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Proposed Rule
Preliminary Regulatory Economic Analysis
and
Initial Regulatory Flexibility Analysis

Health Standards For Diesel Particulate Concerning:
30 CFR Part 57 Underground Metal and Nonmetal Mines




U.S. Department of Labor
Mine Safety and Health Administration
Office of Standards, Regulations, and Variances

October 1998


I. EXECUTIVE SUMMARY

II. INDUSTRY PROFILE

III. BENEFITS

IV. COMPLIANCE COSTS

V. REGULATORY FLEXIBILITY CERTIFICATION AND
INITIAL REGULATORY FLEXIBILITY ANALYSIS

VI. UNFUNDED MANDATES REFORM ACT OF 1995
AND OTHER REGULATORY CONSIDERATIONS

VII. PAPERWORK REDUCTION ACT OF 1995






I. EXECUTIVE SUMMARY

Introduction

The Mine safety and Health Administration (MSHA) is proposing regulations to decrease miner exposure to diesel particulate matter in underground metal and nonmetal (M&NM) mining operations. Diesel particulate matter is the solid fraction of the exhaust from diesel powered engines. The proposed rule would establish a set of requirements for underground M&NM mines. Although, the Agency considers this rulemaking significant under Executive Order 12866, based upon the preliminary analysis of the compliance costs, MSHA has determined that this proposed rule would not have an annual effect of $100 million or more on the economy.

Based upon the definition of a small mine being those with less than 20 employees, the proposed rule would primarily affect 82 small and 121 large underground M&NM mines that utilize diesel powered equipment. These mines represent approximately 78 percent of all underground M&NM mines. MSHA estimates that approximately 90 percent of employees that work in underground M&NM mines that use diesel powered equipment (or about 17,000 employees) are exposed to various levels of diesel emissions and thus would be affected by this proposed rule. With respect to underground M&NM mine operators, proposed changes to 30 CFR Part 57 would establish a concentration limit on diesel particulate matter. The proposed rule provides that this be accomplished in a phased-in manner. For the first 18 months after promulgation of the rule, MSHA will work with underground M&NM mine operators who use diesel powered equipment, providing them with compliance assistance in establishing controls to reduce diesel particulate exposure. Eighteen months after publication of the rule, but before 5 years after publication date, the proposal requires underground M&NM mine operators to limit the concentration of diesel particulate matter by restricting the average 8 hour full shift equivalent airborne concentration of total carbon to 400 micrograms per cubic meter of air (400TC µg/m3) in areas where miners normally work or travel. Five years after publication of the rule, the proposal would require underground M&NM mine operators to restrict total carbon to 160 micrograms per cubic meter of air (160TC µg/m3), in areas where miners normally work or travel. Other proposed provisions require underground M&NM mine operators to control diesel particulate matter through environmental monitoring, miner awareness training and through compliance with certain fleet and work practice rules.

Benefits Summary

The proposed rule would reduce a significant health risk to underground miners, reducing the potential for acute illnesses and premature death, and the attendant costs thereof to their employers, their families, and society. The risks addressed by this proposed rule arise because miners are exposed to significant concentrations of a very small particle, or fine particulate, produced by engines that burn diesel fuel.

MSHA has included a qualitative analysis of the benefits, and a preliminary quantitative analysis and will refine the analysis, as appropriate, as the rulemaking proceeds. MSHA welcomes suggestions for the appropriate approach to use to quantify the benefits likely to be derived from this rulemaking. Please identify scientific studies, models, and/or assumptions suitable for estimating risk at different exposure levels, and data on numbers of miners exposed to different levels of diesel particulate matter.

Underground mines are confined spaces which, despite ventilation requirements, can accumulate significant concentrations of gases and particles -- both those produced by the mine itself (e.g., methane gas and dust) and those produced by equipment used in the mine (e.g., diesel particulate and engine exhaust gases). It is widely recognized that respirable particles can create adverse health effects. While exposure of working miners to certain other respirable dusts is controlled (e.g., mine dust and silica), there are no current restrictions specifically on occupational exposure to diesel particulate.

In evaluating the health risks miners presently face, and the potential benefits of controlling that risk, it is particularly significant to note that workers at some underground mines are exposed to much higher concentrations of diesel particulate matter than those reported for any other occupation. At these exposure levels, miners are at significant risk of material impairment of their health. A more detailed analysis of diesel particulate exposure and the benefits of controlling exposures is contained in part III of this document (Benefits) and in the preamble of the proposed rule.

Estimated Compliance Costs Summary

MSHA estimates that the per year compliance costs (annualized costs plus annual costs) for underground M&NM mine operators are approximately $19.2 million, of which large mine operators would incur $14.6 million and small mine operators (those with less than 20 miners) would incur $4.6 million.

Regulatory Flexibility Certification and Analysis

Pursuant to the Regulatory Flexibility Act of 1980, MSHA has analyzed the impact of these rules upon small businesses. Further, MSHA has made a preliminary determination with respect to whether or not it can certify that this proposal will not have a significant economic impact on a substantial number of small entities. Under the Small Business Regulatory Enforcement Fairness Act (SBREFA) amendments to the RFA, MSHA must include in the proposal a factual basis for this certification. If MSHA cannot certify that this proposed rule does not have a significant economic impact on a substantial number of small entities, then the Agency must develop an initial regulatory flexibility analysis.

The Agency has, as required by law (5 U.S.C. 603), developed an initial regulatory flexibility analysis which is set forth in Part V of this analysis. In addition, to a succinct statement of the objects of the proposed rule and other information required by the Regulatory Flexibility Act, the analysis reviews alternatives considered by the Agency with an eye toward the nature of small business entities.



II. INDUSTRY PROFILE

Introduction

The industry profile provides background information describing the structure and economic characteristics of the underground M&NM mining industry. It also provides information on underground M&NM mines that regularly use diesel powered equipment. This profile provides data on the number of mines, their size, and the number of employees in each segment, as well as selected market characteristics.

Although this particular rulemaking does not apply to the surface M&NM sector, information about surface mines is provided here in order to give context for the discussions on underground mining. In that regard, some subsectors of the mining industry (the sand and gravel sector, for example, and the stone sector) will not be significantly impacted by this proposed rule since they do not involve significant underground mining operations.

Overall Structure of the Mining Industry

MSHA divides the mining industry into two major segments based on commodity: The coal industry and the metal and nonmetal (M&NM) mining industry. These major industry segments are further divided based on type of operations: Underground mines; surface mines; and independent mills, plants, shops, and yards. MSHA maintains its own data on mine type, size, and employment. MSHA also collects data on the number of contractors and contractor employees.

MSHA categorizes mines as to size based on employment. Over the past 20 years, for rulemaking purposes, MSHA has consistently defined small mines to be those having fewer than 20 employees and large mines to be those having at least 20 employees. For this Preliminary Regulatory Economic Analysis and Initial Regulatory Flexibility Analysis, MSHA will continue to use this small mine definition. However, for the purposes of the Small Business Regulatory Enforcement Fairness Act (SBREFA) amendments to the Regulatory Flexibility Act (RFA), MSHA has also included SBA's definition of small (500 or fewer employees) in the evaluation of impacts.

Table II-1 presents the number of small and large M&NM mines and the corresponding number of miners, excluding contractors, by major industry segment and mine type. Table II-1 uses three size classes: Less than 20 employees (MSHA's definition of small), 20 to 500 employees (also small by SBA's definition, but not by MSHA's), and over 500 employees. Table II-2 presents similar MSHA data on the numbers of independent contractors and the corresponding numbers of employees by the size of the operation, based on employment. Table II-3 shows numbers of M&NM mines and workers by class of commodity produced.

Table II-1:
Distribution of Operations and Employment (excluding contractors) by Mine Type and Size

Mine Type Size of M/NM Mine All M/NM Mines
Less than 20
Employees
20 to 500*
Employees
Over 500*
Employees
Mines Miners Mines Miners Mines Miners Mines Miners
Underground

130
1,103 124 10,152 7 6,531 261 17,786
Surface 8,781 48,924 1,175 63,753 18 16,723 9,974 129,400
Shop/Yd/Mill/Plt

284
2,195 212 15,792 4 2,584 500 20,571
Office Workers

-
8,422 -

16,244

-
2,389 - 27,055
Total
M/NM

9,195
60,644 1,511 105,941 29 28,227 10,735 194,812

(*) Based on MSHA's traditional definition, large mines include all mines with employees of 20 or greater.

Source: U.S. Department of Labor, Mine Safety and Health Administration, Office of Standards, Regulations, and Variances, based on preliminary 1996 MIS data (quarter 1 - quarter 4, 1996).

Table II-2:
Distribution of Contractors and Contractor Employment by Size of Operation

Contractors Size of Contractor All
Contractors
Less than 20
Employees
20 to 500*
Employees
Over 500*
Employees
Mines Miners Mines Miners Mines Miners Mines Miners
Firms 2,621 13,058 340 18,810 1 897 2,962 32,765
Office Workers

-
691 - 902 - 140 - 1,733
Total
Contractors

2,621
13,749 340 19,712 1 1,037 2,962 34,498

(*) Based on MSHA's traditional definition, large contractors include contractors with employees of 20 or greater.

Source: U.S. Department of Labor, Mine Safety and Health Administration, Office of Standards, Regulations, and Variances, based on preliminary 1996 MIS data (quarter 1 - quarter 4, 1996).

Table II-3:
Estimated Distribution of Metal and Nonmetal Mines and Miners by Commodity and Size Category

Commodity Size of M/NM Mine All
M/NM Mines
Less than 20
Employees
20 to 500*
Employees
Over 500*
Employees
Mines Workers Mines Workers Mines Workers Mines Workers
Metal 175 1,191 167 21,944 25 24,417 367 47,552
Non-Metal

542
3,471 225 21,685 4 3,810 771 28,966
Stone 2,619 22,838 889 53,413 0 0 3,508 76,251
Sand/Gravel

5,859
33,144 230 8,899 0 0 6,089 42,043
Total 9,195 60,644 1,511 105,941 29 28,227 10,735 194,812

(*) Based on MSHA's traditional definition, large mines include all mines with employees of 20 or greater.

Source: MSHA's Office of Standards, Regulations, and Variances. Employment figures includes office workers.

Underground M&NM Mines That Use Diesel Powered Equipment

Impacted Mines by Size

A January 1998 count of diesel powered equipment performed by MSHA's Metal and Nonmetal inspectors shows that 203 of the 261 underground M&NM mines (about 78 percent) regularly use diesel powered equipment. Table II-4 shows the 203 underground M&NM mines that use diesel powered equipment, by size and subsector.

Based on MSHA's traditional definition of a small mine (fewer than 20 employees), Table II-4 shows that of the 203 underground M&N mines, 82 mines (40 percent) are small mines and 121 mines (60 percent) are large mines. Small mines employ about 4 percent of the workforce (849 employees), while large mines employ about 96 percent of the workforce (18,073 employees).

Based on SBA's definition of a small mine (500 or fewer employees), 196 mines (97 percent) are considered small and 7 mines (3 percent) are large. Under this definition, small mines employ 65 percent of the workforce (12,391 employees), while large mines employ 35 percent of the workforce (6,531 employees).

Impacted Mines by Commodity

The M&NM mining industry consists of about 70 different commodities that can be classified into four commodity categories: Metals, nonmetals, stone, and sand and gravel. Some examples of metals mines are gold, silver, and copper, while some examples of nonmetals mines are potash, salt, and trona. Examples of stone mines are limestone, marble, and granite. Table II-4 also presents the numbers of underground mines operators by these four categories.

Table II-4:
Number of Underground Metal and Nonmetal Mines and Miners that Use Diesel Powered Equipment by Commodity and Size Category

Commodity

Size of Underground M/NM Mine Underground
M/NM Mines
That Use
Diesel Equip.
Less than 20
Employees
20 to 500*
Employees
Over 500*
Employees
Mines Workers Mines Workers Mines Workers Mines Workers
Metal 15 103 44 4,691 4 2,517 63 7,311
Non-Metal

15
100 29 4,645 3 4,014 47 8,759
Stone 52 646 41 2,206 0 0 93 2,852
Sand/Gravel

0
0 0 0 0 0 0 0
Total 82 849 114 11,542 7 6,531 203 18,922

(*) Based on MSHA's traditional definition, large mines include all mines with employees of 20 or greater.

Source: MSHA's Metal and Nonmetal inspectors count of underground Metal and Nonmetal mines that use diesel powered equipment. Includes office workers.

There are no underground mine operators using diesel powered equipment that are classified as sand or gravel. A substantial portion of such small underground mine operators, however, are classified as stone, using either MSHA's definition or SBA's definition of a small mine. Large underground mine operators that use diesel powered equipment are predominantly classified as metal or nonmetal. By MSHA's definition of a large mine (those that employ 20 or more), two thirds (66 percent) of large mines are classified as metal or nonmetal. With respect to SBA's definition of a large mine (those that employ over 500), all large underground mine operators that use diesel powered equipment are classified as either metal or nonmetal.

Structure of Underground M&NM Mining Subsectors

Metal Mining

Metal mining in the U.S. consists of about 25 different commodities. Most metal commodities include only one or two mining operations. As is shown in Table II-3, metal mining operations represent 3 percent of the M&NM mines; employ 24 percent of the M&NM miners; and account for 33 percent of the value of M&NM mineral produced in the U.S.(1) By MSHA's definition, 48 percent of the metal mining operations are small. Among underground M&N mines using diesel powered equipment, Table II-4 shows that metal mining operations represent 31 percent of mines and 39 percent of miners, and (by MSHA's definition) 24 percent are small.

Underground metal mining uses a few basic mining methods, such as stope, room and pillar, and block caving. Larger underground metal mines use more hydraulic drills and track-mounted haulage, whereas smaller underground metal mines use more hand-held pneumatic drills.

Nonmetal Mining (Excluding Stone, Sand and Gravel)

For enforcement and statistical purposes, MSHA separates stone mining and sand and gravel mining from other nonmetal mining. There are about 35 different nonmetal commodities, not including stone or sand and gravel. Overall (Table II-3), nonmetal mining operations represent 7 percent of the M&NM mines; employ 15 percent of the M&NM miners; and account for 35 percent of the value of M&NM mineral produced in the U.S. By MSHA's definition, 70 percent of the nonmetal mining operations are small. Among underground M&N mines using diesel powered equipment, Table II-4 shows that nonmetal mining operations represent 23 percent of mines and 46 percent of miners, and (by MSHA's definition) 32 percent are small.

Nonmetal mining uses a wide variety of underground mining methods. For example, potash mines use continuous miners similar to coal mining; oil shale uses in-situ retorting; and gilsonite uses hand-held pneumatic chippers. Some nonmetal commodities use kilns and dryers in ore processing. Others use crushers and mills similar to metal mining. Underground nonmetal mining operations generally use more block caving, room and pillar, and retreat mining methods; less hand-held equipment; and more electrical equipment than metal mining operations.

Stone Mining

There are basically only 8 different stone commodities, of which 7 are further classified as either dimension stone or crushed and broken stone. Overall, stone mining operations represent 33 percent of all M&NM mines; employ 39 percent of the M&NM miners; and account for 19 percent of the value of M&NM mineral produced in the U.S.(2) By MSHA's definition, 75 percent of the stone mining operations are small. Among underground M&N mines using diesel powered equipment, stone mining operations represent 46 percent of mines and 15 percent of miners, and (by MSHA's definition) 56 percent are small.

Sand and Gravel Mining

Although 57 percent of all M&NM mines are sand and gravel operations, these are all surface mines. No sand and gravel mines will be affected by this regulation.

Characteristics of Affected Underground M&NM Mines

Table II-5 summarizes many of the characteristics of the underground M&NM mines that will be affected by the proposed regulation. Table II-5 includes data for different size classes of mines for the number of affected miners; numbers, type, and horsepower of pieces of diesel powered equipment; average ventilation characteristics; and diesel particulate matter (DPM) data.

Table II-5:
Miners, Diesel Equipment, Ventilation and DPM Characteristics in Affected Mines

EMPLOYMENT SIZE OF
MINE
All
Affected
Mines
< 20 > 20 < 500 > 500
NUMBER OF AFFECTED MINES 82 114 7 203
NUMBER OF AFFECTED MINERS 764 10,387 5,878 17,029
DIESEL EQUIPMENT
Production Pieces < 150 hp 50 354 124 528
> 150 hp 276 870 97 1,234
Support Pieces 290 1,544 482 2,316
TOTAL PIECES 616 2,768 703 4,087
Average Pieces per Mine < 150 hp 0.6 3.1 17.7 2.6
> 150 hp 3.4 7.6 13.9 6.1
Total Horsepower per Mine < 150 hp 76 388 2,214 325
> 150 hp 841 1,908 3,464 1,531
Miners Per Piece of Diesel Equipment 1 4 8 4
Miners Per Piece of Production Equipment 2 8 27 10
VENTILATION
Average Intake (µg/m3) 50 50 50 50
Average Airflow (1,000 cfm) 72 258 1,043 210
Airflow/hp (cfm) 78 112 184 113

Based on MSHA's traditional definition, large mines include all mines with employees of 20 or greater.

Economic Characteristics of the M&NM Mining Industry

Overview

The 1996 value of all M&NM mining output was $38 billion.(3) Metal mining, which includes metals such as aluminum, copper, gold, and iron, contributed $12.5 billion to this total. Nonmetal mining, which includes commodities such as clay, phosphate rock, salt, and soda ash, was valued at $13.3 million. Stone mining contributed $7.4 billion, and sand and gravel contributed $4.8 billion to this total.

The entire M&NM mining industry is markedly diverse, not only in terms of the breadth of minerals but also in terms of each commodity's usage. For example, metals such as iron and aluminum are used to produce vehicles and other heavy duty equipment, as well as consumer goods such as household equipment and beverage cans. Other metals, such as uranium and titanium, have limited uses. Nonmetals like cement are used in construction, while salt is used in a variety of ways including as a food additive and highway deicing. Soda ash, phosphate rock, and potash also have various commercial uses. Stone and sand and gravel are used in numerous industries including the construction of roads and buildings.

A detailed financial picture of the M&N mining industry is difficult to develop because most mines either are privately held corporations or sole proprietorships or they are subsidiaries of publicly owned companies. Privately held corporations and sole proprietorships do not make their financial data available to the public; parent companies are not required to separate financial data for subsidiaries in their reports to the Securities and Exchange Commission. As a result, financial data are available for only a few M&NM companies, and these data are not representative of the entire industry. Each commodity has a unique market demand structure. The following discussion focuses on market forces on a few specific commodities of the M&NM industry.

Metal Mining

Historically, the value of metals production has exhibited considerable instability. In the early 1980's, excess capacity, large inventories, and weak demand depressed the international market for metals, while the strong dollar placed U.S. producers at a competitive disadvantage with foreign producers. Reacting to this, many metal mining companies reduced work forces, eliminated marginal facilities, sold non-core businesses, and restructured. At the same time, new mining technologies were developed, and wage increases were restrained. As a result, the metal mining firms now operating are more efficient and have lower break-even prices than those that operated in the 1970's.

Variations in the prices for iron and alloying metals, such a nickel, aluminum, molybdenum, vanadium, platinum, and lead, coincide closely with fluctuations in the market for durable goods, such as vehicles and heavy duty equipment. As a result, the market for these metals is cyclical in nature and is impacted directly by changes in aggregate demand and the economy in general. Both nickel and aluminum have experienced strong price fluctuations over the past few years. With the U.S. and world economies improving, however, demand for such alloys is improving, and prices have begun to recover. It must be noted that primary production of aluminum will continue to be impacted by the push to recycle.

The U.S. market for copper and precious metals, such as gold and silver, is uncertain, which makes consistent production growth in such areas difficult. U.S. gold production in 1996 was estimated at slightly above 1995 levels, which maintains the U.S. position as the world's second largest gold producing nation, after South Africa. U.S. silver production in 1996 increased slightly from 1995 levels to equal the highest production since 1992. U.S. copper production in 1996 continued its modest upward trend, rising to 1.9 million metric tons.(4)

Overall, the 1996 production from all metal mining is estimated to decrease by about 10 percent from 1995 levels; 1996 estimates put capacity utilization at 84 percent.(5) MSHA expects that the net result for the metal mining industry may be reduced demand but sustained prices.

Nonmetal Mining

Major commodities in the nonmetal category include salt, clay, phosphate rock, and soda ash. Market demand for these products tends not to vary greatly with fluctuations in aggregate demand. Stone is the leading revenue generator. The U.S. is the largest producer of soda ash and salt. In 1996, the U.S. produced 10.1 million metric tons of soda ash, valued at $778 million, and 40.1 million metric tons of salt, valued at $930 million.(6) Soda ash is used in the production of glass, soap, detergents, paper, and food. Salt is used in highway deicing, food production, feedstock, and the chemical industry. Phosphate rock is used primarily to manufacture fertilizer. Approximately 42.5 million metric tons of phosphate rock, valued at $900 million, was produced in the U.S. in 1996.(7) The remaining nonmetal commodities, which include boron fluorspar, oil shale, and other minerals, are typically produced by a small number of mining operations.

Stone production includes granite, limestone, marble, slate, and other forms of crushed and broken or dimension stone. Sand and gravel products and stone products, including cement, have a cyclical demand structure. As a recession intensifies, demand for these products sharply decreases. Demand for stone, particularly cement, is expected to grow by as much as 3.0 percent, and demand for sand and gravel is expected to grow by as much as 1.2 percent.(8)

Overall, the 1996 production from nonmetal mining was estimated to increase by 4.5 percent from 1995 levels; 1996 estimates put capacity utilization for stone and earth minerals at about 91 percent.(9) The net result for the nonmetal mining industry may be higher demand for stone and various other commodities, as well as increased prices.


III. BENEFITS

The proposed rule would reduce a significant health risk to underground miners, reducing the potential for illnesses and premature death, and the attendant costs thereof to their employers, their families, and society. MSHA estimates that approximately 17,000 miners who work in either surface or underground areas of underground M&NM mines are exposed to diesel emissions and thus are affected by this proposed rule. Of these 17,000 miners, MSHA estimates that approximately 9,400 work in underground areas and that, among these, approximately 80 percent (or 7,500) work in production or development areas, including haulageways, like those for which MSHA has collected measurements of diesel particulate matter concentration.

MSHA has described how the rule benefits these miners in general terms, beginning with the nature of the health risks the Agency is seeking to reduce with the proposed regulation. In addition, the Agency has performed a preliminary quantitative analysis and will refine the analysis, as appropriate, as the rulemaking proceeds. MSHA welcomes suggestions for refining the quantification of benefits likely to be derived from this rulemaking. Please identify scientific studies, models, and/or assumptions suitable for estimating risk at different exposure levels, and data on numbers of miners exposed to different levels of diesel particulate matter.

The risks being addressed by this rulemaking arise because some miners are exposed to extremely high concentrations of the very small particles produced by engines that burn diesel fuel. As discussed in part II of the preamble accompanying the proposed rule, diesel powered engines are used extensively in underground mining operations because they permit the use of mobile equipment and provide a full range of power for both heavy-duty and light-duty operations (i.e., for production equipment and support equipment, respectively), while avoiding the explosive hazards associated with gasoline. However, underground mines are confined spaces which, despite ventilation requirements, can accumulate significant concentrations of particles and gases -- both those produced by the mine itself (e.g., methane gas and mine dust liberated by mining operations) and those produced by equipment used in the mine (diesel particulate and exhaust gases).

