COALEX REPORT 186

	Coalex Report 186

This is the Office of Surface Mining's library of COALEX Research Reports. COALEX is a database of mining and reclamation information, including the Surface Mining Law and regulations, maintained in LEXIS-NEXIS -- a commercial, on-line research service. These reports have been compiled under a cooperative agreement between the Office of Surface Mining and the Interstate Mining Compact Commission, which represents most U.S. coal producing states. The following report includes an analysis of a specific issue requested by a state regulatory authority with responsibility for carrying out the Surface Mining Law. Copies of the research reports and attachments are available to the public, upon request. For additional information, or to obtain copies of the listed attachments, contact Ron Tarquinio by phone at (202) 208-2882 or by e-mail at rtarquin@osmre.gov.

                   

COALEX State Comparison Report - 186
June, 1991

Danny Brown
Division of Mined Land Reclamation
Department of Mines, Minerals and Energy
P.O. Drawer U
Big Stone Gap, Virginia 24219

TOPIC: SUBSIDENCE INSURANCE

INQUIRY: Please survey the IMCC member states on the following subsidence insurance issues:
1.   Does your state require all underground mine operations to obtain subsidence insurance
     as part of their general liability insurance coverage? [30 CFR 800.60]
2.   Does your state accept an insurance certificate from the operator's insurance company or
     do you require a copy of the policy along with all the riders? [30 CFR 778.18]

SURVEY RESULTS: Twelve states responded to the questionnaire. The results and accompanying
comments appear in the attached table. Attachments are provided, as indicated.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

TABLE OF RESPONSES (Reformatted from original)

STATE
REQUIRES SUBSIDENCE INSURANCE
ACCEPTS CERTIFICATE OR REQUIRES COPY?

ARKANSAS
Subsidence Insurance Required: Yes. 816.124-V 
Accept certificates

ILLINOIS
Subsidence Insurance Required: No.
Accept certificates

INDIANA
Subsidence Insurance Required: No. Other means as approved by the Commission, 310 IAC 12-5-132, include a commitment by the applicant to repair any damage or to purchase the house in
the event of subsidence damage. (The mining plan is designed to prevent subsidence.)
Use general liability certificate. Attached is a general liability certificate used by the Division in
regards to 30 CFR 800.60. This process does not include subsidence insurance. Any riders or
exemptions, such as pollution or blasting exemption, would have to be described on the
Certificate Form but the actual policy need not be submitted unless there are concerns over the
authenticity or accuracy of the policy.

KENTUCKY
Subsidence Insurance Required: No. 
If a company identifies that they will purchase the insurance as part of their subsidence mitigation
plan, then an insurance certificate is acceptable.

MISSOURI
Subsidence Insurance Required: MO does not have underground mining; however, our rules
require subsidence insurance payable to the surface owner.
Requires policy + riders.

NEW MEXICO
Subsidence Insurance Required: NM does not specifically require subsidence insurance; however,
rules require compensation for property damage.
Accepts certificates. See attached rule + copy of certificate.

OHIO
Subsidence Insurance Required: No. See attached rule.
Accept certificates.

OKLAHOMA
Subsidence Insurance Required: No.                

TENNESSEE
Subsidence Insurance Required: No.

TEXAS
Subsidence Insurance Required:  No. (Liability insurance is required.)
Requires submittal of Form SMRD-41C and/or an Accord Certificate. See attached sample.

VIRGINIA
Subsidence Insurance Required:  Public liability insurance must be provided. The policy must be
adequate to cover any personal injury or property damage resulting from the surface coal mining
and reclamation operations. Personal injury and property damage resulting from subsidence must
be covered by public liability insurance. (VR 480-03-19.800.60)
A Certificate of Liability Insurance, along with all riders, or evidence of self-insurance must be
provided. (VR 480-03-19.778.18 and VR 480-03-19.800.60 (a) & (c))
     
WEST VIRGINIA
Subsidence Insurance Required: No. However, subsidence insurance is available to individual
property owners through a state underwriter insurance program.
Only certificate of insurance is required.


ATTACHMENTS
A.   INDIANA: Attachment U55-1.
B.   NEW MEXICO:
     CSMC Rule 80-1
     Copy of Certificate of Insurance
C.   OHIO: 1501:13-7-07. Liability Insurance.
D.   TEXAS: Sample Certificate of Insurance


Survey conducted by: Interstate Mining Compact Commission
Report compiled by: Joyce Zweben Scall

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