KENTUCKY REGULATORY PROGRAM KENTUCKY REVISED STATUTES (KRS) TITLE XXVIII MINES AND MINERALS CHAPTER 350 SURFACE COAL MINING (Current through 2003 Regular Session) ABANDONED MINE LANDS PROGRAM KRS 350.550 Creation of abandoned mine lands program -- Reclamation fund -- Use of fund. KRS 350.553 Certification of achievement of priorities -- Effect of concurrence in certification. KRS 350.555 Priorities for expenditure of moneys from fund. KRS 350.560 Lands and water eligible for reclamation or drainage abatement expenditures. KRS 350.565 Authority to submit plans and reports to federal Department of the Interior. KRS 350.570 Right of cabinet to enter upon land for reclamation purposes -- Acquisition and disposal of land by Commonwealth. KRS 350.575 Lien for reclamation. KRS 350.580 Reclamation of surface impacts of underground or surface mining. KRS 350.585 Emergency restoration and reclamation. KRS 350.590 Power of cabinet to administer provisions of Abandoned Mine Lands Program. KRS 350.595 Bond pool fund for Abandoned Mine Land Enhancement Program. KRS 350.597 Special trust fund. NOTE: Cross references to OSM's federal regulations and SMCRA appear in double braces to the right of the Rule or Section number, e.g., "KRS Sec. 350.068 CANCELLATION OF SURETY {{ SMCRA Sec. 509 }}". The cross references were compiled using the preambles to OSM's approval of amendments to the Kentucky Regulatory Program published in the Federal Register and from the file of Kentucky regulatory material in the COALEX Library in LexisNexis. KRS Sec. 350.550 CREATION OF ABANDONED MINE LANDS PROGRAM -- RECLAMATION FUND -- USE OF FUND {{ SMCRA Secs. 401(b), 402(g) }} (1) There is hereby created within the Commonwealth of Kentucky an Abandoned Mine Lands Program, to be administered within the Natural Resources and Environmental Protection Cabinet. The secretary of the Natural Resources and Environmental Protection Cabinet may promulgate regulations necessary to implement this program. The provisions of KRS 350.150, 350.152, 350.154, 350.156(1) and (2), 350.158, 350.161, and 350.163 shall not be applicable to this program. (2) The Finance and Administration Cabinet is hereby directed to establish a fund to be known as the Abandoned Mine Reclamation Fund (hereinafter referred to as the "fund"). (3) The fund shall consist of amounts deposited in the fund from time to time, including but not limited to: (a) The reclamation fees levied pursuant to Section 402 of P.L. 95-87 and allocated to the Commonwealth of Kentucky; (b) Any income derived from or any user charge imposed on or for land reclaimed pursuant to the Abandoned Mine Lands Program after the expenses of the program have been deducted; (c) Donations by persons, corporations, associations, governmental entities, and foundations for the purposes of the Abandoned Mine Lands Program; (d) Interest credited to the fund pursuant to Section 401(e) of P.L. 95-87 and allocated to the Commonwealth of Kentucky; and (e) All other moneys as provided for consistent with this chapter. (4) Moneys in the fund may be used for the following purposes: (a) Reclamation and restoration of land and water resources adversely affected by past coal mining, including but not limited to reclamation and restoration of abandoned surface mine areas, abandoned coal processing areas, and abandoned coal refuse disposal areas; sealing and filling of abandoned deep mine entries and voids; planting of land adversely affected by past coal mining to prevent erosion and sedimentation; prevention, abatement, treatment, and control of water pollution created by coal mine drainage, including restoration of stream beds, and construction and operation of water treatment plants; prevention, abatement, and control of burning coal refuse disposal areas and burning coal in situ; and prevention, abatement, and control of coal mine subsidence; (b) Acquisition and filling of voids and sealing of tunnels, shafts, and entryways; (c) Acquisition of land as provided for in this chapter; (d) Studies by state agencies, by contract with public and private organizations to provide information, advice, and technical assistance, including research and demonstration projects, conducted for the purposes of this program; (e) Restoration, reclamation, abatement, control, or prevention of adverse effects of coal mining which constitute an emergency as provided for in this program; (f) Administrative expenses of the program to accomplish the purposes of this program; (g) For the purposes of Section 507(c) of P.L. 95-87; and (h) All other necessary expenses to accomplish the purposes of this program. Effective: July 14, 1992 History: Amended 1992 Ky. Acts ch. 207, sec. 1, effective July 14, 1992. -- Created 1980 Ky. Acts ch. 62, sec. 18. KRS Sec. 350.553 CERTIFICATION OF ACHIEVEMENT OF PRIORITIES -- EFFECT OF CONCURRENCE IN CERTIFICATION (1) The Governor may certify to the Secretary of the Interior that all of the priorities stated in Section 403(a) of P.L. 95-87 and KRS 350.555 for eligible lands and waters pursuant to Section 404 of P.L. 95-87 and KRS 350.560(1), (2), and (3) have been achieved. (2) If the Secretary of the Interior concurs with the Governor's certification under subsection (1), for purposes of determining the eligibility of lands and waters for annual grants under KRS 350.550(3), KRS 