It is widely recognized that respirable particles can create adverse health effects. Environmental regulations in effect for some years already restrict the exposure of the general public to particles less than 10 microns in diameter. Moreover, as discussed in part II of the preamble, evidence collected in recent years indicates that much of the health hazard is due to the smallest particles. Since airborne particles less than 2.5 micrometers in diameter have specifically been identified as posing significant health problems, further environmental restrictions have recently been established to limit public exposure to particles of this size range, which includes diesel particulate. This is in addition to a series of regulations issued over the years by the Environmental Protection Agency to directly limit the particulate output of new diesel powered engines.

Similarly, the need to control worker exposure to respirable dusts has long been recognized and implemented. However, while exposure of working miners to certain other respirable dusts is controlled (e.g., silica), there are no current restrictions specifically on occupational exposure to diesel particulate. Moreover, the rules limiting the particulate output of new diesel powered engines offer little prospect of immediate help since the mining industry has a fleet of engines that largely predate these rules.

In evaluating the health risks miners presently face, and the potential benefits of controlling that risk, it is particularly significant to note that the exposures of the underground mine population constitute a special class. Underground miners appear to be the population in the U.S. that is currently by far the most exposed to diesel particulate. The concentrations of diesel particulates to which some underground miners are currently exposed, are significantly higher than the concentrations reported for other occupational groups. Based upon MSHA field studies discussed in part III of the preamble, and as shown below in Figure III-1, median diesel particulate concentrations observed for underground miners in some mines are up to 200 times as high as average environmental exposures in the most heavily polluted urban areas and up to 10 times as high as median exposures estimated for the most heavily exposed workers in other occupational groups.

Figure III-I.--Range of average dpm exposures observed at various mines for underground and surface miners compared to range of average exposures reported for other occupations and for urban ambient air. Averages are represented by median observed within mines for mine workers, by median as estimated with geometric mean reported for other occupations, and, for ambient air in urban environments, by the monthly mean estimated for different months and locations in Southern California. The range estimated for urban ambient air is roughly I to 10 µg/m3.

As described in detail in MSHA's risk analysis (part III of the preamble), there are three general bodies of scientific information indicating that miners exposed at such levels are at significant excess risk of experiencing three kinds of material impairment to their health. First, even short term exposures can result in sensory irritations and respiratory symptoms. These include eye, nose, and throat irritations; reduced lung function; headaches, nausea, and/or vomiting; and chest tightness and wheeze. Besides being potentially debilitating, such effects can distract miners from their responsibilities in ways that could pose safety hazards for everyone in the mine. Second, there is evidence linking short or long term exposures to an increased risk of death from cardiovascular, cardiopulmonary, or respiratory causes. For each increase of 75 µg/m3 in the concentration of fine particulate matter over an 8 hour shift (roughly corresponding to an increase of 25 µg/m3 in 24 hour ambient concentration), the acute risk of death is estimated to increase by about 2.5 to 5 percent. Third, chronic occupational exposure has been linked to an estimated 30 to 40 percent increase in the risk of lung cancer. Although the scientific community has not established a definitive dose-response relationship for diesel particulate and lung cancer, NIOSH has concluded that miners are at an elevated risk of contracting lung cancer as a result of the very high exposures of this population to diesel particulate.

NIOSH has also reaffirmed its 1988 recommendation that whole diesel exhaust be regarded as a "potential occupational carcinogen," and that reductions in workplace exposure be implemented to reduce cancer risks. In addition, other organizations have recognized the potential harmful health effects of diesel particulate. In 1989, the International Agency for Research on Cancer declared that "diesel engine exhaust is probably carcinogenic to humans..." In 1995, the American Conference of Governmental Industrial Hygienists (ACGIH) added diesel particulate matter to its "Notice of Intended Changes" for 1995-96, recommending a threshold limit value (TLVR) for a conventional 8 hour work day of 150 micrograms per cubic meter of air (150dpm µg/m3). Germany already regulates exposure to diesel particulate, and Canada is looking closely at the problem.

Scientific evidence currently available may not be sufficient to generate conclusive dose/response estimates for exposure to diesel particulate matter. However, MSHA believes that evidence of adverse health effects arising from such exposure is strong, and that reducing miners' exposure to diesel particulate matter will reduce the number of sensory irritations and respiratory symptoms, reduce the number of deaths due to cardiovascular, cardiopulmonary, or respiratory causes, and reduce the number of lung cancers.

MSHA has calculated benefits in terms of the annual number of lung cancers avoided if a concentration limit of 200DPM µg/m3 (or 160TC µg/m3) is adopted. From Table II of Stayner et al. (1998)(10), the lowest estimate of lung cancer unit risk attributable to diesel particulate matter exposure is 10-4/µg/m3. This estimate assumes 45 years of occupational exposure, beginning at age 20, and the excess risk of dying from lung cancer is accumulated from age 20 up through age 85 - a span of 65 years. There are approximately 7,500 underground M&NM miners working in underground development or production areas, including haulageways, similar to areas where MSHA made its underground M&NM diesel particulate matter concentration measurements. Assuming that 7,500 affected miners are currently exposed to the mean concentration of 830 µg/m3 observed in MSHA's measurements, this unit risk yields an estimated 9.6 excess lung cancers per year if the rule is not implemented (10-4 excess lung cancers/µg/m3 x 830 µg/m3 x 7,500 exposed workers § 65 years = 9.6 excess lung cancers per year).

From Table IV of Stayner et al. (op. Cit.), the corresponding estimate for workers occupationally exposed to 200 µg/m3 is 21 excess lung cancers per 1,000 workers. This would amount to about 2.4 excess lung cancers per year for the population of 7,500 exposed miners (i.e., 21 x 7.5 § 65). Thus, under the assumptions described, implementation of the proposed rule would reduce incidents of lung cancer by approximately 7 per year over an initial 65-year period (9.6 under current conditions - 2.4 under proposed rule = 7). [In the long run, the average reduction approaches (9.6-2.4)(65/45) = 10 lung cancers avoided per year as the number of years considered increases beyond 65.] This is because, in the long run, each 45-year timespan includes not only lung cancers experienced by a current generation of working miners, but also lung cancers experienced by previous generations of retired miners. Note that because lung cancer associated with diesel particulate matter typically arises from cumulative exposure and after some latency period, these health benefits -- in terms of the reduced incidence of lung cancer illness and subsequent death -- will not materialize until some years after passage of the proposed rule. The yearly reduction in excess lung cancer deaths due to reduced exposure to diesel particulate matter may occur gradually, depending on the historical cumulative exposure to diesel particulate matter among the veteran workforce. Since the average latency period for lung cancer is 20-years, the full benefit associated with a concentration limit of 200 µg/m3 may not be seen before then.

The nature of the risks other than lung cancer suggests the nature of other benefits to be derived from controlling exposure, even though these cannot so readily be quantified. Acute reactions result in lost production time for the operator and lost pay (and perhaps medical expenses) for the worker. Hospital care for acute breathing crises or cancer treatment can be expensive, result in lost income for the worker, lost income for family members who need to provide care and lost productivity for their employers, and may well involve government payments (e.g., Social Security disability and Medicare). Serious illness and death lead to long term income losses for the families involved, with the potential for costs from both employers (e.g., workers' compensation payouts, pension payouts) and society as a whole (e.g., government assisted aid programs).

IV. COMPLIANCE COSTS

Introduction

This chapter contains MSHA's estimates of the compliance costs associated with the proposed rule, based on MSHA's traditional definition that small mine operators are those employing fewer than 20 employees. The baseline for these estimated costs are current industry practices. The proposed rule would impose compliance costs upon underground M&NM mine operators. A small amount of costs would be incurred by diesel powered engine manufacturers. Each provision that has compliance costs associated with it is discussed in this Part IV.

Methodology

MSHA estimated: (1) initial costs; (2) annualized costs (which are initial costs amortized over a specific number of years); and (3) annual costs.

Initial costs consist of: Expenditures for capital equipment that is not purchased annually; and one-time costs. Capital expenditures are defined as equipment purchase costs. One-time costs are costs, other than equipment costs, that are usually incurred once and do not reoccur annually. An example of a one-time cost would be the costs to develop a written procedural program.

Initial costs are amortized over a specific number of years to arrive at what is called annualized costs. All initial costs are annualized in order to recognize that business operations finance the purchase of durable equipment over a certain period of time, or that a plan or program developed in one year will be used for several years. For purposes of this rule, in addition to annualizing initial costs, a net present value factor was applied to those initial costs that mine operators do not have to incur to comply with the rule until some years after the effective date of the rule.

Converting an initial cost to an annualized cost changes that cost from one that does not reoccur annually to one that does reoccur annually. When initial costs are converted to annualized costs, the annualized costs are like annual costs and can be added directly to annual costs in order to get a cost per year of the rule that accounts for all of the costs in that rule.

Annual costs are those that normally reoccur annually. Examples of annual costs are maintenance costs, recordkeeping costs, and labor costs. Costs of non-durable equipment (with a useful life of less than one year) are also annual costs.

In this economic impact analysis, MSHA estimated compliance costs by making assumptions concerning the number of diesel powered machines that need to be retrofitted and the types of controls needed in order to meet the proposed concentration limits. MSHA's cost estimates for the controls are presented below. MSHA used an hourly compensation rate of $23 for a M&NM miner, $36 for a M&NM supervisor, and $17 for a secretary.(11) Also a 7 percent discount rate was used to convert initial costs into annualized costs and to compute present values of costs incurred later than the effective date of the rule.

The number of machines used in this analysis to determine compliance costs is based upon the MSHA inspector's January 1998 count of diesel powered equipment regularly used in underground M&NM mines. In addition, other assumptions are based upon information provided by MSHA's technical personnel and from trade journals associated with the mining industry. The Agency requests comments concerning all assumptions and estimates used in this cost analysis.

Summary of Estimated Compliance Costs

The estimated per-year compliance costs (annualized costs plus annual costs) for underground M&NM mine operators are approximately $19.2 million, of which large mine operators would incur approximately $14.6 million and small mine operators would incur approximately $4.6 million.

The largest cost item would involve the costs of bringing diesel particulate concentrations down to the concentration limits stated in proposed § 57.5060(a) and (b). Table IV-5, infra, breaks down that cost by type of equipment that would have to be installed. Under MSHA's assumptions, the largest cost item, in § 57.5060, for large and small mines would be annual costs for the replacement of ceramic filters, and the second largest cost item would be for improving mine ventilation systems.

Table IV-1 provides a breakdown of compliance cost by provision of the proposed rule between large and small underground M&NM mine operators.

TABLE IV-1 COMPLIANCE COSTS FOR UNDERGROUND METAL AND NONMETAL MINE OPERATORS (DOLLARS X 1,000)

Large Mines (> 20) Small Mines (< 20) Total Mines
Detail (A)
Total
[Col.B+C]
(B)
Annualized
(C)
Annual
(D)
Total
[Col.E+F]
(E)
Annualized
(F)
Annual
(G)
Total
[Col.H+I]
(H)
Annualized
(I)
Annual
57.5060(a) $8,369 $8,369 $0 $2,677 $2,677 $0 $11,046 $11,046 $0
57.5060(b) $4,910 $4,910 $0 $1,627 $1,627 $0 $6,537 $6,537 $0
57.5060(c) $10 $10 $0 $2 $2 $0 $12 $12 $0
57.5062 $5 $0 $5 $1 $0 $1 $6 $0 $6
57.5066 $30 $25 $5 $8 $6 $2 $38 $31 $7
57.5067 $731 $731 $0 $121 $121 $0 $852 $852 $0
57.5070 $198 $0 $198 $5 $0 $5 $203 $0 $203
57.5071 $364 $25 $339 $122 $0 $122 $486 $25 $461
57.5075 $3 $0 $3 $1 $0 $1 $4 $0 $4
Total $14,620 $14,070 $550 $4,564 $4,433 $131 $19,184 $18,503 $681

The following exposition of costs groups the regulatory provisions into several categories. These are:

Proposed § 57.5060 AND 57.5067
Engineering Controls to Meet Limits on Concentration of Diesel Particulate Matter and MSHA Certification Requirements

Overview

In order to comply with the proposed concentration limits stated in § 57.5060, both large and small underground M&NM mine operators would incur compliance costs related to placing engineering controls on diesel machinery in underground M&NM mines. These engineering controls include placing new engines, filters, oxidation catalytic converters, and cabs on diesel powered machines.

Inventory

Based upon MSHA's inspector's January 1998 count of diesel powered equipment regularly used in underground M&NM mines, there are 4,087 diesel powered machines that are regularly utilized in 203 underground M&NM mines (82 small mines and 121 large mines) that use diesel powered equipment. Of these 4,087 machines, large underground mine operators account for 3,471 machines, and small mine operators account for 616 machines.

The principal need is for engineering controls on two types of production equipment. These two types are: production vehicles currently equipped with engines that are greater than 150 horsepower (hp), and production vehicles currently equipped with engines that are less than 150 hp. In addition, a small percentage of diesel vehicles used for support purposes would need engineering controls.

Of the 3,471 machines in large mines, 967 are production vehicles currently equipped with engines that are greater than 150 hp, 478 are production vehicles currently equipped with engines that are less than 150 hp, and 2,026 are vehicles used for support purposes.

Of the 616 machines in small mines, 276 are production vehicles currently equipped with engines that are greater than 150 hp, 50 are production vehicles currently equipped with engines that are less than 150 hp, and 290 are vehicles used for support purposes.

Assumptions

In order to meet the final concentration limit in the proposed rule, MSHA estimated the following.

Large mines

MSHA estimates that large underground M&NM mine operators would need to:

install low emission engines on:

install ceramic filters (assume 80% efficiency) on:

install oxidation catalytic converters on:

install cabs on:

Small Mines

MSHA estimates that small underground M&NM mine operators would need to:

install low emission engines on:

install ceramic filters (assume 80% efficiency) on:

install oxidation catalytic converters on:

install cabs on:

Phase-in Period

MSHA assumes that half of the diesel powered equipment that would need to be fitted with engineering controls would be done by the date the interim concentration limit goes into effect (18 months after the effective date of the rule), and the remaining half would be installed by the date of the final concentration limit (5 years after the effective date of the rule).

Table of Equipment Needing Controls

The aforementioned assumptions were used to construct Table IV-2. The table, for example, shows that there are 967 diesel machines in large mines equipped with engines greater than 150 hp. By the date the final concentration limit would go into effect, MSHA estimated that 75 percent of these machines (or 725 machines) would need to replace existing engines with low emission engines. Thus, by the end of the interim period half of the 725 machines (or 362 machines) would need to replace existing engines with low emission engines.

Table IV-2:
Diesel Machines that are Estimated to need Engineering Controls

Diesel Controls Large Mines
(> 20 employees)
Small Mines
(< 20 employees)
Production Support Production Support
>150 hp <150 hp >150 hp <150 hp
Total Diesel
Equipment
967 478 2,026 276 50 290

Listed Below are the Number of Diesel Machines
that MSHA estimates would be need Controls
By the date of the Interim Concentration Limit

Low Emission Engines (37.5%)
362
(50%)
239
(1.25%)
25
(45%)
124
(50%)
25
--
Ceramic Filters (37.5%)
362
(37.5%)
179
(1.25%)
25
(37.5%)
103
(37.5%)
19
--
Oxidation Catalytic Converters (50%)
483
(50%)
239
-- (50%)
138
(50%)
25
--
Cabs (10%)
96
-- (2.5%)
50
-- -- (2.5%)
7

Listed Below are the Number of Diesel Machines
that MSHA estimates would need Controls
By the date of the Final Concentration Limit

Low Emission Engines (75%)
725
(100%)
478
(2.5%)
50
(90%)
248
(100%)
50
--
Ceramic Filters (75%)
725
(75%)
358
(2.5%)
50
(75%)
207
(75%)
38
--
Oxidation Catalytic Converters (100%)
967
(100%)
478
-- (100%)
276
(100%)
50
--
Cabs (20%)
193
-- (5%)
101
-- -- (5%)
14

Engines Required by §§ 57.5060 and 57.5067

As noted above, one of the engineering controls needed to meet the proposed concentration limits in § 57.5060 is to replace certain engines in existing diesel machines with low emission engines. With respect to engine replacement due to § 57.5060, the mine operator is replacing an existing engine that has not reached the end of its useful life with a low emission engine in order to meet the proposed concentration limit time periods. On average, MSHA estimates the cost of a low emission engine to be $21,000, if the machine has an engine greater than 150 hp, and $12,500 if the machine has an engine less than 150 hp.

In addition, proposed § 57.5067 requires that any diesel engine introduced into an underground area of a M&NM mine property after the effective date of the rule, and intended for continuous use, must be approved by MSHA pursuant to 30 CFR part 7, subpart E, or 30 CFR part 36. Thus, MSHA approved (low emission) engines must be used to replace existing engines when they reach the end of their useful life. MSHA estimates that engine manufacturers add approximately $2,500 to the average price of an engine used in an underground M&NM mine to cover the cost of getting approval. (Note that no engines are originally designed and produced exclusively for the mining industry. Engines used in the mining industry are made for over-the-road applications, for use in buses, trucks, and bulldozers, and marketed both domestically and internationally.) Thus, MSHA estimates that the difference between an MSHA approved engine (required by § 57.5067) and one that is not MSHA approved is about $2,500. Proposed § 57.5067 requires a mine operator who is replacing a machine that has reached the end of its useful life to use an MSHA approved engine in the replacement machine; thus, the only difference in compliance costs as a result of the proposed rule would be the cost difference between an MSHA approved engine and one that is not MSHA approved (or $2,500).

In determining the number of engines that need to be replaced under proposed § 57.5067 or § 57.5060, MSHA has recognized that the requirements are interrelated. Some of the existing diesel engines which MSHA estimates will be replaced with low emission engines in order to meet the interim or final concentration limit (i.e., the engines indicated in Table IV-2), would need to be replaced before the machines reach the end of their useful lives. In this case, the cost attributable to an engine is estimated to be either $12,500 or $21,000 (depending upon horsepower). However, some of those being replaced would be replacements for engines that had to be replaced anyway because they were at the end of their useful lives. In this latter case, the cost attributable to the engine would be only $2,500.

Based on the assumption that 10 percent of the existing equipment will need to be replaced by the end of each year, MSHA has constructed two tables (Table IV-3 for large mines and Table IV-4 for small mines) that indicate the allocation of engine replacements between § 57.5067 and § 57.5060.

The following example is given to help explain the process that derived the numbers that appear in Tables IV-3 and IV-4. Table IV-3 shows, for large mines, that by the end of the fifth year 725 diesel production machines with an engine horsepower of greater than 150 are estimated to need low emission engines in order to meet the proposed final concentration limit. By the date of the interim concentration limit (which is half way through the second year) 362 machines need to be replaced with low emission engines. Also, in each of the five years leading up to the effective date of the final concentration limit, 10 percent of the 725 machines (or 72 machines) are estimated to have engines that have reached the end of their useful life and thus would need to be replaced with an MSHA approved engine in accordance with § 57.5067. Since 72 machines are assumed to be replaced in the first year and would be costed out under § 57.5067, only 290 machines (362-72) would need low emission engines costed out under § 57.5060 in order to meet the interim concentration limit. At the start of the fifth year 578 machines have already been replaced with low emission engines and 72 more machines are scheduled to be done in year five. Therefore, by the end of the fifth year 75 machines [725 - (578 + 72)] would need low emission engines in year 5 that would be costed out under § 57.5060 in order to meet the final concentration limit.

Thus, costing out engines in each year under § 57.5067 has the effect of reducing the number of engines that have to be costed out due to § 57.5060. This is because as a practical matter, an MSHA approved engine is a low emission engine, so that a new engine introduced under § 57.5067 will count toward the number of low emission engines estimated to be needed for § 57.5060.

Table IV-3:
Large Mines Engine Replacement to Meet Interim and Final Concentration Limits

Low Emission Engines
During Year
Low Emission Engines
Cumulative
Replaced
Due to
§57.5067
Replaced
Due to
§57.5060
Existing
at Start
of Year
Required
by
§57.5060
Production
Engines
(> 150 hp)
Year 1 72 -- -- --
Year 2 72 290 362 362
Year 3 72 -- 434 --
Year 4 72 -- 506 --
Year 5 72 75 578 --
By End of Year 5 725 725
Production
Engines
(< 150 hp)
Year 1 47 -- -- --
Year 2 47 192 239 239
Year 3 47 0 286 --
Year 4 47 0 333 --
Year 5 47 51 380 --
By End of Year 5 478 478
Support
Engines
Year 1 5 -- -- --
Year 2 5 20 25 25
Year 3 5 -- 30 --
Year 4 5 -- 35 --
Year 5 5 5 40 --
By End of Year 5 50 50

Table IV-4:
Small Mines Engine Replacement to Meet Interim and Final Concentration Limits

Low Emission Engines
During Year
Low Emission Engines
Cumulative
Replaced
Due to
§57.5067
Replaced
Due to
§57.5060
Existing
at Start
of Year
Required
by
§57.5060
Production
Engines
(> 150 hp)
Year 1 25 -- -- --
Year 2 25 99 124 124
Year 3 25 -- 149 --
Year 4 25 -- 174 --
Year 5 25 24 199 --
By End of Year 5 248 248
Production
Engines
(< 150 hp
Year 1 5 -- -- --
Year 2 5 20 25 25
Year 3 5 -- 30 --
Year 4 5 -- 35 --
Year 5 5 5 40 --
By End of Year 5 50 25

Proposed § 57.5060 Costs

Below are the compliance costs for § 57.5060. After all compliance costs attributable to § 57.5060 are derived, then compliance costs for § 57.5067 will be presented.

Engine Costs under Proposed § 57.5060

As noted earlier, MSHA estimated that a low emission engine would cost $21,000 if the machine has an engine greater than 150 hp, and $12,500 if the machine has an engine less than 150 hp. Also, MSHA estimates that there are no annual maintenance costs associated with the low emission engines above the regular maintenance already needed for an engine. On average, the engines are estimated to have a life of 10 years, thus, the engine costs are annualized at a rate of 0.142.

Furthermore, compliance costs under § 57.5060 occur in different years. Costs during the interim period would occur 18 months after the effective date of the rule and the remaining § 57.5060 costs would need to be incurred by the end of the fifth year of the rule. Costs that occur in different years are not directly comparable, but they can be made comparable by computing their present values. Discounting future costs is accomplished by multiplying those costs by a discount factor equal (at a discount rate of 7 percent) to: 1/(1.07)n, where (n) is the number of years after the effective date. Thus for the interim period a net present value factor of 0.934 was used, for the final period a net present value factor of 0.713 was used.

Table IV-3 for large mines and Table IV-4 for small mines shows the number of machines that need to have engines replaced. These numbers are used below to figure engine costs under § 57.5060.

