TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.1 SCOPE
Section 1702.1 Scope
This Part implements the
exemption contained in Section 1.06(b) of the Surface Coal Mining Land
Conservation and Reclamation Act (Ill. Rev. Stat. 1989, ch. 96 1/2, par.
7901.06(b)) (State Act) concerning the extraction of coal incidental to the
extraction of other minerals where coal does not exceed 16 2/3 percent of the
total mineral tonnage mined for purposes of commercial use or sale.
 | TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.5 DEFINITIONS
Section 1702.5 Definitions
As used in this Part, the
following terms have the meaning specified, except where otherwise indicated:
a) "Cumulative measurement period" means the period of
time over which both cumulative production and cumulative revenue are measured.
1) For purposes of determining the beginning of the cumulative
measurement period, subject to the Department's approval, the operator must
select and consistently use one of the following:
A) For mining areas where coal or other minerals were extracted
prior to August 3, 1977, the date extraction of coal or other minerals
commenced at that mining area or August 3, 1977; or
B) For mining areas where extraction of coal or other minerals
commenced on or after August 3, 1977, the date extraction of coal or other
minerals commenced at that mining area.
2) For annual reporting purposes pursuant to Section 1702.18, the
end of the period for which cumulative production and revenue is calculated is
either:
A) For mining areas where coal or other minerals were extracted
prior to April 1, 1990, March 31, 1990, and every March 31 thereafter; or
B) For mining areas where extraction of coal or other minerals
commenced on or after April 1, 1990, the last day of the calendar quarter
during which coal extraction commenced, and each anniversary of that day
thereafter.
b) "Cumulative production" means the total tonnage of
coal or other minerals extracted from a mining area during the cumulative
measurement period. The inclusion of stockpiled coal and other mineral
tonnages in this total is governed by Section 1702.16.
c) "Cumulative revenue" means the total revenue derived
from the sale of coal or other minerals and the fair market value of coal or
other minerals transferred or used, but not sold, during the cumulative
measurement period.
d) "Mining area" means an individual excavation site or
pit from which coal, other minerals and overburden are removed.
e) "Other minerals" means any commercially valuable
substance mined for its mineral value, excluding coal, topsoil, waste and fill
material.
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.10 INFORMATION COLLECTION
Section 1702.10 Information
Collection
The collections of information
contained in Sections 1702.11, 1702.12, 1702.13, 1702.15 and 1702.18 will be
used to determine the initial and continuing applicability of the incidental
mining exemption to a particular mining operation. Response is required to
obtain and maintain the incidental mining exemption in accordance with Section
1.06(b) of the State Act.
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.11 APPLICATION REQUIREMENTS AND PROCEDURES
Section 1702.11 Application
Requirements and Procedures
a) Application for exemption.
1) Any person who plans to commence or continue coal extraction
after the effective date of this Part in reliance on the incidental mining
exemption shall file a complete application for exemption with the Illinois
Department of Natural Resources (Department) for each mining area.
2) No person may commence coal extraction based upon the
exemption until the Department approves such application for exemption, except
as provided in subsection (e)(3) below.
b) Existing operations. Any person who has commenced coal
extraction at a mining area in reliance upon the incidental mining exemption
prior to the effective date of this Part may continue mining operations for
sixty (60) days after such effective date. Coal extraction may not continue
after such sixty (60) day period unless that person files an administratively
complete application for exemption with the Department. If an administratively
complete application is filed within sixty (60) days, the person may continue
extracting coal in reliance on the exemption beyond the sixty (60) day period
until the Department makes an administrative decision on such application.
c) Additional information. The Department shall notify the
applicant if the application for exemption is incomplete and may at any time
require submittal of additional information.
d) Public comment period. Written comments or objections to an
application for exemption may be submitted to the Department by any person
having an interest which is or may be adversely affected by the decision on the
application within thirty (30) days after the newspaper notice required by
Section 1702.12(i).
e) Exemption determination.
1) No later than ninety (90) days after the filing of an
administratively complete application, the Department shall make a written
determination whether, and under what conditions, the persons claiming the
exemption are exempt under this Part, and shall notify the applicant and
persons submitting comments on the application of the determination and the
basis for the determination.
2) The determination of exemption shall be based upon information
contained in the application and any other information available to the
Department at that time.
