Senators from coal-mining states called on Brent Wahlquist, director of the
Office of Surface Mining, to return money paid into the Abandoned Mine Land
Fund to the states, while environmental groups voiced concerns over what they
see as the agency's lack of enforcement at a Senate hearing on Tuesday.

Under the Surface Mining Control and Reclamation Act of 1977, OSM collects
excise taxes on coal production and uses the money to fund the reclamation and
restoration of land and water resources harmed by past mining.

At an Energy and Natural Resources hearing on SMCRA, senators Jon Tester,
Democrat-Montana, and Republican John Barrasso of Wyoming voiced concerns that
OSM was taking too long to send money back to the states for mine reclamation.

OSM is still trying to determine whether to give states their money via grants
or by direct payment.

Wahlquist told the senators that he anticipated making a decision on AML
funding in December.

According to Tester, Montana has 600 mines that need reclaiming and that work
can't begin until OSM distributes AML funding to his state.

Barrasso said Wyoming wants its money in the form of a direct payment, not a
grant.

Committee leader Pete Domenici, Republican-New Mexico, wants OSM to make a
decision on whether AML funds from his state can be used to clean up following
uranium mining.

OSM 'failure to enforce law' claimed

While there have been many successes in the 30 years since SMCRA was signed
into law, public interest groups say more work needs to be done to ensure that
OSM protects the environment from mining techniques like mountaintop mining.

Cindy Rank, a volunteer with the West Virginia Highlands Conservancy, called
on OSM to withdraw the stream buffer zone rule change.

--Regina Johnson, regina_johnson@platts.com