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Snell &Wilmer <br />L.L.P <br />the validity of a surety bond is to be determined by state, not federal law. For example, 30 <br />C.F.R. § 740.11(a) states: <br />Upon approval or promulgation of a regulatory program for a <br />State, that program and this subchapter shall apply to: <br />*r* <br />(2) surface coal mining and reclamation operations taking place on <br />any Federal lands... and lands... over leased or unleased Federal <br />minerals. <br />30 C.F.R. § 740.13(c)(9) requires an applicant seeking a permit to mine on federal lands to post a <br />performance bond "which meets the requirements of the applicable regulatory program. " <br />Taken together, these two sections demonstrate that the position taken by Colorado is incorrect. <br />Once a state has achieved primacy and entered into a cooperative agreement, the provisions of <br />the approved state regulatory program, including the bonding provisions, become applicable to <br />federal lands located within that state. <br />Further support for this position is found in the 1983 preamble to OSM's bonding <br />regulations, which states: <br />The recently adopted rules revising OSM's permanent program on <br />Federal Iands.. . make a State program, including its bonding <br />provisions, applicable to surface coal mining and reclamation <br />operations on Federal lands in that State. <br />48 Fed. Reg. 32,932 (1983). <br />The Clark letter assumes that because OSM is an obligee of the Bond, the Bond is not <br />acceptable unless issued by a company holding a Certificate of Authority from Treasury. This <br />assumption is incorrect. OSM's regulations make a state's bonding program applicable to the <br />Frontier bond. <br />B. Colorado Law Does Not Require a Surety to Aave a Treasury Department <br />Listing to Write Bonds for State Coal Minims Permits <br />The Clark letter asserts that the Colorado mining regulations require reclamation bonds to <br />be issued by a surety with a valid and current Certificate of Authority from the United States <br />Treasury Department. Clazk Letter, p. 7. There is no such requirement, either in the Colorado <br />regulations cited in the Clazk letter or in any other applicable provision of Colorado law. <br />-4- <br />