RELATES TO:
KRS
350.020,
350.060,
350.062,
350.064,
350.093,
350.095,
350.100,
350.151,
350.465
NECESSITY, FUNCTION, AND CONFORMITY: KRS Chapter 350 authorizes
the cabinet to promulgate administrative regulations to establish procedures
for determining amounts for performance bonds for surface coal mining
operations. This administrative regulation establishes criteria for the base
determination of bond amounts and requires certain periods of liability during
which the bonds shall remain in effect. This administrative regulation
establishes requirements for filing and maintaining performance bonds and
provides for adjustments in bond amounts and additional information related to
minimum bonds and application of bonds to ensure performance of the
requirements of KRS Chapter 350 in the event work is performed by the cabinet,
taking into consideration such things as topography, geology, future land use,
and the difficulty of reclamation.
Section
1. Bonding Requirements.
(1) An
applicant shall not disturb surface acreage or extend an underground shaft,
tunnel, or operation prior to receipt of approval from the cabinet of a
performance bond covering an area to be affected by surface operations and
facilities.
(2) After an
application for a new, amended, revised, or renewed permit to conduct surface
coal mining and reclamation operations has been approved pursuant to 405 KAR
Chapter 8, but before the permit is issued, the applicant shall file with the
cabinet, on Performance Bond, Form SME-42, a performance bond payable to the
cabinet.
(a) The applicant shall file the
Performance Bond, Form SME-42, for an operation on land other than federal
lands, or the Performance Bond for Surface Coal Mining and Reclamation on
Federal Lands, Form SME-42-F, for an operation on federal land.
(b) The performance bond shall be conditioned
upon compliance with all of the requirements of KRS Chapter 350, 405 KAR
Chapters 7 through 24, and the provisions of the reclamation plan and permit,
and shall cover all surface coal mining and reclamation operations to be
conducted within the permit area or increment thereof until all reclamation
requirements of 405 KAR Chapters 7 through 24 have been met.
(c) The amount, duration, type, conditions,
and terms of the performance bond shall conform to the requirements of this
administrative regulation.
(3) A permit shall not be revised or amended
to include additional area unless the liability of the current bond is extended
to cover the entire permit area or increment as revised or amended, and the
liability of the supplemental bond covers the entire permit area as revised or
amended. Unless these conditions are met with respect to the bond, the
additional area shall be permitted as a separate increment of the current
permit area or pursuant to a new permit.
(4) A rider to the applicable performance
bond, confirming coverage of the revision, shall be submitted by the applicant
if a revision to a permit does not change the acreage of the permit area or
increment but:
(a) Adds a coal washer, a crush
and load facility, a refuse pile, or a coal mine waste impoundment to the
existing permit; or
(b) Alters the
boundary of a permit area or increment.
Section 2. Terms and Conditions of
Performance Bond.
(1) The performance bond
shall be in an amount determined by the cabinet as established in Sections 6,
7, and 8 of this administrative regulation.
(2) The performance bond shall be payable to
the cabinet.
(3) The performance
bond shall be conditioned upon faithful performance of all of the requirements
of KRS Chapter 350, 405 KAR Chapters 7 through 24, and the conditions of the
permit and shall cover the entire permit area or the incremental area as the
cabinet has approved pursuant to Section 4(2) of this administrative
regulation.
(4) The duration of the
bond shall be for a time period established in Section 9 of this administrative
regulation.
(5) Surety bonds shall
be subject to the conditions established in paragraphs (a) through (d) of this
subsection.
(a) The cabinet shall not accept
the bond of a surety company unless the bond shall not be cancelable by the
surety at any time for any reason.
