ELR Citation: ELR 20929
No(s). 91-3002 (4th Cir. Feb 9, 1993)

The court holds that general partners in a coal mining partnership that is liable for reclamation fees are "operators" under the Surface Mining Control and Reclamation Act (SMCRA) §701(13) and are liable for the payment of unpaid reclamation fees under the SMCRA §402(a), and such fees are not dischargeable under the Bankruptcy Code. General partners of a partnership are liable as operators under SMCRA §701(13). The court holds that the §701(13) definition of operator includes the general partners of a partnership liable for fees under §402(a). Although SMCRA does not explicitly state that partners are generators, the consistent application of a broad interpretation of "operator" by the secretary of the Interior supports this conclusion. Moreover, the secretary's interpretation is reasonable. The court also holds that general partners are liable for payment of reclamation fees even after the individual partner's debts have been discharged in bankruptcy. The fees are excise taxes that are not dischargeable under the Bankruptcy Code. The parties' liability for the unpaid fees of the partnership is not extinguishable by their discharge in bankruptcy.

Counsel for Plaintiff-Appellee
Mark Siegal, Special Ass't U.S. Attorney
U.S. Attorney's Office
700 Plaza Tower
800 S. Gay St., Knoxville TN 37929
(615) 673-4561

Counsel for Defendants-Appellants
Joseph H. Roberts
Law Offices
P.O. Box 1438, Wise VA 24293
(703) 328-3158

Before RUSSELL and WILKINS, Circuit Judges, and KELLAM, Senior United States District Judge for the Eastern District of Virginia, sitting by designation.