ORDER OF THE STATE OF WISCONSIN NATURAL RESOURCES BOARD
REPEALING; RENUMBERING; RENUMBERING AND AMENDING; AMENDING, REPEALING AND RECREATING; AND CREATING RULES
The Wisconsin Natural Resources Board proposes an order to repeal and recreate Chapters NR 130, NR 131, NR 132 and NR 182 relating to nonferrous metallic mineral exploration, bulk sampling, prospecting and mining and nonferrous mining waste management. |
EA-14-18
Analysis Prepared by the Department of Natural Resources
1. Statute Interpreted: Ch. 289 and 293, Stats. 2. Statutory Authority: Ch. 227, 289 and 293, Stats. 3. Explanation of Agency Authority: Chapter 293, Stats., contains numerous provisions granting rule-making authority to the department including the following pertinent provisions as related to the proposed rule revisions. - 293.13(1)(b) – The department is directed to establish, by rule, minimum qualifications for applicants for prospecting or mining permits.
- 293.13(2)(a) – The department is required to develop rules that adopt minimum standards for exploration, prospecting, mining and reclamation.
- 293.15(9) – The department is directed to write rules by which the department may grant exemptions, modifications or variances from any rule under chapter 293 or under chapters 289-292 as related to nonferrous mining waste.
- 293.15(10) – The department is directed to promulgate rules regarding minimizing, segregating, backfilling or marketing mining waste
- 293.15(11) – The department is directed to develop rules establishing groundwater quantity and/or quality standards for any prospecting or mining site including standards for mining waste sites.
- 293.21– The department is authorized to write rules pertaining to different aspects of metallic mineral exploration including license fees, drillhole fees, notifications and inspections and a procedure for bond release.
- 293.32(1)- The department is directed to establish application fees for proposed prospecting and mining projects.
Chapter 289, specifically s. 289.05(2) and (3), authorize the department to promulgate rules related to essentially all aspects of a metallic mining waste facility including the location, design, operation, closure and long-term care of such facilities. Section 227.11(2)(a), Wis. Stats., authorizes the department to adopt rules interpreting the provisions of ch.293, Wis. Stats., if the department considers it necessary to effectuate the purpose of the statute. The department considers the rule changes necessary to effectuate the purpose of legislative changes made to the mining laws since initial adoption of the rules. Also, in compliance with s. 227.22(4), Wis. Stats., the department has reviewed 2017 Wisconsin Act 134 and has determined that rulemaking is necessary to address the statutory changes made by the legislature. The department is also proposing to revise rules that have been superseded or that require amendment due to prior legislative changes. 4. Related Statutes or Rules: Chapter 295, Wis. Stats., applies to ferrous (iron) mining and contains provisions similar to those in the revised rules, particularly, chs. NR 130 and 132. In addition, a number of the rules in the ch. NR 500 series, applicable to solid waste facilities, contain provisions that are similar to requirements specified in proposed ch. NR 182. 5. Plain Language Analysis: A significant portion of the revisions to the rules are a result of passage of 2017 Wisconsin Act 134 including the following major changes:
Under Act 134, the department is required to determine, on a case-specific basis, the depth at which groundwater enforcement standards are applied. Act 134 establishes that an applicant must demonstrate the project will comply with groundwater quality standards for a period of 250 years following closure of the mining waste facility. Rule changes incorporate these concepts and provide technical clarification regarding how these determinations and demonstrations are made.
Act 134 created two new forms of financial assurance applicable to metallic mining operations. Chapters NR 132 and 182 have been revised to incorporate these new financial assurance mechanisms and provide a framework for determining the amount of the financial assurance related to anticipated repair and replacement of various pollution control design elements.
Act 134 created a new permitting criterion requiring the department to find that the proposed project will incorporate technology that will ensure compliance with applicable environmental protection laws and rules. The rules were revised to provide clarification as to how the department will make this determination and what information may be needed to support the department’s determination.
Act 134 made substantial changes to the permitting processes for mining and prospecting projects, including the preapplication notification process, and the rules revised accordingly.
Act 134 creates regulatory processes and minimum standards related to bulk sampling projects including plan and bond submittals, approvals, licensing, inspections, enforcement and bond release requirements. Proposed rules were developed to implement the bulk sampling regulatory framework created in Act 134.
