REV98683

• Permit No: C1981022
• IBM Index Class Name: Revision
• Doc Date: 8/16/1995
• Doc Name: COAL RECLAMATION BOND FOR USE WITH LETTER OF CREDIT FEDERAL MINE
• Type & Sequence: SO2
• Media Type: D
• Archive: No

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(d) The Division will not accept a letter of credit in excess of 10
percent of the bank's capital surplus account as shown on a recent balance
sheet certified by a Certified Public Accountant.
(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 principal 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;
<11) 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 principal and the Division; and
(111) Upon the incapacity of a bank by reason of bankruptcy,
insolvency or suspension or revocation of its charter or license, the
principal 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 1n 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 and the OSMRE 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 with the knowledge of the OSMRE, 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