350.560(1), (2), and (3) shall not apply. Rather, eligible lands, waters, and facilities shall be those: (a) Which were mined or processed for minerals or which were affected by the mining or processing, and abandoned or left in inadequate reclamation status prior to August 3, 1977; and (b) For which there is no continuing responsibility under state or other federal laws. (3) Expenditures of moneys for lands, waters, and facilities referred to in subsection (2), above, shall reflect the following objectives and priorities in the order stated, in lieu of the priorities stated in KRS 350.555: (a) The protection of public health, safety, general welfare, and property from extreme danger of adverse effects of mineral mining and processing practices. (b) The protection of public health, safety, and general welfare from adverse effects of mineral mining and processing practices. (c) The restoration of land and water resources and the environment previously degraded by the adverse effects of mineral mining and processing practices. (4) Sites and areas designated for remedial action pursuant to the Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. Section 7901 et seq.) or which have been listed for remedial action pursuant to the Comprehensive Environmental Response Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.) shall not be eligible for expenditures from the fund under this section. (5) Reclamation projects involving the protection, repair, replacement, construction, or enhancement of utilities such as those relating to water supply, roads, or other facilities serving the public adversely affected by mineral mining and processing, and the construction of public facilities in communities impacted by coal or other mineral mining and processing practices, shall be deemed part of the objectives set forth, and undertaken as they relate to, the priorities stated in subsection (3) above. (6) Notwithstanding subsection (5), above, if the Secretary of the Interior has concurred in the certification referenced in subsection (1), above, and the Governor determines that there is a need for activities or construction of specific public facilities related to the coal or minerals industry and if the Secretary of the Interior concurs in the need, then the Commonwealth of Kentucky may use annual grants made available under KRS 350.550(3) to carry out the activities or construction. (7) The provisions of KRS 350.570 and KRS 350.575 shall apply to subsections (1) through (5) of this section, except that for purposes of this section, the references to coal in KRS 350.570 and KRS 350.575 shall not apply. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 207, sec. 3, effective July 14, 1992. KRS Sec. 350.555 PRIORITIES FOR EXPENDITURE OF MONEYS FROM FUND Expenditure of moneys from the fund on lands and water eligible pursuant to KRS 350.565 for the purposes of the Abandoned Mine Lands Program shall reflect the following priorities in the order stated: (1) The protection of public health, safety, general welfare, and property from extreme danger of adverse effects of coal mining practices; (2) The protection of public health, safety, and general welfare from adverse effects of coal mining practices; (3) The restoration of land and water resources and the environment previously degraded by adverse effects of coal mining practices, including measures for the conservation and development of soil, water (excluding channelization), and woodland resources, fish and wildlife, recreation resources, and economic productivity; (4) Research and demonstration projects relating to the development of surface mining reclamation and water quality control program methods and techniques; (5) The protection, repair, replacement, construction, or enhancement of public facilities such as utilities, roads, and recreation and conservation facilities adversely affected by coal mining practices; and (6) The development of publicly owned land adversely affected by coal mining practices, including land acquired for reclamation as provided in the Abandoned Mine Lands Program for recreation and historic purposes, conservation, and open space benefits. History: Created 1980 Ky. Acts ch. 62, sec. 19. Legislative Research Commission Note. The provisions of this section became operative on May 18, 1982, when the conditional approval granted by the United States Secretary of the Interior appeared in the Federal Register. KRS Sec. 350.560 LANDS AND WATER ELIGIBLE FOR RECLAMATION OR DRAINAGE ABATEMENT EXPENDITURES {{ SMCRA Secs. 403, 404, 509, 519 }} (1) Lands and water eligible for reclamation or drainage abatement expenditures under the Abandoned Mine Lands Program are those which were mined for coal or which were affected by coal mining, wastebanks, coal processing, or other coal mining processes, and were abandoned or left in an inadequate reclamation status prior to August 3, 1977, and for which there is no continuing reclamation responsibility under the provisions of this chapter. Surface coal mining operations on lands eligible for remining shall not affect the eligibility of those lands for reclamation and restoration under this chapter after the release of the bond or deposit for a remining operation as provided under KRS 350.093. In the event the bond or deposit for a surface coal mining