[Federal Register Volume 75, Number 184 (Thursday, September 23, 2010)]
[Rules and Regulations]
[Pages 57849-57857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-23789]
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DEPARTMENT OF LABOR
Mine Safety and Health Administration
30 CFR Part 75
RIN 1219-AB76
Maintenance of Incombustible Content of Rock Dust in Underground
Coal Mines
AGENCY: Mine Safety and Health Administration, Labor.
ACTION: Emergency Temporary Standard; public hearings; close of comment
period.
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SUMMARY: The Mine Safety and Health Administration (MSHA) is issuing an
emergency temporary standard (ETS) under section 101(b) of the Federal
Mine Safety and Health Act of 1977 in response to the grave danger that
miners in underground bituminous coal mines face when accumulations of
coal dust are not made inert. MSHA has concluded, from investigations
of mine explosions and other reports, that immediate action is
necessary to protect miners.
Accumulations of coal dust can ignite, resulting in an explosion,
or after an explosion, they can intensify flame propagation, increasing
the severity of explosions. The ETS requires mine operators to increase
the incombustible content of combined coal dust, rock dust, and other
dust to at least 80 percent in underground areas of bituminous coal
mines. The ETS further requires that the incombustible content of such
combined dust be raised 0.4 percent for each 0.1 percent of methane
present. The ETS strengthens the protections for miners by reducing the
potential for a coal mine explosion and reducing the severity of
explosions should they occur.
DATES: Effective date: September 23, 2010.
Compliance dates: Each mine operator shall comply with the ETS by
the dates listed below.
1. October 7, 2010. Newly mined areas.
2. November 22, 2010. All other areas of the mine.
Persons and organizations are encouraged to submit comments on the
ETS by October 19, 2010. The ETS must be replaced with a final rule
within 9 months.
Hearing dates: October 26, 2010, October 28, 2010, November 16,
2010, and November 18, 2010. The locations are listed in the Public
Hearings section below under the SUPPLEMENTARY INFORMATION section of
this document. Post-hearing comments must be received by midnight
Eastern Standard Time on December 20, 2010.
ADDRESSES: Comments must be identified with ``RIN: 1219-AB76'' and may
be sent to MSHA by any of the following methods:
Federal E-Rulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
Electronic mail: [email protected]. Include ``RIN:
1219-AB76'' in the subject line of the message.
Facsimile: 202-693-9441. Include ``RIN: 1219-AB76'' in the
subject line of the message.
Regular Mail: MSHA, Office of Standards, Regulations, and
Variances, 1100 Wilson Boulevard, Room 2350, Arlington, Virginia 22209-
3939.
Hand Delivery or Courier: MSHA, Office of Standards,
Regulations, and Variances, 1100 Wilson Boulevard, Room 2350,
Arlington, Virginia. Sign in at the receptionist's desk on the 21st
floor.
FOR FURTHER INFORMATION CONTACT: Patricia W. Silvey, Director, Office
of Standards, Regulations, and Variances, MSHA, at
[email protected] (e-mail), 202-693-9440 (voice), or 202-693-9441
(facsimile).
SUPPLEMENTARY INFORMATION: MSHA is including the following outline to
assist the public in finding information in the preamble.
I. Introduction
A. Availability of Information
B. Public Hearings
II. Basis for Emergency Temporary Standard
A. Regulatory Authority
B. Grave Danger
III. Discussion of Emergency Temporary Standard (ETS)
A. Background
B. Discussion
IV. Regulatory Economic Analysis
A. Executive Order (E.O.) 12866
B. Population at Risk
C. Benefits
D. Compliance Costs
E. Net Benefits
V. Feasibility
A. Technological Feasibility
B. Economic Feasibility
VI. Regulatory Flexibility Act (RFA) and Small Business Regulatory
Enforcement Fairness Act (SBREFA)
A. Definition of a Small Mine
B. Factual Basis for Certification
VII. Paperwork Reduction Act of 1995
VIII. Other Regulatory Considerations
A. The Unfunded Mandates Reform Act of 1995
B. Executive Order 13132: Federalism
C. The Treasury and General Government Appropriations Act of
1999: Assessment of Federal Regulations and Policies on Families
D. Executive Order 12630: Government Actions and Interference
With Constitutionally Protected Property Rights
E. Executive Order 12988: Civil Justice Reform
F. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
G. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
IX. References
X. Emergency Temporary Standard--Regulatory Text
I. Introduction
This ETS is issued under section 101(b) of the Federal Mine Safety
and Health Act of 1977 (Mine Act) as amended by the Mine Improvement
and New Emergency Response (MINER) Act of 2006, 30 U.S.C. 811(b). This
ETS revises existing 30 CFR 75.403 on the incombustible content of
combined coal dust, rock dust and other dust to strengthen the
protection for miners by greatly minimizing the potential for a coal
dust explosion in an underground bituminous coal mine.
In accordance with section 101(b)(3) of the Mine Act, the ETS
serves as an emergency temporary final rule with immediate effect and
provides an opportunity for notice and comment, after which time a
final rule will be issued. That final rule may differ from the ETS. The
Mine Act states that the ETS is a temporary standard and must be
superseded by a final rule within nine months. The legislative history
of the Mine Act reinforces the statutory language regarding the ETS
providing opportunity for comment ``so that all views can be carefully
considered in connection with the issuance of a permanent standard.''
S. Rept. No. 95-181, 24 (1977). The preamble discusses the specific
provision that MSHA intends to address in the final rule. MSHA solicits
comments from the mining community on this ETS.
[[Page 57850]]
A. Availability of Information
Public Comments: MSHA will post all comments on the Internet
without change, including any personal information provided. Access
comments electronically at http://www.msha.gov/regsinfo.htm or http://www.regulations.gov. Review comments in person at the Office of
Standards, Regulations, and Variances, 1100 Wilson Boulevard, Room
2350, Arlington, Virginia. Sign in at the receptionist's desk on the
21st floor.
E-mail notification: MSHA maintains a list that enables subscribers
to receive e-mail notification when the Agency publishes rulemaking
documents in the Federal Register. To subscribe, go to http://www.msha.gov/subscriptions/subscribe.aspx.
