Title 40 Mines and Mining Chapter 10 Coal Mining and Reclamation Section 15 Performance bond -- Duration of liability under bond -- Cash deposit or securities in lieu of bond -- Surety -- Adjustment of amount.
40-10-15.Performance bond -- Duration of liability under bond -- Cash deposit or
securities in lieu of bond -- Surety -- Adjustment of amount.
(1) After a surface coal mining and reclamation permit application has been approved but
before the permit is issued, the applicant shall file with the division on a form prescribed and
furnished by the division, a bond for performance which is payable to the state and the United
States, if appropriate, which is conditioned on faithful performance of all the requirements of this
chapter and the permit. The bond shall cover that area of land within the permit area upon which
the operator will initiate and conduct surface coal mining and reclamation operations within the
initial term of the permit. As succeeding increments of surface coal mining and reclamation
operations are to be initiated and conducted within the permit area, the permittee shall file with
the division an additional bond or bonds to cover these increments in accordance with this section.
The amount of the bond required for each bonded area shall depend upon the reclamation
requirements of the approved permit; shall reflect the probable difficulty of reclamation, giving
consideration to such factors as topography, geology of the site, hydrology, and revegetation
potential; and shall be determined by the division. The amount of the bond shall be sufficient to
assure the completion of the reclamation plan if the work had to be performed by the division in
the event of forfeiture and in no case shall the bond for the entire area under one permit be less
than $10,000.
(2) Liability under the bond shall be for the duration of the surface coal mining and
reclamation operation and for a period coincident with the operator's responsibility for
revegetation requirements in Section 40-10-17. The bond shall be executed by the operator and a
corporate surety licensed to do business in the state, except that the operator may elect to deposit
cash, negotiable bonds of the United States government, or negotiable certificates of deposit of
any bank organized or transacting business in the United States. The cash deposit or market value
of the securities shall be equal to or greater than the amount of the bond required for the bonded
area.
(3) The division may accept the bond of the applicant itself without separate surety when
the applicant demonstrates to the satisfaction of the division the existence of a suitable agent to
receive service of process and a history of financial solvency and continuous operation sufficient
for authorization to self-insure or bond the amount.
(4) Cash or securities so deposited shall be deposited upon the same terms as the terms
upon which surety bonds may be deposited. The securities shall be security for the repayment of
the negotiable certificate of deposit.
(5) The amount of the bond, surety, or deposit required and the terms of each acceptance
of the applicant's bond shall be adjusted by the division from time to time as affected land
acreages are increased or decreased or where the cost of future reclamation changes.
Amended by Chapter 219, 1994 General Session
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