1. All moneys in the abandoned mine reclamation fund may be used for the following purposes:

(1) Reclamation and restoration of land and water resources adversely affected by past coal mining, including, but not limited to, reclamation and restoration of abandoned surface mine areas, abandoned coal processing areas, and abandoned coal refuse disposal areas; sealing and filling abandoned deep mine entries and voids; planting of land adversely affected by past coal mining to prevent erosion and sedimentation; prevention, abatement, treatment, and control of water pollution created by coal mine drainage including restoration of stream beds, and construction and operation of water treatment plants; prevention, abatement, and control of burning coal refuse disposal areas and burning coal in situ; and prevention, abatement, and control of coal mine subsidence;

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(2) Acquisition and filling of voids and sealing of tunnels, shafts, and entryways under section 444.935;

(3) Acquisition of land as provided for in this law;

(4) Studies by contract with public and private organizations to provide information, advice, and technical assistance, including research and demonstration projects, conducted for these purposes;

(5) Restoration, reclamation, abatement, control, or prevention of adverse effects of coal mining which constitutes an emergency;

(6) Administrative expenses to accomplish these purposes;

(7) All other necessary expenses to accomplish these purposes.

2. Expenditure of moneys from the abandoned mine reclamation fund shall reflect the following priorities in the order stated:

(1) The protection of public health, safety, general welfare, and property from extreme danger of adverse effects of coal mining practices;

(2) The protection of public health, safety, and general welfare from adverse effects of coal mining practices;

(3) The restoration of land and water resources and the environment previously degraded by adverse effects of coal mining practices including measures for the conservation and development of soil, water (excluding channelization), woodland, fish and wildlife, recreation resources, and agricultural productivity;

(4) The protection, repair, replacement, construction, or enhancement of public facilities such as utilities, roads, recreation, and conservation facilities adversely affected by coal mining practices;

(5) The development of publicly owned land adversely affected by coal mining practices including land acquired as provided in this title for recreation and historic purposes, conservation, and reclamation purposes and open space benefits.

3. If there is no continuing reclamation responsibility under state or federal laws for lands or water, lands and water eligible for reclamation or drainage abatement expenditures from the abandoned mine reclamation fund are those:

(1) Which were mined for coal or which were affected by such mining, wastebanks, coal processing, or other coal mining processes, and abandoned or left in an inadequate reclamation status prior to September 28, 1979;

(2) For which a finding that the surface coal mining operation occurred during the period beginning on August 4, 1977, and ending on or before November 21, 1980, and that funds for reclamation or abatement which are available pursuant to a bond or other form of financial guarantee or from any other source are not sufficient to provide for adequate reclamation or abatement at the site;

(3) For which a finding that the surface coal mining operation occurred during the period beginning on August 4, 1977, and ending on or before October 1, 1991, and that the surety of such mining operator became insolvent during such period, and as of October 1, 1991, funds immediately available from proceedings relating to such insolvency, or from any financial guarantee or other source are not sufficient to provide for adequate reclamation or abatement at the site.