Parts 800.1 - 800.70
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Subchapter J Parts 800.1 - 800.70 |
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THIS SUBCHAPTER IS CURRENT THROUGH THE MARCH 9, 2001 ISSUE OF THE FEDERAL REGISTER
TITLE 30 -- MINERAL RESOURCES
CHAPTER VII -- OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT,
DEPARTMENT OF THE INTERIOR
SUBCHAPTER J -- BONDING AND INSURANCE REQUIREMENTS FOR SURFACE COAL MINING
AND RECLAMATION OPERATIONS
PART 800 -- BOND AND INSURANCE REQUIREMENTS FOR SURFACE COAL MINING AND
RECLAMATION OPERATIONS UNDER REGULATORY PROGRAMS
Sec.
800.1 Scope and purpose
800.4 Regulatory authority responsibility
800.5 Definitions
800.10 Information collection
800.11 Requirement to file a bond
800.12 Form of the performance bond
800.13 Period of liability
800.14 Determination of bond amount
800.15 Adjustment of amoung
800.16 General terms and conditions of bond
800.17 Bonding requirements for underground coal mines and long-term coal-related surface facilities and
structures
800.20 Surety bonds
800.21 Replacement of bonds
800.23 Collateral bonds
800.30 Self-bonding
800.40 Requirement to release performance bonds
800.50 Forfeiture of bonds
800.56 Terms and conditions for liability insurance
800.70 Bonding for anthracite operations in Pennsylvania
AUTHORITY: 30 U.S.C. 1201 et seq., as amended; and Pub. L. 100-34
SOURCE: 48 FR 32959, July 19, 1983, unless otherwise noted.
[For the list of Final Rules affecting these sections, as published in the Federal Register, see
"Regulation History - Changes to the Regulations Parts 700-890, 3/13/79 - 6/30/00".]
30 CFR Sec. 800.1 Scope and purpose.
This part sets forth the minimum requirements for filing and maintaining bonds and insurance for surface coal
mining and reclamation operations under regulatory programs in accordance with the Act.
30 CFR Sec. 800.4 Regulatory authority responsibilities.
(a) The regulatory authority shall prescribe and furnish forms for filing performance bonds.
(b) The regulatory authority shall prescribe by regulation terms and conditions for performance bonds and
insurance.
( c) The regulatory authority shall determine the amount of the bond for each area to be bonded, in accordance
with Sec. 800.14. The regulatory authority shall also adjust the amount as acreage in the permit area is revised, or
when other relevant conditions change according to the requirements of Sec. 800.15.
(d) The regulatory authority may accept a self-bond if the permittee meets the requirements of Sec. 800.23 and any
additional requirements in the State or Federal program.
(e) The regulatory authority shall release liability under a bond or bonds in accordance with Sec. 800.40.
(f) If the conditions specified in Sec. 800.50 occur, the regulatory authority shall take appropriate action to cause
all or part of a bond to be forfeited in accordance with procedures of that section.
(g) The regulatory authority shall require in the permit that adequate bond coverage be in effect at all times.
Except as provided in Sec. 800.16(e)(2), operating without a bond is a violation of a condition upon which the
permit is issued.
30 CFR Sec. 800.5 Definitions.
(a) Surety bond means an indemnity agreement in a sum certain payable to the regulatory authority, executed by
the permittee as principal and which is supported by the performance guarantee of a corporation licensed to do
business as a surety in the State where the operation is located.
(b) Collateral bond means an indemnity agreement in a sum certain executed by the permittee as principal which is
supported by the deposit with the regulatory authority of one or more of the following:
(1) A cash account, which shall be the deposit of cash in one or more federally-insured or equivalently protected
accounts, payable only to the regulatory authority upon demand, or the deposit of cash directly with the regulatory
authority;
(2) Negotiable bonds of the United States, a State, or a municipality, endorsed to the order of, and placed in the
possession of, the regulatory authority;
(3) Negotiable certificates of deposit, made payable or assigned to the regulatory authority and placed in its
possession or held by a federally-insured bank;
(4) An irrevocable letter of credit of any bank organized or authorized to transact business in the United States,
payable only to the regulatory authority upon presentation;
(5) A perfected, first-lien security interest in real property in favor of the regulatory authority; or
(6) Other investment-grade rated securities having a rating of AAA, AA, or A or an equivalent rating issued by a
nationally recognized securities rating service, endorsed to the order of, and placed in the possession of, the
regulatory authority.
