(a) Commission responsibility. The Commission shall conduct an annual compliance review of the mining area, utilizing the annual report submitted pursuant to §12.33 of this title (relating to Reporting Requirements), an on-site inspection, and any other information available to the Commission.
(b) Notification by Commission. If the Commission has reason to believe that a specific mining area was not exempt under the provisions of §§12.25-12.31, this section, and §12.33 of this title (relating to Exemption for Coal Extraction Incidental to the Extraction of Other Minerals) at the end of the previous reporting period, is not exempt, or will be unable to satisfy the exemption criteria at the end of the current reporting period, the Commission shall notify the operator that the exemption may be revoked and the reason(s) therefor. The exemption will be revoked unless the operator demonstrates to the Commission within 30 days that the mining area in question should continue to be exempt.
(c) Exemption Revoked.
  (1) If the Commission finds that an operator has not demonstrated that activities conducted in the mining area qualify for the exemption, the Commission shall revoke the exemption and immediately notify the operator and intervenors. If a decision is made not to revoke an exemption, the Commission shall immediately notify the operator and intervenors.
  (2) Any adversely affected person may request appeal or review of a decision whether to revoke an exemption in accordance with procedures established under §12.222 of this title (relating to Administrative Review).
(d) Direct enforcement.
  (1) An operator mining in accordance with the terms of an approved exemption shall not be cited for violations of the Act and this chapter (relating to Coal Mining Regulations) which occurred prior to the revocation of the exemption.
  (2) An operator who does not conduct activities in accordance with the terms of an approved exemption and knows or should know such activities are not in accordance with the approved exemption shall be subject to direct enforcement action for violations of the Act and this chapter (relating to Coal Mining Regulations) which occur during the period of such activities.
  (3) Upon revocation of an exemption or denial of an exemption application, an operator shall stop conducting surface coal mining operations until a permit is obtained and shall comply with the applicable reclamation standards of the Act and this chapter (relating to Coal Mining Regulations) with regard to conditions, areas, and activities existing at the time of revocation or denial.

Source Note: The provisions of this §12.32 adopted to be effective November 4, 1997, 22 TexReg 10640.