B. Public Hearings
MSHA will hold four public hearings on the ETS to provide the
public with an opportunity to present oral statements, written
comments, and other information on this rulemaking. The public hearings
will begin at 9 a.m. and end after the last presenter speaks, and in
any event not later than 5 p.m., on the following dates at the
locations indicated:
------------------------------------------------------------------------
Date Location Contact No.
------------------------------------------------------------------------
October 26, 2010.............. Marriott St. Louis (314) 423-9700
Airport, 10700 Pear
Tree Lane, St.
Louis, MO 63134.
October 28, 2010.............. Sheraton Birmingham, (205) 324-5000
2101 Richard
Arrington Jr. Blvd
N, Birmingham, AL
35203.
November 16, 2010............. Hilton Suites (859) 271-4000
Lexington Green, 245
Lexington Green
Circle, Lexington,
KY 40511.
November 18, 2010............. Charleston Marriott (304) 345-6500
Town Center, 200 Lee
Street East,
Charleston, WV 25301.
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The hearings will begin with an opening statement from MSHA,
followed by an opportunity for members of the public to make oral
presentations. You do not have to make a written request to speak;
however, persons and organizations wishing to speak are encouraged to
notify MSHA in advance for scheduling purposes.
Speakers and other attendees may present information to MSHA for
inclusion in the rulemaking record. The hearings will be conducted in
an informal manner. Formal rules of evidence or cross examination will
not apply.
A verbatim transcript of the proceedings will be prepared and made
a part of the rulemaking record. Copies of the transcript will be
available to the public. The transcript may also be viewed on MSHA's
Web site at http://www.msha.gov/regsinfo.htm, under Statutory and
Regulatory Information. MSHA will accept post-hearing written comments
and other appropriate information for the record from any interested
party, including those not presenting oral statements.
II. Basis for the Emergency Temporary Standard
A. Regulatory Authority
Section 101(b) of the Mine Act provides that:
1. The Secretary shall provide, without regard to the
requirements of chapter 5, title 5, United States Code, for an
emergency temporary mandatory health or safety standard to take
immediate effect upon publication in the Federal Register if [s]he
determines (A) that miners are exposed to grave danger from exposure
to substances or agents determined to be toxic or physically
harmful, or to other hazards, and (B) that such emergency standard
is necessary to protect miners from such danger.
2. A temporary mandatory health or safety standard shall be
effective until superseded by a mandatory standard promulgated in
accordance with the procedures prescribed in paragraph (3) of this
subsection.
3. Upon publication of such standard in the Federal Register,
the Secretary shall commence a proceeding in accordance with section
101(a) [involving notice and comment], and the standards as
published shall also serve as a proposed rule for the proceeding.
The Secretary shall promulgate a mandatory health or safety standard
under this paragraph no later than nine months after publication of
the emergency temporary standard as provided in paragraph (2).
An ETS is an extraordinary measure provided by the Mine Act to
enable MSHA ``to react quickly to grave dangers that threaten miners
before those dangers manifest themselves in serious or fatal injuries
or illnesses.'' S. Rept. No. 95-181, 24 (1977). Additionally, the
Senate Report states--
* * * once the Secretary has identified a grave danger that
threatens miners the Committee expects the Secretary to issue an
emergency temporary standard as quickly as possible, not necessarily
waiting until [s]he can investigate how well that grave danger is
being managed or controlled in particular mines. Id. at 24.
An ETS takes effect upon publication in the Federal Register, and is a
fully enforceable standard.
To assure the optimum protection of miners, the ETS authority
applies to all types of grave dangers without qualification. The
legislative history of the Mine Act emphasizes that ``to exclude any
kind of grave danger would contradict the basic purpose of emergency
temporary standards--protecting miners from grave dangers.'' Id. The
ETS authority covers dangers arising from exposure to toxic or
physically harmful substances or agents and to ``other hazards.'' It
applies to dangers longstanding or novel, to dangers that ``result from
conditions whose harmful potential has just been discovered'' or to
which large numbers of miners are ``newly exposed.'' Id.
A record of fatalities or serious injuries is not necessary before
an ETS can be issued because ``[d]isasters, fatalities, and
disabilities are the very thing this provision is designed to
prevent.'' Id. at 23. At the same time, the legislative history of the
Mine Act is clear that an ETS is not limited to new dangers in the
mining industry: ``That a danger has gone unremedied should not be a
bar to issuing an emergency standard. Indeed, if such is the case the
need for prompt action is that much more pressing.'' Id. at 24.
When issuing an ETS, MSHA is ``not required to prove the existence
of grave danger as a matter of record evidence prior to taking
action.'' Id. The legislative history expressly recognizes ``the need
to act quickly where, in the judgment of the Secretary, a grave danger
to miners exists.'' Id. The ETS is a critical statutory tool that MSHA
can use to take immediate action to significantly reduce the potential
for the loss of life in the mines.
MSHA accordingly has used an ETS to require-
Hands-on training for miners in the use of self-contained
self-rescue (SCSR) devices (52 FR 24373, June 30, 1987);
Training and mine evacuation procedures for underground
coal mines (67 FR 76658, Dec. 12, 2002);
New accident notification timeframes, new safety
equipment, and training and drills in mine emergency evacuations (71 FR
12252, Mar. 9, 2006); and
Sealing of abandoned areas (72 FR 28797, May 22, 2007).
B. Grave Danger and the Need for an Emergency Temporary Standard
MSHA has determined that a revised standard for ``Maintenance of
incombustible content of rock dust'' (30
[[Page 57851]]
CFR Sec. 75.403) is necessary to immediately protect miners from
hazards of coal dust explosions. This determination is based on: MSHA's
accident investigation reports of mine explosions in intake air courses
that involved coal dust (Dubaniewicz 2009); the National Institute for
Occupational Safety and Health's (NIOSH) Report of Investigations 9679
(Cashdollar et al. 2010), ``Recommendations for a New Rock Dusting
Standard to Prevent Coal Dust Explosions in Intake Airways''; and
MSHA's experience and data.