3) If the Department fails to provide an applicant with the
determination as specified in subsection (e)(1) above, an applicant who has not
begun may commence coal extraction pending a determination on the application
unless the Department issues an interim finding, together with reasons
therefor, that the applicant may not begin coal extraction.
f) Administrative hearing.
1) Any adversely affected person may request administrative
review of a determination under subsection (e) above within thirty (30) days of
the notification of such determination in accordance with procedures
established under 62 Ill. Adm. Code 1847.3. The hearing shall be conducted in
accordance with 62 Ill. Adm. Code 1847.3.
2) A petition for administrative hearing filed in accordance with
62 Ill. Adm. Code 1847.3 shall not suspend the effect of a determination under
subsection (e) above.
(Source: Amended at 17 Ill. Reg. 10936, effective July 1, 1993)
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.12 CONTENTS OF APPLICATION FOR EXEMPTION
Section 1702.12 Contents of
Application for Exemption
An application for exemption
shall include:
a) The name and address of the applicant;
b) A list of the minerals sought to be extracted;
c) Estimates of annual production of coal and the other minerals
within each mining area over the anticipated life of the mining operation;
d) Estimated annual revenues to be derived from bona fide sales
of coal and other minerals to be extracted from the mining area;
e) Where coal or the other minerals are to be used rather than
sold, estimated annual fair market values at the time of projected use of the
coal and other minerals to be extracted from the mining area;
f) The basis of annual production, revenue, and fair market value
estimates;
g) A description, including county, township if any, and
boundaries of the land, of sufficient certainty that the mining areas may be
located and distinguished from other mining areas;
h) An estimate to the nearest acre of the number of acres that
will compose the mining area over the anticipated life of the mining
operations;
i) Evidence of publication, in a newspaper of general
circulation in the county of the mining area, of a public notice that an
application for exemption has been filed with the Department. The public
notice must identify the persons claiming the exemption and must contain a
description of the proposed operation and its locality that is sufficient for
interested persons to identify the operation;
j) Representative stratigraphic cross-section(s) based on test
borings or other information identifying and showing the relative position,
approximate thickness and density of the coal and each other mineral to be
extracted for commercial use or sale and the relative position and thickness of
any material, not classified as other minerals, that will also be extracted
during the conduct of mining activities;
k) A map of appropriate scale which clearly identifies the mining
area;
l) A general description of mining and mineral processing
activities for the mining area;
m) A summary of sales commitments and agreements for future
delivery, if any, which the applicant has received for other minerals to be
extracted from the mining area, or a description of potential markets for such
minerals;
n) If the other minerals are to be commercially used by the
applicant, a description specifying the use;
o) For operations having extracted coal or other minerals prior
to filing an application for exemption, in addition to the information required
above, the following information must also be submitted:
1) Any documents the operator has received from the Department
documenting its exemption from the requirements of the State Act;
2) The cumulative production of the coal and other minerals from
the mining area;
3) Estimated tonnages of stockpiled coal and other minerals; and
p) Any other information the applicant believes is pertinent to
the qualification of the operation as exempt.
(Source: Amended at 17 Ill. Reg. 10936, effective July 1, 1993)
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.13 PUBLIC AVAILABILITY OF INFORMATION
Section 1702.13 Public
Availability of Information
a) Except as provided in Section 1702.13(b), all information
submitted to the Department under this Part shall be made immediately available
for public inspection and copying at the Department's Springfield and Benton
Land Reclamation Division Offices until at least three (3) years after
expiration of the period during which the subject mining area is active.
b) The Department may keep information submitted under this Part
confidential if the person submitting it requests in writing, at the time of
submission, that it be kept confidential and the information concerns trade
secrets or is privileged commercial or financial information of the persons
intending to conduct operations under this Part.
c) Information requested to be held as confidential under Section
1702.13(b) shall not be made publicly available until after notice and
opportunity to be heard is afforded persons both seeking and opposing
disclosure of the information.
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.14 REQUIREMENTS FOR EXEMPTION
Section 1702.14 Requirements
for Exemption
a) Activities are exempt from the requirements of the State Act
if all of the following are satisfied:
1) The cumulative production of coal extracted from the mining
area determined annually as described in this Section does not exceed 16 2/3
percent of the total cumulative production of coal and other minerals removed
during such period for purposes of bona fide sale or reasonable commercial use.
2) Coal is produced from a geological stratum lying above or
immediately below the deepest stratum from which other minerals are extracted
for purposes of bona fide sale or reasonable commercial use.