Act 134 includes provisions that either directly or indirectly repealed specific rule requirements including those related to regulation of mining activities near wetlands, and the irrevocable trust fund. Those provisions of the rules have been removed.In addition to changes necessary due to enactment of Act 134, the existing rules are also inconsistent with the statutes as amended by other statutory changes enacted since the inception if the rules in 1982. Rule changes to address these inconsistencies include:
Updating the prospecting and mining fee collection process so fee collection starts when a prospective applicant submits a preapplication notification.
Updating the provisions by which the department review the compliance history of a prospective applicant to conforms with s. 293.37(2)(e), Wis. Stats.
Revising the permit and plan modification process to be consistent with the procedures in s. 293.55, Wis. Stats.
Revision of ch. NR 182 so it conforms with s. 289.41, Wis. Stats., which specifies the acceptable means of providing financial assurance for long-term care of mining waste facilities and requires owners of mining waste to maintain financial assurance for at least forty years following closure of the facility. Additional rule changes are proposed to provide greater clarity and effectiveness to the rules based on past experience in implementing the rules over the past 35 years. Examples of these types of changes include:
More specificity has been added to ch. NR 131 and 132 regarding the process for assessing success and completion of reclamation under s. 293.63, Wis. Stats.
Additional criteria have been added to the rule to provide greater structure to the process related to issuance of the certificate of completion, the regulatory status of mining sites for which certificates of completion have been issued and the residual reclamation bond under s. 293.63, Wis. Stats.
Additional informational requirements have been added to ch. NR 182 as related to the feasibility report, plan of operation and construction documentation reports. In addition, a requirement to submit a detailed preconstruction report has been added to the rule.
Minimum requirements for conducting groundwater modeling assessments of proposed mining operations and mining waste facilities have been added to the rules.
The exploration licensing requirements and notification procedures in ch. NR 130 have been revised to require additional detail in the licensing and notification submittals and greater accountability by requiring ongoing licensing and reporting until all drillholes are properly terminated. 6. Summary of, and Comparison with, Existing or Proposed Federal Statutes and Regulations: While there is no nationwide regulatory program applicable to nonferrous metallic mining, the requirements specified in this set of administrative rules is similar to the requirements imposed by the U.S. Forest Service, U.S. Bureau of Land Management and other federal agencies in regard to mining and mining-related activities on lands under their management and control. The federal agencies review exploration and mining proposals for their economic and environmental feasibility and conduct technical reviews to ensure compliance with applicable federal laws including the National Environmental Policy Act, Endangered Species Act, Clean Water Act and Clean Air Act.
7. Comparison with Similar Rules in Adjacent States: Of the states bordering Wisconsin, Michigan and Minnesota are those that have comparable geology and potential for development of nonferrous metallic mineral mining of a type similar to that which has and could take place in Wisconsin. Michigan and Minnesota have each developed or revised their metallic mining regulations in the past 10-15 years in response to new mining development activity. The laws and rules in each of those states are comparable to the regulatory framework in place in Wisconsin and would be consistent with the proposed rule changes. While each state follows procedures that are unique to their state, the overall approaches are similar in that each requires extensive pre-permitting environmental analyses, thorough engineering and technical evaluations of the proposed project and demonstrated compliance with all applicable permitting criteria as part of the review and approval process for nonferrous metallic mineral mining projects.
Neither Illinois nor Iowa contain metallic mineral deposits similar to those identified in northern Wisconsin and therefore have not developed specific regulatory frameworks comparable to those in Wisconsin, Minnesota and Michigan. While both states, along with Wisconsin, experienced historic metallic mining activity as part of the Tri-state Upper Mississippi Valley lead/zinc mining district, there has been no metallic mining activity in either state for over forty years.
8. Summary of Factual Data and Analytical Methodologies Used and How Any Related Findings Support the Regulatory Approach Chosen: The proposed rule revisions correct inconsistencies with controlling statutes, implement new statutory provisions, bring the rules up-to-date with current technologies and clarify existing rule provisions and procedures. There was not a need to evaluate factual data and analytical methods as a means to identify regulatory approaches. Rather, experienced department staff reviewed the existing rules to identify necessary changes and developed the preliminary drafts of the proposed rules.
9. Analysis and Supporting Documents Used to Determine the Effect on Small Business or in Preparation of an Economic Impact Report: The projected increased costs, as a result of the proposed rule revisions, were developed by department staff by considering the cost implications as a result of the expanded documentation and reporting requirements and procedural changes specified in the revised rules. The staff estimates were provided to and discussed with a mining industry representative to determine if the estimate was reasonable.
10. Effect on Small Business (initial regulatory flexibility analysis):