( c) Self-bond means an indemnity agreement in a sum certain executed by the applicant or by the applicant and
any corporate guarantor and made payable to the regulatory authority, with or without separate surety.
[48 FR 32959, July 19, 1983, as amended at 53 FR 997, Jan. 14, 1988]
30 CFR Sec. 800.10 Information collection.
The collection of information contained in Secs. 800.11, 800.21( c), 800.23(b)(2), 800.23(b)(3), 800.40(a), and
800.60(a) have been approved by the Office of Management and Budget under 44 U.S.C. 3501 et seq. and assigned
clearance number 1029-0043. The information will be used to determine if reclamation bonds are sufficient to
comply with the Act. Response is required to obtain a benefit in accordance with the requirements of 30 U.S.C. 1201
et seq. Public reporting burden for this collection of information is estimated to average 28 hours per response,
including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate
or any other aspects of this collection of information, including suggestions for reducing the burden, to the Office of
Surface Mining Reclamation and Enforcement, Information Collection Clearance Officer, 1951 Constitution Avenue
NW., rm 5415 L, Washington, DC 20240 and the Office of Management and Budget, Paperwork Reduction Project
(1029-0043), Washington, DC 20503.
[56 FR 59994, Nov. 26, 1991]
30 CFR Sec. 800.11 Requirement to file a bond.
(a) After a permit application under subchapter G of this chapter has been approved, but before a permit is issued,
the applicant shall file with the regulatory authority, on a form prescribed and furnished by the regulatory authority, a
bond or bonds for performance made payable to the regulatory authority and conditioned upon the faithful
performance of all the requirements of the Act, the regulatory program, the permit, and the reclamation plan.
(b)(1) The bond or bonds shall cover the entire permit area, or an identified increment of land within the permit
area upon which the operator will initiate and conduct surface coal mining and reclamation operations during the
initial term of the permit.
(2) As surface coal mining and reclamation operations on succeeding increments are initiated and conducted
within the permit area, the permittee shall file with the regulatory authority an additional bond or bonds to cover such
increments in accordance with this section.
(3) The operator shall identify the initial and successive areas or increments for bonding on the permit application
map submitted for approval as provided in the application (under parts 780 and 784 of this chapter), and shall
specify the bond amount to be provided for each area or increment.
(4) Independent increments shall be of sufficient size and configuration to provide for efficient reclamation
operations should reclamation by the regulatory authority become necessary pursuant to Sec. 800.50.
( c) An operator shall not disturb any surface areas, succeeding increments, or extend any underground shafts,
tunnels or operations prior to acceptance by the regulatory authority of the required performance bond.
(d) The applicant shall file, with the approval of the regulatory authority, a bond or bonds under one of the
following schemes to cover the bond amounts for the permit area as determined in accordance with Sec. 800.14:
(1) A performance bond or bonds for the entire permit area;
(2) A cumulative bond schedule and the performance bond required for full reclamation of the initial area to be
disturbed; or
(3) An incremental bond schedule and the performance bond required for the first increment in the schedule.
(e) OSM may approve, as part of a State or Federal program, an alternative bonding system, if it will achieve the
following objectives and purposes of the bonding program:
(1) The alternative must assure that the regulatory authority will have available sufficient money to complete the
reclamation plan for any areas which may be in default at any time; and
(2) The alternative must provide a substantial economic incentive for the permittee to comply with all reclamation
provisions.
30 CFR Sec. 800.12 Form of the performance bond.
The regulatory authority shall prescribe the form of the performance bond. The regulatory authority may allow for:
(a) A surety bond;
(b) A collateral bond;
( c) A self-bond; or
(d) A combination of any of these bonding methods.
30 CFR Sec. 800.13 Period of liability.
(a)(1) Performance bond liability shall be for the duration of the surface coal mining and reclamation operation
and for a period which is coincident with the operator's period of extended responsibility for successful revegetation
provided in Sec. 816.116 or Sec. 817.116 of this chapter or until achievement of the reclamation requirements of the
Act, regulatory programs, and permit, whichever is later.
(2) With the approval of regulatory authority, a bond may be posted and approved to guarantee specific phases of
reclamation within the permit area provided the sum of phase bonds posted equals or exceeds the total amount
required under Secs. 800.14 and 800.15. The scope of work to be guaranteed and the liability assumed under each
phase bond shall be specified in detail.