1. Surety
bond coverage for permitted lands not disturbed shall be cancelled only with
the written approval of the cabinet, provided the surety gives written notice
to both the permittee and the cabinet of the intent to cancel prior to the
proposed cancellation.
a. A cancellation
notice shall be by certified mail.
b. Cancellation shall not be effective for
lands subject to bond coverage that are affected after receipt of notice, but
prior to approval by the cabinet.
c. The cabinet shall approve a cancellation
only if a replacement bond has been filed by the permittee, or if the permit
area has been reduced by revision to the extent that the remaining bond amount,
after cancellation, is sufficient to cover all the costs attributable to the
completion of reclamation operations on the reduced permit area in accordance
with Section 10 of this administrative regulation.
2. The cabinet shall advise the surety,
within thirty (30) days after receipt of a notice to cancel bond, if the bond
may be cancelled on an undisturbed area.
(b) The bond shall provide that the surety
and the permittee shall be jointly and severally liable.
(c)
1. The
surety shall give prompt notice to the permittee and the cabinet of a notice
received or action filed alleging the insolvency or bankruptcy of the surety,
or alleging violations of regulatory requirements that could result in
suspension or revocation of the surety's license to do business.
2. In the event the surety becomes unable to
fulfill its obligations pursuant to the bond, the surety shall promptly provide
written notice to the permittee and the cabinet.
3. Upon the incapacity of a surety by reason
of bankruptcy, insolvency, or suspension or revocation of its license or
certificate of authority, the permittee shall be deemed to be without proper
bond coverage and shall promptly notify the cabinet.
a. Nothing in this paragraph shall relieve
the permittee of responsibility pursuant to the permit or the surety of
liability on the permittee's bond.
b. The cabinet shall issue a notice to the
permittee specifying a reasonable period to replace bond coverage, not to
exceed ninety (90) days.
c. If an
adequate bond is not posted by the end of the period allowed, the permittee
shall cease coal extraction and coal processing operations and shall comply
with the provisions of
405 KAR
16:010, Section 6, or
405 KAR
18:010, Section 4, and shall immediately begin to
conduct reclamation operations in accordance with the reclamation
plan.
d. Coal extraction and coal
processing operations shall not resume until the cabinet has determined that,
in accordance with 405 KAR Chapters 7 through 24, an acceptable bond has been
posted.
e. If an acceptable bond
has not been posted by the end of the period allowed, the cabinet shall suspend
the permit until acceptable bond, in accordance with 405 KAR Chapters 7 through
24, is posted.
(d) A surety bond shall be executed by the
operator and a corporate surety licensed to do business in the Commonwealth of
Kentucky.
(6) Collateral
bonds may include cash deposits with the cabinet, certificates of deposit, or
letters of credit. Collateral bonds, except for letters of credit, shall be
subject to the conditions established in paragraphs (a) through (f) of this
subsection.
(a) The cabinet or its authorized
agent shall obtain possession of and keep in custody all collateral deposited
by the applicant, until authorized for release or replacement as established in
405 KAR Chapter 10.
(b) The cabinet
shall require that certificates of deposit be assigned to the cabinet or its
authorized agent in writing, through the submittal of Escrow Agreement Form
SME-64, and the assignment evidenced on the books of the bank issuing the
certificates.
(c) The cabinet shall
not accept an individual certificate of deposit unless it is issued by an FDIC
or FSLIC insured financial institution, and the cabinet shall not in any
circumstance accept a denomination in excess of the maximum insurable amount as
determined by FDIC and FSLIC.
(d)
The cabinet shall require the issuer of certificates of deposit to waive all
rights of setoff or liens that it has or might have against those
certificates.
(e) Persons with an
interest in collateral posted as a bond, and who desire notification of actions
pursuant to the bond, shall request the notification in writing to the cabinet
upon an offering of collateral.
(f)
The cabinet shall require the applicant to deposit sufficient amounts of
certificates of deposit, so as to assure that the cabinet will be able to
liquidate those certificates prior to maturity, upon forfeiture, for the amount
of the bond required by this chapter.
(7) A letter of credit shall be subject to
the conditions established in paragraphs (a) through (d) of this subsection.