operation on lands eligible for remining is forfeited, funds available under this chapter may be used if the amount of the bond or deposit is not sufficient to provide for adequate reclamation or abatement, except that if conditions warrant the cabinet shall immediately exercise its authority under KRS 350.585. (2) If the cabinet determines that the reclamation priority, under the priorities of KRS 350.555(1) and (2), of a site is the same or more urgent than the priority of sites under subsection (1) of this section, the following sites shall also be eligible for reclamation or drainage abatement expenditures: (a) Unreclaimed sites which were mined for coal or which were affected by coal mining, waste banks, coal processing, or other mining processes and left in an inadequate reclamation status during the period beginning August 4, 1977, and ending May 18, 1982, for which the bond, or other form of financial guarantee, was insufficient to provide adequate reclamation or abatement of the site; or (b) Unreclaimed sites which were mined for coal or which were affected by coal mining, waste banks, coal processing, or other coal mining processes and left in an inadequate reclamation status during the period beginning on August 4, 1977, and ending on or before November 5, 1990, where the surety for the permittee became insolvent during the period, and as of November 5, 1990, funds immediately available from proceedings relating to the insolvency, or from other sources have been insufficient to provide for adequate reclamation and abatement at the site. (3) Sites under subsection (2) in the immediate vicinity of a residential area or which have an adverse economic impact upon a local community shall be given priority. (4) Up to thirty percent (30%) of the funds allocated to the Commonwealth through annual grants from the Secretary of the Interior may be expended for the purposes of protecting, repairing, replacing, constructing, or enhancing facilities relating to water supply, including water distribution facilities and treatment plants, to replace water supplies adversely affected by coal mining practices. If the adverse effect on water supplies referred to in this subsection occurred both prior to and after August 3, 1977, subsections (1) and (2), above, shall not be construed to prohibit use of funds for the purposes of this subsection, if the adverse effects occurred predominantly prior to August 3, 1977. (5) Where the Governor has made a certification under KRS 350.553 and the Secretary of the Interior has concurred in the certification, the reclamation categories of KRS 350.553(2) shall take effect, supplanting the categories of subsections (1), (2), and (4) above. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 172, sec. 4, effective July 15, 1994. Amended 1992 Ky. Acts ch. 207, sec. 2, effective July 14, 1992. -- Created 1980 Ky. Acts ch. 62, sec. 20. KRS Sec. 350.565 AUTHORITY TO SUBMIT PLANS AND REPORTS TO FEDERAL DEPARTMENT OF THE INTERIOR The Natural Resources and Environmental Protection Cabinet shall have the authority to prepare and submit to the Secretary, United States Department of the Interior, reclamation plans, annual projects, applications for federal support, and any other reports or plans which are provided for or required pursuant to Title IV of the Surface Mining Control and Reclamation Act of 1977 (P.L. 95-87). History: Created 1980 Ky. Acts ch. 62, sec. 21. Legislative Research Commission Note. The provisions of this section became operative on May 18, 1982, when the conditional approval granted by the United States Secretary of the Interior appeared in the Federal Register. KRS Sec. 350.570 RIGHT OF CABINET TO ENTER UPON LAND FOR RECLAMATION PURPOSES -- ACQUISITION AND DISPOSAL OF LAND BY COMMONWEALTH (1) If the cabinet makes a finding of fact pursuant to the abandoned mine lands program that: (a) Land or water resources have been adversely affected by past coal mining practices; and (b) The adverse effects are at a stage where, in the public interest, action to restore, reclaim, abate, control, or prevent should be taken; and (c) The owners of the land or water resources where entry must be made to restore, reclaim, abate, control, or prevent the adverse effects of past coal mining practices are not known or readily available; or (d) The owners will not give permission for the United States, the Commonwealth, political subdivisions, or their agents, employees, or contractors to enter upon such property to restore, reclaim, abate, control, or prevent the adverse effects of past coal mining practices; then, upon giving notice by mail to the owners if known, or if not known, by posting notice upon the premises and advertising once in a newspaper of general circulation in the municipality or county in which the land lies, the cabinet and its authorized representatives, agents, and contractors shall have the right to enter upon the property adversely affected by past coal mining practices, and any other property to have access to such property to do all things necessary or expedient to restore, reclaim, abate, control, or prevent the adverse effects. Such entry shall be construed as an exercise of the police power for the protection of public health, safety, and general welfare and shall not be construed as an act of condemnation