N.D. Admin Code 85-04-02-11 - Bond

1. Payment of all royalties and reclamation of any portion of the construction aggregate leased premises disturbed by the lessee is the responsibility of the lessee. To assure payment of royalties and satisfactory reclamation, the lessee must obtain and retain in force a surety bond, in an amount determined by the commissioner.

2. The lessee, in lieu of a surety bond, may file another form of security subject to the commissioner's approval.

3. The commissioner shall set the initial surety bond amount at a minimum of five thousand dollars per acre for the initial mine area, with no initial surety bond amount being less than ten thousand dollars.

4. The commissioner may adjust the amount of the surety bond annually, with the adjustment based on the estimated cost to reclaim the remaining disturbed site and the amount of stockpiled construction aggregate. If the commissioner determines an additional surety bond or other security is required, the lessee shall submit the additional surety bond or other security within thirty days after request by the commissioner as required by this section.

5. The lessee may submit a written request for a full or partial release of the surety bond to the commissioner. At the commissioner's discretion, the surety bond may be released in whole or in part.

6. Upon the payment of all outstanding royalties and satisfactory completion of the reclamation, the commissioner shall release the surety bond. The surety bond may be forfeited to pay outstanding royalties or to complete reclamation. The commissioner shall give final approval of the reclamation before the surety bond is released. The forfeiture of the surety bond by the lessee does not release the lessee of the duty and responsibility to reclaim the construction aggregate leased premises.

7. Upon written request, the commissioner may waive the bonding requirement for a political subdivision or other state agency.

Notes

N.D. Admin Code 85-04-02-11

Adopted by Administrative Rules Supplement 375, January 2020, effective 1/1/2020.

General Authority: NDCC 15-05-18

Law Implemented: NDCC 15-05-18