(a)
1. The
letter shall only be issued by a bank organized or authorized to do business in
the United States.
2. A letter of
credit issued by a non-Kentucky lending institution shall be confirmed by an
approved Kentucky lending institution.
(b) A letter of credit shall be
irrevocable.
(c) The letter shall
be payable to the cabinet upon demand and receipt from the cabinet of a notice
of forfeiture issued in accordance with
405 KAR 10:050,
or in the event the bank wishes to terminate the letter on its expiration date,
the cabinet may draw upon demand. The Irrevocable Standby Letter of Credit,
Form SME-72, and the Confirmation of Irrevocable Standby Letter of Credit, form
SME-72-A, shall be submitted to the cabinet, as necessary.
(d)
1. The
issuer shall give prompt notice to the permittee and the cabinet of notice
received or action filed alleging the insolvency or bankruptcy of the issuer,
or alleging violations of regulatory requirements that could result in
suspension or revocation of the issuer's charter or license to do
business.
2. In the event the
issuer becomes unable to fulfill its obligations pursuant to the letter of
credit, notice shall be given immediately to the permittee and the
cabinet.
3. Upon the incapacity of
an issuer by reason of bankruptcy, insolvency, or suspension or revocation of
its charter or license, the permittee shall be deemed to be without proper
performance bond coverage and shall promptly notify the cabinet.
a. Nothing in this paragraph shall relieve
the permittee of responsibility pursuant to the permit or the issuer of
liability on the letter of credit.
b. The cabinet shall issue a notice to the
permittee specifying a reasonable period to replace bond coverage, not to
exceed ninety (90) days.
c. If an
adequate bond is not posted by the end of the period allowed, the permittee
shall cease coal extraction and coal processing operations and shall comply
with the provisions of
405 KAR
16:010, Section 6, or
405 KAR
18:010, Section 4, and shall immediately begin to
conduct reclamation operations in accordance with the reclamation
plan.
d. Coal extraction and coal
processing operations shall not resume until the cabinet has determined that an
acceptable bond has been posted.
e.
If an acceptable bond has not been posted by the end of the period allowed, the
cabinet shall suspend the permit until acceptable bond is posted.
(8) If a
permittee chooses to combine two (2) or more bonds for one (1) permit area or
increment, the bonds may be accompanied by a schedule, acceptable to the
cabinet and agreed to by all parties, which sets forth the agreed distribution
of bond amounts to be released or reduced pursuant to
405
KAR 10:040 and Section 10 of this administrative
regulation, respectively. If no schedule is submitted, the cabinet may release
equal percentages of each bond.
(9)
Permit specific bonds posted by members of the Voluntary Bond Pool on existing
permits prior to the establishment of the Kentucky Reclamation Guaranty Fund
shall be released in their entirety upon successfully achieving reclamation
Phase I bond release in accordance with
405
KAR 10:040, Section 2(4)(a). Permit specific bonds
posted by members of the Voluntary Bond Pool on new permits after the
establishment of the Kentucky Reclamation Guaranty Fund shall be released in
equal percentages at each reclamation phase with the Kentucky Reclamation
Guaranty Bond.
Section
3. Types of Performance Bond.
(1)
The cabinet shall approve performance bonds of only those types established in
this section.
(2) The performance
bond shall be a:
(a) Surety bond;
(b) Collateral bond;
(c) Bond filed pursuant to the provisions of
the Kentucky Reclamation Guaranty Fund,
KRS
350.518;
(d) Bond filed by the Voluntary Bond Pool;
or
(e) Combination of the bond
types listed in paragraphs (a) through (d) of this subsection.
(3) Bonds filed by the Voluntary
Bond Pool prior to its repeal in 2013 Ky. Acts ch. 78, Section 12, shall be
deemed valid and convey the same legal right as bonds issued by the KRGF. The
amount, duration, conditions, and terms of bonds issued by the Voluntary Bond
Pool shall be deemed in compliance with the requirements of this administrative
regulation.
