntary reclamation Mandatory reclamation Same 211 Mandatory
378 Voluntary
Severance tax: 5% all minerals Same Severance tax: Severance tax:
10% Phosphate 10% Phosphate
5% All other minerals until July 1, 1983
Rebates on severance tax: 25% of Rebate on severance tax: 50% Phosphate not eligible for Phosphate taxpayer not
taxes paid, all mine reclamation taxes paid, all mine reclamation refunds except for lands mined eligible for any refunds
prior to July 1, 1975 under Chapter 211 (land-
owner under Chapter 378)
Ad valorem tax credit (reclamation Same Same Same
plan on file with DNR): up to 20%
of taxes due from the severance
tax, all mining operators
Distribution of tax: Same, except transfer to Phosphate only: Phosphate only:
50% General Revenue Fund General Revenue Fund only 75% General Revenue Fund 75% General Revenue Fund
50% Land Reclamation Trust Fund if not claimed within 5 years 25% Land Reclamation Trust Fund 20% Nonmandatory Reclama-
tion Trust Fund
5% Phosphate Research
Trust Fund


Additions:
a) Time schedules to be
included in plan
b) Sanction: Loss of
eligibility for refunds
c) Withholding of portion
of refunds until completion


b) and c) Not applicable to
current phosphate mining, since
mandatory reclamation is not
eligible for refunds


Addition:
Passage Chapter 378,
Voluntary Reclamation of
"old lands"


* Applicable only to solid minerals
sold outside State of Florida








Program Description

The Department of Natural Resources is charged with development and

enforcement of criteria and guidelines pertaining to site reclamation of

lands mined for solid minerals. Guidelines include impact on quality of

affected waters, soil stabilization and vegetation, health and safety hazards,

conservation of remaining natural resources, and time schedules for the com-

pletion of reclamation programs. The Bureau of Geology supervises the recla-

mation program.

Authority for this function is integrated with the severance tax in

Chapter 211, therefore, other State agencies impact program implementation.

The Department of Revenue and the Comptroller are responsible for the collection

of the severance tax, and severance tax refunds for qualified reclamation costs,

respectively.

The Department of Natural Resources reports approved reclamation programs

to the Department of Revenue since the taxpayer is entitled to an ad valorem

tax credit against a proportion of severance tax paid if the taxpayer has a

single reclamation program filed with DNR. Additionally, the Comptroller

requires the Department of Natural Resources to submit an annual written veri-

fication of compliance with the rules and regulations pertaining to each recla-

mation program prior to giving severance tax refunds for costs of reclamation.

The following table defines the mine reclamation program and the objectives

it pursues:












11








Table 2

PROGRAM DEFINITION9
INDUSTRIAL MINERALS AND MINE RECLAMATION 06.01.01.03


GOAL: To ensure the restoration of lands disturbed in surface mining to

useable acreage.



OBJECTIVES: To review To inspect/regulate To undertake research
for full compliance activities to restore and to disseminate
with DNR standards land information on solid
submitted surface minerals
reclamation plans


ACTIVITIES/
FUNCTIONS: Review for
completeness

Follow-up review
of quality criteria

Initial site
inspection

Site review by
RAC/DNR staff*

Notice of incomplete-
ness or inadequacies

Set Cabinet Agenda

Support Governor/
Cabinet review
process


Quarterly/yearly
site inspections

Issue recommended
changes and follow-up

Issues notice of
deficiencies, as
needed

Release inspections


Surveys, data collection
statistical profiles

State adaption of
existing data

Gather information
on federal, state,
and county laws and
ordinances

Design "old lands"
Master Reclamation Plan


Source: FAC 16-16C, 1979-81 D-2 Budget Documentation, and staff perceptions.
Corresponding performance measures are presented in the Appendix B, p. 40.

*RAC, Reclamation Advisory Committee


To









r


Table 3 profiles program funding, staff resources, and functional measures

elated to carrying out these objectives.10


Table 3

PROGRAM RESOURCES AND MEASURES


Category Description 1977-78 1978-79 1979-80 1980-81


Funding


$82,603


$131,699


$132,265


$138,666


Positions


Number of Reclamation
Programs Reviewed
(Objective 1)

Number of New Programs
Reviewed per Position
(2 FTE, Objective 1)

Number on-site Inspec-
tions (Objective 2)

Number of on-site
Inspections per Position
(4 FTE, Objective 2)

Cost of Regulation per
Reclamation Program
(Objectives 1 & 2)


153


37


612


154


$461


154


22


571


142


$668


198

241
122

7321
1832


183


$668


Sources: DNR Planning 1979-80, D-2 and Other Budget Documentation.
Notes:
1. Programmed workload
2. Actual workload first quarter

10The third objective has not been systematically addressed in this evaluation
because specific Bureau resources have not been available, and thus not assigned.








Program Procedures and Related Problems I

The following description of program procedures is presented by problem

area.

Figure 2 depicts the reclamation procedures associated with Chapter 211,

Part II, and further specified in Chapter 16C-16, Florida Administrative Code.

The diagram isolates and identifies by [D the "critical" problems impacting

program effectiveness which were found through the review of the program.

Each problem and related findings will be discussed in turn.


Figure 2


]l Tax Emphasis of Chapter 211, Part II11
The major thrust of Chapter 211 is on the severance tax, not reclamation.

