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RULE 3 — PERFORMANCE BOND REQUIREMENTS <br />3.01 Introduction <br />• This Rule sets forth minimum requirements and responsibilities for filing and maintaining <br />performance bonds for underground coal mining and reclamation operations, in accordance with the <br />Act. The Rule includes the minimum requirements for determining the amounts and periods of <br />liability for performance bonds; it establishes minimum standards for the form, conditions and <br />terms of performance bonds; it sets forth minimum provisions for criteria, schedule and procedures <br />for release of performance bonds; it establishes provisions to be applicable whenever a proceeding <br />for the forfeiture of all or any part of a performance bond, as a result of a failure to meet the <br />conditions upon the bond, is initiated; and it sets forth special requirements for construction of <br />certain mine drainage control facilities. <br />3.02 Performance Bond Requirements for Surface Coal Mining and <br />Reclamation Operations <br />3.02.1 General Requirements <br />After permit application or revision, PSCM will establish performance bond requirements and <br />outlined responsibilities for maintaining the performance bond for mining and reclamation <br />operations. This bond will be conditioned upon the faithful performance of all the requirements of <br />the permit and shall conform to standards as outlined in 3.02.1 parts one through seven. <br />3.02.2 Determination of Bond Amount <br />This section of the permit application addresses Section 3.02.2 - Determination of the Bond <br />• Amount. As stated in Section 3.03.2(1), the amount of the performance bond shall be determined <br />by the Division. As a part of the PAP review and decision process, CDRMS calculates the <br />performance bond as a result of cost estimates derived from the reclamation plan and other <br />supporting sections of the PAP. Based on this, PSCM requests that the CDRMS derived cost <br />estimates and calculated performance bond for the PSCM PAP form the initial calculation necessary <br />to satisfy section 3.02.2. PSCM is aware that the bond shall be sufficient to assure completion of <br />the reclamation should this work need to be completed by an independent contractor. <br />This PAP contains the necessary information to support calculations of the amount required for the <br />bonded area and is dependent upon the reclamation requirements of the approved permit. Bond <br />calculations for facilities reclamation will be aided by review of Table 2.05.3 -T3 and Exhibit <br />2.05.3 -E1. This information reflects the probable difficulty of reclamation with consideration for <br />topography, hydrology, revegetation potential and other available supporting information. <br />Information necessary to support development of reclamation cost estimates and the performance <br />bond are included, but not limited to the following sections: <br />• Section 2.04.6 <br />• Section 2.04.7 <br />• Section 2.04.9 <br />• Section 2.04. 10 <br />• Section 2.05.3 <br />. • Section 2.05.4 <br />Geology <br />Hydrology <br />Soils Resources Information <br />Vegetation <br />Operations Plan <br />Reclamation Plan <br />PSCM Permit App. 3.0 -1 Revision 12/17/09 <br />