Bond is required by these rules and by Iowa Code chapter 208
to ensure that all applicable mineral operations are properly reclaimed.
Failure on the part of an operator to accomplish required reclamation may
result in forfeiture of the bond by the division.
(1)
Bonding requirements.
Each registration application shall be accompanied by a bond or a bond
endorsement increasing an already existing bond. The bond or bond increase
shall be equal to the amount set forth by a representative of the division or,
if no amount is stipulated, the minimum set forth in subrule
60.40(6).
(2)
Bond
form. All surety bonds shall be written on the form provided and
approved by the division. In lieu of a surety bond, the operator may deposit
cash or certificates of deposit with the division on the same conditions as
prescribed by Iowa Code section
208.23.
(3)
Surety bond. A surety
bond shall be written by a company authorized to do business in Iowa and shall
be made on a form provided by the
division. A surety bond shall be signed by
the
operator or an authorized representative of the
operator as well as a
representative of the surety.
The surety bond shall be written to cover all acres affected
by the mining process pursuant to Iowa Code chapter 208. An attachment shall be
included as part of the bond document which lists the sites by name and
location (county, township, range, section, and legal description). This
attachment shall be signed by representatives of the surety and the
principal.
(4)
Certificates of deposit. Certificates of deposit posted as
bond shall be made payable to the State of Iowa, Division of Soil Conservation
and Water Quality AND (Operator). All interest earned shall be paid to the
operator.
(5)
Cash. Cash deposited as bond does not pay interest to the
operator.
(6)
Minimum
bond. The minimum required bond on each site shall be the greater of
$2,000 per site or $500 per affected acre on the site.
Actual bond shall be based on factors including, but not
limited to, size of the site, thickness of overburden, type of mineral
extracted, type of mining process, and stockpiling procedures for topsoil,
overburden and product.
(7)
Interest-bearing account. Penalties, interest, bond reversions
and bond forfeitures collected under the provisions of Iowa Code chapter 208 or
these rules shall be deposited in an interest-bearing account and may be used
for the cost and administrative expense of reclamation or rehabilitation
activities for any mine site as deemed necessary and appropriate by the
division.
