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ACTION PLAN ID # UT-2()17-001 <br /> III. REGULATORY PROGRAM PROBLEMS TO BE RESOLVED <br /> ISSUE 1: Tech-007 Bond Adjustment Guidelines for Structure Removal Circumvent Bond <br /> Release Procedures <br /> PROBLEM DESCRIPTION: Tech-007 § 8, entitled"Building Demolition Prior to Final <br /> Reclamation" as currently written,conflicts with the bond release requirements established in <br /> SMCRA, the Federal regulations,and the approved State program. Specifically,Tech-007 § 8 <br /> allows the discretion to reduce a bond amount through bond adjustments for structures removed <br /> from a disturbed area,rather than proceeding through the mandated bond release procedures for <br /> reclamation of work performed. <br /> SMCRA, at section 509(e)requires the regulatory authority to adjust the bond amount to account <br /> for changes in the affected land acreages and where the cost of future reclamation changes. The <br /> corresponding Federal regulations outline bond adjustment procedures in 30 C.F.R. § 800.15. <br /> Subsection (c) of 30 C.F.R. § 800.15 specifically provides that: <br /> A permittee may request reduction of the amount of the performance bond upon <br /> submission of evidence to the regulatory authority proving that the permittee's <br /> method of operation or other circumstances reduces the estimated cost for the <br /> regulatory authority to reclaim the bonded area. Bond adjustments which involve <br /> undisturbed land or revision of the cost estimate of reclamation are not considered <br /> bond release subject to procedures of§ 800.40. <br /> The Utah program language,at Utah Code Ann. § 40-10-15(5) and UAC R645-301-830.430, is <br /> substantively identical to the language in SMCRA and 30 C.F.R. § 800.15(c).3 <br /> The original written language in Tech-007,however, provides at § 8, that: <br /> The Division at its discretion may release part of the bond amount for <br /> structures that have been removed as part of the operational phase. Before <br /> such a bond release can be approved, the entire structure must be removed <br /> and properly disposed of. The Division must verify the structure's removal <br /> with a field visit and a written report and photographs. <br /> Bond reductions that are associated with the removal of structures and <br /> facilities during the operational phase may be handled as part of the bond <br /> release process as outlined in R645-301-880. If the operator demonstrates <br /> 3 Utah Code Ann.§40-10-15(5)states: <br /> The amount of the bond, surety, or deposit required and the terms of each acceptance of the applicant's <br /> bond shall be adjusted by the division from time to time as affected land acreages are increased or <br /> decreased or where the cost of future reclamation changes. <br /> UAC R645-301-830.430 provides: <br /> A permittee may request reduction of the amount of the performance bond upon submission of evidence to <br /> the Division providing that the permittee's method of operation or other circumstances reduces the <br /> estimated cost for the Division to reclaim the bonded area. Bond adjustments which involve undisturbed <br /> land or revision of the cost estimate of reclamation are not considered bond release subject to procedures of <br /> R645-301-880.100 through R645-301-880.800. <br /> 3 <br />