of property nor of trespass thereon. The moneys expended for such work and the benefits accruing to any such premises so entered upon shall be chargeable against such land and shall mitigate or offset any claim in or any action brought by any owner of any interest in such premises for any alleged damages by virtue of such entry: provided, however, that this provision is not intended to create new rights of action or eliminate existing immunities. (2) The cabinet and its authorized representatives, agents, and contractors shall have the right to enter upon any property for the purpose of conducting studies or exploratory work to determine the existence of adverse effects of past coal mining practices and to determine the feasibility of restoration, reclamation, abatement, control, or prevention of such adverse effects. Such entry shall be construed as an exercise of the police power for the protection of public health, safety, and general welfare, and shall not be construed as an act of condemnation of property nor trespass thereon. (3) The Commonwealth shall have the power to acquire, by purchase, donation, devise, or condemnation, any land which is adversely affected by past coal mining practices if acquisition of such land is necessary for successful reclamation and that: (a) The acquired land, after restoration, reclamation, abatement, control, or prevention of the adverse effects of past coal mining practices, will serve recreation and historic purposes, conservation and reclamation purposes, or provide open space benefits; or (b) Permanent facilities such as a treatment plant or a relocated stream channel will be constructed on the land for the restoration, reclamation, abatement, control, or prevention of the adverse effects of past coal mining practices; or (c) Acquisition of coal refuse disposal sites and all coal refuse thereon will serve the purposes of this chapter or that public ownership is desirable to meet emergency situations and prevent recurrences of the adverse effects of past coal mining practices. (4) Title to all lands acquired pursuant to this section shall be in the name of the Commonwealth. The price paid for the land acquired under this section shall reflect the market value of the land as adversely affected by past coal mining practices. The Commonwealth may exercise the power of eminent domain against such land by filing a condemnation suit under the procedure of the Eminent Domain Act of Kentucky. Provided, that when the Commonwealth acquires land adversely affected by past coal mining practices pursuant to the Abandoned Mine Lands Program and when such abandoned mine reclamation fund moneys are less than the purchase price, the Commonwealth shall be authorized to use whatever funds are available pursuant to KRS 350.156(3). (5) The Natural Resources and Environmental Protection Cabinet may receive any federal, state, or other funds for the purpose of reclaiming lands affected by past coal mining practices, including federal funds made available to it pursuant to Title IV of the Surface Mining Control and Reclamation Act of 1977 (P.L. 95-87). The cabinet may avail itself of any services which may be provided by other state agencies or the federal government, and may compensate them for such services. (6) The cabinet shall have the power to backfill, grade, revegetate, and perform other acts of restoration and reclamation on lands acquired pursuant to this section. The cabinet may cause the reclamation work to be done by its own employees or by employees of other governmental agencies or soil conservation districts, or through contracts with qualified persons. Such contracts shall be awarded pursuant to regulations promulgated by the cabinet. The cabinet and any other agency and any contractor under a contract with the cabinet shall have the right of access to the land affected to carry out such reclamation. (7) Where land acquired pursuant to this section is deemed to be suitable for industrial, commercial, residential, or recreational development, the Commonwealth shall have the power to sell such land by public sale under a system of competitive bidding, at not less than fair market value and under such regulations as may be promulgated to insure that such lands are put to proper use consistent with local and state land use plans, if any. The proceeds of any such sale shall be credited to the abandoned mine reclamation fund. The cabinet, when requested after appropriate public notice, shall hold a public hearing, with the appropriate notice, in the county or counties in which lands acquired pursuant to this section are located. The hearings shall be held at a time which shall afford local citizens and governments the maximum opportunity to participate in the decision concerning the use or disposition of the lands after restoration, reclamation, abatement, control, or prevention of the adverse effects of past coal mining practices. (8) In addition to the authority to acquire and reclaim land for the purposes set forth in subsection (3) of this section, the Commonwealth is given authority to use money in the fund to acquire land by purchase, donation, devise, or condemnation and to reclaim such land and to transfer it to any political subdivision of the Commonwealth or to any person, firm, association, or corporation, if