RELATES TO:
KRS
350.010(2),
350.240,
350.300
NECESSITY, FUNCTION, AND CONFORMITY:
KRS 350.028
authorizes the Environmental and Public Protection Cabinet to promulgate
administrative regulations pertaining to noncoal mineral operations to minimize
their adverse effects on the citizens and the environment of the commonwealth.
KRS
350.029 authorizes the cabinet to promulgate
reasonable administrative regulations to establish effective programs for the
control of surface soil disturbance in connection with mining as defined by the
Interstate Mining Compact.
KRS
350.240 authorizes the cabinet to promulgate
reasonable administrative regulations for the reclamation of land disturbed or
removed in the mining of clay.
KRS
350.300 authorizes the cabinet to formulate
and establish an effective program and standards for the conservation and use
of mined land. This administrative regulation establishes requirements for when
bond is required, bond amount, type of payment, bond forfeiture, and bond
forms, for noncoal mineral operations.
Section
1. Applicability. A reclamation bond shall be required if the
cabinet:
(1) Finds the mineral operation to
be temporary; or
(2) Finds that the
applicant previously has not had a mineral operation in the Commonwealth of
Kentucky with a compliance record acceptable to the cabinet.
Section 2. Bond Amount.
(1) If a reclamation bond is required
pursuant to Section 1 of this administrative regulation, the mineral operator
shall file with the cabinet a bond payable to the Commonwealth of Kentucky with
surety satisfactory to the cabinet in the penal sum of not less than $100 nor
more than $500 for each acre or fraction of an acre, with a minimum bond of
$2,000, for the permitted area.
(2)
A mineral permittee may request reduction of the required reclamation bond
amount at any time if the mineral permittee's method of mineral operation or
other circumstances will reduce the maximum estimated cost to the cabinet to
complete the reclamation responsibilities and if the mineral operation complies
with all applicable statutes and administrative regulations and the permit
plan.
Section 3. Type of
Payment.
(1) Reclamation bond shall be either
a surety bond or a cash bond which may include:
(a) Certificates of deposit;
(b) Letters of credit;
(c) Acceptable escrow accounts; or
(d) A combination of these bonding
methods.
(2) If a surety
bond is filed, it shall be accompanied by a power of attorney affidavit
allowing the surety to act on behalf of the mineral permittee with respect to
reclamation.
Section 4.
Bond Forfeiture.
(1) The cabinet shall have
the authority to forfeit a bond if the mineral operation is not conducted in
accordance with the statutes, administrative regulations, and the permit plan
as approved by the cabinet.
(2)
(a) The entire bond may be forfeited and
deposited in an appropriate account for use in the payment of all costs
associated with the reclamation and restoration of the permit area to which the
forfeited bond applies.
(b) If
forfeiture of the bond is required, the cabinet shall send written notification
by certified mail, return receipt requested, to the mineral permittee and the
surety holding the bond of the cabinet's decision. This notification shall:
1. Explain the reasons for the
forfeiture;
2. Indicate the amount
to be forfeited; and
3. Advise the
mineral permittee and those responsible for the bond of their right to a
hearing.
Section 5. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "Noncoal Performance Bond,
NCR-9", February 2017;
(b) "Letter
of Credit, NCR-10", January 2017;
(c) "Escrow Agreement, NCR-11", February
2017; and
(d) "Request for Bond
Release, NCR-12", February 2017.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Department for Natural
Resources, 300 Sower Boulevard, Frankfort, KY 40601, Monday through Friday, 8
a.m. to 4:30 p.m.