The total annualized initial costs (TAIC), adjusting for net present value, for the interim period for large mine operators are computed as follows:

TAIC = [(290 engines x $21,000) + (192 engines x $12,500)
+ (20 engines x $12,500)] x 0.142 x 0.934
= $1,159,200

The total annualized initial costs (TAIC), adjusting for net present value, for the final period for large mine operators are computed as follows:

TAIC = [(75 engines x $21,000) + (51 engines x $12,500)
+ (5 engines x $12,500)] x 0.142 x 0.713

= $230,300

Thus, the total annualized initial costs (TAIC), adjusted for net present value, for large mine operators to replace engines pursuant to § 57.5060 would be $1,389,500 ($1,159,200 + $230,300).

The total annualized initial costs (TAIC), adjusting for net present value, for the interim period for small mine operators are computed as follows:

TAIC = [(99 engines x $21,000) + (20 engines x $12,500)]
x 0.142 x 0.934
= $308,900

The total annualized initial costs (TAIC), adjusting for net present value, for the final period for small mine operators are computed as follows:

TAIC = [(24 engines x $21,000) + (5 engines x $12,500)]
x 0.142 x 0.713
= $57,400

Thus, the total annualized initial costs (TAIC), adjusted for net present value, for small mine operators to replace engines pursuant to § 57.5060 would be $366,300 ($308,900 + $57,400).

Other Engineering Controls under Proposed § 57.5060

Besides low emission engines, filters, oxidation catalytic converters, and cabs would be needed to be placed on the diesel equipment noted in Table IV-2 in order to meet the proposed concentration limits in § 57.5060. These compliance costs were annualized over a 15 year period (noted in Appendices A1 through A10) in order to adjust for the fact that no compliance costs occur in the first four years of the final period. A 15 year period more accurately reflects the effect of these 57.5060 costs.

Costs of Filters under Proposed § 57.5060

For costing purposes, the types of filters MSHA estimated to be fitted on diesel powered equipment in underground M&NM mines are ceramic filters. On average, to purchase and install a ceramic filter on a diesel production machine that has an engine greater than 150 horsepower (hp) is estimated to cost about $10,000. To purchase and install a ceramic filter on a diesel production machine that has an engine less than 150 hp and on diesel machines used for support purposes is estimated to cost about $5,000. Maintenance is estimated to be 10 percent of the original purchase and installation price, or $1,000 for the $10,000 filters and $500 for the $5,000 filters. Filters are estimated to have a life of one year.

For large mine operators there are 725 machines with engines greater than 150 hp and 408 machines with engines less than 150 hp that are estimated to need filters. MSHA assumes that half of the machines in each category would need filters by the end of the interim period and the remaining half would need filters by the final period. Thus, for the interim period 362 machines with hp greater than 150, and 204 machines with hp less than 150, would need filters. While for the final period 363 remaining machines with hp greater than 150, and 204 remaining machines with hp less than 150, would need filters.

For large mine operators, the annualized compliance costs to place filters on diesel powered machines would be $8,251,200, of which $5,063,800 would be incurred for the interim period and $3,187,400 would be incurred for the final period. To determine the annualized compliance costs, the cost to purchase the filters are calculated for a 15 year period using net present value factors, then the costs are summed and multiplied by a 15 year annualization factor of 0.109. For large mine operators, the derivation of the compliance costs to put filters on diesel powered machines are shown at the end of this part IV analysis, in Appendix (A-1).

For small mine operators there are 207 machines with engines greater than 150 hp and 38 machines with engines less than 150 hp that are estimated to need filters. MSHA assumes that half of the machines in each category would need filters by the end of the interim period and the remaining half would need filters by the final period. Thus, for the interim period 103 machines with hp greater than 150, and 19 machines with hp less than 150, would need filters. While for the final period 104 remaining machines with hp greater than 150, and 19 remaining machines with hp less than 150, would need filters.

For small operators, the annualized compliance costs to place filters on diesel powered machines would be $2,005,800, of which $1,227,800 would be incurred for the interim period and $778,000 would be incurred for the final period. The same methodology for determining filter compliance costs for large mine operators is also used for small mine operators. For small mine operators, the derivation of compliance costs to put filters on diesel powered machines are shown at the end of this part IV analysis, in Appendix (A-2).

Costs of Oxidation Catalytic Converters (OCC's) under Proposed § 57.5060

On average, to purchase and install an OCC is estimated to cost about $1,000. There are no annual maintenance costs associated with the OCC. The estimated life of an OCC used to control diesel particulate matter is one year.

For large mine operators there are 1,445 machines that would need an OCC. MSHA assumes that half of the machines would need an OCC by the end of the interim period and the remaining half would need an OCC by the final period. Thus, for the interim period 722 machines would need OCC's. While for the final period 723 remaining machines would need OCC's.

For large mine operators, the annualized compliance costs to place OCC's on diesel powered machines would be $1,166,800, of which $716,300 would be incurred for the interim period and $450,500 would be incurred for the final period. Annualized compliance costs were derived using the same methodology that was used to determine the costs to put filters on machines. For large mine operators, the derivation of compliance costs to put OCC's on diesel powered machines are shown at the end of this part IV analysis, in Appendix (A-3).

For small mine operators there are 326 machines that would need an OCC. MSHA assumes that half of the machines would need an OCC by the end of the interim period and the remaining half would need an OCC by the final period. Thus, for the interim period 163 machines would need OCC's. While for the final period 163 remaining machines would need filters.

For small mine operators, the annualized compliance costs to place OCC's on diesel powered machines would be $263,300, of which $161,700 would be incurred for the interim period and $101,600 would be incurred for the final period. Annualized compliance costs were derived using the same methodology that was used to determine the costs to put filters on machines. For small mine operators, the derivation of compliance costs to place OCC's on diesel powered machines are shown at the end of this part IV analysis, in Appendix (A-4).

Costs of Cabs under Proposed § 57.5060

On average, it is estimated to cost about $7,500 to purchase and install a cab on a diesel powered machine. Cabs are estimated to have a life of 10 years.

With respect to large mine operators, there are 294 machines that would need cabs. MSHA assumes that half of the machines (147 machines) would need cabs by the end of the interim period, and the remaining half (147 machines) would need cabs by the end of the final period.

For large mine operators, for the interim period, the total annualized initial costs (TAIC) for cabs are computed as follows:

TAIC = [(147 cabs x $7,500/cab) x 0.142 x 0.934]
= $146,200

For large mine operators, for the final period, the total annualized initial costs (TAIC) for cabs are computed as follows:

TAIC = [(147 cabs x $7,500/cab) x 0.142 x 0.713]
$111,600

In addition to the cost of a cab, large mine operators would also incur compliance costs for the annual maintenance of the cabs. The annual maintenance is estimated to be 10 percent of the purchase and installation price of the cab or $750. For large mine operators, the compliance costs for cab maintenance would be $109,400, for the interim period and $68,700 for the final period. The derivation of the maintenance costs for cabs for large mine operators are shown at the end of this part 4 analysis, in Appendix A-5.

Thus, the total annualized compliance costs for large mine operators for the purchase of cabs and annual maintenance for the interim period would be $255,600 ($146,200 + $109,400), and for the final period total annualized compliance costs would be $180,300 ($111,600 + $68,700).

With respect to small mine operators, there are 14 machines that would need cabs. MSHA assumes that half of the machines (7 machines) would need cabs by the end of the interim period, and the remaining half (7 machines) would need cabs by the end of the final period.

For small mine operators, for the interim period, the total annualized initial costs (TAIC) for cabs are computed as follows:

TAIC = [(7 cabs x $7,500/cab) x 0.142 x 0.934]
$7,000

For small mine operators, for the final period, the total annualized initial costs (TAIC) for cabs are computed as follows:

TAIC = [(7 cabs x $7,500/cab) x 0.142 x 0.713]
$5,300

In addition to the cost of a cab, small mine operators would also incur compliance costs for the annual maintenance of the cabs. The annual maintenance is estimated to be 10 percent of the purchase and installation price of the cab or $750. For small mine operators, the compliance costs for cab maintenance would be $5,200, for the interim period and $3,300 for the final period. The derivation of the maintenance costs for cabs for small mine operators are shown at the end of this part 4 analysis, in Appendix A-6

Thus, the total annualized compliance costs for small mine operators for the purchase of cabs and annual maintenance for the interim period would be $12,200 ($7,000 + $5,200), and for the final period total annualized compliance costs would be $8,500 ($5,200 + $3,300).

Costs for Mine Ventilation Changes under Proposed § 57.5060

In addition to the engineering controls noted above, some mines would need to purchase and install an additional fan and motor, while other would need just to purchase and install an additional motor. MSHA assumed that:

For 82 small mine operators,

All mine operators noted above will require additional electrical costs related to the installation of a motor.

Purchase and installation of a fan and motor is estimated to cost about $230,000. Purchase and installation of a 250 horsepower motor only is estimated to cost about $21,000. Mine fans and motors are estimated to last for 20 years, and thus cost are annualized by a 20 year annualization factor of 0.094. Costs incurred during the interim and final periods are multiplied by a net present value factor of 0.934, and 0.713, respectively.

With respect to large mines, MSHA assumes that about half of those affected, 7 mines that need a new fan and motor system, and 39 mines that need a new motor only, would make the ventilation changes by the interim period. The remaining half of affected mines, 8 mines that need a new fan and motor system, and 40 mines that need a new motor only, would make such ventilation changes by the final period.

For large mine operators, the total annualized initial costs (TAIC), for the purchase and installation of fans and motors, for the interim period, are computed as follows:

TAIC = [7 systems x $230,000/system x 0.094 x 0.934]
+ [39 motors x $21,000/motor x 0.094 x 0.934]
= $213,300

For large mine operators, the total annualized initial costs (TAIC), for the purchase and installation of fans and motors, for the final period, are computed as follows:

TAIC = [8 systems x $230,000/system x 0.094 x 0.713]
+ [40 motors x $21,000/motor x 0.094 x 0.713]
= $179,600

In addition to the above costs large mine operators will incur compliance costs for the electricity to run the 46 motors (7 + 39) purchased in the interim period, and the 48 motors (8 + 40) purchased in the final period. The increased electrical costs to run the additional purchased motors are estimated to be about $21,000 annually. For large mine operators, the increased annualized costs attributed to the electricity to run the additional fans and motors, would be about $961,200 for the interim period, and $682,200 for the final period. The derivation of these electrical compliance costs for large mine operators are shown at the end of this part 4 analysis, in Appendix A-7 for the interim period and Appendix A-8 for the final period.

Thus, total annualized costs for ventilation changes for large mine operators for the interim period would be about $1,174,500 ($213,300 + $961,200), and for the final period total annualized costs would be about $861,800 ($179,600 + $682,200).

With respect to small mines, MSHA assumes that about half of those affected, 13 mines that need a new fan and motor system, and 19 mines that need a new motor only, would make the ventilation changes by the interim period. The remaining half of affected mines, 13 mines that need a new fan and motor system, and 19 mines that need a new motor only, would make such ventilation changes by the final period.

For small mine operators, the total annualized initial costs (TAIC), for the purchase and installation of fans and motors, for the interim period, are computed as follows:

TAIC = [13 systems x $230,000/system x 0.094 x 0.934]
+ [19 motors x $21,000/motor x 0.094 x 0.934]
= $297,500

For small mine operators, the total annualized initial costs (TAIC), for the purchase and installation of fans and motors, for the final period, are computed as follows:

TAIC = [13 systems x $230,000/system x 0.094 x 0.713]
+ [19 motors x $21,000/motor x 0.094 x 0.713]
= $227,100

In addition to the above costs small mine operators will also incur compliance costs for the electricity to run the 32 motors (13 + 19) purchased in the interim period, and the 32 motors (13 + 19) purchased in the final period. The increased electrical costs to run the additional purchased motors are estimated to be about $21,000 annually. For small mine operators, the increased annualized costs attributed to the electricity to run the additional fans and motors, would be about $668,600 for the interim period, and $454,800 for the final period. The derivation of these electrical compliance costs for small mine operators are shown at the end of this part 4 analysis, in Appendix A-9 for the interim period and Appendix A-10 for the final period.

Thus, total annualized costs for ventilation changes for small mine operators for the interim period would be about $966,100 ($297,500 + $668,600), and for the final period total annualized costs would be about $681,900 ($227,100 + $454,800).

Cost Summary of Proposed § 57.5060

Table IV-5 summarizes the per year compliance costs for proposed § 57.5060. The costs in Table IV-5 include costs of both the interim and final period.

Table IV-5:
Total Proposed §§ 57.5060 Compliance Costs for Large and Small Affected Underground M&NM Mines

§57.5060 Large Mines
>(> 20 employees)
Small Mines
(< 20 employees)
All Affected
Mines
Engines $1,389,500 $366,300 $1,755,800
Filters $8,251,200 $2,005,800 $10,257,000
OCC's $1,166,800 $263,300 $1,430,100
Cabs $435,900 $20,700 $456,600
Ventilation $2,036,300 $1,648,000 $3,684,300
Total Costs For
§ 57.5060
$13,279,700 $4,304,100 17,583,800

Proposed § 57.5067 Costs

Engines

Under § 57.5067 any diesel engine introduced into an underground area of a M&NM mine property after the effective date of the rule, and intended for continuous use, must be approved by MSHA pursuant to 30 CFR part 7, subpart E, or 30 CFR part 36.

Large Mine Operators

Table IV-2 shows 3,471 (967 + 478 + 2,026) existing diesel machines in large mines, of which 1,253 (725 + 478 + 50) of them would need low emission engines during the first five years the rule is effective in order to meet the proposed concentration limits. Therefore, 2,218 (3,471 - 1,253) remaining machines would need low emission engines under § 57.5067. As noted earlier, engines are replaced under § 57.5067 when they reach the end of their useful life, and MSHA assumed that 10 percent of such machines would be replaced annually. Thus, of the 2,218 machines, about 221 would need engines replaced annually over a ten year period.

In addition, Table IV-3 shows that 124 (72 + 47 + 5) diesel machines in large mines would need low emission engines pursuant to § 57.5067 during each of the first 5 years that the rule is in effect. Although these engines were included in the group of engines that needed to be replaced to meet the proposed concentration limits, they were not costed out earlier because they are related to § 57.5067.

Therefore, for the first 5 years in which the rule is effective 345 (221 + 124) machines, per year, would need low emission engines due to § 57.5067, then from the 6th through the 10th year only 221 machines, per year, would need low emission engines pursuant to § 57.5067.

As discussed earlier, MSHA assumed the cost to replace an engine under § 57.5067 is $2,500, (which is the estimated difference between an MSHA approved engine and one that is not MSHA approved). Based on the assumption that the average engine life is 10 years, costs are multiplied by an annualization factor of 0.142. In addition, net present value factors are used to make costs that are incurred in different years comparable.

The total annualized initial costs (TAIC), adjusted for net present value, for large mine operators are computed as follows:

TAIC = (345 engines x $2,500) x 0.934 = $805,575
(345 engines x $2,500) x 0.873 = $752,963
(345 engines x $2,500) x 0.816 = $703,800
(345 engines x $2,500) x 0.762 = $657,225
(345 engines x $2,500) x 0.713 = $614,963
(221 engines x $2,500) x 0.666 = $367,965
(221 engines x $2,500) x 0.622 = $343,655
(221 engines x $2,500) x 0.582 = $321,555
(221 engines x $2,500) x 0.544 = $300,560
(221 engines x $2,500) x 0.508 = $280,670
$5,148,931
$5,148,931 x 0.142
Compliance Costs (Rounded) = $731,100

Small Mine Operators

Table IV-2 shows 616 (276 + 50 + 290) existing diesel machines in small mines, of which 298 (248 + 50) of them would need low emission engines during the first five years the rule is effective in order to meet the proposed concentration limits. Therefore, 318 (616 - 298) remaining machines would need low emission engines under § 57.5067. Based on the assumption that 10 percent of such machines would be replaced annually, then of the 318 machines, about 31 would need engines replaced annually over a ten year period.

In addition, Table IV-4 shows that 30 (25 + 5) diesel machines in small mines would need low emission engines pursuant to § 57.5067 during each of the first 5 years that the rule is in effect. Although these engines were included in the group of engines that needed to be replaced to meet the proposed concentration limits, they were not costed out earlier because they are related to § 57.5067.

Therefore, for the first 5 years in which the rule is effective 61 (31 + 30) machines, per year, would need low emission engines due to § 57.5067, then from the 6th through the 10th year only 31 machines, per year, would need low emission engines pursuant to § 57.5067.

As discussed earlier, MSHA assumed the cost to replace an engine under § 57.5067 is $2,500, (which is the estimated difference between an MSHA approved engine and one that is not MSHA approved). Based on the assumption that the average engine life is 10 years, costs are multiplied by an annualization factor of 0.142. In addition, net present value factors are use to make costs that are incurred in different years comparable.

The total annualized initial costs (TAIC), adjusted for net present value, for small mine operators are computed as follows:

TAIC = (61 engines x $2,500) x 0.934 = $142,435
(61 engines x $2,500) x 0.873 = $133,133
(61 engines x $2,500) x 0.816 = $124,440
(61 engines x $2,500) x 0.762 = $116,205
(61 engines x $2,500) x 0.713 = $108,733
(31 engines x $2,500) x 0.666 = $51,615
(31 engines x $2,500) x 0.622 = $48,205
(31 engines x $2,500) x 0.582 = $45,105
(31 engines x $2,500) x 0.544 = $42,160
(31 engines x $2,500) x 0.508 = $39,370
$851,401
$851,401 x 0.142
Compliance Costs (Rounded) = $121,000

Thus, the total annualized initial costs (TAIC), adjusted for net present value, for large and small mine operators to comply with § 57.5067 would be about $852,100 ($731,100 + $121,000).

The above § 57.5067 costs account for the first round of replacement of engines under this rule. MSHA estimates that incremental regulatory costs of subsequent engine replacements will be negligible. Several factors lead to this judgement.

Proposed § 57.5060(c)

Extension Application

If, as a result of technological constraints, a mine operator requires additional time to come into full compliance

with the final limit (160TC µg/m3), the mine operator may file an application with the Secretary for a special extension. The proposed rule provides for no more than one extension, for no more than two years.

MSHA does expect that some underground M&NM mine operators will need to apply for an extension under this section. MSHA assumes that 10 percent of both large and small underground M&NM mine operators (12 large mines and 8 small mines) would need to file for an extension.

Since the 160TC µg/m3 level does not take effect until 5 years after the rule's effective date, MSHA assumes that the filing of the application and any other compliance costs associated with it will not take place until at least 4 years after the rule becomes effective. Thus the compliance costs associated with paragraph (c) are multiplied by a net present value factor of 0.762 [1/(1.07)4] to account for the four-year lag until MSHA estimates that costs will be incurred. Also, the compliance costs in paragraph (c) are multiplied by a 7 percent annualization factor to reflect the fact that such costs are not ongoing. MSHA annualized the estimated initial compliance costs for proposed § 57.5060(c). There are no estimated annual compliance costs for this section.

Proposed § 57.5060(c)(1) through (c)(4)(I)

Preparation and Filing of Extension Application

The affected mine operators would incur compliance costs associated with preparing and filing an application requesting an extension for complying with the 160TC µg/m3 level. MSHA makes the following estimates and assumptions about this process:

The total annualized initial costs (TAIC) for affected large mine operators are computed as follows:

TAIC = [12 mines x 0.762 x 0.07] x
[(16 hours x $36/hour) + (0.1667 hours x $17/hour)
+ (10 pages x $0.15/page)]
= $400

The total annualized initial costs (TAIC) for affected small mine operators are computed as follows:

TAIC = [8 mines x 0.762 x 0.07] x
[(8 hours x $36/hour) + (0.1667 hours x $17/hour)
+ (10 pages x $0.15/page)]
= $100

The total annualized initial costs (TAIC) for large and small mine operators to prepare an application are $500.

Proposed § 57.5060(c)(4)(ii)

Provide Copy of Extension Application to the Miner Representative

This section requires that the mine operators filing an application for extension must provide a copy of the application to the miners' representative. MSHA makes the following estimates concerning this provision:

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [(12 mines x 0.762 x 0.07] x
[(0.1667 hours x $17/hour) + (10 pages x $0.15/page)]
= > $25

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [(8 mines x 0.762 x 0.07] x
[(0.1667 hours x $17/hour) + (10 pages x $0.15/page)]
= < $25

The total annualized initial costs (TAIC) for large and small mine operators to provide a copy of the application to the miners' representative are not more than $100.

Proposed § 57.5060(c)(4)(ii) and (c)(5)

Post Copy of Original and Approved Extension Applications

These sections require that mine operators filing an application for extension must post both the original and approved applications. MSHA estimates that it will take 5 minutes (0.0833 hours) for a secretary, earning $17 per hour, to post an application.

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [12 mines x 0.762 x 0.07] x
[((0.0833 hours x $17/wage) + (10 pages x $0.15/page)) x 2 applications]
[(0.1667 hours x $17/hour) + (10 pages x $0.15/page)]
= < $25

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [8 mines x 0.762 x 0.07] x
[((0.0833 hours x $17/wage) + (10 pages x $0.15/page)) x 2 applications]
= < $25

The total annualized initial costs for large and small mine operators to post applications are not more than $100.

Proposed § 57.5060(c)

Respirators

MSHA assumes for costing purposes that mine operators which file for an extension of time to meet the final concentration limit will be granted that extension. The Agency further assumes for costing purposes that the extension will last for 2 years and will require miners to use respirators in the mine during the extension period in a manner that complies with applicable MSHA standards. These mine operators will need to write standard operating procedures governing the selection, use, and care of respirators. MSHA estimates that it will take a supervisor no longer than 5 hours to write such a program, and that the program will be written in the fourth year after the effective date in order to be ready 5 years after the effective date of the rule.

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [12 mines x 0.762 x 0.07] x
[5 hours x $36/hour]
= $100

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [8 mines x 0.762 x 0.07] x
[5 hours x $36/hour] >
= $100

The total annualized initial costs (TAIC) for large and small mine operators of writing standard procedures are about $200.

Each miner who uses a respirator must be trained concerning the device. MSHA estimates that underground M&NM miners would need to wear respiratory protection devices on one shift in each production area, and that anywhere from 6 to 10 miners (for an average of 8 miners) can be in a production area. Thus large mine operators, which on average are estimated to have 2 production areas, would each need to train 16 miners, and small mine operators, which on average are estimated to have 1 production area, would each need to train 8 miners. MSHA estimates that training will occur once and will take about 45 minutes (0.75 hours). A supervisor could give the training.

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [12 mines x 0.762 x 0.07] x
[(16 miners x 0.75 hours x $23/hour)
+ (1 sup. x 0.75 hours x $36/hour)]
= $200

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [8 mines x 0.762 x 0.07] x
[(8 miners x 0.75 hours x $23/hour)
+ (1 sup. x 0.75 hours x $36/hour)]
= $100

The total annualized initial costs (TAIC) for large and small mine operators for respiratory training are about $300.

Miners using respirators must also be fit tested, and a record must be made of the fit testing. The record is done simultaneously as the fit test is performed. Fit testing needs only to be done once, and MSHA estimates it will take 15 minutes (0.25 hours) for each affected miner and his supervisor.

