1993-11-15_PERMIT FILE - C1981017 ‎(2)‎

• Permit No: C1981017
• IBM Index Class Name: Permit File
• Doc Date: 11/15/1993
• Doc Name: Request for federal Intervention ‎(Part 2 of 2)‎
• Media Type: D
• Archive: No

SEC. 509. (a) After a surface coal mining and reclamation permit
application has been approved but before such a permit is issued,
the applicant shall file with the regulatory authority, on a form
prescribed and furnished by the regulatory authority, a bond for
performance payable, as appropriate, to the United States or to
the State, and conditional upon faithful performance of all the
requirements of this Act 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 regulatory authority an additional
bond or bonds to cover such 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 regulatory authority. 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 regulatory authority
in the event of forfeiture and in no case shall the bond for the
entire area under one permit be less than $10,000.
(b) Liability under the bond shall be for the duration of the
surface coal mining and reclamation operation and for a period
coincident with operator's responsibility for revegetation
requirements in section 515. The bond shall be executed by the
operator and a corporate surety licensed to do business in the
State where such operation is located, except that the operator
may elect to deposit cash, negotiable bonds of the United States
Government or such State, or negotiable certificates of deposit
of any bank organized or transacting business in the United
States. The cash deposit or market value of such securities
shall be equal to or greater than the amount of the bond required
for the bonded area.
(c) The regulatory authority may accept the bond of the
applicant itself without separate surety when the applicant
demonstrates to the satisfaction of the regulatory authority 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 such amount or in lieu
of the establishment of a bonding program, as set forth in this
section, the Secretary may approve as part of a State or Federal
program an alternative system that will achieve the objectives
and purposes of the bonding program pursuant to this section.
(d) Cash or securities so deposited shall be deposited upon
the same terms as the terms upon which surety bonds may be
deposited. Such securities shall be security for the repayment
of such negotiable certificate of deposit.
(e) The amount of the bond or deposit required and the terms
of each acceptance of the applicant's bond shall be adjusted by
the regulatory authority from time to time as affected land
acreages are increased or decreased or where the cost of future
reclamation changes.
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