DESTROYING MANY SMALL FARMERS' LIVES. IN CONSIDERING THE CLOSE TO FOUR THOUSAND ACRES OF UNRECLAIMED MINING SITES IN

SOUTHWESTERN INDIANA, IT BECOMES EVIDENT THAT SUCH A LARGE AMOUNT OF BARE ROCK, STRIPPED OF TOPSOIL MAY CONSTITUTE A HAZARD TO THE ENVIRONMENT AND ECOLOGY OF SOUTHWESTERN INDIANA. IT DEFINITELY CONSTITUTES AN ECONOMIC HAZARD TO THE FARMERS.

THIS PROBLEM EXTENDS BEYOND INDIANA. ACCORDING TO THE OFFICE OF SURFACE MINING IN INDIANAPOLIS, IN FEBRUARY OF THIS YEAR, 11 BONDING AND SURETY COMPANIES ACROSS THE NATION WERE INSOLVENT. THESE ELEVEN COMPANIES AFFECTED 402 MINING FIRMS ON 31,309 ACRES IN 16 STATES. IN ADDITION TO INDIANA, WHICH CONGRESSMAN SHARP ALSO REPRESENTS, PROBLEMS HAVE ARISEN IN CONGRESSMAN MURPHY'S HOME STATE OF PENNSYLVANIA, CONGRESSMAN'S RAHALL'S HOME STATE OF WEST VIRGINIA, AND IN COLORADO, MISSOURI, MARYLAND, OHIO, ALABAMA, ILLINOIS, OKLAHOMA, ARKANSAS, IOWA, KANSAS, TENNESSEE, KENTUCKY, AND VIRGINIA. I ASK THE COMMITTEE'S UNANIMOUS CONSENT TO SUBMIT FOR THE RECORD INFORMATION DETAILING ACREAGE AFFECTED IN THESE SIXTEEN STATES.

THE PROBLEM OF BONDING COMPANIES DECLARING BANKRUPTCY IS NOT LIMITED TO INDIANA. VARIOUS STATES HAVE PROPOSED DIFFERENT METHODS TO TRY TO SOLVE THIS PROBLEM, INCLUDING BONDING AND SURETY GUARANTEE FUNDS. AT THIS TIME, FURTHER WORK MUST BE DONE BEFORE THE SOLUTION TO THIS PROBLEM IS FOUND AND I COMMEND THE COMMITTEE FOR REVIEWING THIS ISSUE.

A SOLUTION MUST BE FOUND THAT PREVENTS FUTURE BONDING

COMPANY FAILURES SO THAT SMALL MINING COMPANIES AND LAND OWNERS

ARE PROTECTED.

INDEPENDENT MINING COMPANIES ARE VITAL TO

THE

SOUTHWESTERN INDIANA'S ECONOMY AND MUST HAVE A RELIABLE AND
AFFORDABLE MEANS OF MEETING FEDERAL BONDING REQUIREMENTS.
MAJORITY OF INDIANA'S SMALL, INDEPENDENT SURFACE MINING FIRMS ARE
RESPONSIBLY FOLLOWING FEDERAL GUIDELINES ON LAND RECLAMATION. I

DO NOT WISH TO PENALIZE THE GOOD COMPANIES FOR THE MISTAKES OF

IRRESPONSIBLE MINERS.

FOR THE LAND THAT IS NOW UNRECLAIMED, CONGRESS MIGHT

CONSIDER EXTENDING THE RECLAMATION FUNDS PROVIDED FOR IN TITLE IV
OF THE 1977 LAW TO APPLY TO ABANDONED MINE SITES WHICH WERE MINED
AFTER 1977 BUT BECAUSE OF BONDING COMPANY BANKRUPTCIES HAVE
LITTLE HOPE OF BEING RECLAIMED. STATE AGENCIES MUST FULFILL THEIR
RESPONSIBILITIES TO REGULATE THE INSURANCE INDUSTRY AND TO
SUPERVISE SURFACE MINING, BUT THIS NATIONAL PROBLEM MAY BE BEYOND
THE SCOPE OF STATE GOVERNMENTS TO CORRECT. FEDERAL ACTION MAY BE
NECESSARY TO INSURE THAT MINES ARE NOT UNRECLAIMED IN THE FUTURE

AND TO ADDRESS THE DAMAGE ALREADY DONE BY BANKRUPT BONDING
COMPANIES.

I HAVE BEEN IN CONTACT WITH OFFICIALS IN INDIANA ABOUT THE

OPTIONS AVAILABLE AT THE STATE LEVEL. HOWEVER, AS I INDICATED, THE PROBLEM MAY REQUIRE JOINT FEDERAL AND STATE ACTION. I LOOK FORWARD TO WORKING WITH YOU AND OUR COLLEAGUES, ESPECIALLY THOSE WHO REPRESENT THE SIXTEEN STATES INVOLVED IN THIS ISSUE, TO FIND SOLUTIONS FOR THIS PROBLEM TO ENSURE THAT THE NECESSARY PROTECTION EXISTS FOR LANDOWNERS AND COAL MINING COMPANIES AND THAT LAND UNRECLAIMED DUE TO BONDING COMPANY BANKRUPTCIES IS RETURNED TO USABLE CONDITION.