Rock dust is a pulverized stone used to cover coal dust and render
accumulations of it inert. In order to prevent an explosion from
propagating, rock dust must be effectively applied wherever coal dust
accumulates. The mine operator's procedures for applying rock dust must
be designed to assure that rock dust effectively inerts coal dust
accumulations. Rock dust, when effectively applied, can prevent
explosions or reduce the severity of explosions.
Under the existing standard, mine operators are required to apply
rock dust in bituminous coal mines to reduce the explosion potential of
the coal dust and other dust generated during mining operations.
Effective rock dust application is essential to protect miners from the
potential of a coal dust explosion; or if one occurs, to reduce its
severity. Based on the Federal Coal Mine Health and Safety Act of 1969
(Coal Act), Public Law 91-173, MSHA established a standard that
requires mine operators to maintain at least 80 percent incombustible
content of the combined coal dust, rock dust, and other dust in return
airways. In all other areas of the mine, the combined dust must contain
at least 65 percent incombustible content. The higher limit for return
airways was determined in large part because fine ``float'' coal dust
(100 percent < 200 mesh or 75 micrometers ([mu]m)) tends to collect in
these airways.
In the 1920s, the U.S. Bureau of Mines (the Bureau) conducted
industry-wide surveys of coal dust particle size produced by mining.
The Bureau conducted large-scale explosion tests using dust particles
of the size range obtained from the survey to determine the amount of
rock dust required to prevent explosion propagation. The results of
this research are the basis for MSHA's existing standard.
Mining technology, equipment, and methods have changed
significantly since the 1920s and NIOSH and MSHA conducted a survey to
update information about existing coal dust particle size distribution
in underground bituminous coal mines. MSHA inspectors collected a
variety of dust samples from intake \1\ and return airways of U.S. coal
mines. NIOSH found that the coal dust particle size distribution in
intake airways is much finer than in mines of the 1920s because of the
significant changes in mining methods and equipment (Cashdollar et al.
2010).
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\1\ This term refers to all areas of an underground mine other
than returns that require rock dusting. These include intake
airways, conveyor belt entries not used as air intakes, and other
neutral entries such as roadways and track entries.
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Given the results of the latest coal dust particle size survey,
NIOSH conducted a series of large-scale dust explosion tests at the
NIOSH Lake Lynn Experimental Mine (LLEM) using the dust survey results
to determine the incombustible content necessary to prevent explosion
propagation. NIOSH determined that the finer coal dust particle size
found in intake airways requires a greater incombustible content to
significantly decrease the potential for propagation of explosions than
the 65 percent required under MSHA's existing standard, since the
explosion hazard increases as the coal dust particle size decreases. In
addition, despite survey indications that return dust particle sizes
are finer than those in the past studies, NIOSH finds that the existing
requirement of 80 percent incombustible content is still sufficient for
these areas.
Based on the results of this testing, NIOSH recommends an 80
percent total incombustible content (TIC) in both intake and return
airways of bituminous coal mines (Cashdollar et al. 2010). The coal
dust particle size survey and explosion test results indicate that the
existing requirement of 80 percent TIC in return airways is still
sufficient and appropriate.
During the period from 1976 through 2001 (26 years) there were 6
explosions that resulted in 46 fatalities in which rock dusting
conditions and practices in intake air courses contributed to the
severity of the explosions (Dubaniewicz 2009). MSHA's experience
indicates that many large explosions in underground bituminous coal
mines are propagated by coal dust.
Based on NIOSH's data and recommendations, and MSHA data and
experience, the Secretary has determined that miners are exposed to
grave danger in areas of underground bituminous coal mines that are not
properly and sufficiently rock dusted in accordance with the
requirements in this ETS and that this ETS is necessary to protect
miners from such danger.
III. Discussion of the Emergency Temporary Standard
A. Background
When drafting the Federal Coal Mine Safety Act of 1952, Public Law
49-77 (1952), the Congress recognized a need to prevent major disasters
in underground coal mines. At that time, the Congress particularly
noted the threat of coal mine explosions due to accumulations of coal
dust.
Under the Coal Act of 1969, Congress emphasized, among other
things, the need for interim safety standards to improve control of
combustibles--such as loose coal--that propagate explosions. The
Congress recognized the need to prevent coal dust from accumulating in
explosive quantities and to prevent coal dust explosions. Congress
included language related to rock dusting, which provided:
Where rock dust is required to be applied, it shall be
distributed upon the top, floor, and sides of all underground areas
of a coal mine and maintained in such quantities that the
incombustible content of the combined coal dust, rock dust, and
other dust shall be not less than 65 per centum, but the
incombustible content in the return aircourses shall be no less than
80 per centum. Where methane is present in any ventilating current,
the per centum of incombustible content of such combined dust shall
be increased 1.0 and 0.4 per centum for each 0.1 per centum of
methane where 65 and 80 per centum, respectively, of incombustibles
are required. [Conference Report No. 91-761, Section 304(d)].
The Congress retained this Coal Act provision in the Mine Act. This
provision is MSHA's existing standard for rock dusting.
B. Discussion
This ETS revises existing 30 CFR 75.403 to require mine operators
to increase the incombustible content of the combined coal dust, rock
dust, and other dust in all accessible areas of underground bituminous
coal mines to at least 80 percent. Rock dust must be distributed upon
the top, floor, and sides of all underground areas of a bituminous coal
mine and maintained in such quantities that the incombustible content
of the combined coal dust, rock dust, and other dust will be at least
80 percent. Existing MSHA standards require the incombustible content
in the return air courses to be at least 80 percent and in all other
areas to be at least 65 percent. This ETS increases the incombustible
content in all areas, other than return air courses, from 65 percent to
80 percent. In addition, the ETS requires that where methane is present
in any ventilating current, the percent of incombustible
[[Page 57852]]
content of such combined dust shall be increased 0.4 percent for each
0.1 percent of methane. This is a conforming change to the existing
requirement. MSHA solicits comments regarding the increase in
incombustible content of dust in air courses where methane is present.
Please include rationale and supporting documentation for any suggested
alternative compliance methods.