(b) Isolated and clearly defined portions of the permit area requiring extended liability may be separated from the
original area and bonded separately with the approval of the regulatory authority. Such areas shall be limited in
extent and not constitute a scattered, intermittent, or checkerboard pattern of failure. Access to the separated areas
for remedial work may be included in the area under extended liability if deemed necessary by the regulatory
authority.
( c) If the regulatory authority approves a long-term, intensive agricultural postmining land use, in accordance with
Sec. 816.133 or Sec. 817.133 of this chapter, the applicable 5 or 10 year period of liability shall commence at the
date of initial planting for such long-term agricultural use.
(d)(1) The bond liability of the permittee shall include only those actions which he or she is obligated to take
under the permit, including completion of the reclamation plan, so that the land will be capable of supporting the
postmining land use approved under Sec. 816.133 or Sec. 817.133 of this chapter.
(2) Implementation of an alternative postmining land use approved under Secs. 816.133( c) and 817.133( c) which
is beyond the control of the permittee, need not be covered by the bond. Bond liability for prime farmland shall be as
specified in Sec. 800.40( c)(2).
30 CFR Sec. 800.14 Determination of bond amount.
(a) The amount of the bond required for each bonded area shall:
(1) Be determined by the regulatory authority;
(2) Depend upon the requirements of the approved permit and reclamation plan;
(3) Reflect the probable difficulty of reclamation, giving consideration to such factors as topography, geology,
hydrology, and revegetation potential; and
(4) Be based on, but not limited to, the estimated cost submitted by the permit applicant.
(b) The amount of the bond shall be sufficient to assure the completion of the reclamation plan if the work has to
be performed by the regulatory authority in the event of forfeiture, and in no case shall the total bond initially posted
for the entire area under one permit be less than $10,000.
( c) An operator's financial responsibility under Sec. 817.121( c) of this chapter for repairing material damage
resulting from subsidence may be satisfied by the liability insurance policy required under Sec. 800.60.
30 CFR Sec. 800.15 Adjustment of amount.
(a) The amount of the bond or deposit required and the terms of the acceptance of the applicant's bond shall be
adjusted by the regulatory authority from time to time as the area requiring bond coverage is increased or decreased
or where the cost of future reclamation changes. The regulatory authority may specify periodic times or set a
schedule for reevaluating and adjusting the bond amount to fulfill this requirement.
(b) The regulatory authority shall--
(1) Notify the permittee, the surety, and any person with a property interest in collateral who has requested
notification under Sec. 800.21(f) of any proposed adjustment to the bond amount; and
(2) Provide the permittee an opportunity for an informal conference on the adjustment.
( c) A permittee may request reduction of the amount of the performance bond upon submission of evidence to the
regulatory authority proving that the permittee's method of operation or other circumstances reduces the estimated
cost for the regulatory authority to reclaim the bonded area. Bond adjustments which involve undisturbed land or
revision of the cost estimate of reclamation are not considered bond release subject to procedures of Sec. 800.40.
(d) In the event that an approved permit is revised in accordance with subchapter G of this chapter, the regulatory
authority shall review the bond for adequacy and, if necessary, shall require adjustment of the bond to conform to the
permit as revised.
30 CFR Sec. 800.16 General terms and conditions of bond.
(a) The performance bond shall be in an amount determined by the regulatory authority as provided in Sec.
800.14.
(b) The performance bond shall be payable to the regulatory authority.
( c) The performance bond shall be conditioned upon faithful performance of all the requirements of the Act, this
chapter, the regulatory program, and the approved permit, including completion of the reclamation plan.
(d) The duration of the bond shall be for the time period provided in Sec. 800.13.
(e)(1) The bond shall provide a mechanism for a bank or surety company to give prompt notice to the regulatory
authority and the permittee of any action filed alleging the insolvency or bankruptcy of the surety company, the bank,
or the permittee, or alleging any violations which would result in suspension or revocation of the surety or bank
charter or license to do business.
(2) Upon the incapacity of a bank or surety company by reason of bankruptcy, insolvency, or suspension or
revocation of a charter or license, the permittee shall be deemed to be without bond coverage and shall promptly
notify the regulatory authority. The regulatory authority, upon notification received through procedures of paragraph
(e)(1) of this section or from the permittee, shall, in writing, notify the operator who is without bond coverage and
specify a reasonable period, not to exceed 90 days, to replace bond coverage. If an adequate bond is not posted by
the end of the period allowed, the operator shall cease coal extraction and shall comply with the provisions of Sec.