3) The cumulative revenue derived from the coal extracted from
the mining area determined annually shall not exceed fifty (50) percent of the
total cumulative revenue derived from the coal and other minerals removed for
purposes of bona fide sale or reasonable commercial use. If the coal extracted
or the minerals removed are used by the operator or transferred to a related
entity for use instead of being sold in a bona fide sale, then the fair market
value of the coal or other minerals shall be calculated at the time of use or
transfer and shall be considered rather than revenue.
b) Persons seeking or that have obtained an exemption from the
requirements of the State Act shall comply with the following:
1) Each other mineral upon which an exemption under this Part is
based must be a commercially valuable mineral for which a market exists or
which is mined in bona fide anticipation that a market will exist for the
mineral in the reasonably foreseeable future, not to exceed twelve (12) months
from the end of the current period for which cumulative production is
calculated. A legally binding agreement for the future sale of other minerals
is sufficient to demonstrate the above standard.
2) If either coal or other minerals are transferred or sold by
the operator to a related entity for its use or sale, the transaction must be
made for legitimate business purposes.
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.15 CONDITIONS OF EXEMPTION AND RIGHT OF INSPECTION AND ENTRY
Section 1702.15 Conditions
of Exemption and Right of Inspection and Entry
a) A person conducting activities covered by this Part shall:
1) Maintain on-site or at other locations available to authorized
representatives of the Department or the Secretary of the Interior (Secretary)
information necessary to verify the exemption including, but not limited to,
commercial use and sales information, extraction tonnages, and a copy of the
exemption application and exemption approved by the Department;
2) Notify the Department upon the completion of the mining
operation or permanent cessation of all coal extraction activities; and
3) Conduct operations in accordance with the approved application
or when authorized to extract coal under Section 1702.11(b) or Section
1702.11(e)(3) prior to submittal or approval of an exemption application, in
accordance with the standards of this Part.
b) Authorized representatives of the Department or the Secretary
shall have the right to conduct inspections of operations claiming exemption
under this Part.
c) Each authorized representative of the Department or the
Secretary conducting an inspection under this Part:
1) Shall have a right of entry to, upon, and through any mining
and reclamation operations without advance notice or a search warrant, upon
presentation of appropriate credentials;
2) May, at reasonable times and without delay, have access to and
copy any records relevant to the exemption; and
3) Shall have a right to gather physical and photographic
evidence to document conditions, practices or violations at a site.
d) No search warrant shall be required with respect to any
activity under Section 1702.15(b) and (c), unless otherwise required by the
Criminal Code of 1961. (Ill. Rev. Stat. 1989, ch. 38, pars. 108-1 et seq.)
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.16 STOCKPILING OF MINERALS
Section 1702.16 Stockpiling
of Minerals
a) Coal. Coal extracted and stockpiled may be excluded from the
calculation of cumulative production until the time of its sale, transfer to a
related entity or use:
1) Up to an amount equaling a 12-month supply of the coal
required for future sale, transfer or use as calculated based upon the average
annual sales, transfer and use from the mining area over the two preceding
years; or
2) For a mining area where coal has been extracted for a period
of less than two years, up to an amount that would represent a 12-month supply
of the coal required for future sales, transfer or use as calculated based on
the average amount of coal sold, transferred or used each month.
b) Other minerals.
1) The Department shall disallow all or part of an operator's
tonnages of stockpiled other minerals for purposes of meeting the requirements
of this Part if the operator fails to maintain adequate and verifiable records
of the mining area of origin or the disposition of stockpiles, or if the
disposition of the stockpiles indicates the lack of commercial use or market
for the minerals.
2) The Department may only allow an operator to utilize tonnages
of stockpiled other minerals for purposes of meeting the requirements of this
Part if:
A) The stockpiling is necessary to meet market conditions or is
consistent with generally accepted industry practices; and
B) Except as provided in Section 1702.16(b)(3), the stockpiled
other minerals do not exceed the 12-month supply of the mineral required for
future sales as approved by the Department on the basis of the exemption
application.
3) The Department may allow an operator to utilize tonnages of
stockpiled other minerals beyond the 12-month limit established in Section
1702.16(b)(2) if the operator can demonstrate to the Department's satisfaction
that the additional tonnage is required to meet future business obligations of
the operator, such as may be demonstrated by a legally binding agreement for
future delivery of the minerals.