Section 4.
Bonding Methods. The method of performance bonding for a permit area shall be
selected by the applicant and approved by the cabinet prior to the issuance of
a permit, and shall consist of one(1) of the methods established in subsections
(1) or (2) of this section.
(1) Method "S" -
single area bonding. A single area bond shall be a bond that covers the entire
permit area as a single undivided area, for which the applicant shall file the
entire bond amount required by the cabinet prior to issuance of the permit.
(a) Liability pursuant to the bond shall
extend to every part of the permit area at all times.
(b) Except as established in Section 9(2) of
this administrative regulation regarding extended bond liability, there shall
not be a release of all or part of the bond amount for completion of a
particular phase of reclamation on a part of the permit area pursuant to
405
KAR 10:040 until that phase of reclamation has been
successfully completed on the entire permit area.
(2) Method "I" - incremental bonding.
Incremental bonding shall be a method of bonding in which the permit area shall
be divided into individual increments, each of which is bonded separately and
independently, and for which a bond shall be filed as operations proceed
through the permit area.
(a) The permit area
shall be divided into distinct increments subject to approval by the cabinet
based on this subsection.
1. Each increment
shall be of sufficient size and configuration to provide for efficient
reclamation operations should reclamation operations by the cabinet become
necessary.
2. If the approved
postmining land use is of such nature that successful implementation of the
postmining land use capability depends upon an area being integrally reclaimed,
then that area shall be contained within a single increment.
3. These increments shall be clearly
identified on maps submitted in the permit application pursuant to 405 KAR
Chapter 8, and the applicant shall describe the approximate time schedule for
beginning operations in each increment.
(b) Prior to issuance of a permit, the
applicant shall file with the cabinet the full bond amount required by the
cabinet for the first increment or increments of the permit area to be
disturbed, which shall be not less than the minimum bond required for the
permit area required pursuant to Section 7 of this administrative
regulation.
(c) The permittee shall
not engage in surface coal mining and reclamation operations on an increment of
the permit area unless the full bond amount required by the cabinet has been
filed with the appropriate regional office of the department for that
increment, the cabinet has verified the validity of the bond, and written
authorization to conduct surface coal mining and reclamation operations on that
increment is issued by the administrator of the regional office. Credit shall
not be given for reclamation on other increments.
(d) The boundaries of each increment shall be
physically marked at the site in a manner approved by the cabinet pursuant to
405 KAR
16:030.
(e) The bond amount for an increment shall be
released or forfeited independently of another increment of the permit area,
and liability pursuant to the performance bond shall extend only to the
increment expressly covered by the bond. A single bond amount may be filed to
cover more than one (1) increment, in which case the increments covered shall
be treated as a single increment.
(f) Except as established in Section 9(2) of
this administrative regulation regarding extended bond liability, there shall
not be a release of bond for completion of a phase of reclamation on part of an
increment until that phase of reclamation has been successfully completed on
the entire increment.
(g) If the
bond for an increment is completely released pursuant to
405
KAR 10:040, the increment shall be deleted from the
permit area.
Section
5. Substitution of Bonds.
(1)
The cabinet may allow permittees to substitute existing surety or collateral
bonds for equivalent surety or collateral bonds, in which case the liability
that has accrued against the permittee on the permit area or increment shall be
transferred to the substitute bonds.
(2) The cabinet shall not release existing
performance bonds until the permittee has submitted and the cabinet has, in
accordance with 405 KAR Chapters 7 through 24, approved acceptable substitute
performance bonds. A substitution of performance bonds pursuant to this section
shall not constitute a release of bond pursuant to
405
KAR 10:040.
(3) The cabinet may refuse to allow
substitution of bonds if an action for revocation or suspension of the permit
covered by the bond is pending or if there is a pending action for forfeiture
of the bond.
