CHEYENNE - Go slow on spending Wyoming's $550 million back payment of abandoned mine reclamation funds, officials said Thursday.

"Hopefully they don't get in a hurry to spend the whole thing and take their time on how that money should be allocated," said Marion Loomis, executive director of the Wyoming Mining Association.

House Speaker-elect Roy Cohee, R-Casper, agreed.

If President Bush signs the bill, Wyoming and the other coal states will receive the money with no strings, allowing the Legislature to make spending choices.

Loomis said he personally would like to see some of the money spent on highways and some on the new School of Energy Resources at the University of Wyoming.

"I think infrastructure is a good way to go with part of it and they may want to save part of it for issues down the road, but don't just throw it into the General Fund and start spending it," Loomis said.

He said he believes the state is pretty well caught up with reclamation projects, although the Abandoned Mine Land office in the Wyoming Department of Environmental Quality has identified problems that still need to be resolved.

Cohee said Thursday the state will need to give top priority to cleaning up abandoned mine lands.

"Then I guess we would have to look at communities impacted directly by mining. And by mining I mean any type of mineral development," Cohee said.

The state, he added, could use the money for infrastructure needs in those mineral impacted communities.

According to U.S. Sen. Mike Enzi, who worked for more than 10 years to get this deal, Wyoming will receive a total of more than $1.6 billion over the life of the program.

If President Bush signs the bill into law Wyoming will receive the $550 million in Abandoned Mine Land trust funds through the Office of Surface Mining in seven equal installments beginning in the federal fiscal year which begins Oct. 1, 2007.

In addition to the money owed previously, Wyoming will receive the full yearly amount owed to the state because of the collection of the AML fee on each ton of coal mined in Wyoming. This is estimated to be more than $60 million every year, Enzi said in a release.

Gov. Dave Freudenthal said he had not seen the exact language in the bill but it appears the state may have to look at how the AML funds are handled to accommodate the new chunk of money.

"He did an amazing amount of work to get this done," Freudenthal said of Enzi.

Unlike other AML funds, the legislatures in the coal states can decide how to spend the money without needing federal approval from the Office of Surface Mining.

"If spent right, it could launch a new and perpetual energy and financial boom for the state. This AML money should mean more to the state than a one-time windfall. When the Wyoming Legislature is determining how to spend this money, I hope members will consider a first-class research institute that specializes in better and more efficient use of coal, wind energy and other natural resources our state has in abundance," Enzi said.

During an interview with the Star-Tribune, Enzi said he doesn't often offer advice to the Legislature on how to spend money because the lawmakers know better what the state's needs are. In this case he thinks it's important to begin talking now about how to use the AML money.

He said some of the money could be used for work force training through the community colleges.

"I hope it goes to keeping the economy of the state going," Enzi said.

In 1977 Congress promised coal states half the money they paid in coal taxes so the states could use the money for reclamation and other mining related issues but Enzi said Congress spent the money on other federal priorities.

Rep. Frank Philp, R-Shoshoni, the co-chairman of the Joint Appropriations Committee, and Sen. Rae Lynn Job, D-Rock Springs, are from districts that have had abandoned mine reclamation work.

Both feel reclamation projects should take first priority with the new money.

"First of all we need to know the scope of abandoned land reclamation needs," Job said.

Philp said the money also should be used to take care of problems caused by mining-related activity.

"I know Campbell County has problems with dust control and even traffic coming out of those mines. Those kinds of impacts, I think, ought to be addressed first," Philp said.

In the past AML money has been used to help pay for a variety of projects, such as a new water treatment plant for Green River, renovations at the Sheridan Hospital in Sheridan and a new Campbell County High School in Gillette.

NewsTracker

Last we knew: Wyoming's delegation succeeded in a years-long fight to secure money for abandoned mine cleanup.

The latest: With the bill now on President Bush's desk to sign, legislators and industry insiders urge careful spending of the millions in cash available to the state.

What's next: The president is expected to sign the bill, which could make the money available next year.

Click here for related story 'How Wyo, other states reaped billions from mine bill.

Capital reporter Joan Barron can be reached at (307) 632-1244 or at joan.barron@casperstartribune.net