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
|