Section 6.
Determination of Bond Amounts.
(1) In
determining the bond amount, the cabinet shall estimate the cost to the cabinet
if the cabinet had to perform the reclamation, restoration, and abatement work
required of a person who conducts surface coal mining and reclamation
operations pursuant to KRS Chapter 350, 405 KAR Chapters 7 through 24, and the
permit, except as established in subsection (4) of this section. This amount
shall be based on:
(a) The estimated costs
submitted by the permittee in accordance with
405 KAR
8:030, Section 24(4), or
405 KAR
8:040, Section 24(4), or both if applicable;
(b) The additional estimated costs to the
cabinet that may arise from applicable public contracting requirements or the
need to bring personnel and equipment to the permit area after its abandonment
by the permittee to perform reclamation, restoration, and abatement
work;
(c) All additional estimated
costs necessary, expedient, and incident to the satisfactory completion of the
requirements established in this section;
(d) An additional amount based on factors of
cost changes during the previous five (5) years for the types of activities
associated with the reclamation to be performed; and
(e) Other cost information required or
available to the cabinet.
(2) If the reclamation cost calculated
submitted in a permit application is higher than the minimum bond or bond
calculated by the cabinet, the higher calculation shall be used in any issued
permit.
(3) The cabinet shall
review the bonding amounts established in Sections 7 and 8 of this
administrative regulation at a minimum of every two (2) years to determine if
the amounts are adequate due to inflation and increases in reclamation
costs.
(4) Full cost bonding
participants shall provide the cabinet a cost estimate that reflects the costs
of reclamation to the cabinet in accordance with the requirements of
405 KAR 10:080,
Section 3.
Section 7.
Minimum Bond Amount. The minimum amount of the bond for surface coal mining and
reclamation operations at the time the permit is issued or amended shall be:
(1) $75,000 for the entire surface area under
one (1) permit;
(2) $75,000 per
increment for incrementally bonded permits, subject to Section 4(2) of this
administrative regulation;
(3)
$50,000 for a permit or increment operating on a previously mined area, as
defined by of
405 KAR
8:001, Section 1(86), to be evaluated by the cabinet;
or
(4) $10,000 for underground
mines that have only underground operations.
Section 8. Bonding Rate of Additional Areas.
Areas of a surface coal mine and reclamation operation shall be bonded at the
rates established in subsections (1) through (7) of this section for a permit
issued by the Division of Mine Permits.
(1)
Coal haul roads, other mine access roads, and mine management areas shall be
bonded at $2,500 per acre and each fraction thereof.
(2) Refuse disposal areas shall be bonded at
a minimum rate of $7,500 per acre and each fraction thereof.
(3)
(a) An
embankment sediment control pond shall be bonded at a rate of $10,000 per acre
and each fraction thereof, with each pond being measured separately, if the
pond is located off-bench and located downstream and outside the proposed
mining or spoil storage area.
(b)
This rate may be applied to partial embankment structures as necessary to meet
the requirements of Section 6(1) of this administrative regulation.
(4) Coal preparation plants shall
be bonded at the base acreage rate, in accordance with subsection (6) of this
section, in addition to the costs associated with demolition and disposal costs
relating to concrete, masonry, steel, timber, and other materials associated
with surface coal mining and reclamation operations.
(5) Operations on a previously mined area, as
defined by
405 KAR
8:001, Section 1(86), shall be bonded at rate of
$2,000 per acre and each fraction thereof.
(6) All areas of surface coal mining and
reclamation operations not otherwise addressed in subsections (1) through (5)
of this section shall be bonded at the rate of $3,500 per acre and each
fraction thereof.
(7)
(a) For permits that have been identified as
requiring long-term treatment, the cabinet shall calculate an additional bond
or other financial assurance instrument amount based on the estimated annual
treatment cost, provided by the permittee and verified by the cabinet,
multiplied by a factor of twenty-five (25) plus any capital costs of the
treatment system.
