(b) If the county zoning laws or ordinances specified in paragraph (a) of this subsection are repealed by a county:

(A) The department may allow a surface mining operation that previously operated under a valid county operating permit and reclamation plan to continue to operate for a period not to exceed one year if the landowner or operator applies for an operating permit under ORS 517.790 within 60 days after the date the county’s repeal of the zoning laws or ordinances becomes effective, pays all applicable fees to the department and submits a bond or security to the department as required by ORS 517.810. Pending issuance of an operating permit and approval of a reclamation plan by the department, the county permit is deemed to remain in effect and is enforceable by the department.

(B) The department, in issuing a permit and approving a reclamation plan for a surface mining operation that previously operated under a valid county operating permit as described in paragraph (a) of this subsection, may incorporate any provisions from the county operating permit into the permit issued by the department and the reclamation plan approved by the department if the department determines that the provisions provide adequate protection of the public health, safety and welfare and the environment.

(C) The department may issue a certificate of exemption from reclamation requirements as described in ORS 517.770 (1)(b).

(2) City or county operated surface mining operations that sell less than 5,000 cubic yards of minerals within a period of 12 consecutive calendar months are exempt from the state mining permit requirements of ORS 517.702 to 517.989 if the city or county adopts an ordinance that includes a general reclamation scheme establishing the means and methods of achieving reclamation for city or county operated surface mining sites exempted from the state permit requirements by this subsection. [1971 c.719 §16; 1975 c.724 §3; 1977 c.524 §1; 1979 c.435 §1; 1983 c.20 §1; 1985 c.292 §6; 1987 c.361 §9; 2003 c.14 §340; 2007 c.318 §6; 2009 c.270 §3]