816.132 or Sec. 817.132 of this chapter and shall immediately begin to conduct reclamation operations in
accordance with the reclamation plan. Mining operations shall not resume until the regulatory authority has
determined that an acceptable bond has been posted.
30 CFR Sec. 800.17 Bonding requirements for underground coal mines and long-term coal-related surface
facilities and structures.
(a) Responsibilities. The regulatory authority shall require bond coverage, in an amount determined under Sec.
800.14, for long-term surface facilities and structures, and for areas disturbed by surface impacts incident to
underground mines, for which a permit is required. Specific reclamation techniques required for underground mines
and long-term facilities shall be considered in determining the amount of bond to complete the reclamation.
(b) Long-term period of liability. (1) The period of liability for every bond covering long-term surface
disturbances shall commence with the issuance of a permit, except that to the extent that such disturbances will occur
on a succeeding increment to be bonded, such liability will commence upon the posting of the bond for that
increment before the initial surface disturbance of that increment. The liability period shall extend until all
reclamation, restoration, and abatement work under the permit has been completed and the bond is released under the
provisions of Sec. 800.40, or until the bond has been replaced or extended in accordance with Sec. 800.17(b)(3).
(2) Long-term surface disturbances shall include long-term coal-related surface facilities and structures, and
surface impacts incident to underground coal mining, which disturb an area for a period that exceeds 5 years. Long-
term surface disturbances include, but are not limited to: surface features of shafts and slope facilities, coal refuse
areas, powerlines, bore-holes, ventilation shafts, preparation plants, machine shops, roads, and loading and treatment
facilities.
(3) To achieve continuous bond coverage for long-term surface disturbances, the bond shall be conditioned upon
extension, replacement, or payment in full, 30 days prior to the expiration of the bond term.
(4) Continuous bond coverage shall apply throughout the period of extended responsibility for successful
revegetation and until the provisions of Sec. 800.40 have been met.
( c) Bond forfeiture. The regulatory authority shall take action to forfeit a bond pursuant to this section, if 30 days
prior to bond expiration, the operator has not filed: (1) A performance bond for a new term as required for
continuous coverage, or (2) a performance bond providing coverage for the period of liability, including the period
of extended responsibility for successful revegetation.
30 CFR Sec. 800.20 Surety bonds.
(a) A surety bond shall be executed by the operator and a corporate surety licensed to do business in the State
where the operation is located.
(b) Surety bonds shall be noncancellable during their terms, except that surety bond coverage for lands not
disturbed may be cancelled with the prior consent of the regulatory authority. The regulatory authority shall advise
the surety, within 30 days after receipt of a notice to cancel bond, whether the bond may be cancelled on an
undisturbed area.
30 CFR Sec. 800.21 Collateral bonds.
(a) Collateral bonds, except for letters of credit, cash accounts, and real property, shall be subject to the following
conditions:
(1) The regulatory authority shall keep custody of collateral deposited by the applicant until authorized for release
or replacement as provided in this subchapter.
(2) The regulatory authority shall value collateral at its current market value, not at face value.
(3) The regulatory authority shall require that certificates of deposit be made payable to or assigned to the
regulatory authority, both in writing and upon the records of the bank issuing the certificates. If assigned, the
regulatory authority shall require the banks issuing these certificates to waive all rights of setoff or liens against those
certificates.
(4) The regulatory authority shall not accept an individual certificate of deposit in an amount in excess of
$100,000 or the maximum insurable amount as determined by the Federal Deposit Insurance Corporation or the
Federal Savings and Loan Insurance Corporation.
(b) Letters of credit shall be subject to the following conditions:
(1) The letter may be issued only by a bank organized or authorized to do business in the United States;
(2) Letters of credit shall be irrevocable during their terms. A letter of credit used as security in areas requiring
continuous bond coverage shall be forfeited and shall be collected by the regulatory authority if not replaced by other
suitable bond or letter of credit at least 30 days before its expiration date.
(3) The letter of credit shall be payable to the regulatory authority upon demand, in part or in full, upon receipt
from the regulatory authority of a notice of forfeiture issued in accordance with Sec. 800.50.
