If the Permit Board finds that the probable total annual production at all locations of a surface coal mining operator will not exceed three hundred thousand (300,000) tons, the cost of conducting activities to obtain and provide the information required to be contained in the permit application as determined by the commission consistent with Section 507(c) of the federal act shall be assumed by the department, subject to the availability of federal or other special funds for that purpose and upon written request of the operator. All work under this section shall be performed by a qualified public or private laboratory or other public or private qualified entity designated by the department.