Title
Department of Transportation, Maintenance and Operations, recommending the Board adopt and authorize the Chair to sign Resolution 056-2023 sanctioning the revision to the financial assurance for the Somerset Mine:
1) Increase the Pledge of Revenue amount to between $190,000 and $250,000; and
2) Make the financial assurance mechanism effective for five (5) years from the signed date of this Resolution.
FUNDING: Road Fund. (Local - 100%)
Body
DISCUSSION / BACKGROUND
Transportation operates an open pit mine known as Somerset Mine for the purpose of mining decomposed granite which is used to control snow and ice conditions on the West Slope. The Surface Mining and Reclamation Act of 1975 and Public Resources Code Section 2710 requires the surface mining operator to provide lead agencies with financial assurance for reclamation of mined sites. With such financial assurances, the public is not held responsible for the reclamation of the site. In the event of such abandonment or financial incapability by the operator, the financial assurance funds will be used by the lead agency (State Mining and Geology Board) to reclaim both the mined lands and those surrounding affected lands.
Resolution 153-2018 was approved by the Board on July 24, 2018 and provided a pledge of revenue amounts between $150,000 and up to $210,000 for a period of five (5) years expiring July 23, 2023 (Item No. 16). Each year, the Department provides the State Mining and Geology Board (as lead agency) with a financial assurance cost estimate (Cost Estimate). The Cost Estimate must remain between the amounts within the financial assurance pledge of revenue. For calendar year 2020, the Cost Estimate amount is $198,411.66. It was approved on October 14, 2021 by the State Mining and Geology Board (SMGB). A new pledge of revenue must be approved due to the expiration date of Resolution 153-2018.
ALTERNATIVES
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDA...
Click here for full text