(a) For permitted anthracite mine operators
required to post a bond under §
86.143 (relating to requirements
to file a bond), and who can demonstrate to the Department that they are unable
to post a conventional surety or collateral bond as described in §
86.156 (relating to the form of
the bond), and do not meet the requirements of §
86.161 (relating to phased
deposits of collateral), may apply to the Department for an Anthracite Mine
Operator's Emergency Bond Loan. The purpose of this loan is to guarantee a
collateral bond posted by the operator.
(b) Permitted anthracite mine operators who
wish to use the anthracite mine emergency bond loan program shall demonstrate
one of the following:
(1) The operator has
been rejected by three separate bond companies licensed to do business in this
Commonwealth and the grounds for rejection.
(2) The operator has had bonds canceled due
to the insolvency or bankruptcy of an insurance company or surety company
licensed to do business in this Commonwealth.
(c) The Department and the qualified operator
shall enter into a written loan agreement, on forms provided by the Department,
which shall contain at a minimum, the following provisions:
(1) The operator will be required to make a
downpayment of at least $1,000.
(2)
The operator shall be responsible for submitting to the Department a payment of
25¢ for each ton of coal sold within 45 days following the sale of that
coal.
(3) The operator shall
continue to make payments to the Department until the loan has been paid in
full or the operator submits to the Department an adequate replacement bond, or
the operator has satisfied the reclamation obligation of the permit.
(4) Failure to comply with the applicable
statutes, rules and regulations or conditions of the permit may be grounds for
the Department to require acceleration of the payments from the
operator.
(d) The
Department will deposit appropriations and moneys collected under this section
into the Anthracite Mine Operators Emergency Bond Fund.
(e) The Department may make loans as money
becomes available in the fund.
(f)
The fees paid by an operator may be used only to secure the reclamation
obligation of that operator.
(g)
When the operator has satisfied the reclamation obligation, the Department will
release to the operator the fees collected, in whole or in part, according to
the bond release schedule provided for by §§
86.170-
86.172 (relating to scope;
procedures for seeking release of bond; and criteria for release of
bond).
(h) The Department may
require the operator throughout the life of the permit to demonstrate that the
operator has made attempts to obtain a conventional bond.