It is the responsibility of mine operators to comply with the ETS
immediately. MSHA recognizes, however, that operators may need
additional time for compliance for both newly mined areas and other
areas of the mine. For newly mined areas, the ETS includes a short
delayed compliance date to allow operators to purchase additional rock
dust, related materials, and equipment. For other areas of the mine,
which may be extensive in some cases, the ETS provides operators with
additional time to apply rock dust. By October 7, 2010, mine operators
must rock dust all newly mined areas in accordance with the ETS. By
November 22, 2010, all other areas of the mine must be rock dusted in
accordance with the ETS. MSHA encourages operators to begin rock
dusting all other areas, starting with areas that pose the greatest
risk to miners. Those areas include areas near the active faces and
areas that contain ignition sources, such as conveyor belt drives and
conveyor belt entries because they pose the greatest potential for
methane and coal dust explosions.
Dust samples collected and analyzed by MSHA in each of the Agency's
districts that cover bituminous coal mines were used by NIOSH to
determine the incombustible content necessary to minimize explosion
propagation. The samples were collected in intake and return airways,
and the results indicate that particle sizes of the dust in underground
areas are significantly finer than those measured in the 1920s, which
were the basis for the existing standard as noted above. According to
the NIOSH report, the finer dust particle size results from changes in
underground coal mining technology since the 1920s. This decrease in
particle size occurred as new mining technologies were adopted by the
industry (e.g., mining methods involving increased mechanization)
(Cashdollar et al. 2010).
MSHA's existing rock dust standard which requires a 65 percent TIC
dust mixture does not adequately protect miners. LLEM tests have shown
that a 68 percent TIC dust mixture with coarse coal dust from the
Pittsburgh seam (20 percent < 200 mesh) will propagate dust explosions.
LLEM inerting experiments also demonstrated that at least 76.4 percent
TIC suspended in the air in a laboratory test environment is required
to prevent explosion propagation for medium-size coal dust (38 percent
< 200 mesh). LLEM experiments have also shown that the TIC required to
prevent flame propagation becomes much less dependent on coal particle
size as the TIC approaches and exceeds 80 percent (Cashdollar et al.
2010). Consistent with NIOSH findings, the ETS requires 80 percent TIC
for all areas that require rock dusting. The ETS is consistent with the
requirement in the West Virginia Executive Order issued on April 14,
2010, relating to total incombustible content of dust.
IV. Regulatory Economic Analysis
A. Executive Order 12866: Regulatory Planning and Review
Under Executive Order (E.O.) 12866, the Agency must determine
whether a regulatory action is ``significant'' and subject to review by
the Office of Management and Budget (OMB). Section 3(f) of E.O. 12866
defines a ``significant regulatory action'' as an action that is likely
to result in a rule: (1) Having an annual effect on the economy of $100
million or more, or adversely and materially affecting a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety or state local or tribal governments or communities
(also referred to as ``economically significant''); (2) creating
serious inconsistency or otherwise interfering with an action taken or
planned by another agency; (3) materially altering the budgetary
impacts of entitlements, grants, user fees, or loan programs or the
rights and obligations of recipients thereof; or (4) raising novel
legal or policy issues arising out of legal mandates, the President's
priorities, or the principles set forth in this Executive Order.
MSHA has determined that this ETS does not have an annual effect of
$100 million or more on the economy, and is not an economically
``significant regulatory action'' pursuant to Sec. 3(f) of E.O. 12866.
MSHA requests comments on all the estimates of costs and benefits
presented in this ETS.
MSHA has not prepared a separate regulatory economic analysis for
this rulemaking. Rather, the analysis is presented below.
B. Population at Risk
The ETS applies to all underground bituminous coal mines in the
United States. There are approximately 415 active underground
bituminous coal mines employing 47,119 miners. Table 1 presents the 415
underground bituminous coal mines by employment size.
Table 1--Underground Bituminous Coal Mines and Miners, 12 Month Average
as of January 2010, by Employment Size *
------------------------------------------------------------------------
Number of Total
underground employment at
Mine size bituminous underground
coal mines coal mines
------------------------------------------------------------------------
1-19 Employees.......................... 73 1,136
20-500 Employees........................ 330 29,390
501+ Employees.......................... 12 9,708
Contractors............................. .............. 6,885
-------------------------------
Total............................... 415 47,119
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* Source: MSHA MSIS Data (March 2010).
The 415 underground coal mines produced an estimated 331.7 million
short tons of coal in 2009. The average price of coal in underground
mines in 2008 was $51.35 per short ton and was obtained from the
Department of Energy (DOE), Energy Information Administration (EIA),
Annual Coal Report 2008, October 2009, Table 28.
[[Page 57853]]
Table 2 presents the coal production and revenues for 2009.
Table 2--Coal Production in Short Tons and Coal Revenues in 2009 For
Mines Affected by the ETS
------------------------------------------------------------------------
Mine size Coal production Coal revenue
------------------------------------------------------------------------
1-19 Employees.................... 4,972,836 $255,355,129
20-500 Employees.................. 236,453,706 12,141,897,803
500+ Employees.................... 90,256,010 4,634,646,114
-------------------------------------
Total......................... 331,682,552 17,031,889,045
------------------------------------------------------------------------
C. Benefits
Accumulations of coal dust can propagate and contribute to the
severity of mine explosions. During the period 1976 to 2001 (26 years)
there were 26 fatal methane and/or coal dust explosions in underground
coal mines that resulted in 139 fatalities (Dubaniewicz 2009). In 6 of
those 26 explosions, the rock dusting conditions and practices in
intake air courses were identified as either the cause or a
contributing factor in the explosions. In addition to reviewing the
Dubaniewicz report, MSHA also reviewed the Agency's own fatal
investigation reports for these explosions. Based upon this review,
MSHA determined that the requirements in this ETS would have either
prevented or reduced the severity of these explosions. These explosions
resulted in 46 deaths, approximately 2 deaths per year (46 deaths/26
years). MSHA acknowledges that the requirements in this ETS probably
would not have prevented all of the deaths from the 6 explosions, and
estimates that the ETS would have prevented approximately 1 to 1.5
deaths per year.
