A permittee for a long-term mining operation or
facility may post a collateral bond for a permit area according to the
following requirements:
(1) The
permittee shall submit a collateral bond to the Department.
(2) The permittee shall deposit $10,000 or
25%, whichever is greater, of the total amount of bond determined under
§§
86.148-
86.152 (relating to amount and
duration of liability) in approved collateral with the Department.
(3) The permittee shall submit a schedule
agreeing to deposit a minimum of 10% of the remaining amount of bond, in
approved collateral in each of the next 10 years or in a proportion so that
final payment is made by the date required by the Department. The entire bond
amount shall be submitted by the operator no later than the actual or expected
completion of operations at the mine or the facility. An annual payment becomes
due on the anniversary date of the issuance of the permit, unless otherwise
established by the Department. A payment shall be accompanied by appropriate
bond documents required by the Department. Interest accumulated by phased
deposits of collateral shall become part of the bond, and may be used to reduce
the amount of the final phased deposit.
(4) The Department may require additional
bonding if the Department determines that a higher bond amount is necessary.
The increase in the total bond amount required shall proportionately increase
the remaining annual payments. The operator shall submit a new schedule within
30 days of notice by the Department of the increase in the total bond amount
due.
(5) The operator shall deposit
the full amount of the bond required for the long-term operation or facility
within 30 days of receipt of a written demand by the Department to accelerate
deposit of the bond. The Department may make the demand when the Department
determines that the purposes of this section, this chapter or the acts, have
not been met, including, but not limited to, when one of the following occurs:
(i) The operator has failed to make a deposit
of bond amount when required according to the schedule for the
deposit.
(ii) The operator has
violated the requirements of the acts, this chapter, other terms or conditions
of the permit or orders of the Department.
(iii) The actual or expected completion of
operations of the mine or the facility will occur prior to the expiration of
the 10-year period determined under this section.
(6) The Department will not accept phased
deposit of collateral as bond for long-term operation or facility when the
Department determines that the purposes of this section, this chapter or the
acts have not been met, including, but not limited to, the following:
(i) The operator has failed to pay the
Department, when due, permit or reclamation fees, fines, penalties or other
payments, or has failed to deposit bond amounts with the Department when
due.
(ii) The operator has
indicated a pattern or history of violations of applicable statutes, this
chapter, the terms and conditions of the permit or orders of the Department,
even if later corrected, which demonstrate a lack of ability or intention to
comply with the requirements applicable to long-term mining operations or
facilities.