The Bureau of Mines conducted a study of current trends in methods employed by the coal industry to dispose of acid mine drainage (AMD) treatment sludge. Thirty-three AMD treatment plants, operated by 11 pensylvania coal companies, were randomly surveyed. These plants provided data for calculating sludge volumes, as well as information on sludge settling, transportation, and disposal. Onsite visits allowed observation of problems associated with the various methods of sludge disposal: (1) disposal into a deep mine, (2) permanent retention in ponds, (3) disposal at an active coal refuse area, and (4) onsite burial. Method 1 is the most frequently used and the most environmentally sound. It is apparent, based on this representative sampling of AMD treatment plants, that the magnitude of sludge production is such that an aggressive and directed effort in reduction of sludge volume is seriously needed. The areas of major concern are (1) the amount of surface land required for sludge storage and disposal, (2) reclamation of these disturbed surface areas, and (3) effective and efficient means of removing, transporting, and disposing of AMD sludge. In this report, an engineering approach to the practical problems associated with the existing disposal methods is presented, together with recommendations for future research.