MSHA also studied explosions and ignitions resulting in non-fatal
injuries that occurred during the period from 1986 through 2001 (16
years). During that time, there were 3 explosions that resulted in at
least 4 non-fatal injuries in which rock dusting conditions and
practices contributed to the explosions. Based on the data, MSHA
determined that the requirements in the ETS would have prevented 1
additional injury about every 4 years (4 injuries/16 years).
However, these estimates are not precise and the ETS could result
in additional injuries prevented. MSHA is also aware of at least 4
explosions or ignitions occurring from 1985 through 2008 which did not
result in any injuries or fatalities; however, the investigation report
concluded that poor rock dust practices contributed to these
explosions. MSHA projects that the ETS would improve rock dust
practices in underground bituminous coal mines and the safety and
health of miners.
The provisions of the ETS will decrease explosibility of the coal
dust deposited in underground bituminous coal mines, which will
decrease both the probability that an explosion will occur, and, if an
explosion does occur, the severity of the explosion. MSHA projects a
significant reduction in fatalities and injuries with the
implementation of the ETS.
MSHA calculates benefits in terms of an annual average. However,
the ETS is targeted at mine explosions, which are catastrophic events
that may not occur on a regular basis. They can unfortunately occur
multiple times in a single year but may not occur again for a number of
years. Thus, MSHA's average estimate of 1 to 1.5 deaths prevented a
year cannot fully reflect the impact of preventing a given explosion or
series of explosions, since each would be unique in terms of its
impacts. MSHA has estimated the benefits of the ETS within this
context. The number of fatalities and injuries that may be prevented by
this ETS may be understated. MSHA requests comments on the Agency's
benefit estimates, as well as supporting data.
D. Compliance Costs
MSHA estimates that the ETS will result in total yearly costs for
operators of underground bituminous coal mines of approximately $22.0
million: $0.3 million for mines with 1-19 employees; $15.8 million for
mines with 20-500 employees; and $6.0 million for mines with 501 or
more employees.
As is noted below, MSHA's cost estimates are based upon 2009 data.
On April 14, 2010, West Virginia (WV) issued an Executive Order
requiring that dust samples meet the NIOSH recommendation of 80% total
incombustible content. MSHA did not consider the WV requirement in its
analysis; thus the cost estimates attributable to the ETS may be
overstated.
Derivation of Compliance Costs
Results from 26,576 intake rock dust samples collected by MSHA in
2009 show that over 75% of the samples had a total incombustible
content (TIC) equal to or greater than 80%. While it is not possible to
precisely determine the additional amount of rock dust needed based
upon these samples, MSHA developed cost estimates using the following:
MSHA assumed that the costs related to the 25% of samples
that were below 80% TIC were the costs of going from 65% required under
the existing standard to 80% TIC.
Some samples that were below 80% TIC were below 65% TIC
and others were above 65% TIC. To calculate costs, MSHA assumed that
25% of the mines in each size category would have to increase the TIC
in the intakes from 65% to 80%, and developed costs accordingly.
MSHA estimates that approximately 18 mines with fewer than 20
employees (73 mines x 25%); 83 mines with 20-500 employees (330 mines x
25%); and 3 mines with more than 500 employees (12 mines x 25%) will
incur costs to comply with the ETS.
MSHA also estimates that these mines will require 115% more rock
dust to comply with the ETS. The 115% increase in the amount of rock
dust needed was calculated by solving the following set of equations:
The initial amount of rock dust (RD0) equals
65% of the initial amount of total dust (TD0), as is
specified in equation 1.
Equation 1: RD0 = 0.65 x TD0
The initial amount of rock dust (RD0) plus the
added rock dust (RDAD) equals 80% of the initial amount of
total dust (TD0) plus the added rock dust (RDAD)
as is specified in equation 2.
Equation 2: RD0 + RDAD = 0.8 x (TD0 +
RDAD)
Based upon the experience of MSHA's field staff, MSHA estimates the
total costs associated with purchasing and applying rock dust to comply
with the existing rock dust requirements are $0.20 per ton of coal
produced for mine operators with fewer than 20 employees and $0.23 per
ton of coal produced for mine operators with 20 or more
[[Page 57854]]
employees. Therefore, the estimated additional compliance cost for the
affected mines will be $0.23 ($0.20 x 115%) per ton of coal produced
for mine operators with fewer than 20 employees and $0.27 ($0.23 x
115%) per ton of coal produced for mine operators with 20 or more
employees.
From these estimates, MSHA projects that the costs for purchasing
and applying rock dust would increase by $22.0 million per year due to
the ETS. Table 3 shows that, disaggregated by mine size, yearly costs
will be approximately: $0.3 million for mine operators with fewer than
20 employees; $15.8 million for mine operators with 20-500 employees;
and $6.0 million for mine operators with more than 500 employees.
Table 3--Projected Compliance Costs Based on Mine Size and Additional Rock Dust per Short Ton of Coal Produced
----------------------------------------------------------------------------------------------------------------
Average
preliminary Additional Increase in
2009 coal rock dust yearly costs
Mine size Mine count production costs per to apply rock
(short tons) short ton of dust to comply
per mine coal produced with ETS
----------------------------------------------------------------------------------------------------------------
1-19 Employees.................................. 18 68,121 $0.230 $282,000
20-500 Employees................................ 83 716,526 0.265 15,760,000
501+ Employees.................................. 3 7,521,334 0.265 5,979,000
---------------------------------------------------------------
Total....................................... 104 .............. .............. 22,021,000
----------------------------------------------------------------------------------------------------------------
MSHA solicits comments on the above estimates as well as
information that would enable a more specific analysis of costs, which
could include the costs of: Additional rock dust; increased labor
needed to apply the rock dust; and any additional equipment that would
be necessary, such as, pod dusters, trickle dusters, finger dusters,
and scoop batteries. For equipment, please include the type, number of
pieces, costs, and expected service life. Please explain whether mining
methods would affect the costs (e.g., longwall compared to non-longwall
mines).
E. Net Benefits
This section presents a summary of the estimated net benefits of
the ETS for informational purposes only. Under the Mine Act, MSHA is
not required to use estimated net benefits as the basis for its
decision.