Reclamation, while mandatory, is addressed by fiscal incentives, e.g. the ad

valorem tax credit and severance tax refunds. The severance tax refund incen-

tive for reclamation is restricted to reclamation of lands mined for minerals

other than phosphate.

Reclamation is not required for sites where extracted minerals are not

subject to a severance tax. The impact of this exclusionary provision is

significant if one considers that based on federal data presented in Table 4

through July 1, 1977 almost 15,000 acres of lands had been disturbed by the

surface mining of sand & gravel and almost 82,000 acres disturbed by the

mining of limestone. As Table 5 depicts, almost all of these minerals are

produced for in-state consumption, thus not requiring reclamation.

You will note in the following table that because of the confidentiality

of mining data, there is extreme variation in the estimates of acreage disturbed

by mining. The State has, at best, an inexact picture of the extent of mining.

11Refer to Figure 2, p. 15.









Figure 2
RECLAMATION: PROCESS DIAGRAM (WITH PROBLEM ISSUES IDENTIFIED 5])


_ -










ESTIMATED


Table 4

ACRES DISTURBED BY MINING


(Based on (Based on (Based on
State Data) Federal Data) State Data)
Acreage Acreage Thru Absolute Acres Mined
Commodity Thru 1978 July 1, 1977 Difference Annually

Phosphate 165,000 161,910 3,090 (+S) 5,000


Stone 30,000 81,835 51,835 (+F) 500


Sand/Gravel 10,200 14,527 4,327 (+F) 300


Clay 2,200 6,997 4,797 (+F) 100


Heavy 7,500 2,680 4,820 (+S) 400
Minerals

Peat 900 NA 50


TOTAL 215,800 267,949 6,350



Source: DNR and U.S. Department of Agriculture, Soil Conservation Service,
The Status of Lands Disturbed by Surface Mining in the United States.


Table 4 and Table 5 clearly illustrate that the impact of excluding mining

operations not subject to a severance tax from the reclamation provisions of

Chapter 211 is significant. It is most evident in terms of the mining of

construction materials: there is virtually no State-approved reclamation of

lands disturbed by the extensive mining of limestone and sand/gravel.12

The exclusion provision is inherently at odds with current program goals

and objectives; and precludes to a major extent program effectiveness. Quite

simply, this exemption circumvents the ability of the program to achieve its

objectives, despite commendable performance by program staff.

12There is no documentation of the extent of voluntary reclamation by industry
to assess the actual land use impact of mining.
16


U -













Table 5

RELATIONSHIP OF MINING TO RECLAMATION


Acres
Reclaimed
Voluntarily
Commodity (Pre-1971)


Voluntary
Reclamation
Chapter 211
(1971-75)


Mandatory
Reclamation
Completed
(1976-78)


Reclamation
in
Progress1
(1976-future)


Total Acres
Reclaimed or
Approved by DNR
for Reclamation


Percent
of
Acreage
Reclaimed2


Ratio
Acres Mined
to Acres
Reclaimed3


% of Acres
Reclaimed or
Approved by
DNR for Reclamation
(Includes "old lands")4


Phosphate 34,455 10,664 588 34,260 79,968 28% 3.5:1 49%

Stone 9 0% 56,000:0 Less than .0002%


. Sand/Gravel
1-


0% 12,362:0


Clays 130 0% 4,600:0 3%

Heavy Minerals 1,185 182 1,731 3,097 27% 3.8:1 61%


Notes to Table 5

1. Reclamation in Progress only encompasses acres included in DNR-approved reclamation programs. In progress does not necessarily
mean underway, some of this acreage involves slime ponds where reclamation is not scheduled for completion for up to 20 years.

2. This figure does not include voluntary reclamation by industry (not under a DNR reclamation program).

3. Acres mined was determined by averaging federal (1971) and State (1978) data. Not exact by any standards but given its
datedness, certainly a conservative measure.

4. Quality of reclamation or satisfaction of DNR-required standards is not considered.

Source: DNR and U.S. Soil Conservation Service








Tables 4 and 5 show that there is a continuing imbalance in the number of

acres mined to the number of acres reclaimed. Despite voluntary industry

efforts and the "mandatory" reclamation provisions of Chapter 211, over half

of the acres disturbed by mining of phosphate rock remain unreclaimed and not

subject to DNR-approved reclamation plans. This is particularly significant

given that the product of the phosphate industry is subject to a severance tax

and subsequently bound by all existing reclamation provisions, and is the most

visible, regulated mining industry.


F2_ Lack of Sufficient Information13

As indicated in the process diagram, the requirement for submission of

a mandatory reclamation program is timed according to the cessation of mining

(18 months) or use of settling ponds (10 years). However, the Department of

Natural Resources has no statutory authority to require mining companies

to report amount or location of land disturbed each year. Acreage information

is given to the Department of Revenue but is confidential. This void in

systematic, timely information undermines the ability of the Department to

determine the extent and timing of mandatory reclamation on an individual site

basis as well as precluding the ability to enforce administrative rule

provisions.

Further, DNR does not have any formal or authorized mechanism to receive

information regarding the extent of the mining of solid minerals not subject

to the severance tax. As previously referenced, this lack of data prevents

DNR from accurately assessing both program effectiveness and the total impact

of mining on land use and the environment.