such is an integral and necessary element of an economically feasible plan for a project to construct or rehabilitate housing for persons disabled as the result of employment in the mines or work incidental thereto, persons displaced by acquisition of land pursuant to this section, persons dislocated as the result of adverse effects of coal mining practices which constitute an emergency as provided in KRS 350.585, or persons dislocated as the result of natural disasters or catastrophic failures from any cause, or any related commercial, industrial, agricultural, recreational, or governmental use of facilities. Such activities shall be accomplished under such terms and conditions as the Commonwealth shall require, which may include transfers of land with or without monetary consideration. Provided, that to the extent that the consideration is below the fair market value of the land transferred, no portion of the difference between the fair market value and the consideration shall accrue as a profit to such persons, firm, association, or corporation. No part of the funds provided under the abandoned mine reclamation fund may be used to pay the actual construction costs of housing. (9) All acquisitions and disposals of land or any interests therein pursuant to the authority granted by this section shall be governed by the applicable provisions of KRS Chapters 45A and 56. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 496, sec. 64, effective July 13, 1990. -- Created 1980 Ky. Acts ch. 62, sec. 22. KRS Sec. 350.575 LIEN FOR RECLAMATION (1) Within six (6) months after the completion of projects to restore, reclaim, abate, control, or prevent adverse effects of past coal mining practices on privately owned land, the cabinet shall itemize the moneys so expended and may file a statement thereof in the office of the county in which the land lies which has the responsibility under local law for the recording of judgments against land, together with a notarized appraisal by an independent appraiser of the value of the land before the restoration, reclamation, abatement, control, or prevention of adverse effects of past coal mining practices if the moneys so expended shall result in a significant increase in property value. Such statement shall constitute a lien upon the said land. The lien shall not exceed the amount determined by the appraisal to be the increase in the market value of the land as a result of the restoration, reclamation, abatement, control, or prevention of the adverse effects of past coal mining practices. No lien shall be filed against the property of any person, in accordance with this section, who owned the surface prior to May 2, 1977, and who neither consented to nor participated in nor exercised control over the mining operation which necessitated the reclamation performed hereunder. The cabinet may waive the lien consistent with its regulations. (2) The landowner may proceed as provided by local law to petition within sixty (60) days of the filing of the lien, to determine the increase in the market value of the land as a result of the restoration, reclamation, abatement, control, or prevention of the adverse effects of past coal mining practices. The amount reported to be the increase in value of the premises shall constitute the amount of the lien and shall be recorded with the statement herein provided. Any party aggrieved by the decision may appeal as provided by local law. (3) The lien provided in this section shall be entered in the county office in which the land lies and which has responsibility under local law for the recording of judgments against land. Such statement shall constitute a lien upon the said land as of the date of the expenditure of the moneys and shall have priority as a lien second only to the lien of real estate taxes imposed upon said land. History: Created 1980 Ky. Acts ch. 62, sec. 23. Legislative Research Commission Note. The provisions of this section became operative on May 18, 1982, when the conditional approval granted by the United States Secretary of the Interior appeared in the Federal Register. KRS Sec. 350.580 RECLAMATION OF SURFACE IMPACTS OF UNDERGROUND OR SURFACE MINING (1) The cabinet is authorized to fill voids, seal abandoned tunnels, shafts, and entryways, and reclaim surface impacts of underground or surface mines which the secretary determines could endanger life and property, constitute a hazard to the public health and safety, or degrade the environment, with such moneys as may become available under the abandoned mine reclamation fund. (2) The Commonwealth may acquire by purchase, donation, devise, easement, or otherwise such interest in land as necessary to carry out the provisions of this section and may dispose of acquired land in a manner consistent with the purposes of the Abandoned Mine Lands Program. History: Created 1980 Ky. Acts ch. 62, sec. 24. Legislative Research Commission Note. The provisions of this section became operative on May 18, 1982, when the conditional approval granted by the United States Secretary of the Interior appeared in the Federal Register. KRS Sec. 350.585 EMERGENCY RESTORATION AND RECLAMATION (1) The cabinet is authorized to expend moneys from the fund for the emergency restoration, reclamation, abatement, control, or prevention of adverse effects of