A message from RESPEC

Welcome to this edition of RESPEC’s newsletter.

This edition has several projects that demonstrate the breadth and depth of RESPEC’s Mining & Energy (M&E) group. However, if there are any subjects that you would like to see in future editions, please let us know.

To start with, would like to acknowledge and congratulate our RESPEC employees who performed above and beyond on the Mosaic Company K1/K2 Shaft Decommissioning Project. On March 2, RESPEC was honored to accept the “Exceptional Engineering/Geoscience Project Award” from the Association of Professional Engineers and Geoscientists Saskatchewan (APEGS). This shaft closure was the first of its kind in Saskatchewan and required engineers and geologists that were able to adapt as the project progressed; RESPEC is proud to have been that group of professionals. RESPEC’s Mining and Energy team provides support for all stages of the mining life cycle—from exploration to mine development, and operations to closure and reclamation.

Secondly, I would like to highlight recent changes in funding to address historic mine reclamation liabilities. Reclamation is an integral part of the mining life cycle and continues to be a key part of RESPEC’s services to the mining industry globally. RESPEC’s experience includes mine environmental and reclamation projects in Indonesia, environmental reviews in Peru, and reclamation designs throughout Europe. RESPEC has also completed Asset Retirement Obligation (ARO) analyses for companies.

Unfortunately, the mining industry in the US has not reclaimed all the mine sites after the mines closure. This situation not only creates environmental and social problems in the community affected by the mine but also tarnishes the mining industry’s reputation. For the coal sector, the bonding program that was introduced as part of the 1977 Surface Mining Control and Reclamation Act (SMCRA) is intended to provide funding for sites permitted after 1977. The other part of SMCRA was Title IV, to address pre 1977 disturbances. The funding was provided by a fee on all coal mining.

Reclamation projects have been completed throughout the country by both State and Federal agencies to address these un-reclaimed mine sites, but the legacy remains for many States and Tribes, especially for water treatment, subsidence, and mine fires.

Apegs

Exceptional engineering/geoscience project award

To address these issues, Congress passed a new funding source for the Abandoned Mine Land (AML) programs nationally in the Bipartisan Infrastructure Law (BIL). These funds are in addition to the annual grants, which are funded by the coal fees.

The BIL included a total allocation of $11.3 billion to be divided between the States and Tribes based on historical coal production. For example, the Commonwealth of Pennsylvania is predicted to receive approximately $3.8 billion during the 15-year life of the program, in addition to their annual grants, which have previously been about $26 million. For Pennsylvania, this is a tenfold increase in funding. Another important component of the program—the Safeguarding Treatment for the Restoration of Ecosystems from Abandoned Mines (STREAM) Act passed in 2022—allows up to 30 percent of the funding received under the BIL to be set aside for long-term Acid Mine Drainage treatment, thus providing a long-term funding mechanism after the 15-year BIL funding ends.

RESPEC has been involved in the AML program nationally for more than 30 years with major projects throughout the United States, including Kentucky, Utah, Washington, West Virginia, and Wyoming. We are excited to continue support the State, Federal, and Tribal agencies because these BIL funds now allow the unfortunate reclamation legacies to be reclaimed.

John Morgan Senior Vice President

total annual AML funding from the bil law per the top 10 states