A. The provisions of this chapter shall not apply to the extraction of coal:
1. By a landowner for his own noncommercial use from land owned or leased by him; or
2. As an incidental part of federal, state, or local government-financed highway or other construction under regulations established by the Director.
B. Any agency, unit, or instrumentality of the Commonwealth, or of federal or local government, including any publicly owned utility or publicly owned corporation of federal, state, or local government, that proposes to engage in coal surface mining operations that are subject to the requirements of this chapter shall comply with the provisions of this chapter.