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [12 mines x 0.762 x 0.07] x
[(16 miners x 0.25 hours x $23/hour)
+ (1 sup. x $36/hour x 16 miners x 0.25 hours)]
= $200

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [8 mines x 0.762 x 0.07] x
[(8 miners x 0.25 hours x $23/hour)
+ (1 sup. x $36/hour x 8 miners x 0.25 hours)]
= $50

The total annualized initial costs (TAIC) for large and small mine operators for fit testing and recording are about $250.

Each miner must also be outfitted with a respirator. The cost to purchase a half mask, negative air purifying respirator is estimated to be about $29. The respirator is estimated to have a life of one year and thus will need to be purchased in each of the two years of the extension period. A disposable cartridge costing about $10 is needed for the respirator. The cartridges are estimated to last for 2 weeks. On an annual basis, assuming large mine operators, on average, operate for 50 weeks and small mine operators, on average, operate for 40 weeks, cartridge replacement will occur 25 times per year for each miner, in a large mine and 20 times per year for each miner, in a small mine. Respirators will need to be purchased in the fifth and sixth year of the rule's effective date, thus, net present value factors of 0.714 and 0.666 are used. Also, since costs are not reoccurring after the second year of using the respirators, an annualization factor of 0.07 is used.

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [12 mines x 0.07 x 0.714] x [(($29/respirator + ($10/cartridge x 25 weeks) x 16 miners]
+ [12 mines x 0.07 x 0.666] x [(($29/respirator + ($10/cartridge x 25 weeks) x 16 miners]
= $5,200

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [8 mines x 0.07 x 0.714] x [(($29/respirator + ($10/cartridge x 20 weeks) x 8 miners]
+ [8 mines x 0.07 x 0.666] x [(($29/respirator + ($10/cartridge x 20 weeks) x 8 miners]

= $1,400

The total annualized initial costs (TAIC) for large and small mine operators to purchase respirator equipment are about $6,600.

Each miner using a respirator must visually inspect it before the shift begins, and clean and store the respirator after the shift is over. This process is estimated to take no longer than 1 minute (0.0167 hours). MSHA also assumes that, on average large mines operate 2 shifts per day, 5 days per week for 50 weeks per year, and small mines operate 1 shift per day, 5 days per week for 40 weeks per year. Respirators will need to be inspected in the fifth and sixth year of the rule's effective date, thus, net present value factors of 0.714 and 0.666 are used. Also, since costs are not reoccurring after the second year of using the respirators, an annualization factor of 0.07 is used.

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [(12 mines x 0.07 x 0.714] x

[(0.0167 hours x $23/wage) x 2 shifts per day
x 250 workdays x 16 miners] +
[(12 mines x 0.07 x 0.666] x
[(0.0167 hours x $23/wage) x 2 shifts per day
x 250 workdays x 16 miners]
= $3,600

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [(8 mines x 0.07 x 0.714] x
[(0.0167 hours x $23/wage) x 1 shift per day
x 200 workdays x 8 miners] +
[(8 mines x 0.07 x 0.666] x
[(0.0167 hours x $23/wage) x 1 shift per day
x 200 workdays x 8 miners]
= $500

The total annualized initial costs (TAIC) for large and small mine operators of respirator inspection, cleaning, and storage are about $4,100.

Proposed § 57.5062

Diesel Particulate Control Plan

In the event of a violation of § 57.5060(a) and/or (b) of this proposed rule, an underground M&N mine operator must establish a diesel particulate control plan for the mine, if one is not already in effect. The mine's diesel particulate control plan shall include a description of the controls the mine operator will utilize to maintain the concentration of diesel particulate at the mine to the applicable limits specified in § 57.5060(a) and (b) of this rule, and a list of diesel powered equipment maintained by the mine operator, together with information about any unit's emission control device or control method parameters.

Proposed § 57.5062(a)

Prepare Plan

MSHA estimates that 12 underground M&NM mine operators annually, 10 large mine operators (about 8 percent of large mine operators that use diesel machinery) and 2 small mine operators (about 2 percent of small mine operators that use diesel machinery) will receive a violation and thus must prepare a diesel particulate control plan. MSHA estimates that it will take a M&NM mine supervisor about 4 hours to prepare a diesel particulate control plan.

The total annual costs (TAC) for large mine operators are estimated as follows:

TAIC = [10 mines x 4 hours x $36/hour]
= $1,400

The total annual costs (TAC) for small mine operators are estimated as follows:

TAIC = [2 mines x 4 hours x $36/hour]

= $300

The total annual costs (TAC) of plan preparation for large and small mine operators are $1,700.

Proposed § 57.5062(c)

Demonstrate Plan's Effectiveness

Paragraph (c) of § 57.5062 requires the mine operator to demonstrate the diesel particulate control plan's effectiveness by sampling. Only those underground M&NM mine operators that have received a violation of § 57.5060(a) or (b) need a diesel particulate control plan. Therefore, if a violation of § 57.5060(a) or (b) has occurred, it is assumed that the sampling required by § 57.5071 would not be sufficient to abate the violation. Thus, additional sampling would be required for mine operators under paragraph (c) of § 57.5062, in order to demonstrate the effectiveness of the diesel particulate control plan.

MSHA assumes that for verification sampling under paragraph (c) of § 57.5062, the affected underground M&N mine operators would contract out the sampling. For each violation, it is estimated that one verification sample per day would be taken for three days in one production area of each mine. Contract sampling costs are estimated to be $75 per sample for sampling and $33 per sample for analysis.

The total annual costs (TAC) for large mine operators are estimated as follows:

TAIC = [10 mines] x
[(1 sample x 3 days x $75/sample)
+ (1 sample x 3 days x $33/sample)]
= $3,200

The total annual costs for small mine operators are estimated as follows:

TAIC = [2 mines] x
[(1 sample x 3 days x $75/sample)
+ (1 sample x 3 days x $33/sample)]
= $600

The total annual costs of verification sampling for large and small mine operators are about $3,800.

Proposed § 57.5062(d)

File original plan

Paragraph (d) requires that only upon request a copy of the diesel particulate plan, including any verification data if necessary, should be submitted to the district manager. For costing purposes, MSHA estimates that all of the mine operators filing plans would send them to the district manager.

MSHA estimates that it would take a secretary, earning $17 per hour, about 10 minutes (0.1667 hours) to copy and send the plans, including any verification data, to the district manager. The plan and any necessary verification data are estimated to be no more than 10 pages and copying costs are estimated at $0.15 per page.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [10 mines x 1 plan] x
[(0.1667 hours x $17/wage)
+ ($0.15/page x 10 pages)}
= <$50

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [2 mines x 1 plan] x

[(0.1667 hours x $17/wage)
+ ($0.15/page x 10 pages)}
= <$25

The total annual costs (TAC) for large and small mine operators to provide a copy of the diesel particulate control plan to the district manager would not exceed $100.

Proposed § 57.5062(e)(3)

Modification of Plans

For the duration of a diesel particulate control plan, the underground M&NM mine operator shall modify it as necessary to reflect changes in mining equipment or circumstances. For cost purposes, MSHA estimates that all of the underground mine operators that have diesel particulate control plans would modify them once annually. Most of the modifications are not expected to cause new verification sampling data to be obtained. Thus compliance costs for verification sampling due to modifications will be minimal. However, compliance costs will still be incurred by mine operators to make the necessary written changes to their plans. MSHA estimates that it will take a mine supervisor about 30 minutes (0.5 hours) to modify the plan.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [10 mines x 0.5 hours x $36/hour
x 1 modification/year]
= $200

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [2 mines x 0.5 hours x $36/hour]

= <$50

The total annual costs (TAC) for large and small mine operators to modify the plan are about $250.

Proposed § 57.5062(d)

Plan Made Available to Miner Representative

This section requires that a copy of the diesel particulate control plan must be made available upon request to authorized representatives of the miners.

MSHA estimates that it would take a secretary, earning $17 per hour, 10 minutes (0.1667 hours) to make a copy of the material and send it to the authorized miners' representative. On average, the material are estimated to be no more than 10 pages and copying costs are estimated at $0.15 per page.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [10 mines x 1 plan] x
[(0.1667 hours x $17/wage)
+ ($0.15/page x 10 pages)}
= <$50

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [2 mines x 1 plan] x
[(0.1667 hours x $17/wage)
+ ($0.15/page x 10 pages)}
= <$25

The total annual costs (TAC) for large and small mine operators to provide a copy of the diesel particulate control plan to the miners' representative would not exceed $100.

Proposed § 57.5065

Fueling and Idling Practices

Paragraph (a) requires that underground M&NM mine operators that use diesel powered equipment must use diesel fuel having a sulfur content of no greater than 0.05 percent. MSHA does not expect this to be a costly burden for the underground M&NM mining industry. MSHA contacted two oil company refineries concerning the price of low and high sulfur fuels. Both refineries noted that currently low sulfur fuel costs about 1.75 cents per gallon more than high sulfur fuel. However, this cost difference can diminish in different geographical regions due to supply and demand conditions. Furthermore, in some geographical areas low sulfur fuel is easily available, and it is difficult to obtain high sulfur fuel. Based upon the slight difference between the price of high and low sulfur fuel and its availability, MSHA does not believe that the compliance cost for switching from high sulfur to low sulfur fuel for the mining industry as a whole will be significant.

Paragraph (a) also states that purchase records for fuel will need to be kept. When the mine operator purchases fuel, a breakdown of the contents of the fuel is usually available on the purchase order. Mines already retain these purchase orders for tax purposes. Thus MSHA has associated no compliance costs for retaining these records.

Proposed § 57.5065(b)

Diesel Fuel Additives

Paragraph (b) requires that underground M&NM mine operators that use diesel powered equipment must use only diesel fuel additives that have been registered by the Environmental Protection Agency (EPA). The EPA has registered additives that are currently used or substitutes which are equivalent in price to those used. A list of registered additives can be obtained from the EPA at no cost. MSHA has estimated no compliance costs for this standard.

Proposed § 57.5065(c)

Idling Practices

Paragraph (c) prohibits the idling of mobile diesel powered equipment in underground M&NM mines, except as required for normal operations. MSHA believes that this regulation is a work practice that can be implemented without costs (or that such costs are negligible) in underground M&NM mines.

Proposed § 57.5066

Maintenance Standards

Proposed § 57.5066(b)(1)

Tagging Equipment

Paragraph (b)(1) of § 57.5066 requires that underground M&NM mine operators shall authorize and require each miner operating diesel powered equipment to affix a visible tag to this equipment at any time the miner notes any apparent emission related defect in the equipment.

For underground M&NM mine operators, MSHA estimates that 10 percent of diesel powered equipment in large mines and 20 percent of the equipment in small mines will be tagged twice annually. MSHA assumes that large mines, which tend to have more maintenance staff, will tag less equipment. The count of diesel powered equipment in underground M&NM mines that was performed by MSHA in January 1998, shows that there are 3,471 production and support diesel powered machines in large underground M&NM mines and about 616 such machines in small underground M&NM mines. Thus, 347 machines (3,471 x 0.10) in large mines and 123 machines (616 x 0.20) in small mines would be tagged twice annually. MSHA estimates that an underground M&NM miner, earning $23 per hour, would take 2 minutes (0.0333 hours) to affix a tag to a piece of diesel powered equipment.

The total annul costs (TAC) for large mine operators are computed as follows:

TAIC = [347 machines x 2 tagged annually

x (0.0333 hours x $23/wage)]

= $500

The total annul costs (TAC) for small mine operators are computed as follows:

TAIC = [123 machines x 2 tagged annually

x (0.0333 hours x $23/wage)]

= $200

The total annual costs (TAC) for large and small mine operators concerning tagging of diesel powered equipment are about $700.

Proposed § 57.5066(b)(3)

Record of Tagged Equipment

This standard requires underground M&NM mine operators to retain a log of any equipment tagged pursuant to paragraph (b)(1) of § 57.5066. The log must identify the equipment tagged and the date the equipment was tagged. The number of logs (or records) used to determine compliance costs in this section corresponds to the number of diesel powered machines that were determined to be tagged in § 57.5066(b) above.

Concerning underground M&NM mines, there are 347 diesel powered machines in large mines and 123 machines in small mines that would be tagged twice annually and thus require a log to be made. On average, MSHA estimates that an underground M&NM miner, earning $23 per hour, would take 2 minutes (0.0333 hours) to make a log of each machine that was tagged.

The total annual costs for large mine operators are computed as follows:

TAIC = [347 machines x 2 tagged annually
x (0.0333 hours x $23/wage x 1 record)]
= $500

The total annual costs for small mine operators are computed as follows:

TAIC = [123 machines x 2 tagged annually

x (0.0333 hours x $23/wage x 1 record)]

= $200

The total annual costs (TAC) to make a log for tagged equipment for large and small mine operators would be about $700.

Proposed § 57.5066(b)(2)

Examination of Tagged Equipment

This section requires that a prompt examination be made of any tagged equipment. The number of examinations used to determine compliance costs in this section corresponds to the number of diesel powered machines that was determined to be tagged in § 57.5066(b) above.

With respect to underground M&NM mine operators, there are 347 production and support diesel powered machines in large mines and 123 such machines in small mines that would require an examination twice annually. On average, MSHA estimates that an underground M&NM mine mechanic, earning $25 per hour, would take 10 minutes (0.1667 hours) to conduct an examination.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [347 machines x 2 tagged annually
x (0.1667 hours x $25/wage)]
= $2,900

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [123 machines x 2 tagged annually
x (0.1667 hours x $25/wage)]
= $1,000

The total annual costs (TAC) to examine tagged diesel powered equipment for large and small mine operators would be about $4,000.

Proposed § 57.5066(b)(3)

Record of Conducted Exam

This section also requires that a record be kept of each examination. The table in proposed § 57.5075 states that such a record should at least contain the date the tagged equipment was checked, by whom, and what actions were taken. The number of records used to determine compliance costs in this section correspond to the number of diesel powered machines that was determined to be tagged and examined in § 57.5066(b) above.

With respect to underground M&NM mine operators, there are 347 production and support diesel powered machines in large mines and 123 machines in small mines that would require a record to be made of the exam twice annually. On average, MSHA estimates that an underground M&NM mine mechanic, earning $25 per hour, would take 3 minutes (0.05 hours) to make the record.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [347 machines x 2 tagged annually

x (0.05 hours x $25/wage x 1 record)]

= $900

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [123 machines x 2 tagged annually
x (0.05 hours x $25/wage x 1 record)]
= $300

The total annual costs (TAC) to make a record of the examined tagged diesel powered equipment for large and small mine operators would be about $1,200.

Proposed § 57.5066(c)

Maintenance Training

Paragraph (c) requires that persons maintaining diesel powered equipment in underground M&NM mines must be qualified, by virtue of training or experience, to ensure that the requirements of § 57.5066(a) are observed. Mine mechanics in underground M&NM mines will need training related to newer low emission engines and aftertreatment control devices (filters).

MSHA assumes that operators would contract for the training through the use of: a manufacturer's seminar on the purchase of new equipment; or classroom type training in a vocational or college setting. It is estimated that, in general, these types of training would cost about $75 per hour for each person trained. In underground M&NM mining, MSHA assumes that a large mine will have between 2 to 4 (for an average of 3) mechanics and a small mine will have 1 mechanic.

There are 121 large mine operators and 82 small mine operators that would need to provide training to mechanics. MSHA estimates that a mechanic, earning $25 per hour, in an underground M&NM mine operation would need about 10 hours of training concerning new engine technology and aftertreatment control devices.

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [121 mines x 0.07] x

[(10 hours x $75/rate x 3 mechanics)

+ (10 hours x $25/wage x 3 mechanics)]

= $25,400

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [82 mines x 0.07] x
[(10 hours x $75/rate x 1 mechanic)
+ (10 hours x $25/wage x 1 mechanic)]
= $5,700

The total annualized initial costs (TAIC) to provide the required training for mechanics that service diesel powered equipment for large and small mine operators would be about $31,100.

Proposed § 57.5066(c)

Training Records

Paragraph (c) also requires that the mine operator provide evidence of those persons trained. To fulfill this requirement, the mine operator can maintain a list of those trained, along with any necessary information. This information could be a certificate from a course which verifies that the person received training. MSHA estimates that it would take no more than 5 minutes (0.0833 hours) in a large and small mine to make such a record. MSHA estimates that an underground M&NM supervisor, earning $36 per hour, will make the record.

The total annualized initial costs (TAIC) for large mine operators are computed as follows:

TAIC = [82 mines x 0.07] x [121 mines x 0.07] x
(0.0833 hours x $36/wage x 1 record)]
= $25

The total annualized initial costs (TAIC) for small mine operators are computed as follows:

TAIC = [82 mines x 0.07] x

(0.0833 hours x $36/wage x 1 record)]

= < $25

The total annualized initial costs (TAIC) to record the required information for large and small mine operators would not be more than $100.

Proposed § 57.5070

Miner Health Training

Proposed § 57.5070 (a)

Training

Section 57.5070(a) provides that underground M&NM miners who can reasonably be expected to be exposed to diesel emissions must be annually trained in: (1) the health risks associated with exposure to diesel particulate; (2) the methods used in the mine to control diesel particulate concentrations; (3) identification of the personnel responsible for maintaining those controls; and (4) actions miners must take to ensure that the controls operate as intended. MSHA expects to develop an information training card summarizing the topics mentioned above, which will be handed out to all mines. However, in addition to the information training care, MSHA estimates that mine operators will need to provide additional training.

The count of diesel powered equipment in underground M&NM mines performed by MSHA shows that there are 18,073 employees in large mines and 849 employees in small mines. MSHA made a number of assumptions:

Training sessions will last:

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [121 mines] x

[(3 sessions x 45 miners x $23/wage x 0.5 hours)

+ (3 sessions x 1 supv. x $36/wage x 0.5 hours)]

= $194,400

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [82 mines] x

[(1 session x 9 miners x $23/wage x 0.25 hours)

+ (1 session x 1 supv. x $36/wage x 0.25 hours)]

= $5,000

The total annual costs (TAC) of training for large and small mine operators are about $199,400.

Proposed § 57.5070 (b)

Training Records

Section 57.5070(b) requires underground M&NM mine operators to keep a record of the annual training. Such records could be a signature list stating that training was given. However, the rule is flexible and allows for other ways to maintain training records, just as long as such records verify that miners had received training. For costing purposes, MSHA assumes that mine operators would maintain a signature list of those trained. MSHA estimates that for each miner to sign a signature list stating that training has been given will take about 30 seconds (0.0083 hours) per miner.

The total annual cost (TAC) for large mine operators are computed as follows:

TAIC = [121 mines] x
[3 sessions x 45 miners x $23/wage
x 0.0083 hours x 1 record)]
= $3,100

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [82 mines] x

[1 session x 9 miners x $23/wage

x 0.0083 hours x 1 record]

= $200

The total annual costs (TAC) of training records for large and small mine operators are about $3,300.

Proposed § 57.5071

Environmental Monitoring

Proposed § 57.5071(a)

Sampling

This section concerns the sampling requirements for the diesel particulate levels stated in the proposed rule. Although all underground M&NM mine operators that use diesel powered equipment will need to do sampling, MSHA expects that some affected large mine operators will do their own diesel particulate sampling, while other large mine operators and all affected small mine operators will contract for the sampling. On average, MSHA estimates that:

Large Mines Doing Their Own Sampling

No small mine operators are assumed to do their own sampling. For those large mine operators that will do their own diesel particulate sampling, compliance costs for sampling will be incurred for: training a person to become familiar with the method of sampling and equipment used; purchasing the equipment necessary to conduct the diesel particulate sampling; getting the sampling instruments ready to conduct the diesel particulate sampling; and writing information about the sample. MSHA makes the following estimates and assumptions about large mine operators that do their own sampling:

o MSHA assumes that about half of large mine operators (60 mines) will do their own sampling.

o MSHA estimates that training time will consist of a person reading material and asking MSHA inspectors questions in order to become familiar with the method of diesel particulate sampling and the equipment used. MSHA estimates that training will take about 4 hours time of a miner.

o For costing purposes, MSHA assumes that mine operators would use the sampling and analytical method developed by the National Institute of Occupational Safety and Health, known as NIOSH method 5040, although MSHA realizes that mine operators may use a different sampling and analytical method to perform sampling under proposed § 57.5071.

o MSHA estimates that each mine operator doing its own sampling will need to purchase:

o 3 sampling instruments, which include a charger, costing no more than about $650 each, and

o a calibration device to calibrate the sampling instruments, costing about $1,000.

o MSHA estimates that this equipment will last 10 years.

Based on the above estimates and assumptions, the total annualized initial costs (TAIC) for large mine operators that do their own sampling are computed as follows:

TAIC = [60 mines] x

[(1 miner x 4 hours x $23/wage x 0.07) +
(((3 instruments x $650) + $1,000 calib. device)
x 0.142)]
= $25,500

Annual compliance costs will also be incurred for those large mine operators that conduct their own sampling. MSHA makes the following estimates about these costs:

o A disposable filter cassette, costing $20 each, is attached to the sampling instrument each time a sample is taken.

o A miner will take 20 minutes (0.33 hours) to hook up the pumps to charge; assemble the pump components before sampling; wash the pump after sampling is conducted; and fill out information regarding the sample.

Based on these estimates, the total annual costs (TAC) of sampling for large mine operators that do their own sampling are computed as follows:

TAIC = [60 mines] x

[(4 samples/yr. x 3 samples/area x 2 areas sampled
x $20 cassette) + ((4 samples/yr. x 3 samples/area x 2 areas sampled x 0.33 hours x $23/wage)]
= $39,700

The total annualized plus annual sampling costs for large mine operators that perform their own sampling will be about $65,200.

Contracted Sampling

MSHA estimates that half of the remaining large mine operators (61 mines) and all small mine operators will contract out their sampling. There are no initial costs, since these mine operators will not incur training or equipment costs. Also, there are no separate annual costs related to assembling the sampler components, charging, washing the sampler, or writing information about the sample taken. These costs are included in the rate charged to the mine operator for the sampling. MSHA estimates that a $75 fee will be charged for each diesel particulate sample taken under contract.

Based on these estimates, the total annual costs (TAC) of sampling for large mine operators that contract out their sampling are computed as follows:

TAIC = [61 mines] x
[(4 samples/yr. x 3 samples/area x 2 areas sampled
x $75/sample]
= $109,800

The total annual costs (TAC) of sampling for small mine operators are computed as follows:

TAIC = [82 mines] x
[(4 samples/yr. x 3 samples/area x 2 areas sampled
[4 samples/yr. x 3 samples/area x 1 area sampled
x $75/sample]
= $73,800

The total annual costs (TAC) for large and small mine operators that contract out their sampling will be about $183,600.

Costs to analyze samples

Whether the mine operator does sampling or contracts out sampling, the sample will have to be sent to a laboratory to be analyzed. MSHA estimates that it will cost $33 to analyze each sample. As noted above there are 121 large mine operators (60 that will conduct their own sampling and 61 that will contract out sampling) and 82 small mine operators that will need to have samples analyzed. The rate to analyze each sample is estimated to be $33.

