California Governor Jerry Brown signed SB 447 on Saturday, September 28, 2013, which modifies the Office of Mine Reclamation’s (OMR) authority to list or delist a mine from its list of “good mines” under Cal. Public Resources Code Section 2717 (more commonly referred to as the AB 3098 List).  Mines on the AB 3098 List are eligible to sell to public agencies.

SB 447 allows mines to remain on the AB 3098 List while correcting violations pursuant to an order to comply.  The existing law requires compliance with state reclamation and financial assurance standards, but does not specifically address situations where mines are actively working to resolve violations.  For a discussion of problems with the AB 3098 List, see Tom Henry’s November 2011 post.

In his signing statement, the Governor referred to SB 447 as “interim leniency” that is “only acceptable as we take the time to reform the Surface Mining and Reclamation Act [SMARA] — from top to bottom.”  The Governor has not indicated how he plans to reform SMARA, so stay tuned for the second half of the legislative session!

Photo of Michael Sherman Michael Sherman

Michael Sherman focuses his practice on land use, transactional, and federal and state wildlife issues for developers, farmers, and mining and oil and gas companies. His experience includes examining title for unpatented mining claims, negotiating mining leases, conducting acquisition due diligence, permitting new…

Michael Sherman focuses his practice on land use, transactional, and federal and state wildlife issues for developers, farmers, and mining and oil and gas companies. His experience includes examining title for unpatented mining claims, negotiating mining leases, conducting acquisition due diligence, permitting new mines and expansions under SMARA, and resolving compliance issues and enforcement actions by local lead agencies, the SMGB and OMR. Michael also represents upstream oil and gas companies with operations in California, addressing land use, endangered species and regulatory issues and assisting clients with oil and gas title issues, including resolving disputes with mineral and royalty owners and issuing drilling title opinions and division order title opinions.