REV00617

• Permit No: C1981024
• IBM Index Class Name: Revision
• Doc Date: 1/16/1996
• Doc Name: COAL RECLAMATION BOND FOR USE WITH LETTER OF CREDIT
• Type & Sequence: MR8
• Media Type: D
• Archive: No

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(e> The Division will not accept letters of credit from a bank for
any person, on all permits held by that person, in excess of 30 percent of the
bank°s capital surplus account as shown on a balance sheet Certified by a
Certified Public Accountant.
(f) The letter shall provide that:
(i) The bank will give prompt notice to the permittee and the
Division of any notice received or action filed alleging the insolvency or
bankruptcy of the bank, or alleging any violations of regulatory requirements
which could result in suspension or revocation of the bank°s charter or
license to do business;
(ii) In the event the bank becomes unable to fulfill its
obligations under the letter of credit for any reason, notice shall be given
immediately to the permittee and the Division; and
(iii) Upon the incapacity of a bank by reason of bankruptcy,
insolvency or suspension or revocation of its charter or license, the
permittee shall be deemed to be without performance bond coverage in violation
of the law.
(2) The letter of credit shall be automatically renewed until released
in writing by the Board or Division in accordance with applicable laws. It is
understood that periods of years may necessarily be required before
determination can be made that reclamation work has been satisfactorily
completed. It is recognized that, as reclamation is accomplished, the amount
of this bond and the Letter of Credit may be reduced with the approval of the
Board or the Division so that it reflects the then currently estimated cost of
the remaining reclamation required under the Plan and the Permit and by
applicable laws and regulations of the State. No revision, extension, or
renewal of the Permit or of the time allowed to complete reclamation shall
diminish the Principal's obligation hereunder or the Bank's obligation under
its Letter of Credit.
(3> The Board or the Division shall review this bond from time to time
and may require an increase in the principal amount of this bond (and a
corresponding increase in the Surety amount) to cover increases in the
estimated costs of reclamation, but no such increase shall bind the Bank unless
and until it shall have consented thereto in writing by the issuance of an
additional Letter of Credit or by a substitute Letter of Credit in the
increased amount.
(4) With the prior consent of the Board or the Division, which consent
shall not be unreasonably withheld, the Principal may, from time to time,
change the Bank whose Letter of Credit is held by the State as Surety, or
alter the form of Surety or assurance of financial responsibility held by the
State for the faithful performance by the Principal of its obligations
hereunder, provided that, at all times, there shall be in existence and
delivered to the State such Surety or other evidence of financial