The total annual costs (TAC) of analyzing samples for large mine operators are computed as follows:

TAIC = [121 mines] x
[(4 samples/yr. x 3 samples/area x 2 areas sampled
x $33/sample]
= $95,800

The total annual costs (TAC) of analyzing samples for small mine operators are computed as follows:

TAIC = [82 mines] x
[4 samples/yr. x 3 samples/area x 1 area sampled
x $33/sample]
= $32,500

The total annual costs (TAC) of analyzing samples for large and small mine operators will be $128,300.

Recording of sampling results

Mine operators are required to keep a record of the sampling methods and the sample results. The laboratory analyzing the samples will send back a sheet showing the sample results and sampling method used. This sampling results sheet can be used as the record. MSHA estimates that it will take a secretary no longer than 5 minutes (0.0833 hours) to make a copy of the results and file them away. The sampling results are assumed to be one page, thus copying costs are minimal.

The total annual costs (TAC) of recording sample reports for large mine operators are computed as follows:

TAIC = [121 mines x 4 reports/mine] x
[0.0833 hours/report x $17/hour]
= $700

The total annual cost (TAC) of recording sample reports for small mine operators are computed as follows:

TAIC = [82 mines x 4 reports/mine] x
[0.08333 hours/report x $17/hour]
$500

The total annual costs for recording sampling for large and small mine operators are about $1,200.

Proposed § 57.5071(b)

Observation of Monitoring

This section requires that underground M&NM mine operators provide both affected miners and their representatives with a reasonable opportunity to observe diesel particulate monitoring required by this section. As part of the observation process, underground M&NM mine operators are required to inform affected miners and their representatives of the dates and times they intend to conduct the monitoring required by this section.

MSHA anticipates that approximately 25 percent of the mines performing diesel particulate monitoring required by this section (i.e. 30 large mines and 21 small mines) would have a miner or miners' representative request to observe these activities. For the remainder of mines, MSHA expects that miners or their representatives would either forgo their observation rights, have an off-duty miner observe, or have an off-duty miners' representative observe. For purposes of determining compliance cost, MSHA estimated that the cost to the mine operator for a miner's observation of monitoring is the cost of lost production. Production for 1996 was valued at $4.6 billion for underground M&NM mines. Based on 1996 preliminary employee hours of 35.7 million hours reported to MSHA for underground M&NM mine operators, MSHA estimated the industry average value of underground M&NM production per hour to be about $128 per hour. The Agency used average price figures from the Mining and Quarrying Trends Annual Review, published by the U.S. Geological Survey(12) to calculate the per-hour value of underground M&NM production. The Agency welcomes comment on alternative data sources that can help it more accurately estimate underground M&NM revenues for the final rule.

Under these assumptions, the total annual costs (TAC) of observation of sampling (loss production) for large mine operators are computed as follows:

TAIC = [30 mines x 4 samples/yr. x 2 areas sampled
x 3 samples/area x (0.33 hours x $128/hour)]
= $30,400

The total annual costs (TAC) of observation of sampling (loss production) for small mine operators are computed as follows:

TAIC = x 3 samples/area x (0.33 hours x $128/hour)]
[21 mines x 4 samples/yr. x 1 area sampled
= $10,600

The total annual costs (TAC) of observation of sampling (loss production) for large and small mine operators would be about $41,000.

Notification of Sampling - Large Mines

For purposes of analysis of the cost of notification of sampling, MSHA makes the following assumptions:

o 45 percent of large mine operators (55 large mine operators) will notify miners of sampling orally, for example, during a daily safety meeting. This process will require, 4 times a year, about 2 minutes (0.0333 hours) of meeting time, and will involve an average of 134 miners (earning $23 per hour) and 1 supervisor (earning $36 per hour) at a large mine.

The total annual costs (TAC) to notify miners orally for large mine operators are computed as follows:

TAIC = [55 mines x 4 sample times/yr.] x
[(134 miners x (0.0333 hours/miner x $23/hour))
+ (1 sup. x (0.0333 hours/sup. x $36/hour))]
= $22,800

o 35 percent of large mine operators (42 large mine operators) will notify miners by written notice. This process will involve, 4 times a year, an average estimated time of 5 minutes (0.0833 hours) for a supervisor (earning $36/hour) to brief a secretary (earning $17 per hour). The secretary is estimated to take no more than 5 minutes (0.0833 hours) to prepare the one page notice at $0.15 per page.

The total annual costs (TAC) to provide miners with written notice for large mine operators are computed as follows:

TAIC = [42 mines x 4 sample times/yr.] x
[(1 sup. x (0.0833 hours/sup. x $36/hour)) +
(134 miners x (0.0833 hours/miner x $17/hour + $0.15/page))]
= $35,800

o 20 percent of large mine operators (24 large mine operators) will inform miners by posting a notice. This process will involve, 4 times a year, an average estimated time and cost of 5 minutes (0.0833 hours) for a supervisor to brief a secretary, 5 minutes (0.0833 hours) for the secretary to prepare and post the notice, and $ 0.15 per copy to copy the notice.

The total annual costs (TAC) to notify miners through posting a notice for large mine operators are computed as follows:

TAIC = [24 mines x 4 sample times/yr.] x
[(0.0833 hours/sup. x $36/hour)) +
(0.0833 hours/miner x $17/hour) + $0.15/page))]
= $400

The total annual costs (TAC) to notify miners under all three scenarios for large mine operators are estimated to be about $59,000.

Notification of Sampling - Small Mines

For purposes of analysis of the cost of notification of sampling, MSHA makes the following assumptions:

o 45 percent of small mine operators (37 small mine operators) will notify miners of sampling orally, for example, during a daily safety meeting. This process will require, 4 times a year, about 2 minutes (0.0333 hours) of meeting time and will involve an average of 9 miners (earning $23 per hour) and 1 supervisor (earning $36 per hour) at a small mine.

The total annual costs (TAC) to notify miners orally for small mine operators are computed as follows:

TAIC = [37 mines x 4 sample times/yr.] x
[(9 miners x (0.0333 hours/miner x $23/hour))
+ (1 sup. x (0.0333 hours/sup. x $36/hour))]
= $1,200

o 35 percent of small mine operators (29 small mine operators) will notify miners by posting a notice. This process will involve, 4 times a year, an average estimated time of 5 minutes (0.0833 hours) for a supervisor to brief a secretary. A secretary is estimated to take no more than 5 minutes (0.0833 hours) to prepare the one page notice at $0.15 per page.

The total annual costs (TAC) to provide miners with written notice for small mine operators are computed as follows:

TAIC = [29 mines x 4 sample times/yr.] x
[(1 sup. x (0.0833 hours/sup. x $36/hour)) +
(9 miners x (0.0833 hours/miner x $17/hour + $0.15/page))]
= $2,000

o 20 percent of small mine operators (16 small mine operators) will inform miners by distributing a written notice to each affected miner. This process will involve, 4 times a year, an average estimated time and cost of 5 minutes (0.0833 hours) for a supervisor to brief a secretary, 5 minutes (0.0833 hours) for the secretary to prepare and post the notice, and $ 0.15 per copy rate.

The total annual costs (TAC) to notify miners through posting a notice for small mine operators are computed as follows:

TAIC = [16 mines x 4 sample times/yr.] x
[(0.0833 hours/sup. x $36/hour)) +
(0.0833 hours/miner x $17/hour) + $0.15/page))]
= $300

The total annual costs (TAC) to notify miners under all three scenarios for small mine operators would be about $3,500.

Proposed § 57.5071(c)

Exceeding Concentration Limit

This section provides that if sampling results indicate that a concentration limit established by § 57.5060 has been exceeded, an operator shall take corrective action. It should be noted that until such time as an approach is developed to convert one type of measurement to another, only operators using the total carbon method would have this information. MSHA assumes that the changes that have already been costed out in § 57.5060 will ensure that mine's environment will be under the concentration limits. However, on those rare instances where the mine environment is above the concentration limits, MSHA believes that this would occur because the mine operator was not correctly initiating activities already required by § 57.5060. On these rare occasions, MSHA estimates minimal compliance costs.

Annually, MSHA estimates that in a large and small underground M&NM mine about 5 percent of the sampling done in production areas would indicate that a concentration level was exceeded. Based on 121 large mine operators sampling 4 times per year, in each of their 2 production areas, corrective action would need to be taken about 48 times per year in large mines (121 large mines x 4 sample times per year, per mine x 2 production areas per mine x 0.05). Based on 82 small mine operators sampling 4 times per year, in each of their 1 production area, corrective action would need to be taken about 16 times per year in small mines (82 large mines x 4 sample times per year, per mine x 1 production area per mine x 0.05). The corrective actions in either a large or small mine would take a miner, earning $23 per hour, about 1 hour to check ventilation or perform basic maintenance.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [48 corrective actions/yr. x $23/wage x 1 hour]
= $1,100

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [16 corrective actions/yr. x $23/wage x 1 hour]
= $400

Proposed § 57.5071(c)

Posting Related to Exceeding Concentration Limit

When mine operators take corrective actions they must post what corrective actions were taken. As noted above, MSHA estimated that on an annual basis large mine operators would take 48 corrective actions and small mine operators would take 16 corrective actions. MSHA estimates that a mine supervisor, earning $36 per hour, would take about 15 minutes (0.25 hours) to write and post each time corrective actions were taken.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [48 corrective actions/yr. x 0.25 hours
x $36 wage]
= $400

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [16 corrective actions/yr. x 0.25 hours
x $36 wage]
= $100

The total annual costs (TAC) for large and small mine operators to post corrective actions are about $500.

Proposed § 57.5071(d)

Posting of Sampling Results

This section requires that sample results be posted on the mine bulletin board within 15 days of receipt and shall remain posted for 30 days. Whether mine operators conduct their own sampling or contract out the sampling, the samples will be analyzed by someone other than mine operators. Thus, diesel particulate sampling results will be sent back to the mine operator. When a mine operator receives the sampling results, they can be posted without the mine operator making any adjustments or changes to the report. MSHA estimates that it will take a secretary, earning $17 per hour, about 5 minutes (0.0833 hours) to post the sampling results. There are 121 large and 82 small underground M&NM mine operators that would need to post sampling results. Posting would occur 4 times annually, since diesel particulate sampling is estimated to occur 4 times per year in underground M&NM mines.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [121 mines x 4 posting/yr. x (0.0833 hours x $17/wage)]
= $700

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [82 mines x 4 posting/yr. x (0.0833 hours x $17/wage)]
= $500

The total annual costs (TAC) for posting sampling results for large and small mine operators would be about $1,200.

Sample results given to miner representative

Paragraph (d) also requires that a copy of the sample results shall be provided to the representative of the miners. Not all underground M&NM mine operators, particularly small mine operators, have a miners' representative. MSHA assumes that about 50 percent of small mine operators and about 90 percent of large mine operators have a miners' representative. MSHA estimates that it would take a secretary at a mine, earning $17 per hour no longer than 10 minutes (0.1667 hours) to make a copy of the sampling results and supply them to the miners' representative. Sampling results consist of 1 page, and copying costs are estimated to be $0.15 per page.

With respect to underground M&NM mine operators, there are 109 (121 x 0.90) large mines and 41 (82 x 0.50) small mines that are estimated to have a miners' representative. Diesel particulate sampling is estimated to occur 4 times per year in underground M&NM mines. Thus, supplying a copy of the sampling results to a miners' representative would occur 4 times per year.

The total annual costs (TAC) for large mine operators are computed as follows:

TAIC = [109 mines x 4 copies] x
[(0.1667 hours x $17/wage) + ($0.15/page x 1 page)]
= $1,300

The total annual costs (TAC) for small mine operators are computed as follows:

TAIC = [41 mines x 4 copies] x
[(0.1667 hours x $17/wage) + ($0.15/page x 1page)]
= $500

The total annual costs (TAC) for large and small mine operators to provide a copy of the sampling results to the miners' representative are about $1,800.

Proposed § 57.5075

Records

Proposed § 57.5075(b)(3)

Requests from Health and Human Services

Paragraph (b)(3) requires that upon request from an authorized representative of Health and Human Services (HHS), underground M&NM mine operators shall provide access to any record designated as "health" record. At this time, MSHA does not know the frequency that HHS will request such records. However, MSHA does not expect these requests to be made often, and thus compliance costs should be minimal.

Proposed § 57.5075(b)(4)

Request from Miners for "Health" Records

Paragraph (b)(4) requires that a miner, former miner, or, with the miner's or former miner's written consent, a personal representative of a miner, shall have access to any record designated as a "health" record in the table in this section to the extent the information pertains to the miner or former miner. Upon request by such person, the operator shall provide the first copy of such record requested by a person at no cost to that person, and any additional copies requested by that person at reasonable cost.

MSHA assumes that some miners leaving their job at the mine or retired miners would request a copy of the health records. The health records that a miner could request would be the copy of the results of the exposure measurements (sampling results) which this rule requires underground M&NM mine operators to maintain. As noted earlier, this record is estimated to consist of 1 page of exposure sampling results that are provided four times a year to the mine operator by an independent laboratory that analyzes the mine samples. MSHA further estimates the following:

o On average, a copy of sampling results would be requested annually by:

o 5 percent of miners (1 miner at each small mine), and

o 10 percent of miners (13 miners at each large mine).

o Copying each record would take a secretary 5 minutes (0.0833 hours).

o Copy costs are $0.15 per page.

The total annual cost (TAC) for large mine operators are computed as follows:

TAIC = [121 mines x 13 miners] x
[(0.0833 hours x $17/hour) + (4 copies x $0.15/page x 1 page)]
= $3,200

The total annual cost (TAC) for small mine operators are computed as follows:

TAIC = [82 mines x 1 miner] x
[(0.0833 hours x $17/hour) + (4 copies x $0.15/page x 1 page)]
= $200

The total annual costs (TAC) for large and small mine operators to be provided with a copy of health records would be about $3,400.

Compliance for Diesel Engine Manufacturers

Existing Part 7, Subpart E

Approved Engines for Underground M&NM Mines

Proposed § 57.5067 would require underground M&NM mine operators to use MSHA approved nonpermissible diesel engines when introducing them into the underground mine. Where diesel manufacturers' engines did not have MSHA approval, the manufacturers would need to obtain approval under Part 7, subpart E. In estimating the costs to engine manufacturers, MSHA makes the following assumptions and estimates:

o MSHA assumes that an engine manufacture will have an independent testing laboratory conduct a maximum fuel/air ratio test required by existing § 7.87, a gaseous ventilation test required by existing § 7.88, and a particulate index test required by existing § 7.89.

o MSHA estimates that the costs to conduct all three tests on a nonpermissible diesel engine model by an independent testing laboratory would be about $14,000.

o MSHA estimates that preparation of an application filed with MSHA for approval would take a manufacturer about 35 hours to prepare, at a rate of $75 per hour, and would have minimal submission costs.

Thus, the total annual costs (TAC) for a manufacturer to obtain approval for one nonpermissible diesel engine model are computed as follows:

TAIC = [$14,000 + (35 hours x $75/hour)]
= $16,600

These costs represent a distinct paperwork burden on the manufacturers. MSHA assumes, however, that the engine manufacturers would pass these approval costs through to underground M&NM mine operators in a manner that would amortize the costs in no more than 10 years. Thus, the manufacturers would not incur any net costs as a result of the rule. These costs were already included in § 57.5067 in the form of a $2,500 incremental cost to mine operators for MSHA approved engines during the first 10 years after the effective date of the rule. To include the costs here would be double-counting.

Appendix (A-1)

Annualized Compliance Costs for Filters Under Proposed § 57.5060

Large Mine Operators Costs: $8,251,200 ($5,063,800 + $3,187,400)

Derivation of Interim Period Costs For 15 Year Period:

((362 flts. x $11,000)+(204 flts. x $5,500))x 0.934 = $4,767,136
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.873 = $4,455,792
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.816 = $4,164,864
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.762 = $3,889,248
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.713 = $3,639,152
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.666 = $3,399,264
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.622 = $3,174,688
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.582 = $2,970,528
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.544 = $2,776,576
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.508 = $2,592,832
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.475 = $2,424,400
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.444 = $2,266,176
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.414 = $2,113,056
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.387 = $1,975,248
((362 flts. x $11,000)+(204 flts. x $5,500))x 0.362 = $1,847,648
$46,456,608
$46,456,608 x 0.109
Interim Period Costs (Rounded) = $5,063,800

Derivation of Final Period Costs For 15 Year Period:

For first 4 years costs are zero = $0
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.713 = $3,646,995
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.666 = $3,406,590
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.622 = $3,181,530
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.582 = $2,976,930
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.544 = $2,782,560
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.508 = $2,598,420
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.475 = $2,429,625
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.444 = $2,271,060
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.414 = $2,117,610
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.387 = $1,979,505
((363 flts. x $11,000)+(204 flts. x $5,500))x 0.362 = $1,851,630 $29,242,455
$29,242,455 x 0.109
Final Period Costs (Rounded) = $3,187,400

Appendix (A-2)

Annualized Compliance Costs for Filters Under Proposed § 57.5060

Small Mine Operators Costs: $2,005,800 ($1,227,800 + $778,000)

Derivation of Interim Period Costs For 15 Year Period:

((103 flts. x $11,000)+(19 flts. x $5,500))x 0.934 = $1,155,825
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.873 = $1,080,338
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.816 = $1,009,800
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.762 = $942,975
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.713 = $882,338
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.666 = $824,175
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.622 = $769,725
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.582 = $720,225
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.544 = $673,200
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.508 = $628,650
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.475 = $587,813
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.444 = $549,450
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.414 = $512,325
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.387 = $478,913
((103 flts. x $11,000)+(19 flts. x $5,500))x 0.362 = $447,975
$11,263,727
$11,263,727 x 0.109
Interim Period Costs (Rounded) = $1,227,800

Derivation of Final Period Costs For 15 Year Period:

For first 4 years costs are zero = $0
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.713 = $890,181
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.666 = $831,501
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.622 = $776,567
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.582 = $726,627
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.544 = $679,184
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.508 = $634,238
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.475 = $593,038
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.444 = $554,334
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.414 = $516,879
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.387 = $483,170
((104 flts. x $11,000)+(19 flts. x $5,500))x 0.362 = $451,957$7,137,675
$7,137,675 x 0.109
Final Period Costs (Rounded) = $778,000

Appendix (A-3)

Annualized Compliance Costs for OCC's Under Proposed § 57.5060

Large Mine Operators Costs: $1,166,800 ($716,300 + $450,500)

Derivation of Interim Period Costs For 15 Year Period:

(722 OCC's x $1,000) x 0.934 = $674,348
(722 OCC's x $1,000) x 0.873 = $630,306
(722 OCC's x $1,000) x 0.816 = $589,152
(722 OCC's x $1,000) x 0.762 = $550,164
(722 OCC's x $1,000) x 0.713 = $514,786
(722 OCC's x $1,000) x 0.666 = $480,852
(722 OCC's x $1,000) x 0.622 = $449,084
(722 OCC's x $1,000) x 0.582 = $420,204
(722 OCC's x $1,000) x 0.544 = $392,768
(722 OCC's x $1,000) x 0.508 = $366,776
(722 OCC's x $1,000) x 0.475 = $342,950
(722 OCC's x $1,000) x 0.444 = $320,568
(722 OCC's x $1,000) x 0.414 = $298,908
(722 OCC's x $1,000) x 0.387 = $279,414
(722 OCC's x $1,000) x 0.362 = $261,364
$6,571,644
$6,571,644 x 0.109
Interim Period Costs (Rounded) = $716,300

Derivation of Interim Period Costs For 15 Year Period:

For first 4 years costs are zero = $0
(723 OCC's x $1,000) x 0.713 = $515,499
(723 OCC's x $1,000) x 0.666 = $481,518
(723 OCC's x $1,000) x 0.622 = $449,706
(723 OCC's x $1,000) x 0.582 = $420,786
(723 OCC's x $1,000) x 0.508 = $367,284
(723 OCC's x $1,000) x 0.475 = $343,425
(723 OCC's x $1,000) x 0.444 = $321,012
(723 OCC's x $1,000) x 0.414 = $299,322
(723 OCC's x $1,000) x 0.387 = $279,801
(723 OCC's x $1,000) x 0.362 = $261,726
$4,133,391
$4,133,391 x 0.109
Final Period Costs (Rounded) = $450,500

Appendix (A-4)

Annualized Compliance Costs for OCC's Under Proposed § 57.5060

Small Mine Operators Costs: $263,300 ($161,700 + $101,600)

Derivation of Interim Period Costs For 15 Year Period:

(163 OCC's x $1,000) x 0.934 = $152,242
(163 OCC's x $1,000) x 0.873 = $142,299
(163 OCC's x $1,000) x 0.816 = $133,008
(163 OCC's x $1,000) x 0.762 = $124,206
(163 OCC's x $1,000) x 0.713 = $116,219
(163 OCC's x $1,000) x 0.666 = $108,558
(163 OCC's x $1,000) x 0.622 = $101,386
(163 OCC's x $1,000) x 0.582 = $94,866
(163 OCC's x $1,000) x 0.544 = $88,672
(163 OCC's x $1,000) x 0.508 = $82,804
(163 OCC's x $1,000) x 0.475 = $77,425
(163 OCC's x $1,000) x 0.444 = $72,372
(163 OCC's x $1,000) x 0.414 = $67,482
(163 OCC's x $1,000) x 0.387 = $63,081
(163 OCC's x $1,000) x 0.362 = $59,006
$1,483,626
$1,483,626 x 0.109
Interim Period Costs (Rounded) = $161,700

Derivation of Interim Period Costs For 15 Year Period:

For first 4 years costs are zero = $0
(163 OCC's x $1,000) x 0.713 = $116,219
(163 OCC's x $1,000) x 0.666 = $108,558
(163 OCC's x $1,000) x 0.622 = $101,386
(163 OCC's x $1,000) x 0.582 = $94,866
(163 OCC's x $1,000) x 0.544 = $88,672
(163 OCC's x $1,000) x 0.508 = $82,804
(163 OCC's x $1,000) x 0.475 = $77,425
(163 OCC's x $1,000) x 0.444 = $72,372
(163 OCC's x $1,000) x 0.414 = $67,482
(163 OCC's x $1,000) x 0.387 = $63,081
(163 OCC's x $1,000) x 0.362 = $59,006
$931,871
$931,871 x 0.109
Final Period Costs (Rounded) = $101,600

Appendix (A-5)

Annualized Compliance Costs for Cab Maintenance Under Proposed § 57.5060

Large Mine Operators Costs: $178,100 ($109,400 + $68,700)

Derivation of Interim Period Costs For 15 Year Period:

(147 cabs x $750) x 0.934 = $102,974
(147 cabs x $750) x 0.873 = $96,248
(147 cabs x $750) x 0.816 = $89,964
(147 cabs x $750) x 0.762 = $84,011
(147 cabs x $750) x 0.713 = $78,608
(147 cabs x $750) x 0.666 = $73,427
(147 cabs x $750) x 0.622 = $68,576
(147 cabs x $750) x 0.582 = $64,166
(147 cabs x $750) x 0.544 = $59,976
(147 cabs x $750) x 0.508 = $56,007
(147 cabs x $750) x 0.475 = $52,369
(147 cabs x $750) x 0.444 = $48,951
(147 cabs x $750) x 0.414 = $45,644
(147 cabs x $750) x 0.387 = $42,667
(147 cabs x $750) x 0.362 = $39,911
$1,003,499
$1,003,496 x 0.109
Interim Period Costs (Rounded) = $109,400