13Refer to Figure 2.




r

r] The Impact of Settling Ponds on the Quality of Reclamation14

Currently, mandatory reclamation provisions have little impact on or
incentive for contending with the most perplexing reclamation problem, the
land-use impact of "slime pits" or settling ponds. Slimes are waste clays,
an unaesthetic by-product of the phosphate beneficiation process. Although
some slimes are placed in mined-out pits, because of the enormous volume,
most slimes must be impounded above ground in "ponds" as large as a square

mile. Given that approximately two-thirds of the land disturbed by phosphate
mining is affected to varying extents by the disposition of slimes the magni-
tude of this problem becomes monumental. Only 5,000 acres in settling ponds

have been reclaimed.15 The problem is further compounded by the fact that, to
date, slimes can not be economically reduced in volume, and take decades to
solidify. Methods such as sand-spray and flocculant-thickner are being experi-
mentally applied to increase the rate of drying. Even with the successful future

application of such methods, lands used for disposal of slimes will continue to
be structurally weak at depth and, thus restricted to light use, i.e., farming,
grazing. As COSMAR, a nationally-recognized committee of experts, concluded,
"in short, optimum handling of phosphate slimes is an unsolved problem."16
The research agenda of the Florida Institute of Phosphate Research includes
the development of alternatives for slimes disposal, methods for volume reduction,
and subsequent innovative land reclamation techniques.17 However, the commitment

14Refer to Figure 2.
15
United States Department of Interior, Bureau of Mines, Minerals in the
Economy of Florida, pp. 20-21.
F. 16
16COSMAR, p. 233.
17
1The Institute was created in 1978 by Chapter 278.101, Florida Statutes,
to conduct or cause to be conducted research related to the solution of
problems associated with the mining of phosphate. It is funded by 5 percent
Sof the severance tax on phosphate--the Phosphate Research Trust Fund. Work
is directed by a three-memeber board appointed by and serving at the pleasure
of the Governor. The policies of the board are implemented through an
executive director.

19
L








of the Institute's resources to research in this area remains unclear. It

has been identified as only one of several competing priorities.

The difficult problem of slimes can not be dismissed given that current

disposal methods will undermine even the most progressive State reclamation

program.


E] The Ad Valorem Tax Credit18

While Chapter 211 implies that the ad valorem tax credit is an incentive

for reclamation, the linkage is an extremely weak and imbalanced one, which

favors the taxpayer. A single approved reclamation program with no minimum

number of acres or scope of work requirements triggers the credit mechanism

for the entire site of severance. Further, this credit may be accumulated from

year to year. Agency differences in definition of the site of severance have

further disassociated the ad valorem tax credit from reclamation.

For DNR to have any control over the timing of reclamation, the ad valorem

tax credit would need to apply only when the site of severance is defined as the

"current acres" being mined. However, the Department of Revenue considers the

entire mining site as the site of severance. The credit is in no way related

to acres being reclaimed. The statutory provision for the tax credit infers

that it is an incentive for reclamation. Given its liberal application, and

the fact that the industry does not take full advantage of the credit, it is

unlikely that the ad valorem tax credit promotes reclamation. It is certainly

not a useful mechanism for enforcing, or even encouraging compliance with

reclamation regulations. Further, historically it has cost the State from

$1.3 to $2.7 million a year in severance taxes.19

18See Figure 2.

19From 1975-77 (mandatory reclamation, 5% severance tax on all minerals),
the ad valorem tax credit cost the State approximately $1.3 million a year.
Chapter 211 was amended in 1977 to increase the severance tax on phosphate
to 10%, correspondingly the ad valorem tax credit has cost the State $2.7
million (1978).
20








Fl Criteria for Assessment of Reclamation Programs

The State's primary strategy for reclamation is revegetation. Reclamation

activities are divided into two types: those addressing slime ponds, and those

for mined-out pits and surrounding disturbed lands. The potential for reclamation

varies with numerous factors including the extent of disturbed land, topography,

the pre-mining state of the lands, the physical and chemical properties of

wastes, and the availability and economy of reclamation techniques.

Reclamation standards are only superficially addressed in 211.32(3)(a);

the law states criteria adopted by DNR shall include the following standards:

Control of the physical and chemical quality of the
water draining from the area of operation;

Soil stabilization, including contouring and vegeta-
tion;

Elimination of health and safety hazards;

Conservation and preservation of remaining natural
resources; and

Time schedule for the completion of the program and
the various phases thereof.

Section 16C-16.05 sets out the minimum standards a reclamation program

must meet. Generally, criteria lack specification and quality control. With

the exception of slope limitations, an 80% vegetation requirement, and a

minimum size restriction on lakes, DNR has no impact on the land-use designation

of reclaimed lands and limited impact on the aesthetic quality of such lands.

Further, because the danger from radiated lands has not been determined, no

control procedures are currently being required.20 The COSMAR report estimates

that the phosphate industry's reclamation costs for current operations are

33.5C/per ton product and for new operations anywhere from 41.84 to 56.1C/per

ton product.21


20COSMAR, p. 118.

21COSMAR, p. 147.