MSHA based its estimates of the monetary values for the benefits
associated with the ETS on relevant literature. To estimate the
monetary values of these reductions in cases, MSHA performed an
analysis of the imputed value of fatalities avoided based on a
willingness-to-pay approach. This approach relies on the theory of
compensating wage differentials (i.e., the wage premium paid to workers
to accept the risk associated with various jobs) in the labor market. A
number of studies have shown a correlation between higher job risk and
higher wages, suggesting that employees demand monetary compensation in
return for incurring a greater risk of injury or fatality.
Viscusi & Aldy (2003) conducted an analysis of studies that use a
willingness-to-pay methodology to estimate the imputed value of life-
saving programs (i.e., meta-analysis) and found that each fatality
avoided was valued at approximately $7 million and each lost work-day
injury was approximately $50,000 in 2000 dollars. Using the GDP
Deflator (U.S. Bureau of Economic Analysis, 2010), this yields an
estimate of $8.7 million for each fatality avoided and $62,000 for each
injury avoided in 2009 dollars. This value of a statistical life (VSL)
estimate is within the range of the substantial majority of such
estimates in the literature ($1 million to $10 million per statistical
life), as discussed in OMB Circular A-4 (OMB, 2003).
Although MSHA is using the Viscusi & Aldy (2003) study as the basis
for monetizing the expected benefits of the ETS, the Agency does so
with several reservations, given the methodological difficulties
involved in estimating the compensating wage differentials (see
Hintermann, Alberini and Markandya, 2008). Furthermore, these estimates
pooled across different industries may not capture the unique
circumstances faced by coal miners. For example, some have suggested
that VSL models be disaggregated to account for different levels of
risk, as might occur in coal mining (see Sunstein, 2004). In addition,
coal miners may have few options of alternative employers and in some
cases only one employer (near-monopsony or monopsony) that may depress
wages below those in a more competitive labor market.
MSHA recognizes that monetizing the value of a statistical life is
difficult and involves uncertainty and imprecision. In the future, MSHA
plans to work with other agencies to refine the approach taken in this
ETS.
Based upon the estimated prevention of 1 to 1.5 deaths per year and
1 injury every 4 years, the ETS would result in monetized benefits of
approximately $8.7 to 13.1 million per year. As noted above, MSHA
believes that the ETS may prevent additional injuries; however, due to
data limitations, quantification is not possible and they have not been
included in the monetized benefits.
In addition to the injuries and fatalities prevented, MSHA
anticipates that savings to operators would result from the ETS
preventing or reducing the severity of explosions. As noted above, 6
explosions (about 0.23 per year) involving fatalities occurred in the
26 year period 1976 to 2001 and 4 explosions (about 0.17 per year) that
did not involve any fatalities or injuries occurred in the 24 year
period 1985 through 2008. MSHA estimates that the ETS would prevent or
reduce the severity of about one explosion every two and a half years.
Explosions can result in tremendous costs to a mine operator. MSHA
estimates that the time to recover a mine after an explosion is a
minimum of 8 weeks. Factors such as lost wages, lost production,
rehabilitation, payment for the mine rescue teams and other staff, and
miscellaneous expenses could result in costs that range between $2 and
$7 million, depending on the extent of the explosion and the size of
the mine.
Additional costs include lost equipment, which could run into the
millions of dollars. For example, the cost of a set of advancing type
mining equipment (continuous mining machine, roof bolting machine,
shuttle car, scoop and power center) would be approximately $8 million
while the cost of a longwall unit would be approximately $200 million.
Replacing the electric and waterlines, rails, roof
[[Page 57855]]
supports, pumps, and power centers could add a couple of million
dollars more to costs.
If a mine operator is unable to reopen the mine after an explosion
like some of the mines examined by MSHA, costs will vary depending on
the amount of recoverable reserves. The anticipated cost of lost
reserves could range from a few million dollars for a small mine to in
excess of hundreds of million dollars for a large mine.
Based upon these values, MSHA estimates that preventing or reducing
the severity of a typical explosion in an underground coal mine will
save the operator approximately $15 to $40 million in direct costs
(e.g., mine rescue, wages and equipment). Based on one explosion every
two and a half years, MSHA estimates that the ETS will result in annual
savings to operators of between $6 million ($15 million per explosion x
0.4 explosions per year) and $16 million ($40 million per explosion x
0.4 explosions per year) depending upon the size of the mine and
severity of the explosion. In addition, MSHA believes that the ETS will
prevent operator losses resulting from the inability to recover coal
reserves, although MSHA has not quantified these savings due to the
imprecision of the data. Furthermore, MSHA's average estimate of 1 to
1.5 deaths prevented a year cannot fully reflect the impact of
preventing a given explosion or series of explosions, since each would
be unique in terms of its impacts. MSHA solicits comments on the net
benefit estimates.
Table 4--Monetized Net Benefits Millions of 2009 Dollars
--------------------------------------------------------------------------------------------------------------------------------------------------------
Yearly fatalities and injuries Yearly cost to apply additional rock Yearly savings from reducing
avoided dust explosions Annual net benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
$8.7 to $13.1 $22.0 $6 to $16 -7.3 to 7.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The ETS is targeted at the prevention of explosions, which are rare but catastrophic events. The net benefits, which must be estimated on an
annual basis, do not necessarily reflect the impact of preventing a given explosion or series of explosions, since each would be unique in terms of
its impacts.
V. Feasibility
MSHA has concluded that the requirements of the ETS are
technologically and economically feasible.
A. Technological Feasibility
MSHA concludes that this ETS is technologically feasible. The ETS
is not technology-forcing. The benefits of rock dusting have been known
for at least a century. Mine operators have been required to comply
with the existing rock dusting requirements in 30 CFR 75.403 for more
than 30 years. While the ETS will increase the total incombustible
content of dust in the mine, the ETS will not require operators to make
any innovations in existing equipment or techniques used to rock dust.
However, MSHA recognizes that operators may need additional time to
purchase additional rock dust, related materials, and equipment for
newly mined areas, and to apply the rock dust in other areas of the
mine.