Derivation of Interim Period Costs For 15 Year Period:

For first 4 years costs are zero = $0
(147 cabs x $750) x 0.713 = $78,608
(147 cabs x $750) x 0.666 = $73,427
(147 cabs x $750) x 0.622 = $68,576
(147 cabs x $750) x 0.582 = $64,166
(147 cabs x $750) x 0.544 = $59,976
(147 cabs x $750) x 0.508 = $56,007
(147 cabs x $750) x 0.475 = $52,369
(147 cabs x $750) x 0.444 = $48,951
(147 cabs x $750) x 0.414 = $45,644
(147 cabs x $750) x 0.387 = $42,667
(147 cabs x $750) x 0.362 = $39,911
$630,299
$630,299 x 0.109
Final Period Costs (Rounded) = $68,700

Appendix (A-6)

Annualized Compliance Costs for cab Maintenance Under Proposed § 57.5060

Small Mine Operators Costs: $8,500 ($5,200 + $3,300)

Derivation of Interim Period Costs For 15 Year Period:

(7 cabs x $750) x 0.934 = $4,904
(7 cabs x $750) x 0.873 = $4,583
(7 cabs x $750) x 0.816 = $4,284
(7 cabs x $750) x 0.762 = $4,001
(7 cabs x $750) x 0.713 = $3,743
(7 cabs x $750) x 0.666 = $3,497
(7 cabs x $750) x 0.622 = $3,266
(7 cabs x $750) x 0.582 = $3,056
(7 cabs x $750) x 0.544 = $2,856
(7 cabs x $750) x 0.508 = $2,667
(7 cabs x $750) x 0.475 = $2,494
(7 cabs x $750) x 0.444 = $2,331
(7 cabs x $750) x 0.414 = $2,174
(7 cabs x $750) x 0.387 = $2,032
(7 cabs x $750) x 0.362 = $1,901
$47,786
$47,786 x 0.109
Interim Period Costs (Rounded) = $5,200

Derivation of Interim Period Costs For 15 Year Period:

For first 4 years costs are zero = $0
(7 cabs x $750) x 0.713 = $3,743
(7 cabs x $750) x 0.666 = $3,497
(7 cabs x $750) x 0.622 = $3,266
(7 cabs x $750) x 0.582 = $3,056
(7 cabs x $750) x 0.544 = $2,856
(7 cabs x $750) x 0.508 = $2,667
(7 cabs x $750) x 0.475 = $2,494
(7 cabs x $750) x 0.444 = $2,331
(7 cabs x $750) x 0.414 = $2,174
(7 cabs x $750) x 0.387 = $2,032
(7 cabs x $750) x 0.362 = $1,901
$30,014
$30,014 x 0.109
Final Period Costs (Rounded) = $3,300

Appendix (A-7)

Annualized Compliance Costs for Ventilation Changes Concerning Electricity to run fan motors - Under Proposed § 57.5060

Large Mine Operators Costs: Interim Period

Derivation of Interim Period Costs For 20 Year Period:

(46 motors x $21,000) x 0.934 = $902,244
(46 motors x $21,000) x 0.873 = $843,318
(46 motors x $21,000) x 0.816 = $788,256
(46 motors x $21,000) x 0.762 = $736,092
(46 motors x $21,000) x 0.713 = $688,758
(46 motors x $21,000) x 0.666 = $643,356
(46 motors x $21,000) x 0.622 = $600,852
(46 motors x $21,000) x 0.582 = $562,212
(46 motors x $21,000) x 0.544 = $525,504
(46 motors x $21,000) x 0.508 = $490,728
(46 motors x $21,000) x 0.475 = $458,850
(46 motors x $21,000) x 0.444 = $428,904
(46 motors x $21,000) x 0.414 = $399,924
(46 motors x $21,000) x 0.387 = $373,842
(46 motors x $21,000) x 0.362 = $349,692
(46 motors x $21,000) x 0.338 = $326,508
(46 motors x $21,000) x 0.316 = $305,256
(46 motors x $21,000) x 0.295 = $284,970
(46 motors x $21,000) x 0.276 = $266,616
(46 motors x $21,000) x 0.258 = $249,228
$10,225,110
$10,225,110 x 0.094
Interim Period Costs (Rounded) = $961,200

Appendix (A-8)

Annualized Compliance Costs for Ventilation Changes Concerning Electricity to run fan motors - Under Proposed § 57.5060

Large Mine Operators Costs: Final Period

Derivation of Final Period Costs For 20 Year Period:

For First 4 years costs are zero = $0
(48 motors x $21,000) x 0.713 = $718,704
(48 motors x $21,000) x 0.666 = $671,328
(48 motors x $21,000) x 0.622 = $626,976
(48 motors x $21,000) x 0.582 = $586,656
(48 motors x $21,000) x 0.544 = $548,352
(48 motors x $21,000) x 0.508 = $512,064
(48 motors x $21,000) x 0.475 = $478,800
(48 motors x $21,000) x 0.444 = $447,552
(48 motors x $21,000) x 0.414 = $417,312
(48 motors x $21,000) x 0.387 = $390,096
(48 motors x $21,000) x 0.362 = $364,896
(48 motors x $21,000) x 0.338 = $340,704
(48 motors x $21,000) x 0.316 = $318,528
(48 motors x $21,000) x 0.295 = $297,360
(48 motors x $21,000) x 0.276 = $278,208
(48 motors x $21,000) x 0.258 = $260,064
$7,257,600
$7,257,600 x 0.094
Final Period Costs (Rounded) = $682,200

Appendix (A-9)

Annualized Compliance Costs for Ventilation Changes Concerning Electricity to run fan motors - Under Proposed § 57.5060

Small Mine Operators Costs: Interim Period

Derivation of Interim Period Costs For 20 Year Period:

(32 motors x $21,000) x 0.934 = $627,648
(32 motors x $21,000) x 0.873 = $586,656
(32 motors x $21,000) x 0.816 = $548,352
(32 motors x $21,000) x 0.762 = $512,064
(32 motors x $21,000) x 0.713 = $479,136
(32 motors x $21,000) x 0.666 = $447,552
(32 motors x $21,000) x 0.622 = $417,984
(32 motors x $21,000) x 0.582 = $391,104
(32 motors x $21,000) x 0.544 = $365,568
(32 motors x $21,000) x 0.508 = $341,376
(32 motors x $21,000) x 0.475 = $319,200
(32 motors x $21,000) x 0.444 = $298,368
(32 motors x $21,000) x 0.414 = $278,208
(32 motors x $21,000) x 0.387 = $260,064
(32 motors x $21,000) x 0.362 = $243,264
(32 motors x $21,000) x 0.338 = $227,136
(32 motors x $21,000) x 0.316 = $212,352
(32 motors x $21,000) x 0.295 = $198,240
(32 motors x $21,000) x 0.276 = $185,472
(32 motors x $21,000) x 0.258 = $173,376
$7,113,120
$7,113,120 x 0.094
Interim Period Costs (Rounded) = $668,600

Appendix (A-10)

Annualized Compliance Costs for Ventilation Changes Concerning Electricity to run fan motors - Under Proposed § 57.5060

Small Mine Operators Costs: Final Period

Derivation of Final Period Costs For 20 Year Period:

For First 4 years costs are zero = $0
(32 motors x $21,000) x 0.713 = $479,136
(32 motors x $21,000) x 0.666 = $447,552
(32 motors x $21,000) x 0.622 = $417,984
(32 motors x $21,000) x 0.582 = $391,104
(32 motors x $21,000) x 0.544 = $365,568
(32 motors x $21,000) x 0.508 = $341,376
(32 motors x $21,000) x 0.475 = $319,200
(32 motors x $21,000) x 0.444 = $298,368
(32 motors x $21,000) x 0.414 = $278,208
(32 motors x $21,000) x 0.387 = $260,064
(32 motors x $21,000) x 0.362 = $243,264
(32 motors x $21,000) x 0.338 = $227,136
(32 motors x $21,000) x 0.316 = $212,352
(32 motors x $21,000) x 0.295 = $198,240
(32 motors x $21,000) x 0.276 = $185,472
(32 motors x $21,000) x 0.258 = $173,376
$4,838,400
$4,838,400 x 0.094
Final Period Costs (Rounded) = $454,800

V. REGULATORY FLEXIBILITY CERTIFICATION AND

INITIAL REGULATORY FLEXIBILITY ANALYSIS

Introduction

Pursuant to the Regulatory Flexibility Act of 1980, MSHA has analyzed the impact of this rule upon small businesses. Further, MSHA has made a preliminary determination with respect to whether or not it can certify that this proposal will not have a significant economic impact on a substantial number of small entities. Under the Small Business Regulatory Enforcement Fairness Act (SBREFA) amendments to the RFA, MSHA must include in the proposal a factual basis for this certification. If the proposed rule does have a significant economic impact on a substantial number of small entities, then the Agency must develop an initial regulatory flexibility analysis.

The Agency has, as required by law (5 U.S.C. 603), developed an initial regulatory flexibility analysis which is set forth in Part V of this analysis. In addition, to a succinct statement of the objects of the proposed rule and other information required by the Regulatory Flexibility Act, the analysis reviews alternatives considered by the Agency with an eye toward the nature of small business entities.

MSHA specifically solicits comments on the cost data and assumptions concerning the initial regulatory flexibility analysis for underground M&NM mine operators. A copy of the initial regulatory flexibility analysis that is included in this section has also been included in the preamble to the proposed rule, which MSHA will mail to every underground M&NM mine operator.

Definition of Small Mine

Under the Regulatory Flexibility Act (RFA), in analyzing the impact of a proposed rule on small entities, MSHA must use the 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 hence is required to use the SBA definition.

The SBA defines a small entity as an establishment with 500 employees or less (13 CFR 121.201). MSHA's use of the 500 or less employees includes all employees (miners and office workers). Almost all underground M&NM mine operators fall into this category and hence can be viewed as sharing the special regulatory concerns which the RFA was designed to address. That is why MSHA has, for example, committed to providing to all underground M&NM mine operators a copy of any compliance guides the Agency prepares to assist mine operators in understanding new Agency rules.

The Agency is concerned, however, that looking only at the impacts of the proposed rule on all the mines does not provide the Agency with a very complete picture on which to make decisions. Traditionally, the Agency has also looked at the impacts of its proposed rules on what the mining community refers to as "small mines" -- those with fewer than 20 miners. The way these small mines perform mining operations are generally recognized as being different from the way other mines operate.

This analysis complies with the legal requirements of the RFA for an analysis of the impacts on "small entities" while continuing MSHA's traditional look at "small mines".

Cost Overview

Table V-1 provides some information about the financial impact of the proposed rule. The first column shows the two small mine categories considered, which are underground M&NM mines that employ fewer than 20 employees and underground M&NM mines that employ 500 or fewer employees. The second column shows the estimated compliance costs of the proposed rule for the two small mine categories noted in column 1. The third column shows the estimated per mine compliance cost of the proposed rule for each small mine category. This provides one measure of impact. The fourth and fifth columns provide another measure of impact. The fourth column estimates the revenues for the underground metal and nonmetal sector at each size category. The fifth column compares the costs of the proposed rule to estimated revenues by dividing the costs in column 2 by the estimated revenues in column 4.

MSHA does not maintain data on the M&NM sector that allows it to readily derive revenue estimates for the underground or surface portion of the multi-commodity industry. This is in contrast to the coal sector where MSHA maintains mine by mine coal production information that, combined with information on the price of coal, allows it to derive separate revenue estimates for the underground and surface sectors of that single-commodity industry. Therefore, the Agency estimated revenues for the underground metal and nonmetal sector by multiplying underground M&NM production by average M&NM price figures from the Mining and Quarrying Trends Annual Review, published by the U.S. Geological Survey, which was referenced earlier in this document. Due to the difficulty of deriving underground M&NM revenues for a mining sector that has a variety of commodities and pricing mechanisms, the Agency welcomes comment on alternative data sources that can help it to more accurately estimate underground revenues for this sector that it can use in estimating impacts in the future.

As can be seen in Table V-1, when the definition of a small underground M&NM mine operator is fewer than 20 employees, then estimated average per year costs of the proposed rule are about $56,100 per small mine operator and estimated costs as a percentage of revenues are 1.91 percent. When the definition of a small mine operator is 500 or fewer employees, then estimated average per year costs of the proposed rule are about $87,800 per small mine operator and estimated costs as a percentage of revenues are 0.59 percent.

Table V-1
Underground M&NM Mines

Col. 1 Col. 2 Col. 3 Col. 4 Col. 5
Detail Estimated
Costs
(Millions)
Estimated
Costs Per
>Mine
Estimated
Revenues
(Millions)
Costs as
Percent of
Revenues
Small Mines (employ <20) $4.6 $56,100 $241 1.91%
Small Mines (employ <500) $17.2 $87,800 $2,893 0.59%

Underground M&NM Mines: Initial Regulatory Flexibility Analysis

Overview

Since MSHA has not recently prepare an initial regulatory flexibility analysis in connection with a proposed rule, the mining community has not had an opportunity to review such an analysis. Accordingly, some background may be helpful.

An initial RFA should describe the impact of the proposed rule on small entities. Each initial RFA analysis shall contain:

"(1) a description of the reasons why action by the Agency is being considered;

(2) a succinct statement of the objectives of, and legal basis for, the proposed rule;

(3) a description of and, where feasible, an estimate of the number of small entities to which the proposed rule will apply;

(4) a description of the projected reporting, recordkeeping and other compliance requirements of the proposed rule, including an estimate of the classes of small entities which will be subject to the requirement and the type of professional skills necessary for preparation of the report or record;

(5) an identification, to the extent practicable, of all relevant Federal rules which may duplicate, overlap or conflict with the proposed rule."

In addition, "Each initial regulatory flexibility analysis shall also contain a description of any significant alternatives to the proposed rule which accomplish the stated objectives of applicable statutes and which minimize any significant economic impact of the proposed rule on small entities. Consistent with the stated objective of applicable statutes, the analysis shall discuss significant alternatives such as:

(1) the establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities;

(2) the clarification, consolidation, or simplification of compliance and reporting requirements under the rule for such small entities;

(3) the use of performance rather than design standards;

(4) and an exemption from coverage of the rule, or any part thereof, for such entities."

MSHA would encourage the mining community to structure its comments on these points in a similar manner so that the Agency will be able to clearly respond to them in its final analysis. MSHA hopes the presentation that follows will provide reviewers enough information to readily grasp the implications of the rule for small entities in particular, but it strongly encourages reviewers to also pursue the referenced discussions of risk, feasibility, historical and other information in the preamble accompanying the proposed rule.

Reasons Why Agency Action is Being Considered

A rule is needed for underground M&NM mines to assure that a significant risk of material impairment to the health of miners working in these mines is reduced to the extent economically and technologically feasible for this sector as a whole. The risk is created by the presence in the closed environment of underground M&NM mines using equipment powered by diesel engines -- equipment used in almost all such mines -- of very high concentrations of particulate emissions. These very small particles penetrate to the deepest regions of the lung. As explained in detail in Part III of the preamble accompanying the proposed rule, exposure to high concentrations of diesel particulate matter puts miners at significant risk of material impairment to their health. These elevated risks include, but are not limited to, an increased risk of lung cancer. At the present time, many underground miners, including many miners in underground M&NM mines, are exposed to levels of diesel particulate matter that far exceed the exposures of any other group of workers in the United States. The reductions in exposure to diesel particulate required in this sector will necessitate changes in mine equipment and practices that are too significant to bring about without regulatory action.

Objectives of the Rule; Legal Basis

MSHA has two related objectives it hopes to accomplish through the rulemaking for underground M&NM mine operators. For miners in this sector, it is MSHA's objective that they no longer will be exposed to diesel particulate matter in far greater concentrations than any other group of workers in this country. For mine operators in this sector, it is MSHA's objective to provide each with flexibility as to the controls they wish to implement to reduce the concentration of diesel particulate matter to the prescribed limit.

The proposed rule will not eliminate the risk of harm, nor even reduce exposures to the level which industry experts are considering establishing as a Threshold Limit Value, but it would reduce miner exposures to levels comparable to those faced by workers in other industries who work around diesel powered equipment. While MSHA has tentatively concluded that there may remain a significant risk to miner health even with this proposed rule, the Agency has also tentatively concluded that: a) the proposed rule would provide substantial health benefits; and b) additional controls beyond those provided for in the proposed rule may not be feasible for underground M&NM operators at this time.

MSHA has tentatively concluded that the best solution for underground M&NM mine operators will vary considerably. However, the Agency has confidence that there is a validated method for measuring diesel particulate matter concentrations in underground M&NM mines. The Agency will consider further its approach in light of the record in this proceeding before finalizing a rule.

MSHA has an obligation under § 101(a)(6)(A) of the Federal Mine Safety and Health Act of 1977 (the "Mine Act") which requires the Secretary to set standards which most adequately assure, on the basis of the best available evidence, that no miner will suffer material impairment of health over the miner's working lifetime. The Mine Act makes no distinction between the obligations of operators based on size.

Number and Description of Small Entities Affected

Underground M&NM mine operators have used diesel-powered equipment for a long time, and they are highly dependent upon such equipment for production. As discussed in detail in part 2 of the preamble accompanying the proposed rule, a major role of such equipment involves haulage. For example, front-end loaders or load-haul-dump machines remove the metal or mineral deposits from where it was blasted or cut in the mine. However, other types of diesel machinery can also be found in underground M&NM mines. Examples of some of these other types of diesel powered machines are: roof bolters, jumbo drills, scalers, water trucks, and transport or maintenance vehicles. MSHA's January 1998 count of the number of diesel powered equipment in underground M&NM mines, shows that of the 261 underground M&NM mines, there are 203 mines that use diesel powered equipment on a regular basis.

Under MSHA traditional definition of a small mine (those that employ less than 20), about 40 percent of the 203 underground M&NM mines that use diesel powered equipment (82 mines) would be considered small underground mines. Approximately 69 percent of these small underground mines (57 mines ÷ 82 mines) are involved in the production of limestone (47 mines) or gold (10 mines). The largest number of small underground mines that are involved in the production of the same commodity are limestone mines. Underground limestone mines account for 57 percent of small mines (47 mines ÷ 82 mines). These 82 small underground mine operators employ approximately 5 percent of all underground M&NM mine employment, and account for about 15 percent of the diesel powered equipment found in underground M&NM mines. On average, about 7.5 diesel powered machines are in a small mine, when MSHA's definition of a small mine is used.

Under the SBA definition of a small mine (those that employ 500 or less), about 97 percent of the 203 underground M&NM mines that use diesel powered equipment (196 mines) would be considered small underground mines. Approximately 68 percent of these small underground mines (134 mines ÷ 196 mines) are involved in the production of: limestone (85 mines), gold (27 mines), Salt (12 mines), and Zinc (10 mines). Again, the largest number of small underground mines that are involved in the production of the same commodity are limestone mines. Underground limestone mines account for 43 percent of small mines (85 mines ÷ 196 mines). These 196 small underground mine operators employ approximately 70 percent of all underground M&NM mine employment, and account for about 83 percent of the diesel powered equipment found in underground M&NM mines. On average, about 17 diesel powered machines are in a small mine, when SBA's definition of a small mine is used.

The industry profile in part II of this document provides some further information concerning the characteristics of underground M&NM mines.

Proposed Rule Requirements

The compliance requirements of the proposed rule for underground M&NM mine operators are described in detail in the preamble to the rule. The compliance costs to mine operators are described in detail in part IV of this document. The material following briefly summarizes key elements of the proposed rule.

The proposed rule would require that underground M&NM mine operators, including small mine operators, observe a set of "best practices" underground to reduce engine emissions of diesel particulate matter. [Similar practices are already in effect in underground coal mines as a result of MSHA's diesel equipment rule (61 FR 55412).]

Only low-sulfur diesel fuel and EPA-approved fuel additives would be permitted to be used in diesel-powered equipment in underground areas. Idling of such equipment that is not required for normal mining operations would be prohibited. In addition, diesel engines would have to be maintained in good condition to ensure that deterioration does not lead to emissions increases -- approved engines would have to be maintained in approved condition; the emission related components of non-approved engines would have to be maintained in accordance with manufacturer specifications; and any installed emission device would have to be maintained in effective condition. Equipment operators in underground M&NM mines would be authorized to tag equipment with potential pollution problems, and tagged equipment would have to be "promptly" referred for a maintenance check. As an additional safeguard in this regard, maintenance of this equipment would have to be done by persons qualified by virtue of training or experience to perform the maintenance.

The proposed rule would also require that, with the exception of diesel engines used in ambulances and fire-fighting equipment, any diesel engines added to the fleet of an underground M&NM mine, beginning 60 days after the date the rule is promulgated, must be an engine approved by MSHA under Part 7 or Part 36. In addition, the proposed rule would establish a limit on the concentration of diesel particulate matter permitted in areas of an underground M&NM mine where miners work or travel.

All underground M&NM mine operators would be given a full five years to meet this limit. However, starting eighteen months after the rule is published, underground M&NM mine operators have to observe an interim limit. No limit at all on the concentration of diesel particulate matter would be applicable for the first eighteen months following promulgation. Instead, this period would be used to provide compliance assistance to the underground M&NM mining community to ensure it understands how to measure and control diesel particulate matter concentrations in individual operations.

An underground M&NM mine operator would have to use engineering or work practice controls to keep diesel particulate matter concentrations below the applicable limit. Administrative controls (e.g., the rotation of miners) and personal protective equipment (e.g., respirators) do not reduce the concentration of diesel particulate, and so are not permitted as a means of permanent compliance with this standard. When a mine operator is granted an extension to come into compliance with the concentration limit under the narrow range of circumstances permitted in the rule, MSHA may require the mine operator to utilize personal protective equipment during the duration of the extension period. An underground operator could filter the emissions from diesel-powered equipment, install cleaner-burning engines, increase ventilation, improve fleet management, or use a variety of other readily available controls; the selection of controls would be left to the operator's discretion. MSHA has published a "toolbox" of approaches that can be used to reduce diesel particulate matter. MSHA will make available an "Estimator" that operators can plug into a standard spreadsheet program to enable them to evaluate the effects of alternative controls in an area of a mine before purchasing and implementation decisions are made.

MSHA has studied a number of M&NM mines, as described in part V of the preamble accompanying the proposed rule, which the Agency had reason to think might have particular difficulty in controlling diesel particulate matter concentrations. As a result of these studies, the Agency believes that in combination with the required "best practices", engineering and work practice controls are available that can bring diesel particulate matter concentrations in all underground M&NM mines down to the interim and final concentration limits in a timely manner. Nevertheless, the proposed rule would provide that if an operator of an underground M&NM mine can demonstrate that there is no combination of controls that can, due to technological constraints, be implemented within that time to reduce the concentration of diesel particulate matter to the limit, MSHA may approve an application for an extension of time to comply with the diesel particulate matter concentration limit. Such a special extension is available only once, and is limited to 2 years.