Reclamation plans are submitted on a piecemeal basis. No master site

reclamation plan is required; therefore, no single program can be evaluated

in terms of supportive integration with other plans or with the total mining

site. Further, a reclamation program is not required to give any consideration

to returning lands to their pre-mining state. The criteria listed in Chapter

211, and specified in Chapter 16C-16, for approval of reclamation programs result

in, at best, a perfunctory effort at the reclamation of mined lands. The State's

efforts to offset the negative impacts of mining have been largely ineffective

when we consider the continuing "destruction of wetlands, disruption of water

courses, and the water quality deterioration."22 Except in the few cases where

there is industry "good will" or DNR prodding, reclaimed lands, examined during

site visits, are mechanical, poorly-landscaped pasture lands or unimaginative

land-and-lakes.23 Consideration of reclamation in the pre-mining planning phase

is essential, particularly to the extent that it impacts mining cuts and grading o

overburden. Without this critical required linkage, maximizing the opportunity

for innovative, planned reclamation activities is precluded. In sum, the ade-

quacy of pre-mining planning and operating controls, to a great extent, determine

the quality of reclamation through the planned mitigation of negative environ-

mental impact; yet, the state has no role or influence over this phase of the

mining/reclamation process.

22COSMAR, p. 57. "Phosphate mine dewatering and process use of water has
lowered the regional water table in Florida by 40 feet...."

23There are commendable exceptions, such as the International Minerals and
Chemical Corporation-Game and Fresh Water Fish Commission's cooperative effort
to reclaim mined acreage as a wetland habitat. However, extensive documentation
in DNR files, and two site visits by OPB, Evaluation staff clearly support the
conclusion that aesthetic and supportive quality of reclamation is generally
lacking.




22


L









This problem is further compounded by the limited size of the Bureau of

Geology's staff and its restricted disciplinary emphasis. Expert geologists

can not be expected to comprehensively assess a reclamation program's impact

on biological and chemical quality, land-use integration, wildlife habitat,

and the aesthetic quality of the social and physical environment. These

multi-disciplinary requirements have partially been met by recent advisory

committee participation in the reclamation program review process. However,

this involvement is not uniform or formally provided for and does not carry

over into subsequent on-site review of work in progress. Further, this part-

time involvement does not offset the need for the increased internal (DNR)

enhancement of review capabilities.


8 No Enforcement Remedies

The final three problems in the process diagram (Figure 2) share a common

source--the absence of effective enforcement remedies.

The phosphate industry is submitting reclamation programs for DNR review

and approval where the actual work is substantially completed. DNR recourse

is extremely limited, especially in cases where the work meets minimal statutory

requirements. Denial of ad valorem credit is not a viable penalty if another

program is on file with DNR, and given the DOR's liberal definition of site of

severance. Most significantly, all existing sanctions in Chapter 211, Part II,

are tied to severance tax refunds. Since all lands mined for phosphate since

July 1, 1975 are not eligible for refunds from the Land Reclamation Trust Fund

(no phosphate severance taxes have gone into this fund since 1978), the State

has systematically exempted the phosphate industry from existing enforcement

regulations. DNR's ad hoc response in dealing with the problem of pre-approval


~








reclamation is to review the program in the routine manner, noting its after-

the-fact status. Quite obviously, the lack of any real enforcement remedies

further undermines DNR's credibility and, ultimately, its authority over the

industry.

Problems 7 and 8 again stem from insufficient, inappropriate enforcement

options. Rule 16C-16.07 provides for temporary or permanent ineligibility for

refunds if a program is not being properly implemented, has been abandoned,

or is not completed and a time extension hasn't been granted. Again, since the

phosphate industry is not entitled to refunds, the State has little control

over the quality or timing of reclamation. Further, this year (1980) marks

the four-year time span since reclamation under Chapter 211 became mandatory,

and several phosphate reclamation programs are scheduled for completion.24

Quarterly site reviews suggest that certain programs will not be completed.

Without the benefit of performance bonding or civil penalties (fines), DNR

has no enforcement option beyond judicial recourse. DNR has not chosen to

exercise this option. Judicial recourse is not an attractive remedy, and

certainly is not without high risk, especially given the Chapter 211 separate

and unequal treatment of the phosphate industry. Instead, DNR has cautiously

chosen to exercise, without enforcement leverage, authority over the reclamation

of lands disturbed by the mining of phosphate. What results is a voluntary

legally-mandatory mine reclamation program for the State of Florida. To the

extent that reclamation has been achieved, program staff should be credited.

DNR has no legal grounds to challenge the current quality of reclamation

beyond meeting the perfunctory requirements of Chapter 16C-16. However,

recent activities by the phosphate industry, specifically commencing reclamation

2416C-16.05(5)(b) where the program does not include settling ponds or
recirculating water systems, the taxpayer has 4 years to complete from approved
date. For settling ponds or water systems, reclamation must be completed within
four years after commencement.

24





prior to having a DNR-approved program, are clearly in violation of 16C-16.03.25

Based on the findings of this evaluation, DNR's failure to exercise judicial

recourse must be questioned.26 DNR has confirmed for the phosphate industry

that Departmental influence over reclamation is largely limited to persuasion,

and very recently to the Governor and Cabinet's challenge of industry's intent.27

There is sympathetic understanding as to why DNR has not judicially

challenged overt non-compliance with the provisions of 16C-16. The State's

position on reclamation is clouded at best. Extensive mining activities are

still not legally subject to subsequent reclamation, and those that are, are

linked to revenue-generating tax provisions. It is, at best, a difficult

position for the Department. An adverse court decision would, in effect,

mean a further weakening of the mine reclamation program, and uncertainty

as to whether there would be a subsequent legislative remedy.


