(a) The Department
will send written notification by mail to the permittee, and the surety on the
bond of the Department's intent to forfeit the bond and the reasons for the
forfeiture.
(b) If forfeiture of
the bond is required, the Department will:
(1)
Send written notification by mail to the permittee, and the surety on the bond
of the Department's determination to forfeit the bond and the reasons for the
forfeiture.
(2) Advise the
permittee and surety of their right to appeal to the EHB under section 4 of the
Environmental Hearing Board Act of 1988 (35 P. S. §
7514).
(3) Notify the surety of the requirement to
pay the amount of the forfeited bond over to the Department within 30 days
after notice by certified mail from the Department. The money shall be held in
escrow with any interest accruing to the Department pending the resolution of
any appeals. If it is determined, by a court of competent jurisdiction, after
exhaustion of appeals, that the Commonwealth was not entitled to all or a
portion of the amount forfeited, the interest shall accrue proportionately to
the surety in the amount determined to be improperly forfeited by the
Department.
(4) Proceed to collect
on the bond as provided by applicable laws for the collection of defaulted
bonds or other debts, consistent with this section, if timely appeal is not
filed or if an appeal is filed and the appeal is unsuccessful.
(c) The written determination to
forfeit the bond, including the reasons for forfeiture, will be a final
decision by the Department.
(d) The
Department will forfeit bonds deposited for a permit area, including designated
phases of a permit area and amended permit areas, except for that portion of
the bond which has been released as provided in §§
86.170-
86.172 (relating to scope;
procedures for seeking release of bond; and criteria for release of bond).
Liability on every bond posted for a permit area, designated phase of a permit
area, or an amendment thereof, shall cover violations within the permit area or
resulting from mining of the permit area.
(e) In lieu of paying the amount of the
forfeited bond within 30 days after notice, a surety may reclaim the forfeited
site upon the consent and approval of the Department. The surety shall notify
the Department of its intent to reclaim the site within 30 days after the
notice of forfeiture. The notification shall include a time frame within which
the surety will submit a proposal which describes both the reclamation work to
be done and a schedule for completion of the reclamation. Subject to the
Department's approval of the time frame and the subsequent reclamation
proposal, the Department and the surety will enter into a consent order and
agreement specifying the terms of the reclamation work to be done.
(f) If the Department declares a collateral
bond forfeited, it will pay, or direct the State Treasurer to pay, the
collateral funds into the Surface Mining Conservation and Reclamation Fund. If
upon proper demand and presentation, the banking institution or other person or
municipality which issued the collateral refuses to pay the Department the
proceeds of a collateral undertaking, such as a certificate of deposit, letter
of credit or government negotiable security, the Department will take
appropriate steps to collect the proceeds.
(g) The Department will use funds collected
from bond forfeiture to complete the reclamation plan, or remaining portion
thereof, on the permit area or increment to which bond coverage
applies.
(h) If the amount
forfeited is:
(1) Insufficient to pay for the
full cost of reclamation, the operator shall be liable for remaining costs. The
Department may complete, or authorize completion of, the reclamation of the
bonded area and may recover from the operator all costs of reclamation in
excess of the amount forfeited.
(2)
More than the amount necessary to complete the reclamation, the excess funds
will be used by the Department, as approved by the Secretary, for any of the
purposes provided in section 18(a) of the Surface Mining Conservation and
Reclamation Act (52 P. S. §
1396.18(a)).