Sampling to determine compliance with the diesel particulate matter concentration limit would be performed directly by MSHA, rather than relying upon underground M&NM mine operator samples; however, the proposed rule would also require all underground M&NM mine operators using diesel-powered equipment to sample as often as necessary to effectively evaluate diesel particulate matter concentrations at the mine.

The proposed rule would require that if an underground M&NM mine operator exceeds the applicable limit on the concentration of diesel particulate matter, a diesel particulate matter compliance plan must be established and remain in effect for 3 years. Reflecting practices in this sector, the plan would not have to be preapproved by MSHA, but must be retained at the mine site. The plan would include information about the diesel-powered equipment in the mine and applicable controls. The proposed rule would require underground M&NM mine operator sampling to verify that the plan is effective in bringing diesel particulate matter levels down below the applicable limit, with the records kept at the mine site with the plan to facilitate review.

To enhance miner awareness of the hazards involved, underground mine operators using diesel-powered equipment must annually train miners exposed to diesel particulate matter in the hazards associated with that exposure, and in the controls being used by the operator to limit diesel particulate matter concentrations. Underground mine operators may propose to include this training in their existing Part 48 training plans.

With respect to underground M&NM mine operators the paperwork requirements include paperwork associated with training for persons maintaining diesel powered equipment, annual training for those miners affected by the hazards of diesel particulate matter, sampling for diesel particulate matter, observation of sampling and tagging equipment with pollution problems. In addition, there are paperwork requirements for a small portion of underground M&NM mines that pertain to writing applications to extend the period to comply with the proposed concentration levels, and for writing a diesel particulate control plan.

With a few exceptions, MSHA estimates that all recordkeeping and recording related compliance costs, and all of the other requirements of the standard, will require no special professional background beyond that currently found in the managers of underground M&NM mines. Based on a small mine definition of less than 20 employees, all small underground M&NM mine operators, as well as half of the large mines, are assumed to have sampling performed by an independent contractor, because this would be cheaper than setting up their own sampling program and purchasing the required sampling equipment. Also, regardless what definition is used to define small mine operators, all underground M&NM mine operators would have the sample analysis performed by an independent contractor, since underground mine operators do not have the expertises or equipment to analyze for diesel particulate matter. Again, no matter what definition is used to define small mine operators, underground M&NM mine operators would need to go outside of the mine expertise to receive a portion of their maintenance training.

Based on a small mine definition of less than 20 miners, the total number of annual burden hours to the 82 small underground M&NM mine operators would be 436. When the definition of a small mine is 500 or less employees, the total number of annual burden hours to 196 small underground M&NM mine operators would be 3,472.

Impact of Other Federal Rules

There are no other Federal (or for that matter State) rules of which MSHA is aware that would duplicate, overlap or conflict with the proposed rules for underground M&NM miners.

Significant Alternatives Considered

The Agency considered, and adopted as part of the proposed rule, features designed to minimize the impacts on small entities, and the smallest underground M&NM mines in particular, consistent with the stated objectives of the Mine Act. It is important to note in this regard that in implementing the Mine Act's requirement that the Secretary attain the highest degree of safety and health protection, consistent with feasibility, the Agency based its decisions on the technological and economic feasibility of the proposed rule on information about the impacts on mines with 500 or fewer employees and, separately, that segment of these mines with less than 20 employees. Part V of the preamble accompanying the proposed rule reviews the decisions made by the Agency with respect to this statutory obligation.

Under the proposed rule no limit on diesel particulate concentration would be in effect for 18 months, during which time the Agency would provide extensive compliance assistance to the mining community. During this time, MSHA would be working with small underground M&NM mine operators to provide help concerning the measuring of diesel particulate concentrations. In addition, MSHA would use this time to provide technical assistance about control methods to small mine operators.

In fact, this individualized compliance assistance would supplement general guidance the Agency has already started to provide to the mining industry, and to small mines in particular. In 1995, the Agency held three workshops in various areas of the country to enable the mining community to share ideas on practical ways to control diesel emissions, and made transcripts of these workshops widely available. Subsequently, the Agency has published a "toolbox" to disseminate this information in a format designed to facilitate use by small mine operators in particular, and copies were disseminated to all mine operators and posted on MSHA's Web site (http://www.MSHA.gov - under Safety and Health Information). Moreover, before the rule goes into effect, the Agency will also develop and distribute a compliance guide, as required by SBREFA, and will provide information to small mine operators through such other formats as may be suggested by the mining community. For example, MSHA is also considering creating a one page fact sheet or card that can be used by the mining industry to complement training requirements concerning notifying affected miners of the hazards associated with diesel particulate. This can be of particular help to small mine operators who have training resources that may not be as extensive as those found in large mining operations. MSHA will also mail a copy of the proposed rule to every underground M&NM mine operator, which primarily benefits small operators.

Beyond the initial 18 months the proposed rule would provide for compliance assistance, the proposed rule reflects a preliminary decision by the agency to delay for a full 5 years after promulgation of a final rule the effective date of the requirement which will have the most significant impact on small underground M&NM mine operators -- the final concentration limit for diesel particulate. An interim concentration limit will apply until that date -- a limit that should not be at all difficult for small mine operators to reach, particularly after all of the compliance assistance that precedes it. This extended time for full implementation of the proposed rule ensures that technological issues can be timely resolved prior to the final rules effective date. It also recognizes that this rule is a significant one for the underground M&NM sector, that almost all mines in this sector are considered small entities under SBA's definition, and that having adequate time to come into full compliance is of particular importance to the smallest mine operators in this sector. Finally, MSHA is including a one-time two-year extension for mines that require additional time to adapt to the final concentration limits.

Other features of the proposed rule also reflect MSHA's recognition of the size distribution of the entities which have to implement any requirements. Special attention was paid to making the rule's requirements comprehensible to the mining community, including the provision of a chart summarizing recordkeeping requirements, and comments in that regard are being solicited. Training and operator sampling requirements were specifically designed to be performance oriented to minimize costs, while at the same time ensuring the important protections that flow from such approaches are included in every mine operator's approach to this health problem.

MSHA did consider a regulatory approach that would have focused on limiting worker exposure rather than limiting particulate concentration. Under such an approach, operators would have been able to use administrative controls (e.g., rotation of personnel) and respiratory protection equipment to reduce diesel particulate exposure. It is generally accepted industrial hygiene practice, however, to eliminate or minimize hazards before resorting to personal protective equipment. Moreover, while rotation of workers may be a perfectly acceptable practice for a hazard like noise (where reducing exposure can allow the ear to recover, thus avoiding any harm), such a practice is generally not considered acceptable in the case of carcinogens since it merely places more workers at risk. Also, allowing use of these practices would not necessarily help the smallest mine operators, not all small mine operators can efficiently rotate workers. Accordingly, the agency declined to propose such an approach for this serious health hazard, although it welcomes comments in this regard.

MSHA is proposing diesel particulate matter concentration limits as the core of the rule. Although the Agency has developed costs in terms of assumptions about the numbers of engineering controls that will be required to meet the standard, design standards are not the point of the regulation. Rather, the Agency has suggested as broad a menu of compliance techniques as is practicable, so that individual mines can select specific techniques that best fit their circumstances.

The Agency has also declined to propose alternatives involving design standards or specific frequency requirements, which it believes would have had a more significant impact on small entities in the underground M&NM mining sector -- although it will certainly take another look at these if the rulemaking record so warrants. Section 101(a)(6)(A) of the Mine Act requires the Secretary to set standards which most adequately assure, on the basis of the best available evidence, that no miner will suffer material impairment of health over his/her working lifetime. In addition, the Mine Act requires that the Secretary, when promulgating mandatory standards pertaining to toxic materials or harmful physical agents, consider other factors, such as the latest scientific data in the field, the feasibility of the standard and experience gained under the Act and other health and safety laws. Thus, the Mine Act requires that the Secretary, in promulgating a standard, attain the highest degree of health and safety protection for the miner, based on the "best available evidence", with feasibility as a consideration.

As a result of this requirement, MSHA seriously considered alternatives that would have significantly increased costs for both large and small mine operators. For example, in light of the health risks involved, and the existing environmental restrictions on particulate matter, the Agency considered proposing for underground M&NM mine operators a lower limit on the concentration of diesel particulate, and shortening the time frame to get to a final limit. The Agency has tentatively concluded, however, that such approaches would not be feasible for this sector as a whole. The Agency also considered requiring more stringent work practice and engine controls in this sector than those ultimately proposed -- i.e., practices exactly like those applicable in the underground coal sector. Such an alternative would have required: a) weekly emissions tests of diesel powered equipment in underground M&NM mines instead of just tagging suspect equipment for prompt inspection; b) requiring these mines to establish training programs for maintenance personnel; and c) requiring the M&NM diesel powered fleet to be turned over completely within a few years so as to have only approved engines. The Agency concluded, however, that the concerns which warranted such an approach in underground coal mines had not been established in underground M&NM mines; and that with respect to the risks created by diesel particulate matter, the approach taken in the proposed rule could provide adequate protection in a cost effective manner.

MSHA also considered other rigorous requirements such as: requiring the installation of a particulate filter on every new piece of diesel powered equipment added to the underground M&NM diesel powered fleet regardless of the diesel particulate matter concentration level as an added layer of miner protection, establishing a fixed schedule for operator monitoring of the concentration of diesel particulate emissions, and requiring that diesel particulate control plans be preapproved by MSHA before implementation to ensure that their effectiveness had been verified. These approaches were not included in the proposed rule because MSHA concluded that less stringent alternatives could achieve the same level of protection with less adverse impact on underground mining operations, especially small underground mining operations.

MSHA welcomes comments on whether there are significant alternatives it should consider that would accomplish the previously stated purpose and objectives of this rulemaking while reducing the impact on small entities. In this regard, the Agency would also welcome suggestions for alternatives that focus on addressing special concerns on the very smallest mine operators in this sector -- those with less than 20 miners. It is important to remember, however, that under the Mine Act, smaller mine operators must provide the same level of protection to their workers as larger mine operators. Section 101(a)(6)(A) of the Mine Act requires the Secretary to set standards which most adequately assure, on the basis of the best available evidence, that no miner will suffer material impairment of health over his/her working lifetime.

As required under the law, MSHA is complying with its obligation to consult with the Chief Counsel for Advocacy on this proposed rule, and on the initial regulatory flexibility analysis for the underground M&NM mining sector. Consistent with Agency practice, notes of any meetings with the Chief Counsel's office on this rule, or any written communications, will be placed in the rulemaking record. The Agency will continue to consult with the Chief Counsel's office as the rulemaking process proceeds.

VI. UNFUNDED MANDATES REFORM ACT OF 1995
AND OTHER REGULATORY CONSIDERATIONS

Introduction

MSHA has determined that, for purposes of § 202 of the Unfunded Mandates Reform Act of 1995, this proposed rule does not include any Federal mandate that may result in increased expenditures by State, local, or tribal governments in the aggregate of more than $100 million, or increased expenditures by the private sector of more than $100 million. Moreover, the Agency has determined that for purposes of § 203 of that Act, this proposed rule does not significantly or uniquely affect small governments.

Background

The Unfunded Mandates Reform Act was enacted in 1995. While much of the Act is designed to assist the Congress in determining whether its actions will impose costly new mandates on State, local, and tribal governments, the Act also includes requirements to assist Federal agencies to make this same determination with respect to regulatory actions.

Analysis

Based on the analysis in the Agency's Preliminary Regulatory Economic Analysis the compliance cost of this proposed rule for the underground M&NM mining industry is about $19.2 million per year. Accordingly, there is no need for further analysis under § 202 of the Unfunded Mandates Reform Act.

MSHA has concluded that small governmental entities are not significantly or uniquely impacted by the proposed regulation. The proposed rule affects only underground M&NM mine operators that use diesel powered equipment, and MSHA is not aware of any state, local or tribal government ownership interest in underground mines. MSHA seeks comments of any state, local, and tribal government which believes that they may be affected by this rulemaking.

Executive Order 13045

Protection of Children From Environmental Health Risks and Safety Risks

In accordance with Executive Order 13045, MSHA has evaluated the environmental health or safety effects of the proposed rule on children. The Agency has determined that the proposal will have no effects on children.

National Environmental Protection Act

The proposed rule has been reviewed in accordance with the requirements of the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321 et seq.), the regulations of the Council of Environmental Quality (CEQ) (40 CFR part 1500), and the Department of Labor's NEPA procedures (29 CFR part 11). As a result of this review, MSHA has preliminarily concluded that the proposed rule would not have significant environmental impacts.

VII. PAPERWORK REDUCTION ACT OF 1995

Introduction

The proposed rule contains information collection requirements for: underground M&NM mine operators in §§ 57.5060, 57.5062, 57.5066, 57.5070, 57.5071 and 57.5075; and for diesel manufacturers in Part 7, subpart E. Annual burden hours are 3,865 for underground M&NM mine operators. There are 36 burden hours related to manufacturers of diesel powered engines, which would recur annually. Table VII-1 provides the burden hours by the proposed provisions for underground large and small M&NM mine operators that use diesel powered equipment. Small underground M&NM mines operators in Table VII-1 are defined as those employing less than 20 employees. Table VII-2 provides the burden hours related to manufacturers. Following the tables are the details of how the burden hours and compliance costs related to those burden hours were determined. Although the paperwork compliance costs are included in the total compliance costs of the rule estimated in part IV of this document, the paperwork compliance costs are again presented in this section in order to show their relationship to burden hours.

MSHA invites comments on: (1) whether the proposed collection of information is necessary for proper performance of MSHA's functions, including whether the information will have practical utility; (2) the accuracy of MSHA's estimate of burden of the proposed collection of information, including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility, and clarity of information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques, when appropriate, and other forms of information technology.

TABLE VII-1

UNDERGROUND M&NM MINE OPERATORS

BURDEN HOURS

Detail Large Small Total
57.5060 306 123 429
57.5062 49 11 60
57.5066 207 76 283
57.5070 136 6 142
57.5071 2,600 213 2,813
57.5075 131 7 138
Total 3,429 436 3,865

TABLE VII-2

DIESEL ENGINE MANUFACTURERS

BURDEN HOURS

Detail Total
Part 7, Subpart E 36
Total 36

Proposed §§ 57.5060(c)(1) through (c)(4)(I) sets forth the conditions whereby a written application must be submitted to MSHA if a mine operator needs an extension to comply with the 160TC µg/m3 proposed concentration level. MSHA estimates that 12 large and 8 small underground M&NM mines will file for an extension application. It will take 8 hours for a small mine and 16 hours for a large mine to prepare and submit the application. The application will be prepared by an underground M&NM mine supervisor earning $36 per hour. On average, the written application is estimated to consist of 10 pages, and copying costs are $0.15 per page. A secretary, earning $17 per hour will take 10 minutes (0.1667 hrs.) to copy and submit the application to MSHA.

Since the 160TC µg/m3 level does not take effect until 5 years after the rule's effective date, MSHA assumes that the filing of the application and the costs associated with it will not take place until at least 4 years after the rule becomes effective. The compliance costs associated with this provision are multiplied by a net present value factor of 0.762 to account for the four year lag as to when MSHA estimates that costs will be incurred. Also, the approved application occurs only once and will not reoccur, thus, costs are annualized by a 7 percent rate (0.07).

Underground M&NM Mines Burden Hours & Annualized Costs:

192 hrs.
8 applications(in sm. mines) x 8 hrs. = 64 hrs.
12 applications(in lg. mines) x 0.1667 hrs. = 2 hours
8 applications(in sm. mines) x 0.1667 hrs. = 1 hour
192 hrs. x $36 wage x 0.762 x 0.07 = $369
64 hrs. x $36 wage x 0.762 x 0.07 = $123
[(2 hrs. x $17 wage)+($0.15 x 10 pgs. x 12 applications)
+($1 postage x 12 applications)] x 0.762 x 0.07 = $3
[(1 hr. x $17 wage)+($0.15 x 10 pgs. x 8 applications)
+($1 postage x 8 applications)] x 0.762 x 0.07 = $2

Proposed § 57.5060(c)(4)(ii) requires that for those mines that file an application for extension of the 160TC µg/m3 level of the rule they must provide a copy of the application to the miner representative. MSHA estimates that 12 large and 8 small underground M&NM mines will file for an extension application and thus need to supply a copy of the application to the miner representative. MSHA estimates that a secretary earning about $17 per hour, will take about 10 minutes (0.25 hrs.) to make a copy of the application and sent it to a miner representative. MSHA estimates that the average application is about 10 pages and copying rates are $0.15 per page. Postage is estimated at $0.32.

Since the 160TC µg/m3 level does not take effect until 5 years after the rule's effective date, MSHA assumes that the filing of the application and the costs associated with it will not take place until at least 4 years after the rule becomes effective. The compliance costs associated with this provision are multiplied by a net present value factor of 0.762 to account for the four year lag as to when MSHA estimates that costs will be incurred. Also, costs are annualized at a 7 percent rate (0.07).

Underground M&NM Mines Burden Hours & Annualized Costs:

12 application in lg. Mines x 0.1667 hrs. = 2 hrs.
8 application in sm. Mines x 0.1667 hrs. = 1 hr.
[(2 hrs. x $17 wage)+(($0.15 x 10 pgs.) x 12 applications)+($1 x 12 applications)]
x 0.762 x 0.07 = $3
[(1 hr. x $17 wage) + (($0.15 x 10 pgs.) x 8 applications)+($1 x 8 applications)]
x 0.762 x 0.07 = $2

Proposed §§ 57.5060(c)(4)(ii) and (c)(5) require that for those mines that file an application for extension of the 160TC µg/m3 level of the rule will need to post both the original and approved applications. MSHA estimates that 12 large and 8 small underground M&NM mines will file for an extension application and thus need to do the posting. MSHA estimates that it will take a secretary, earning $17 per hour, about 5 minutes (0.0833 hours) to post each application. The application is estimated to be 10 pages and $0.15 per page to copy.

Since the 160TC µg/m3 level does not take effect until 5 years after the rule's effective date, MSHA assumes that the filing of the application and the costs associated with it will not take place until at least 4 years after the rule becomes effective. The compliance costs associated with this provision are multiplied by a net present value factor of 0.762 to account for the four year lag as to when MSHA estimates that costs will be incurred. Also, costs are annualized at a 7 percent rate (0.07).

Underground M&NM Mines Burden Hours & Annualized Costs:

12 lg. Mines x 0.0833 hrs. x 2 applications = 2 hrs.
8 sm. Mines x 0.0833 hrs. x 2 applications = 1 hr.
[(2 hrs. x $17 wage) x (10 pages x $0.15/page
x 2 applications)] x 0.762 x 0.07 = $2
(1 hr. x $17 wage) x (10 pages x $0.15/page
x 2 applications)] x 0.762 x 0.07 = $1

Proposed § 57.5060(c) There are 12 large and 8 small underground M&NM mines that are estimated to need an extension to meet the 160TC µg/m3 level. These mine operators will need to write standard operating procedures governing the selection, use and care of respirators. MSHA estimates that it will take a M&NM supervisor, earning $36 per hour, no longer than 5 hours to write such a program. Initial costs are multiplied by a net present value factor of 0.762 to account for the fact that the respirator program does not have to begin until the extension program which is 5 years after the effective date of the rule. Also the costs are multiplied by a rate of 7 percent (0.07) to account for the fact that these costs occur only once. These burden hour requirements will not be in effect 7 years after the effective date of the rule.

Underground M&NM Mines Burden Hours and Annualized Costs

12 lg. mines x 1 supervisor x 5 hrs. = 60 hours
8 sm. mines x 1 supervisor x 5 hrs. = 40 hours
60 hrs. x $36 wage x 0.762 x 0.07 = $115
40 hrs. x $36 wage x 0.762 x 0.07 = $76

Proposed § 57.5060(c) Miners using respirators must also be fit tested and a record be made of the fit testing. The record is done simultaneously as the fit test is performed. Fit testing needs only to be done once and is estimated to take 15 minutes for each affected miner. Fit testing is done by a M&NM mine supervisor earning $36 per hour. Approximately 16 miners in a large mine and 12 miners in a small mine would need fit testing. The recordkeeping is done simultaneously as the fit test is being performed. The costs are multiplied by a rate of 7 percent (0.07) to account for the fact that these costs occur only once. These burden hour requirements will not be in effect 7 years after the effective date of the rule.

Underground M&NM Mines Burden Hours and Annualized Costs

12 lg. mines x 16 miners per mine x 0.25 hrs.
x 1 supervisor = 48 hours
8 sm. mines x 8 miners per mine x 0.25 hrs.
x 1 supervisor = 16 hours
48 hrs. x $36 wage x 0.762 x 0.07 = $92
16 hrs. x $36 wage x 0.762 x 0.07 = $31

Proposed § 57.5060(c) The cost to purchase a half mask, negative air purifying respirator is estimated to be about $29. A disposable cartridge costing about $10 is needed for the respirator. The cartridges are estimated to last for 2 weeks. On an annual basis, assuming large mines operate for 50 weeks and small mines operate for 40 weeks. Thus, cartridge replacement will occur 25 times per year in a large mine and 20 times per year in a small mine. The respiratory equipment will need to be purchased in each of the two years in which the equipment will be used during the extension period. Thus, a net present value factor of 0.714 and 0.666 is applied to the purchase of the respirators in the fifth and sixth year of the rule's effective date. Also, a 7 percent (0.07) rate is applied to account for the fact that after the second year of respirator use the costs will not recur. These burden hour requirements will not be in effect 7 years after the effective date of the rule.

Underground M&NM Mines Annualized Costs

[12 lg. mines x 0.07 x 0.714]
x [(($29/respirator + ($10/cartridge
x 25 weeks)) x 16 miners]
+
[12 lg. mines x 0.07 x 0.666]
x [(($29/respirator + ($10/cartridge

x 25 weeks)) x 16 miners] = $5,175
[8 lg. mines x 0.07 x 0.714]
x [(($29/respirator + ($10/cartridge
x 20 weeks)) x 8 miners]
+
[8 lg. mines x 0.07 x 0.666]
x [(($29/respirator + ($10/cartridge
x 20 weeks)) x 8 miners] = $1,416

Proposed § 57.5062(a) requires that in the event of a § 57.5060(a) or (b) violation, an underground M&NM mine operator must, establish a diesel particulate control plan. MSHA estimates that it would take a M&NM mine supervisor, earning $36 per hr., 4 hrs. to prepare such a plan. The time to prepare the plan is the same in both a large and small mine. On an annual basis, MSHA estimates that 10 large and 2 small underground M&NM mines would receive a violation of § 57.5060(a) or (b), and thus need to write a diesel particulate control plan.