R[ Mining of Reclaimed Lands28
The final problem is largely philosophical, based on the very stark realities

of the marketplace. Historically, mineral prices have not supported maximum

resource recovery. Based on future supply and demand cycles, reclaimed lands

will be remained. The State has no contingency plan for such activities,

although there is already evidence of small-scale mining of reclaimed lands.

16C-16.03 states "Prior to the taxpayer commencing reclamation and restora-
tion...the taxpayer shall obtain DNR's approval of a reclamation and restoration
program covering the area to be reclaimed." 16C-16.031(1) specifically states
"a reclamation and restoration program shall be submitted for consideration of
approval by DNR at least six (6) months prior to the beginning of reclamation
and restoration of the program."
260n a November site visit by evaluation staff 4 of the 9 reclamation programs,
which were being reviewed by DNR for consideration of approval, had substantially
been completed.
27Denial of amendment of Brewster Phosphates Reclamation Programs H-5A,
H-6B, H-7B and H-8A.

28Refer to Figure 2.









There is the question of equity to the State's residents who have paid for

initial reclamation through severance tax refunds and ad valorem tax credits,

only to see the same lands disturbed again. Little is known as to the ultimate

environmental impact of mining reclaimed lands. There is no current State

effort to assess the potential impact of the mining of reclaimed lands, and

to consider the future policy implications of such activiites.


Summary of Problem Findings

Table 6 highlights the problem findings of this discussion. The intent

of this section of the report was to address the evaluation questions related

to the impact of integrating reclamation with the severance tax (Chapter 211);

assessing the effect of the exclusion provisions of Chapter 211; identifying

problems associated with the State's mine reclamation program; and determining

the adequacy of enforcement remedies.


Table 6

SUMMARY OF PROGRAM PROBLEMS AND SOURCE OF PROBLEM

SOURCE:


CHAPTER 211


TAX EMPHASIS OF RECLAMATION
* Exclusion from reclamation
of lands disturbed by
mining of non-severance
tax minerals
* Tax refunds
* Imbalance between acres
mined/acres reclaimed

LACK OF SUFFICIENT INFORMATION

IMPACT OF SETTLING PONDS

AD VALOREM TAX CREDIT

CRITERIA FOR ASSESSING
RECLAMATION PROGRAMS

INADEQUATE ENFORCEMENT
REMEDIES


RULES AND PROGRAM
ADMINISTRATION


OTHER


X (Confidentialit

X (State of Tech-
nology)
X (Definitional)


PROBLEM


W_


'


'


,


, -











III. PROGRAM ALTERNATIVES AND
EVALUATION RECOMMENDATIONS

Decision-Making Framework

Although mandatory federal requirements related to safety and environ-

mental protection currently affect Florida's mining operations, they have

virtually no impact on the: 1) quality of reclamation, 2) balance between

land uses, or 3) comprehensive protection of non-mineral resources on lands

being mined.29 The State's DRI process, as it affects new mining operations,

and DER permitting activities further impact various aspects of mining; how-

ever not in the exclusive terms of the quality of reclamation and systematic

consideration of all non-mineral resources. In short, current federal and

state regulations, including DNR's mine reclamation program, do not uniformly

support recognized objectives of reclamation as reflected in the Federal Surface

Mining Control and Reclamation Act of 1977 and other state mining/reclamation

laws.30 These objectives include:

The protection of society and the environment from
the adverse effects of mining

Assure that mining does not occur where reclamation
is not feasible

Assure provisions are adequate to provide for timely
reclamation

Assume mining is a temporary use of the land

Promote maximum mineral resource recovery, and minimum
disturbance of lands

2COSMAR, p. 178.

30The focus of this law is coal. However, Congress mandated a study (COSMAR)
to evaluate its potential application to all surface mining. There is demon-
strated interest in federal legislation of this nature.









The alternatives for addressing the objectives of reclamation may be

viewed as a continuum:31


1. Education 2. Economic 3. Regulation 4. Regulating Control
Assistance Incentives Securing Results Practices That
Following Mining Produce Results


The viability of alternatives 3 and 4 are directly related to the adequacy

of provision for stringent definitional goals and objectives, specification of

standards, corresponding data reporting requirements, monitoring capacity, and

various enforcement remedies. The State's current reclamation program would be

located mid-point on the continuum. Since it is mandatory for certain mining

activities, it is more than an incentive program; however, because of the refund/

credit incentives and the exclusion of extensive mining activities it is not a

comprehensive reclamation program, as depicted by alternative 3.


State Alternatives

For brevity, alternatives are presented in an order where all options

presented within a given alternative are available for inclusion in the subsequent

alternative. Only new, additional options are presented.


Alternative 1: No Statutory Change

This alternative endorses continuing the current cooperative-mandatory method

of promoting reclamation. It infers the continuance of rebates for non-phosphate

reclamation, and exclusion from reclamation requirements mining sites not subject

to severance taxes. Rule changes could be considered which provide greater

specification of current legislated standards. However, the scope of reclamation

requirements and ultimate land-use could not be impacted through this option.


31COSMAR, p. 273.


-ffinnmp







Alternative 2: Amendment of Chapter 211, Part II

Through this alternative, decision-makers could provide for civil penalties,

performance bonding, and tieing ad valorem tax credits to current site of sever-

ance. Additionally, the reporting to DNR of aggregate site data on acres affected

by mining could be required; however, only in terms of minerals subject to the

severance tax.


