KRS 350.600: Legislative findings and intent -- Commercial oil shale mining prohibited

until adoption of rules and regulations.

(1) The General Assembly finds that there has been a recent interest in the

Commonwealth in the mining and processing of oil shale due to the critical need for

fossil fuel which has developed in this country. The General Assembly further finds

that the development of this fossil fuel could be of significant long -range benefit to

the Commonwealth and to the United States of America, but tha t the unregulated

extraction and processing of oil shale within the Commonwealth could cause soil

erosion, water pollution, and the destruction of aesthetic and agricultural values.

The General Assembly further finds that, in order to effectively regulate the

extraction and processing of oil shale, the Energy and Environment Cabinet shall

conduct extensive research concerning the process, waste production, and

potentially adverse environmental impacts of such recovery operations.

(2) It is the intent of the General Assembly to provide such regulation and control of the

mining and processing of oil shale as to minimize and prevent its adverse effects on

the citizens and the environment of the Commonwealth. The General Assembly

further finds that the Energy an d Environment Cabinet is the most competent

agency to regulate the extraction and processing of oil shale due to its expertise in

the handling of the surface mining of other minerals and in the regulation of other

sources of air and water pollution.

(3) The Energy and Environment Cabinet shall file with the regulations compiler

reasonable rules and regulations pertaining to oil shale mining operations, which

shall include strip mining as defined by KRS 350.010, the surface effects of

underground mining of o il shale, and the in situ mining of oil shale by June 30,

1981. No person shall engage in the commercial mining or processing of oil shale

until such time as the cabinet promulgates rules and regulations to provide standards

for such mining.

(4) In promulgating regulations pursuant to subsection (3) of this section, the secretary

shall make written finding that the regulations promulgated are based on sound

scientific and engineering data and are reasonably necessary to protect the people

and environment of the Commonwealth from the adverse effects of oil shale

extraction. The secretary shall promulgate regulations consistent with existing

standards for land, water, and air protection. The secretary may conduct a public

hearing on the subject of the cabinet' s regulation of the extraction and processing of

oil shale for the purpose of collecting data and receiving public comments on this

issue. The hearing will be held at a time and place to be determined by the secretary

in accordance with the policy of the cabinet.

(5) Prior to the adoption of the regulations required by this section, any person may

conduct core drilling, experimentation, removal of samples, or a pilot and

demonstration project which involves the mining of not more than five (5) acres for

the production of oil shale in any one (1) county. Such core drilling,

experimentation, removal of samples, or pilot and demonstration project involving

the mining of not more than five (5) acres for the production of oil shale in any one

(1) county shall not be initiated until written notification of the intent to perform

such operations shall be filed at least fifteen (15) days prior to commencement of

such projects by registered mail by the mine operator with the secretary of the

Energy and Environment Cabi net of the Commonwealth of Kentucky and with the

person(s) holding title to the surface of the land to be utilized for such operations.

(6) The secretary of the Energy and Environment Cabinet of the Commonwealth of

Kentucky shall be granted the right to mo nitor such core drilling, experimentation,

removal of samples, or pilot and demonstration project as it may deem necessary for

the purpose of establishing sound and reasonable scientific and engineering data

upon which rules and regulations pertaining to o il shale mining operations in the

Commonwealth of Kentucky can be based.