B. Economic Feasibility
MSHA also concludes that this ETS is economically feasible. The
U.S. underground bituminous sector produced an estimated 331,682,552
short tons of coal in 2009. Using the 2008 price of underground coal of
$51.35 per short ton, and estimated 2009 coal production in tons,
underground coal revenues are estimated to be approximately $17
billion. MSHA estimated the yearly compliance costs of the ETS to be
$22.0 million, which is 0.13 percent of revenues ($22.0 million/$17
billion) for underground bituminous coal mines. MSHA has traditionally
used a revenue screening test--whether the yearly compliance costs of a
regulation are less than 1 percent of revenues--to establish
presumptively that compliance with the regulation is economically
feasible for the mining community.
VI. Regulatory Flexibility Act and Small Business Regulatory
Enforcement Fairness Act (SBREFA)
Pursuant to the Regulatory Flexibility Act (RFA) of 1980, as
amended by SBREFA, MSHA has analyzed the impact of the ETS on small
businesses. Based on that analysis, MSHA has notified the Chief Counsel
for Advocacy, Small Business Administration, and made the certification
under the Regulatory Flexibility Act at 5 U.S.C. 605(b) that the ETS
will not have a significant economic impact on a substantial number of
small entities. The factual basis for this certification is presented
below.
A. Definition of a Small Mine
Under the RFA, in analyzing the impact of the ETS on small
entities, MSHA must use the Small Business Administration (SBA)
definition for a small entity or, after consultation with the SBA
Office of Advocacy, establish an alternative definition for the mining
industry by publishing that definition in the Federal Register for
notice and comment. MSHA has not taken such an action and is required
to use the SBA definition. The SBA defines a small entity in the mining
industry as an establishment with 500 or fewer employees.
In addition to examining small entities as defined by SBA, MSHA has
also looked at the impact of this ETS on underground bituminous coal
mines with fewer than 20 employees, which MSHA and the mining community
have traditionally referred to as ``small mines.'' These small mines
differ from larger mines not only in the number of employees, but also
in economies of scale in material produced, in the type and amount of
production equipment, and in supply inventory. The costs of complying
with the ETS and the impact of the ETS on small mines will also be
different. It is for this reason that small mines are of special
concern to MSHA.
MSHA concludes that it can certify that the ETS will not have a
significant economic impact on a substantial number of small entities
that are covered by this ETS. The Agency has determined that this is
the case both for mines with fewer than 20 employees and for mines with
500 or fewer employees.
B. Factual Basis for Certification
MSHA initially evaluates the impacts on ``small entities'' by
comparing the estimated compliance costs of a rule for small entities
in the sector affected by the rule to the estimated revenues for the
affected sector. When estimated compliance costs are less than one
percent of the estimated revenues, the Agency believes it is generally
appropriate to conclude that there is no significant economic impact on
a substantial number of small entities. When estimated compliance costs
exceed one percent of revenues, MSHA investigates whether a further
analysis is required.
[[Page 57856]]
For underground bituminous coal mines, the estimated preliminary
2009 production was 4,972,836 short tons for mines that had fewer than
20 employees and 241,426,542 short tons for mines that had 500 or fewer
employees. Using the 2008 price of underground coal of $51.35 per short
ton and total 2009 coal production in short tons, underground coal
revenues are estimated to be approximately $255.4 million for mines
employing fewer than 20 employees and $12.4 billion for mines employing
500 or fewer employees. The yearly costs of the ETS for mines that have
fewer than 20 employees is 0.11 percent ($282,000/$255.4 million) of
annual revenues, and the yearly costs of the ETS for mines that have
500 or fewer employees is 0.13 percent ($16.0 million/$12.4 billion) of
annual revenues. Using either MSHA's traditional definition of a small
mine (one having fewer than 20 employees) or SBA's definition of a
small mine (one having 500 or fewer employees), the yearly costs for
underground bituminous coal mines to comply with the ETS will be less
than 1 percent of estimated revenues. Accordingly, MSHA has certified
that the ETS will not have a significant impact on a substantial number
of small entities that are covered by the ETS.
VII. Paperwork Reduction Act of 1995
This ETS contains no additional information collections subject to
review by OMB under the Paperwork Reduction Act.
VIII. Other Regulatory Considerations
A. The Unfunded Mandates Reform Act of 1995
MSHA has reviewed the ETS under the Unfunded Mandates Reform Act of
1995 (2 U.S.C. 1501 et seq). MSHA has determined that this ETS does not
include any federal mandate that may result in increased expenditures
by State, local, or tribal governments; nor will it increase private
sector expenditures by more than $100 million in any one year or
significantly or uniquely affect small governments. Accordingly, the
Unfunded Mandates Reform Act of 1995 requires no further Agency action
or analysis.
B. Executive Order 13132: Federalism
This ETS does not have ``federalism implications'' because it will
not ``have substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.'' Accordingly, under E.O. 13132, no further Agency action
or analysis is required.
C. The Treasury and General Government Appropriations Act of 1999:
Assessment of Federal Regulations and Policies on Families
Section 654 of the Treasury and General Government Appropriations
Act of 1999 (5 U.S.C. 601 note) requires agencies to assess the impact
of Agency action on family well-being. MSHA has determined that this
ETS will have no effect on family stability or safety, marital
commitment, parental rights and authority, or income or poverty of
families and children. This ETS impacts only the underground bituminous
coal mine industry. Accordingly, MSHA certifies that this ETS would not
impact family well-being.
D. Executive Order 12630: Government Actions and Interference With
Constitutionally Protected Property Rights
This ETS does not implement a policy with takings implications.
Accordingly, under E.O. 12630, no further Agency action or analysis is
required.
E. Executive Order 12988: Civil Justice Reform
This ETS was written to provide a clear legal standard for affected
conduct and was carefully reviewed to eliminate drafting errors and
ambiguities, so as to minimize litigation and undue burden on the
Federal court system. Accordingly, this ETS will meet the applicable
standards provided in section 3 of E.O. 12988, Civil Justice Reform.
F. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
This ETS will have no adverse impact on children. Accordingly,
under E.O. 13045, no further Agency action or analysis is required.
G. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This ETS does not have ``tribal implications'' because it will not
``have substantial direct effects on one or more Indian tribes, on the
relationship between the Federal government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
government and Indian tribes.'' Accordingly, under E.O. 13175, no
further Agency action or analysis is required.
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
Executive Order 13211 requires agencies to publish a statement of
energy effects when a rule has a significant energy action (i.e., it
adversely affects energy supply, distribution or use). MSHA has
reviewed this ETS for its energy effects because the ETS applies to the
underground coal mining sector. Because this ETS will result in yearly
costs of approximately $22.0 million to the underground coal mining
industry, relative to annual revenues of $17 billion in 2009, MSHA has
concluded that it is not a significant energy action because it is not
likely to have a significant adverse effect on the supply,
distribution, or use of energy. Accordingly, under this analysis, no
further Agency action or analysis is required.
IX. References
Cashdollar K, Sapko M, Weiss E, Harris M, Man C, Harteis S, Green G.
2010. Recommendations for a New Rock Dusting Standard to Prevent
Coal Dust Explosions in Intake Airways. Report of Investigations
9679. National Institute for Occupational Safety and Health,
Pittsburgh Research Laboratory, Pittsburgh, PA, May.
Department of Labor, Mine Safety and Health Administration,
Emergency Temporary Standard--Self-Contained Self-Rescue (SCSR)
Devices (52 FR 24373), June 30, 1987.
Department of Labor, Mine Safety and Health Administration,
Emergency Temporary Standard--Training and Mine Evacuation
Procedures for Underground Coal Mines (67 FR 76658) Dec. 12, 2002.
Department of Labor, Mine Safety and Health Administration,
Emergency Temporary Standard--New Accident Notification Timeframes,
New Safety Equipment, and Training and Drills in Mine Emergency
Evacuations (71 FR 12252) Mar. 9, 2006.
Department of Labor, Mine Safety and Health Administration,
Emergency Temporary Standard--Sealing of Abandoned Areas (72 FR
28797) May 22, 2007.
Dubaniewicz T. 2009. From Scotia to Brookwood, fatal US underground
coal mine explosions ignited in intake air courses. J Loss Prev
Process Ind Jan; 22(1):52-58.
Hintermann B, Alberini A, Markandya A. 2010. Estimating the Value of
Safety with Labor Market Data: Are the Results Trustworthy? Applied
Economics. 42(9):1085-1100. Published electronically in July 2008.
MSHA. 1993. Report of Investigation Underground Coal Mine
Explosions. Scotia Mine ID No. 15-02055, Scotia Coal Company,
Ovenfork, Letcher County, Kentucky. March 9 and 11,
[[Page 57857]]
1976. U.S. Department of Labor. August 11, 1993. 229 pages.
MSHA. 1982. Report of Investigation Underground Coal Mine Dust
Explosion. No. 11 Mine ID No. 15-02290, Adkins Coal Company, Kite,
Knott County, Kentucky. December 7, 1981. U.S. Department of Labor.
60 Pages.
MSHA. 1982. Report of Investigation Underground Coal Mine Dust
Explosion. No. 1 Mine ID No. 15-12624, RFH Coal Company, Craynor,
Floyd County, Kentucky. January 20, 1982. U.S. Department of Labor,
53 pages.
MSHA. 1993. Report of Investigation Underground Coal Mine Explosion.
3 Mine ID No. 44-06594, Southmountain Coal Co., Inc,
Norton, Wise County, Virginia. December 7, 1992. U.S. Department of
Labor. May 6, 1993. 67 Pages.
MSHA. 1995. Report of Investigation Underground Coal Mine Explosion.
No. 9 Mine ID No. 15-16418, Day Branch Coal Company, Inc., Pathfork,
Harlan County, Kentucky. May 11, 1994. U.S. Department of Labor, May
26, 1995. 49 Pages.
MSHA. 2001. Report of Investigation Fatal Underground Coal Mine
Explosions. No. 5 Mine Jim Walter Resources, Inc. Brook Wood,
Tuscaloosa County, Alabama, ID NO. 01-01322. U.S. Department of
Labor, December 11, 2002. 125 Pages.
NIOSH. 2009. Recent Coal Dust Particle Size Surveys and the
Implications for Mine Explosions. (74 FR 42317) August 21, 2009.
Sunstein C. 2004. Valuing Life: A Plea for Disaggregation. Duke Law
Journal, 54 (November 2004): 385-445.
U.S. Bureau of Economic Analysis (2010). National Income and Product
Accounts Table: Table 1.1.9. Implicit Price Deflators for Gross
Domestic Product [Index numbers, 2005=100]. Revised May 27, 2010.
http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=13&Freq=Qtr&FirstYear=2006&LastYear=2008.
Viscusi, W. & Aldy, J (2003) ``The Value of a Statistical Life: A
Critical Review of Market Estimates Throughout the World'', Journal
of Risk and Uncertainty, (27:5-76).
X. Emergency Temporary Standard--Regulatory Text
List of Subjects in 30 CFR Part 75
Mine safety and health, Underground coal mines, Combustible
materials and rock dusting.
Joseph A. Main,
Assistant Secretary of Labor for Mine Safety and Health.
0
Chapter I of Title 30, part 75 of the Code of Federal Regulations is
amended as follows:
PART 75--SAFETY STANDARDS FOR UNDERGROUND COAL MINES
0
1. The authority citation for part 75 continues to read as follows:
Authority: 30 U.S.C. 811, 864.
0
2. Revise Sec. 75.403 to read as follows:
Sec. 75.403 Maintenance of incombustible content of rock dust.
Where rock dust is required to be applied, it shall be distributed
upon the top, floor, and sides of all underground areas of a coal mine
and maintained in such quantities that the incombustible content of the
combined coal dust, rock dust, and other dust shall be not less than 80
percent. Where methane is present in any ventilating current, the
percent of incombustible content of such combined dust shall be
increased 0.4 percent for each 0.1 percent of methane.
[FR Doc. 2010-23789 Filed 9-21-10; 11:15 am]
BILLING CODE 4510-43-P