Alternative 3: Chapter 378, Amendment to Include Part II, Mandatory Reclamation

This alternative suggests the transfer of the mandatory reclamation provisions

of Chapter 211 to Chapter 378, which currently includes voluntary reclamation of

old lands. In addition to options available under Alternative 2, this alternative

would dissociate and elevate reclamation in relationship to taxing mechanisms

and incentives. Under this alternative, decisions could be made on whether to

continue: 1) exemption from reclamation of lands mined where the product is not

subject to a severance tax, 2) rebates for reclamation of non-phosphate lands, and

3) ad valorem tax credits. The thrust of this alternative is the recognition that

reclamation is an essential activity, not a spill-over effect of the severance

tax. On the previously-discussed policy framework continuum, this alternative

represents a discrete and comprehensive reclamation act. As such, this alterna-

tive falls short of requiring the concurrent integration of mining and reclamation

activities. The primary requisite of this alternative would be an individual

mining site, master reclamation plan, to be approved by DNR or an established
32
policy council, prior to the submission of specific reclamation work programs.

This alternative promotes systematic consideration of the impact of mining on

site-specific land use. Additional provision may be made to assure reclamation

programs address the condition and use of the land prior to mining. The potential

effectiveness of this alternative would be directly related to the adequacy and

32Decision-making powers could be delegated to a multi-agency policy council
similar in make-up to the current reclamation advisory committee (i.e., DNR,
DER, GFWFC, DCA, etc.).








scope of legislated standards; fiscal support for multi-disciplinary staffing

and monitoring activities; and the provision of various enforcement remedies,

particularly performance bonding and civil penalties.


Alternative 4: Mining and Reclamation Act

This alternative would necessitate a total revamping of current state

legislation related to mining, particularly the reclamation requirements of

Chapter 211 and Chapter 378. All options, detailed within the preceding

discussion of alternatives, would be appropriate for inclusion within a

mining act. This is the only alternative which allows for the timely, suppor-

tive integration of both mining operations and reclamation. Both the scheduling

and nature of actual mining activities are tied to site-specific mine and

reclamation master plans, prior to the first drag-line operation. Reclamation

planning would no longer be after-the-fact; no mining would take place until a

reclamation master plan for the entire mining site has been approved.

A mining act may also include provision for a State Comprehensive Mining

and Reclamation Plan for all mining and reclamation pre- and post-1975 (thus

reflecting the current, although restricted, intent of Chapter 378). A state

plan of this nature would provide the framework for assessing each individual

site's mine plan and reclamation plan. A comprehensive plan would identify

known mineral reserves, determine potential mining sites, and designate lands

unsuitable for surface mining, given the state of current reclamation technol-

ogies.

Of the ten leading states in terms of the number of acres disturbed by

non-coal surface mining, Florida is the only one that does not have a mining/

reclamation law. These state laws share several common provisions. All are a

permitting process and thus require:




30








Evidence of the right to mine

Extensive technical/topographical information
on the proposed site of severance

A mining plan

Performance bonds

Other applicable permits

Since this alternative requires permitting, careful consideration must

be given to other existing regulatory programs affecting mining. Issues

relating to integration with or in lieu of such regulatory programs (i.e.,

DRI, Dredge & Fill, etc.) and delegation of authority would have to be syste-

matically addressed.

An alternative-options matrix is presented as a summary and to structure

the following discussion of study recommendations.


















C-)
CD A P e~
4= -4
3 0










< SPECIFI OPTIONS AS RELATED TOdIDENTIIEDfPROeLEMS
Cr d ite
erance on
Sm m) m o

> >
























G. No Severance Tax Rebates
: )--

I. Mandatory Reclamation of all Lands




SPECIFIC OPTIONS S RELATED TO IDENTIFIED PROBLEMSReclamation Master Plans



More Stringent Assessment Criteria





















M. State Compreivi hensive Mining and ReclamationPenalt Plan
-UI








m, m
I- -4

CD -











G. No Severance Tax Rebates

H. Increased Data Reporting Requirements

1. Mandatory Reclamation of all Lands

J. Individual Mining Site Reclamation Master Plans

A. Multi-agency Policy Council

L L. Permitting of Mining/Reclamation

2 M. State Comprehensive Mining and Reclamation Plan








Evaluation Recommendations

1) It is recommended that the State's position on the reclamation of

lands disturbed by the mining of solid minerals be clarified and the goals

and objectives of DNR's mine reclamation program be reassessed accordingly.

If it is the State's position that with the mining of an essential mineral

goes the responsibility for offsetting its negative environmental impacts,

then the subsequent recommendations of this evaluation should be given con-

sideration. However, if it is the State's position that reclamation is a

requisite but secondary by-product of revenue-generating mechanisms, then

DNR must evaluate and adjust the goals and objectives of its program. The

regulatory provisions of current legislation related to mining preclude the

achievement of existing performance standards.

In support of enhancing program effectiveness the following recommenda-

tions are presented:


2) DNR should be advised during the reclamation plan review process by

an established committee representing appropriate regional, state and federal

agencies, as designated through intergovernmental or interagency agreements.

This recommendation is to formalize the existing Reclamation Advisory Committee

(RAC) by setting specific membership, scope of responsibilities, and financial

commitments. Current RAC membership should be reviewed and expanded to include

the Departments of Health & Rehabilitative Services and Revenue.