Underground M&NM Mines Burden Hours & Annual Costs

10 lg. mines x 4 hrs. = 40 hours
2 sm. mines x 4 hrs. = 8 hours
40 hrs. x $36 wage = $1,440
8 hrs. x $36 wage = $288

Proposed § 57.5062(d) requires that only upon request a copy of the diesel particulate plan, including any verification data if necessary, should be submitted the district manager. MSHA estimates that all of the mine operators filing plans would send them to the district manager. Thus, 10 large and 2 small mine operators that are estimated to have plans annually, and are also estimated to send the plans to their respective district manager. MSHA estimates that it would take a secretary, earning $17 per hr., about 10 minutes (0.1667 hrs.) to copy and send the plans, including any necessary verification data, to the district manager. The plan and any necessary verifications data is estimated to be no more than 10 pages and copying costs are estimated at $0.15 per page.

Underground M&NM Mines Burden Hours & Annual Costs

10 plans in large mines x 0.1667 hrs. = 2 hour
2 plans in small mines x 0.1667 hrs. = 1 hour
(2 hr. x $17) + ($0.15 x 10 pgs. x 10 plans)
+ ($1 postage x 10 plans) = $59
(1 hr. x $17) + ($0.15 x 10 pgs. x 2 plans)
+ ($1 postage x 2 plans) = $22

Proposed § 57.5062(e)(3) requires that underground M&NM mines modify, when necessary, their diesel particulate control plans. This will affect 10 large and 2 small underground M&NM mines. MSHA estimates that large and small underground M&NM mines will modify their diesel particulate control plans once annually. It is estimated to take, a M&NM mine supervisor earning $36 per hour, 30 minutes (0.5 hours) to modify the plan.

Underground M&NM Mines Burden Hours and Annual Costs

10 plans in lg. mines x 0.5 hrs. = 5 hours
2 plans in sm. mines x 0.5 hrs. = 1 hour
5 hrs. x $36 wage = $180
1 hr. x $36 wage = $36

Proposed § 57.5062(d) requires that a copy of the diesel particulate control plan be made available, upon request, to an authorized representative of the miners. MSHA estimates that it would take a secretary, earning $17 per hour, 10 minutes (0.1667 hours) to make a copy of the plan and send it to the authorized miner representative. On average, the plan is estimated to be no more than 10 pages and copying costs are estimated at $0.15 per page. Postage is estimated at $1. Annually, this would affect would affect 10 large and 2 small underground M&NM mines.

Underground M&NM Mines Burden Hours and Annual Costs

10 lg. mines x 0.1667 hrs. = 2 hours
2 sm. mines x 0.1667 hrs. = 1 hour
(2 hrs. x $17 wage)+(1 plan x ($0.15 x 10 pgs.)
x 10 lg. mines)+($1 x 10 plans) = $59
(1 hr. x $17 wage)+(1 plan x ($0.15 x 10 pgs.)
x 2 sm. mines)+($1 x 2 plans) = $22

Proposed § 57.5066(b)(1) requires underground M&NM mine operators to authorize and require each miner operating diesel powered equipment to affix a visible tag to such equipment at any time the miner notes any apparent noncompliance with the requirements of paragraph (a) of this provision. MSHA estimates that it will take a miner 2 minutes (0.0333 hrs.) to affix a tag to a piece of diesel powered equipment. The tag is placed on by an underground M&NM miner earning $23 per hr. The number of production and support diesel powered machines that are estimated to be tagged are 347 pieces in large and 123 pieces in small underground M&NM mines. Each of the above pieces are estimated to be tagged twice annually.

Underground M&NM Mines Burden Hours and Annual Costs

0.0333 hrs. x 347 pcs. in lg. mines x 2 per yr.= 23 hrs.
0.0333 hrs. x 123 pcs. in sm. mines x 2 per yr.= 8 hrs.
23 hrs. x $23 wage = $529
8 hrs. x $23 wage = $184

Proposed § 57.5066(b)(3) requires underground M&NM mine operators to make a log of diesel powered machines tagged under this provision. The log must contain the equipment tagged and date tagged. It is estimated to take 2 minutes (0.0333 hrs.) to make a log of each tagged equipment. The log is made by an underground M&NM miner earning $23 per hr. The diesel powered machines estimated to be tagged are 347 pieces in large and 123 pieces in small underground M&NM mines. Each piece will be tagged twice annually and each time will require a log.

Underground M&NM Mines Burden Hours and Annual Costs

0.0333 hrs. x 347 pcs. in lg. mines x 1 log
x 2 per yr. = 23 hrs.
0.0333 hrs. x 123 pcs. in sm. mines x 1 log
x 2 per yr. = 8 hrs.
23 hrs. x $23 wage = $529
8 hrs. x $23 wage = $184

Proposed § 57.5066(b)(2) requires an examination to be made of the diesel powered equipment tagged in underground M&NM mines. A record has to be made of this exam. Thus, the exam time is included here as burden hours. MSHA assumes that it would take 10 minutes (0.1667 hrs.) to examine the equipment. The exam is made by a mechanic earning $25 per hour in a M&NM mine. The number of diesel powered machines that are estimated to be tagged, and thus would require an exam, are 347 pieces in large and 123 pieces in small underground M&NM mines. Each piece is tagged twice annually and each time will require an exam.

Underground M&NM Mines Burden Hours and Annual Costs

0.1667 hrs. x 347 pcs. in lg. mines x 1 exam
x 2 per yr. = 116 hrs.
0.1667 hrs. x 123 pcs. in sm. mines x 1 exam
x 2 per yr. = 41 hrs.
116 hrs. x $25 wage = $2,900
41 hrs. x $25 wage = $1,025

Proposed § 57.5066(b)(3) requires a record be made of the examinations conducted on tagged equipment in underground M&NM mines. MSHA assumes that it would take 3 minutes (0.05 hrs.) to make the record. The record is made by an underground M&NM mechanic earning $25 per hour. The number of tagged diesel powered equipment requiring an exam and thus a record of such exam are estimated to be 347 pieces in large and 123 pieces in small underground M&NM mines. Each piece is estimated to be tagged twice annually and each time will require a record of the exam.

Underground M&NM Mines Burden Hours and Annual Costs

0.05 hrs. x 347 pcs. in lg. mines x 1 record
x 2 per yr. = 35 hrs.
0.05 hrs. x 123 pcs. in sm. mines x 1 record
x 2 per yr. = 12 hrs.
35 hrs. x $25 wage = $875
12 hrs. x $25 wage = $300

Proposed § 57.5066(c). requires a record of those trained. MSHA estimates that it would take no more than 5 minutes (0.0833 hours) in a large and small underground M&NM mine to make such a record. A mine supervisor earning $36 in a M&NM mine would make the record. The affected mines are 121 large and 82 small underground M&NM mines. The compliance costs are annualized at a rate of 7 percent.

Underground M&NM Mines Burden Hours and Annualized Costs

0.0833 hrs. x 1 record x 121 lg. mines = 10 hours
0.0833 hrs. x 1 record x 82 sm. mines = 7 hours
10 hrs. x $36 x 0.07 = $25
7 hrs. x $36 x 0.07 = $18

Proposed § 57.5070(b). Section 57.5070 requires underground M&NM mine operators to keep a record of the annual training. MSHA estimates that for each miner to sign a signature list stating that training under this provision has been given will take no more than 30 seconds (0.0083 hrs.). A M&NM miner's wage is estimated at $23 per hour. Each large mine will have 3 sessions and each small mine will have 1 training session. The annual burden hours and costs for the training records are shown below.

Underground M&NM Mine Burden Hours and Annual Costs

[(121 lg. mines x 3 sessions x 45 miners
x 0.0083 hrs. = 136 hours
[(82 sm. mines x 1 session x 9 miners
x 0.0083 hrs. = 6 hours
136 hrs. x $23 = $3,128
6 hr. x $23 = $138

Proposed § 57.5071(a). A mine that decides to conduct its own sampling will need to purchase 3 sampling instruments costing no more than $650 each and 1 calibration device costing $1,000. In addition, each time a sample is taken a disposable filter cassette costing about $20 each is needed. MSHA estimates that 60 large underground M&NM mines would conduct their own sampling. All small underground M&NM mines are assumed to contract out the diesel particulate sampling. Cost of the sampling instruments and calibration device are annualized over a 10 year period using a factor of 0.142. Disposable cassette costs are provided on an annual basis.

Underground M&NM Mine Annualized and Annual Costs

((3 pumps x $650)+(1 calibration device x $1,000))
x 60 lg. mines x 0.142 = $25,134
Annual costs

60 lg. mines x 4 times per yr. sampling occurs
x 3 samples per sampled area x 2 areas sampled
per lg. mine x $20 disposable cassette = $28,800

Proposed § 57.5071(a). For mines that will conduct their own sampling it is estimated that each time a sample is taken it will take 20 minutes (0.33 hrs.) to assemble the sampling pump components, write information concerning the sample taken, wash the pumps after sampling, and plug in the pumps to be charged. This is done by a miner earning $23 per hour in a M&NM mine. MSHA estimates that 60 large underground M&NM mines would conduct their own sampling. All underground small M&NM mines are assumed to contract out the diesel particulate sampling.

Underground M&NM Mine Burden Hours and Annual Costs

60 lg. mines x 4 times per yr. sampling occurs
x 3 samples per sampled area x 2 areas sampled
per lg. mine x 0.33 hrs. = 475 hours
475 hrs. x $23 = $10,925

Proposed § 57.5071(a). There are also mines that will contract out to a third party to do the sampling required by this provision. MSHA estimates that the cost for a contractor to take each sample will be $75 for an underground mining operation. MSHA estimated that 61 large and 82 small underground M&NM mines would use a contractor to conduct the sampling. The annual costs related to contractor sampling is shown below.

Underground M&NM Mine Burden Hours and Annual Costs

61 lg. mines x 4 times per yr. sampling occurs

x 3 samples per sampled area x 2 areas sampled

per lg. mine x $75 = $109,800
82 sm. mines x 4 times per yr. sampling occurs
x 3 samples per sampled area x 1 area sampled
per lg. mine x $75 = $73,800

Proposed § 57.5071(a). Whether a mine operator samples or contracts it out, the samples are sent to a laboratory for analysis at a cost of $33 per sample. Below is the laboratory costs to analyze sampling estimated under this provision. The underground M&NM mines that will need to have samples analyzed are 121 large mines (60 large mines that do their own sampling and 61 large mines that contract out sampling), and 82 small mines that contract out the sampling.

Underground M&NM Mine Burden Hours and Annual Costs

121 lg. mines x 4 times per yr. sampling occurs
x 3 samples per sampled area x 2 areas sampled
per lg. mine x $33 = $95,832
82 sm. mines x 4 times per yr. sampling occurs
x 3 samples per sampled area x 1 area sampled
per lg. mine x $33 = $32,472

Proposed § 57.5071(a). Mine operators are required to keep a record of the sampling methods and the sample results. The laboratory analyzing the diesel particulate samples will send back a sheet showing the sample results and sampling method used. This sampling result sheet can be used as the record. MSHA estimates that it will take a secretary, earning $17 per hour, no longer than 5 minutes to make a copy of the results and filed them away. Both 121 large and 82 small underground M&NM mines are estimated to sample 4 times per year and thus would receive 4 sample results annually. Copying costs are estimated to be $0.15 per page.

Underground M&NM Mines Burden Hours and Annual Costs

121 lg. mines x 4 sample results annually

x 0.0833 hrs. = 40 hours
82 sm. mines x 4 sample results annually

x 0.0833 hrs. = 27 hours
(40 hrs. x $17 wage)+ ($0.15 x 1 pg. x 4 samples
results annually x 121 mines) = $753
(27 hrs. x $17 wage)+ ($0.15 x 1 pg. x 4 samples
results annually x 82 mines) = $508

Proposed § 57.5071(b). Underground M&NM mine operators are required to inform affected miners and their representatives of dates and times they intend to sample. This provision does not require any specific notification process. Below is the paperwork burden hours and annual costs for large underground M&NM mines. MSHA estimates that: 55 large mines would notify orally; 42 large mines would notify by a written notice; and 24 large mines would notify by posting a notice. Notification will be given 4 times per year, before each sampling period. On average, there are 134 miners in a large underground M&NM mine. MSHA estimates the wage of a M&NM miner at $23 per hr., $36 per hr. for a M&NM supervisor, and $17 per hour for a secretary.

For oral notification, MSHA estimates that it would take a M&NM mine supervisor 2 minutes (0.033 hrs.) to notify miners.

For written notice, MSHA estimates that it would take a M&NM supervisor no more than 5 minutes (0.0833 hrs.) to instruct a secretary on the written notice. The secretary is estimated to take no more than 5 minutes (0.0833 hrs.) to prepare the notice. Estimated copy costs are $0.15 per page.

For posting, MSHA estimates that it would take a M&NM supervisor no more than 5 minutes (0.0833 hrs.) to give instruction to a secretary. The secretary is estimated to take no more than 5 minutes (0.0833 hrs.) to copy and post the notice.

Oral Notice: Lg. Ug. M&NM Mine Burden Hours and Annual Costs

4 times sampling per yr. x 55 lg. mines x
1 supervisor x 0.0333 hrs. = 7 hours
7 hrs. x $36 = $252

Written Notice: Lg. Ug. M&NM Mine Burden Hours and Annual Costs

(4 times sampling per yr. x 42 lg. mines
x 134 miners per mine x 0.0833 hrs.) = 1,875 hours
(4 times sampling per yr. x 42 lg. mines

x 1 supervisor x 0.0833 hrs.) = 14 hours
[(1,875 hrs. x $17 wage)+(4 times per yr.

x 42 lg. mines x 134 miners per mine x $0.15)] = $35,252
(14 hrs. x $36 wage) = $504

Posting: Lg. Ug. M&NM Mine Burden Hours and Annual Costs

4 times sampling per yr. x 24 lg. mines x 0.0833 hrs. = 8 hours
4 times sampling per yr. x 24 lg. mines x 0.0833 hrs. = 8 hours
[(8 hrs. x $17 wage)+(4 times sampling per yr.

x 24 mines x $0.15)] = $150
(8 hrs. x $36 wage) = $288

Proposed § 57.5071(b). Mine operators are required to inform affected miners and their representatives of dates and times they intend to sample. This provision does not require any specific notification process. Below is the paperwork burden hours and annual costs for small underground M&NM mines. MSHA estimates that: 37 small mines would notify orally; 29 small mines would notify by a written notice; and 16 small mines would notify by posting a notice. Notification will be given 4 times per year, before each sampling period. On average, there are 9 miners in a small underground M&NM mine. MSHA estimates the wage of a M&NM miner at $23 per hr., $36 per hr. for a M&NM supervisor, and $17 per hour for a secretary.

For oral notification, MSHA estimates that it would take a M&NM mine supervisor 2 minutes (0.033 hrs.) to notify miners.

For a written notice, MSHA estimates that it would take a M&NM supervisor no more than 5 minutes (0.0833 hrs.) to instruct a secretary on the written notice. The secretary is estimated to take no more than 5 minutes (0.0833 hrs.) to prepare the notice. Estimated copy costs are $0.15 per page.

For posting, MSHA estimates that it would take a M&NM supervisor no more than 5 minutes (0.0833 hrs.) to give instruction to a secretary. The secretary is estimated to take no more than 5 minutes (0.0833 hrs.) to copy and post the notice.

Oral Notice: Sm. Ug. M&NM Mine Burden Hours and Annual Costs

4 times sampling per yr. x 37 sm. mines x
1 supervisor x 0.0333 hrs. = 5 hours
5 hrs. x $36 = $180

Written Notice: Lg. Ug. M&NM Mine Burden Hours and Annual Costs

(4 times sampling per yr. x 29 sm. mines
x 9 miners per mine x 0.0833 hrs.) = 87 hours
(4 times sampling per yr. x 29 sm. mines
x 1 supervisor x 0.0833 hrs.) = 10 hours
[(87 hrs. x $17 wage)+(4 times per yr.

x 29 sm. mines x 9 miners per mine x $0.15)] = $1,636
(10 hrs. x $36 wage) = $360

Posting: Sm. Ug. M&NM Mine Burden Hours and Annual Costs

4 times sampling per yr. x 16 sm. mines x 0.0833 hrs. = 5 hours
4 times sampling per yr. x 16 sm. mines x 0.0833 hrs. = 5 hours
[(5 hrs. x $17 wage)+(4 times sampling per yr.
x 16 mines x $0.15)] = $95
(5 hrs. x $36 wage) = $180

Proposed § 57.5071(c) provides that if sampling results indicate that a proposed concentration level has been exceeded, an underground M&NM mine operator shall take corrective action in order to meet the concentration level and post what corrective actions were taken. MSHA estimates that corrective actions would be taken 48 times per year in a large mine and 16 times per year in a small mine. A miner earning $36 per hour would take about 1 hour to perform corrective actions, such as, basic maintenance or adjusting ventilation controls.

Underground M&NM Mine Burden Hours and Annual Costs Related to Time to Perform Corrective Actions

48 corrective actions annually in lg. mines

x 1 hour = 48 hours
16 corrective actions annually in sm. mines
x 1 hour = 16 hours
48 hrs. x $23 = $1,104
16 hrs. x $23 = $ 368

As noted above, a write up of the corrective actions taken must be posted in the mine. MSHA estimates that a mine supervisor, earning $36 per hour, would take about 15 minutes (0.25 hours) to write and post in each instance that time corrective actions were done.

Underground M&NM Mine Burden Hours and Annual Costs for Posting Related to Corrective Actions

48 corrective actions annually in lg. mines
x 0.25 hours = 12 hours
16 corrective actions annually in sm. mines
x 0.25 hour = 4 hours
12 hrs. x $36 = $432
4 hrs. x $36 = $144

Proposed § 57.5071(d) requires that sample results be posted on the mine bulletin board. Whether a mine operator does their own sampling or contracts out the sampling, the samples will be analyzed by a laboratory and the sampling results will be sent back to the mine operator. When the 121 large and 82 small mine operators receives the sampling results (4 times per year) they can be posted without the mine operator making any adjustments or changes to the results. MSHA estimates that it will a secretary at a mine, earning $17 per hour, about take 5 minutes (0.0833 hrs.) to post the sampling results.

Underground M&NM Mine Burden Hours and Annual Costs

121 lg. mines x 4 times per yr. sampling
occurs x 0.0833 hrs. to post results = 40 hours
82 sm. mines x 4 times per yr. sampling
occurs x 0.0833 hrs. to post results = 27 hours
40 hrs. x $17 = $680
27 hrs. x $17 = $459

Proposed § 57.5071(d) requires underground M&NM mine operators to supply a copy of the diesel particulate sampling results to a miner representative. MSHA estimates that underground M&NM mine operators will sample 4 times per year. MSHA estimates that it would take a secretary at a mine, earning $17 per hr. no longer than 10 minutes (0.1667 hrs.) to copy(at $0.15 per pg.) the sampling results and supply them to the miner representative. The number of mines affected by this standard are 109 large and 41 small underground M&NM mines.

Underground M&NM Mines Burden Hours & Annual Costs

109 lg. mines x 4 results annually x 0.1667 hrs. = 73 hrs.
41 sm. Mines x 4 results annually x 0.1667 hrs. = 27 hrs.
(73 hrs. x $17 wage)+($0.15 x 1 pg.
x 109 lg. mines x 4 results) = $1,306
(27 hrs. x $17 wage)+($0.15 x 1 pg.

x 41 sm. mines x 4 results) = $483

Proposed § 57.5075(b)(4) requires that a miner, former miner, or, with the miner's or former miner's written consent, a personal representative of a miner, shall be able to obtain any record designated as a "health" record. The health records that a miner could request would be the copy of the results of the exposure measurements taken in the mine that underground M&NM mines are estimated to undertake 4 times per year. MSHA does not expect all miners in a mine to request a copy of such records. On average, a large underground M&NM mine is estimated to employ 134 miners, and a small underground M&NM mine is estimated to employ 9 miners. MSHA estimates that 10 percent of miners in a large mine 13 (134 x 0.10) miners, and 5 percent of miners in a small mine 1 (9 x 0.05) miners, would request a copy of the sampling results. Each of the 4 records consist of 1 page of exposure measurement sample results. MSHA estimates that to make a copy of the sample results and give it to a miner 4 times during the year will take no longer than 5 minutes (0.0833 hours). A secretary's wage is estimated at $17 per hour, and copy costs are estimated at $0.15 per page.

Underground M&NM Mines Burden Hours & Annual Costs

13 miners x 0.0833 hrs. x 121 lg. mines = 131 hours
1 miner x 0.0833 hrs. x 82 sm. mines = 7 hours
(131 hrs. x $17 wage) +(1 pg. x 4 copies

x $0.15 x 121 lg. mines) = $2,300
(7 hrs. x $17 wage) +(1 pg. x 4 copies

x $0.15 x 82 sm. mines) = $168

Existing Part 7, Subpart E. As a result of proposed § 57.5067 underground M&NM mine operators must have an engine approved by MSHA pursuant to 30 CFR Part 7, subpart E, when any diesel engine is introduced into an underground area of a metal or nonmetal mine property after the effective date of this rule, and intended for underground areas of that mine. MSHA estimates that an engine manufacturer will seek approval of one new diesel engine model per year. MSHA estimates that it would take approximately 35 hours, at a rate of $75 per hour, to prepare the application. A secretary earning $16 per hour would take about 10 minutes (0.1667 hrs.) to copy and submit the application to MSHA. The application would be about 5 pages and the copying costs are estimated at 0.15 per page. Postage is estimated at $0.32.

The costs below were already included in § 57.5067, in the form of a $2,500 incremental cost to mine operators for approved engines during the first 10 years after the effective date of the rule. They are presented here to show their relationship to burden hours.

Burden Hours for Manufacturer

1 nonperm. diesel engine model application

x 35 hrs. = 35 hours
1 nonperm. diesel engine model application

x 0.1667 hrs. = 1 hour

Annual Costs

35 hrs. x $75 wage = $2,625
[(1 hour x $16) + ($0.15 x 5 pgs.)

+ (1 application x $0.32)] = $17

Before the application is filed a third party testing laboratory will have to run a maximum fuel/air ratio test required by existing § 7.87; a gaseous ventilation test required by existing § 7.88; and a particulate index test required by existing § 7.89. To run all three tests will cost about $14,000.

Cost for Third Party to run Tests

Tests for 1 nonperm. diesel engine model

x $14,000 = $14,000

References

1. U.S. Department of the Interior/United States Geological Survey. Mineral Commodity Summaries 1997. 1997. Pp. 6.

2. Ibid. Pp. 160 and 162.

3. Ibid. P. 6.

4. Ibid. Pp. 52, 70, and 154.

5. Ibid. Pp. 6 and 7.

6. Ibid. Pp. 143 and 156.

7. Ibid. P. 124.

8. Ibid. Pp. 145 and 161.

9. Ibid. Pp. 6 and 7.

10. Stayner, L., et al., "Predicted Lung Cancer Risk Among Miners Exposed to Diesel Exhaust Particles," American Journal of Industrial Medicine, 1998.

11. Western Mine Engineering, Inc. U.S. Metal and industrial Mineral Mine Salaries, Wages, and Benefits (1997 Survey Results). 1997.

12. U.S. Department of the Interior/U.S. Geological Survey. Mining and Quarrying Trends (Annual Review 1996). Published January 1998.