(b) The long-term
treatment cost estimate shall be subject to verification and acceptance by the
cabinet. The department shall use its own estimate for annual treatment costs
if the department cannot verify the accuracy of the permittee's
estimate.
Section
9. Period of Liability.
(1)
Liability pursuant to a performance bond applicable to an entire permit area or
increment thereof shall continue until all reclamation, restoration, and
abatement work required of persons who conduct surface coal mining and
reclamation operations pursuant to requirements of KRS Chapter 350, 405 KAR
Chapters 7 through 24, and the provisions of the permit have been completed,
and the permit or increment terminated by release of the permittee from further
liability in accordance with
405
KAR 10:040.
(2) In addition to the period necessary to
achieve compliance with all of the requirements of KRS Chapter 350, 405 KAR
Chapters 7 through 24, and the permit, including the standards for the success
of revegetation as required by
405 KAR 16:200 and
405 KAR 18:200, the
period of liability pursuant to a performance bond shall continue for a period
of five (5) years beginning with the last year of augmented seeding,
fertilizing, irrigation, or other work.
(a)
The period of liability shall begin again upon augmented seeding, fertilizing,
irrigation, or other work required or conducted on the site prior to bond
release.
(b) Isolated and clearly
defined portions of a bonded area requiring extended liability because of
augmentation may be separated from the original area and bonded separately upon
approval by the cabinet.
(c) These
areas shall be limited in extent, and not constitute a scattered, intermittent,
or checkerboard pattern of failure.
(d) Access to the separated areas for
remedial work may be included in the area pursuant to extended liability if
necessary.
(3) If the
cabinet approves a long-term intensive agricultural postmining land use in
accordance with
405 KAR
16:210, augmented seeding, fertilization, irrigation,
or other husbandry practices normally associated with the approved postmining
land use shall not require restarting the five (5) year period of
liability.
(4) The bond liability
of the permittee shall include only those actions that the permittee is
required to take pursuant to the permit, including completion of the
reclamation plan in a manner that the land shall be capable of supporting a
postmining land use approved pursuant to
405 KAR
16:210. Actions of third parties beyond the control
and influence of the permittee and for which the permittee is not responsible
pursuant to the permit shall not be covered by the bond.
Section 10. Adjustment of Amount.
(1) The amount of the performance bond
liability applicable to a permit or increment shall be adjusted by the cabinet
if the:
(a) Acreage in the permit area or
increment is either increased or decreased; or
(b) Cabinet determines that the cost of
future reclamation, restoration, or abatement work has changed. If it is
determined that an adjustment pursuant to this paragraph is necessary, the
cabinet shall:
1. Notify the permittee, the
surety, and any person with a property interest in collateral who has
previously requested a notification in writing; and
2. Provide the permittee an opportunity for
an informal conference on the adjustment. The requirements of
400 KAR
1:090 and
400
KAR 1:110 shall not apply to the conduct of the
conference.
(2) The amount of the performance bond
liability applicable to a permit or increment may be adjusted by the cabinet
upon application by the permittee pursuant to
405 KAR
8:010, Section 20, to delete acreage from the permit
area or increment thereof if the acreage has not been affected by the surface
coal mining and reclamation operation. The provisions of
405
KAR 10:040, Section 2(3), shall apply. A reduction due
to a deletion of acreage shall not constitute a bond release and shall not be
subject to the procedures of
405
KAR 10:040, Section 1.
(3) The cabinet may grant reduction of the
required performance bond amount if the permittee's method of operation or
other circumstances will reduce the maximum estimated cost to the cabinet to
complete the reclamation responsibilities and therefore warrant a reduction of
the bond amount. The request shall not be considered as a request for partial
bond release subject to the procedures of
405
KAR 10:040, Section 1.