3) It is recommended that minimum performance standards for reclamation

related to land and landscape, water quality and quantity, health, wildlife

habitat, and waste management be developed by DNR with the requisite cooperation

of appropriate governmental agencies (i.e., DER, DCA, GFWFC, HRS, Division of

Forestry, Soil Conservation Service, etc.).


|








Current DNR staff resources and program funding should be reviewed for

adequacy to insure an essential multi-disciplinary reclamation plan review

process and ongoing standards development.


4) Legislative and administrative action should be taken to insure the

reporting of comprehensive information on extent and location of all solid

minerals mining. The objectives underlying this recommendation are to provide

essential data for program planning, assessment of program performance,

and to provide base-line information on the cumulative effects of mining. It

is not the intent of this recommendation to undermine the principles of

confidentiality. Remedial action should reflect this.


5) It is recommended that the Governor assess and redirect, to the

necessary extent, the resource commitments of the Florida Institute of Phosphate

Research. Underlying this recommendation is the position that development of

alternative slime disposal methods, mechanisms for slime reduction, and sub-

sequent innovative reclamation techniques should be the primary, or even

exclusive, emphasis of the Institute's research agenda until such time as the

Governor and Board are satisfied that the problem has been sufficiently

addressed.


6) Adequate enforcement provisions to insure compliance with reclamation

criteria are recommended. Performance bonding and civil penalties should be

considered to insure that mined lands, subject to regulation, are reclaimed

according to established standards.


7) It is recommended that all lands mined for solid minerals be subject

to reclamation. The legal and fiscal implications of the uniform imposition of

a severance tax have not been examined within the scope of this evaluation.

Therefore, this recommendation supports mandatory reclamation of all lands.


34








including those whose product is not currently subject to the severance tax.


8) The ad valorem tax credit should be discontinued. The credit is not

an incentive toward reclamation, yet will cost the State approximately $2.7

million in 1980-81. The severance tax is not a property tax and thus does

not constitute double taxation when imposed in addition to ad valorem taxes.


9) In further support of mandatory reclamation, it is recommended that

severance tax refunds for reclamation to non-phosphate mining industries be

discontinued. The removal of both the exclusion and refund provisions promotes

an equitable, mandatory reclamation strategy. It eliminates the current dual

reclamation standards between: 1) phosphate mining and other mining, and

2) mining industries whose product is subject to the severance tax and those

whose product is not. Termination of severance tax refunds also neutralizes

the question of whether the citizens of Florida should have to subsidize

reclamation.

10) It is recommended that legislative action be taken to require site-

specific master reclamation plans.34 Such plans shall be reviewed by DNR

and the interagency advisory committee, and submitted to the Governor and

Cabinet for their consideration. In order to realize the goal of returning

mined lands to beneficial post-mining use, reclamation can not be approached

on a parcel-by-parcel basis. The current mine reclamation program which only

requires the submission of reclamation programs on a parcel basis (not to

exceed 640 acres) and not the prior submission of an inclusive reclamation plan,

does not provide for comprehensive assessment of impact in terms of supportive

integration with the existing environment.

34Site specific is defined as the entire proposed mining site. If the
State should adopt a Comprehensive Mining and Reclamation Plan (OPTION M,
Table 7), each site master reclamation plan would be further reviewed in
terms of compatibility with the State Comprehensive Plan.

35








11) Careful consideration must be given to balancing the mining of an

essential mineral resource and mitigating, through regulatory provisions,

the negative environmental and social impacts of such activities. Given that

the social, health and environmental impacts of mining involve considerable

uncertainties which can produce irreversible effects, this evaluation recommends

the mandated, regulated integration of mining and reclamation. This recommenda-

tion can only be realized with comprehensive mining and reclamation legislation.

The State must be a partner with industry in controlling the negative conse-

quences of mining. Post-mining (reclamation) regulation alone represents an

abdication of this responsibility.

To insure a cooperative partnership which protects both the industry's

and public's interest, it is further recommended that the State mandate the

preparation and subsequent adoption of a Comprehensive Mining and Reclamation

Plan which designates known mineral reserves, land suitable for mining, and

lands where mining is currently prohibited because reclamation is not feasible.

All recognized interests should be assured meaningful participation in the

Comprehensive Plan's initial preparation and required, periodic revisions.

Further, this State plan should be reviewed for consistency with local govern-

ment plans prepared pursuant to the Local Government Comprehensive Planning

Act of 1975.


12) If any of the aforementioned recommendations are adopted, specifically

Recommendation 10 which imposes an additional permitting requirement, such

provisions must be coordinated with existing mechanisms now employed to control

various aspects of mining. This coordination must be the responsibility of

the State. Coordination should reduce duplication of effort and minimize

additional time requirements for processing. Further, the State's responsibility

must include the provision for systematic opportunity for participation by

affected interests.








13) It is recommended that the Governor and Cabinet designate an

appropriate agency to conduct a comprehensive study of the social and

physical impacts of the future mining of lands reclaimed under Chapters

211 and 378.

Summary of Alternatives/Recommendations

Using the format of Table 7, the following matrix summarizes the preceding

discussion of recommendations.


OPTIONS SELECTED BASED ON EVALUATION RECOMMENDATIONS

More Stringent Assessment Criteria

Performance Bonding

Civil Penalties

Tie Ad Valorem Tax Credit to Site of Severance

Eliminate Ad Valorem Tax Credit

Severance Tax on all Minerals

No Severance Tax Rebates

Increased Data Reporting Requirements

Mandatory Reclamation of all Lands

Individual Mining Site Reclamation Master Plans

Multi-Agency Policy Council

Permitting of Mining/Reclamation

State Comprehensive Mining and Reclamation Plan


EA.

mB.

mC.