coal mining practices, on eligible lands, if the cabinet makes finding of fact that: (a) An emergency exists constituting a danger to the public health, safety, or general welfare; and (b) No other person or agency will act expeditiously to restore, reclaim, abate, control, or prevent the adverse effects of coal mining practices. (2) The cabinet, its agents, employees, and contractors shall have the right to enter upon any land where the emergency exists and any other land to have access to the land where the emergency exists to restore, reclaim, abate, control, or prevent the adverse effects of coal mining practices and to do all things necessary or expedient to protect the public health, safety, or general welfare. Such entry shall be construed as an exercise of the police power and shall not be construed as an act of condemnation of property nor of trespass thereof. The moneys expended for such work and the benefits accruing to any such premises so entered upon shall be chargeable against such land and shall mitigate or offset any claim in or any action brought by any owner of any interest in such premises for any alleged damages by virtue of such entry. Provided, however, that this provision is not intended to create new rights of action or eliminate existing immunities. History: Created 1980 Ky. Acts ch. 62, sec. 25. Legislative Research Commission Note. The provisions of this section became operative on May 18, 1982, when the conditional approval granted by the United States Secretary of the Interior appeared in the Federal Register. KRS Sec. 350.590 POWER OF CABINET TO ADMINISTER PROVISIONS OF ABANDONED MINE LANDS PROGRAM (1) The cabinet shall have the power and authority, if not granted it otherwise, to engage in any work and to do all things necessary or expedient, including promulgation of rules and regulations, to implement and administer the provisions of the Abandoned Mine Lands Program. (2) The cabinet shall have the power and authority to engage in cooperative projects under the program with any agency of the United States, any state and their governmental agencies. (3) The cabinet may initiate, in addition to any other remedies provided for in this chapter, in any court of competent jurisdiction, an action in equity for an injunction to restrain any interference with the exercise of the right to enter or to conduct any work provided in the Abandoned Mine Lands Program. (4) The cabinet shall have the power and authority to construct and operate facilities for the control and treatment of water pollution resulting from mine drainage. The extent of this control and treatment may be dependent upon the ultimate use of the water; provided, that the above provisions of this subsection shall not be deemed in any way to repeal or supersede any portion of the Federal Water Pollution Control Act (33 U.S.C.A. 1151, et seq. as amended) and no control or treatment under this subsection shall in any way be less than that required under the Federal Water Pollution Control Act. The construction of facilities may include major interceptors and other facilities appurtenant thereto. (5) The cabinet may transfer funds to other appropriate state agencies, in order to carry out the reclamation activities authorized by the Abandoned Mine Lands Program. History: Created 1980 Ky. Acts ch. 62, sec. 26. Legislative Research Commission Note. The provisions of this section became operative on May 18, 1982, when the conditional approval granted by the United States Secretary of the Interior appeared in the Federal Register. KRS Sec. 350.595 BOND POOL FUND FOR ABANDONED MINE LAND ENHANCEMENT PROGRAM (1) An applicant who desires to remine property which is classified as abandoned mine land under KRS 350.560 may apply to the Bond Pool Commission established in KRS 350.705 for inclusion under the Abandoned Mine Land Enhancement Program. The Bond Pool Commission may provide coverage under the bond pool fund not to exceed fifty percent (50%) of the bond amount which the cabinet determines under KRS 350.060 is necessary for the abandoned mine land. (2) When the bond required for the abandoned mine land under KRS 350.060 is increased or reduced, or is released in whole or in part, the coverage provided by the bond pool shall be proportionately increased or reduced. (3) In the event of bond forfeiture on the property, moneys from the bond pool fund shall be used to supplement the forfeited bond as provided in KRS 350.745. Effective: July 15, 1988 History: Amended 1988 Ky. Acts ch. 397, sec. 1, effective July 15, 1988. -- Created 1984 Ky. Acts ch. 282, sec. 1, effective July 13, 1984. KRS Sec. 350.597 SPECIAL TRUST FUND {{ SMCRA Sec. 402(g) }} (1) The Finance and Administration Cabinet shall establish a special trust fund which may receive and retain up to ten percent (10%) of the total grants made annually by the Secretary of the Interior, pursuant to Section 402(g)(6) and (7) of P.L. 95-87. (2) Sums deposited into the special trust fund, and interest earned thereon, shall be expended either: (a) For the priorities stated in KRS 350.555 after September 30, 1995; or (b) For acid mine drainage abatement and treatment in accordance with the requirements of Section 402(g)(7) of P.L. 95-87. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 207, sec. 4, effective July 14, 1992.