(4) The cabinet shall refuse to approve a
reduction of the performance bond liability amount if an action for revocation
or suspension of the permit covered by the bond is pending, if there is a
pending action for forfeiture of the bond, or if the permittee is currently in
violation of 405 KAR Chapters 7 through 24 on that permit or
increment.
Section 11.
Supplemental Assurance.
(1) If alternative
distance limits or additional pits are approved pursuant to
405 KAR
16:020, Section 3., the applicant shall submit to the
cabinet supplemental assurance in the amount established in this section. This
supplemental assurance shall be for the purpose of assuring the reclamation of
the additional unreclaimed disturbed area and shall be in addition to the
performance bond required pursuant to 405 KAR Chapter 10. The applicant shall
submit supplemental assurance on the cabinet form, Supplemental Assurance,
SME-42 (SA). This form shall be accompanied by the Escrow Agreement form (for
use with Supplemental Assurance form only), SME-64 (SA).
(a) The supplemental assurance shall not be
subject to the bond release requirements of
405
KAR 10:040, but shall be returned in accordance with
the requirements of this section.
(b) The requirements of Sections 2, 3, and 5
of this administrative regulation and
405
KAR 10:035 and
405 KAR 10:050
shall apply to supplemental assurance.
(2) Single seam contour mining. For single
seam contour operations subject to
405 KAR
16:020, Section 3., the amount required shall be
$150,000 per 1,500 feet, or any portion thereof, of additional distance
approved for the first pit pursuant to
405 KAR
16:020, Section 3.. If an additional pit or pits are
approved, the amount shall be $150,000 per 1,500 feet, or any portion thereof,
including the first 1,500 feet of each additional pit.
(3) Multiple seam contour mining. For
multiple seam contour mining operations subject to of
405 KAR
16:020, Section 3(6), the amount required shall be
$150,000 per 1,500 feet, or any portion thereof, of additional distance
approved for the first multiple seam operation pursuant to of
405 KAR
16:020, Section 3.. If additional multiple seam
operations are approved, the amount shall be $150,000 per 1,500 feet, or any
portion thereof, including the first 1,500 feet of each additional multiple
seam operation.
(4) Mountaintop
removal. If a mountaintop removal operation begins by mining a contour cut
around all or a portion of the mountaintop, that contour portion shall require
the same supplemental assurance established in subsection (2) of this
section.
(5) Area mining. The
amount required shall be $150,000 for any four (4) spoil ridges, or any portion
thereof, of additional distance approved for the first pit pursuant to
405 KAR
16:020, Section 3.. If an additional pit or pits are
approved, the amount shall be $150,000 for any four (4) spoil ridges, or any
portion thereof, including the first four (4) spoil ridges of each additional
pit.
(6) Return of supplemental
assurance. Supplemental assurance shall be returned to the person that
submitted it upon:
(a) Application to the
cabinet for the return; and
(b)
Inspection and written documentation (including photographs) by the cabinet
verifying that the area for which the supplemental assurance was submitted has
been backfilled and graded (or in the case of mountaintop removal, the
associated highwall has been eliminated by mining operations).
Section 12.
Incorporation by Reference.
(1) The following
material is incorporated by reference:
(a)
"Performance Bond, Form SME-42", June 2013;
(b) "Irrevocable Standby Letter of Credit,
Form SME-72", July 1994;
(c)
"Confirmation of Irrevocable Standby Letter of Credit, Form SME-72-A", July
1994;
(d) "Supplemental Assurance,
SME-42 (SA)", July 1994;
(e)
"Escrow Agreement (for use with Supplemental Assurance form only), SME-64
(SA)", July 1994;
(f) "Escrow
Agreement, Form SME-64", October 2008; and
(g) "Performance Bond for Surface Coal Mining
and Reclamation on Federal Lands, Form SME-42-F", June 2013.
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, at the
Kentucky Department for Natural Resources, 300 Sower Boulevard, Frankfort,
Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.