DD.

E.

IF.

MG.

mH.

mI.

J.

OK.

ML.

M.
Em.








IV. APPENDICES


A. GLOSSARY OF TERMS

1) Ad Valorem Tax Credit

A tax credit for the amount of ad valorem taxes paid
on the property against which a severance has been
levied. This credit can be taken if a single approved
reclamation program is on file with DNR; however, its
value may not exceed 20 percent of the taxes due from the
severance tax.

2) Disturbed Lands

The surface area of the land which is mined and other
lands which have been disturbed as a result of or
incidental to the severance of solid minerals.

3) Land Reclamation Trust Fund (Severance Tax Refunds)

Fifty percent of the taxes paid for the severance of
exported, non-phosphate solid minerals. To be used
to finance, through tax refunds of up to 100 percent
of cost, the mandatory reclamation of non-phosphate
lands that are subject to the severance tax provisions
of Chapter 211, Part II.
4) Mining Operations

The activities conducted at a mining site, including
extraction, storage, processing and shipping of minerals
and reclamation of the affected area.
5) Nonmandatory Land Reclamation Trust Fund

Twenty percent of the tax collected from July 1, 1978
to July 1983, on the severance of phosphate rock. This
fund is to be used as an economic incentive for voluntary
reclamation of lands mined or disturbed prior to July 1,
1975 (the date after which reclamation is mandatory).

6) Overburden
All earth and other materials which are removed to gain
access to the mineral in the process of mining.

7) Phosphate Research Trust Fund

Five percent of tax collected on the severance of phosphate
rock. Purpose to foster research related to problems asso-
ciated with phosphate mining through establishment of a
permanent funding base for the Florida Institute of Phosphate
Research.

38








8) Recirculating Water Systems


A system of ponds and/or canals where water used in ore
beneficiation is recirculated.

9) Reclamation

The filling, backfilling, restructuring, reshaping or
revegetation of disturbed lands to a form in which lands
may be beneficially used.

10) Settling Ponds (Slime Pits)

Areas surrounded by dikes into which semi-liquid clays are
deposited. Such slimes are a by-product of the flotation
process for recovering phosphate.

11) Severance Tax (As Applied by Chapter 211)

An excise tax on the value of the extracted mineral at the
point of severance (vs. point of sale).

12) Site of Severance

The geographical location where a solid mineral is actually
being severed from the soils and waters of this State.

13) Solid Minerals

Clay, dolomite, limestone, sand, phosphate rock, metallics
(heavy minerals), gravel,peat and other solid substances of
commercial value found in natural deposits on or in the
earth.

14) Surface Mining

The extraction of minerals from the ground or water or from
waste or stock piles by methods including, but not limited
to, open pit, dredging, slurrying, quarrying and leaching,
and other activities which will, in effect, consume, delete
or alter the surface, and also those aspects of underground
mining having significant effects on the surface and
subsurface.








B. PERFORMANCE MEASUREMENT


PROGRAM DEFINITION

06.01.01.03 Industrial Minerals
and Mine Reclamation


PROGRAM SUMMARY FORM
KEY ACTIVITIES/FUNCTIONS


DATA
OBJECTIVES KEY ACTIVITIES/FUNCTIONS OUTPUT MEASURES AVAILABILITY


To ensure the
restoration of
lands disturbed
in surface
mining to
useable acreage


1) To review submitted
surface reclamation
plans:

a. Review for
completeness

b. Follow-up review
of quality criteria

c. Initial site
inspection

d. Site review by
RAC/DNR staff

e. Notice of incomplete-
ness or inadequacies

f. Set Cabinet Agenda

g. Support Governor/
Cabinet review

2) To inspect subsequent
activities to restore
land:


1) -Percent of regulation of reclamation
accomplished in accordance with DNR
standards

-Cost of review per reclamation plan

-Number of plans noticed for inadequacies
to total number of plans submitted

-Number of new plans reviewed

-Number reviewed per position

-Number of approved plans/number of plans
submitted








2) -Number of on-site inspections per
approved plan

-Number of on-site inspections per
position


Yes


Yes

No*


Yes

Yes

No*









Yes


Yes


*Not currently available, but easily
Collected and easily monitored







PROGRAM DEFINITION

06.01.01.03 Contd.


PROGRAM SUMMARY FORM
KEY ACTIVITIES/FUNCTIONS


DATA
OBJECTIVES KEY ACTIVITIES/FUNCTIONS OUTPUT MEASURES AVAILABILITY


a. Quarterly/yearly
site inspections

b. Issue recommended
changes and follow-up

c. Issue notice of
deficiencies, as
needed

d. Release inspections

3) Research and information
dissemination of solid
mineral resource data

a. Surveys, data collec-
tion statistic profiles

b. State adaptation of
existing data

c. Gather information on
federal, state and
county laws and ordin-
ances

d. Design "old lands"
Master Reclamation Plan


-Cost of inspection process per
reclamation plan









3) -Number of mines surveyed for
resource inventory total of mines

-Number of mines surveyed for
resource inventory per position


EFFECTIVENESS MEASURE: Number of acres
reclaimed/number of acres mined


No*










No*


No*










No would
necessitate
statutory
requirements




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