4) The Department may periodically revise the other mineral
stockpile tonnage limits in accordance with the criteria established by
Sections 1702.16(b)(2) and (3) based on additional information available to the
Department.
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.17 REVOCATION AND ENFORCEMENT
Section 1702.17 Revocation
and Enforcement
a) Department responsibility. The Department shall conduct an
annual compliance review of the mining area, utilizing the annual report
submitted pursuant to Section 1702.18, an on-site inspection and any other
information available to the Department.
b) If the Department has reason to believe that a specific mining
area was not exempt under the provisions of this Part at the end of the
previous reporting period, is not exempt, or will be unable to satisfy the
exemption criteria at the end of the current reporting period, the Department
shall notify the operator that the exemption may be revoked unless the operator
demonstrates to the Department within thirty (30) days that the mining area in
question should continue to be exempt.
c) Exemption revocation.
1) If the Department finds that an operator has not demonstrated
that activities conducted in the mining area qualify for the exemption, the
Department shall revoke the exemption and immediately notify the operator and
any person having an interest which is or may be adversely affected by the
revocation and any person who submitted written comments or objections to the
exemption application pursuant to Section 1702.11(d). If a decision is made
not to revoke an exemption, the Department shall immediately notify the
operator and any person having an interest which is or may be adversely
affected by the decision and any person who submitted written comments or
objections to the exemption application pursuant to Section 1702.11(d).
2) Any person having an interest which is or may be adversely
affected may request administrative hearing of a decision whether to revoke an
exemption within thirty (30) days of the notification of such decision in
accordance with procedures established under 62 Ill. Adm. Code 1847.3.
3) A petition for administrative hearing filed under 62 Ill. Adm.
Code 1847.3 shall not suspend the effect of a decision whether to revoke an
exemption.
d) Direct enforcement.
1) An operator mining in accordance with the terms of an approved
exemption shall not be cited for violations of the regulatory program which
occurred prior to the revocation of the exemption.
2) An operator who does not conduct activities in accordance with
the terms of an approved exemption shall be subject to direct enforcement
action for violations of the regulatory program which occur during the period
of such activities.
3) Upon revocation of an exemption or denial of an exemption
application, an operator shall stop conducting surface coal mining operations
until a permit is obtained and shall comply with the reclamation standards of
62 Ill. Adm. Code 1800 through 1850 with regard to conditions, areas and
activities existing at the time of revocation or denial.
(Source: Amended at 17 Ill. Reg. 10936, effective July 1, 1993)
| TITLE 62: MINING
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
PART 1702
EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO
THE EXTRACTION OF OTHER MINERALS
SECTION 1702.18 REPORTING REQUIREMENTS
Section 1702.18 Reporting
Requirements
a) Written report.
1) Following approval by the Department of an exemption for a
mining area, the person receiving the exemption shall, for each mining area,
file a written report annually with the Department containing the information
specified in subsection (b) below.
2) The report shall be filed no later than thirty (30) days after
the end of the 12-month period as determined in accordance with the definition
of "cumulative measurement period" in Section 1702.5.
3) The information in the report shall cover:
A) Annual production of coal and other minerals and annual revenue
derived from coal and other minerals during the preceding 12-month period, and
B) The cumulative production of coal and other minerals and the
cumulative revenue derived from coal and other minerals.
b) For each period and mining area covered by the report, the
report shall specify:
1) The number of tons of extracted coal sold in bona fide sales
and total revenue derived from such sales;
2) The number of tons of coal extracted and used or transferred
by the operator or related entity and the estimated total fair market value of
such coal;
3) The number of tons of coal stockpiled;
4) The number of tons of other commercially valuable minerals
extracted and sold in bona fide sales and total revenue derived from such
sales;
5) The number of tons of other commercially valuable minerals
extracted and used or transferred by the operator or related entity and the
estimated total fair market value of such minerals; and
6) The number of tons of other commercially valuable minerals
removed and stockpiled by the operator.
(Source: Amended at 17 Ill. Reg. 10936, effective July 1, 1993)
AUTHORITY: Implementing and authorized by the Surface Coal Mining Land Conservation and Reclamation Act [225 ILCS 720].
SOURCE: Adopted at 15 Ill. Reg. 17123, effective January 1, 1992; amended at 17 Ill. Reg. 10936, effective July 1, 1993; recodified from the Department of Mines and Minerals to the Department of Natural Resources at 22 Ill. Reg. 7712.
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