( c) Real property posted as a collateral bond shall meet the following conditions:
(1) The applicant shall grant the regulatory authority a first mortgage, first deed of trust, or perfected first-lien
security interest in real property with a right to sell or otherwise dispose of the property in the event of forfeiture
under Sec. 800.50.
(2) In order for the regulatory authority to evaluate the adequacy of the real property offered to satisfy collateral
requirements, the applicant shall submit a schedule of the real property which shall be mortgaged or pledged to
secure the obligations under the indemnity agreement. The list shall include--
(i) A description of the property;
(ii) The fair market value as determined by an independent appraisal conducted by a certified appraiser; and
(iii) Proof of possession and title to the real property.
(3) The property may include land which is part of the permit area; however, land pledged as collateral for a bond
under this section shall not be disturbed under any permit while it is serving as security under this section.
(d) Cash accounts shall be subject to the following conditions:
(1) The regulatory authority may authorize the operator to supplement the bond through the establishment of a
cash account in one or more federally-insured or equivalently protected accounts made payable upon demand to, or
deposited directly with, the regulatory authority. The total bond including the cash account shall not be less than the
amount required under terms of performance bonds including any adjustments, less amounts released in accordance
with Sec. 800.40.
(2) Any interest paid on a cash account shall be retained in the account and applied to the bond value of the
account unless the regulatory authority has approved the payment of interest to the operator.
(3) Certificates of deposit may be substituted for a cash account with the approval of the regulatory authority.
(4) The regulatory authority shall not accept an individual cash account in an amount in excess of $100,000 or the
maximum insurable amount as determined by the Federal Deposit Insurance Corporation or the Federal Savings and
Loan Insurance Corporation.
(e)(1) The estimated bond value of all collateral posted as assurance under this section shall be subject to a margin
which is the ratio of bond value to market value, as determined by the regulatory authority. The margin shall reflect
legal and liquidation fees, as well as value depreciation, marketability, and fluctuations which might affect the net
cash available to the regulatory authority to complete reclamation.
(2) The bond value of collateral may be evaluated at any time but it shall be evaluated as part of permit renewal
and, if necessary, the performance bond amount increased or decreased. In no case shall the bond value of collateral
exceed the market value.
(f) Persons with an interest in collateral posted as a bond, and who desire notification of actions pursuant to the
bond, shall request the notification in writing to the regulatory authority at the time collateral is offered.
30 CFR Sec. 800.23 Self-bonding.
(a) Definitions. For the purposes of this section only:
Current assets means cash or other assets or resources which are reasonably expected to be converted to cash or
sold or consumed within one year or within the normal operating cycle of the business.
Current liabilities means obligations which are reasonably expected to be paid or liquidated within one year or
within the normal operating cycle of the business.
Fixed assets means plants and equipment, but does not include land or coal in place.
Liabilities means obligations to transfer assets or provide services to other entities in the future as a result of past
transactions.
Net worth means total assets minus total liabilities and is equivalent to owners' equity.
Parent corporation means a corporation which owns or controls the applicant.
Tangible net worth means net worth minus intangibles such as goodwill and rights to patents or royalties.
(b) The regulatory authority may accept a self-bond from an applicant for a permit if all of the following
conditions are met by the applicant or its parent corporation guarantor:
(1) The applicant designates a suitable agent to receive service of process in the State where the proposed surface
coal mining operation is to be conducted.
(2) The applicant has been in continuous operation as a business entity for a period of not less than 5 years.
Continuous operation shall mean that business was conducted over a period of 5 years immediately preceding the
time of application.
(i) The regulatory authority may allow a joint venture or syndicate with less than 5 years of continuous operation
to qualify under this requirement, if each member of the joint venture or syndicate has been in continuous operation
for at least 5 years immediately preceding the time of application.
(ii) When calculating the period of continuous operation, the regulatory authority may exclude past periods of
interruption to the operation of the business entity that were beyond the applicant's control and that do not affect the
applicant's likelihood of remaining in business during the proposed surface coal mining and reclamation operations.
(3) The applicant submits financial information in sufficient detail to show that the applicant meets one of the
following criteria:
(i) The applicant has a current rating for its most recent bond issuance of "A" or higher as issued by either
Moody's Investor Service or Standard and Poor's Corporation;
(ii) The applicant has a tangible net worth of at least $10 million, a ratio of total liabilities to net worth of 2.5
times or less, and a ratio of current assets to current liabilities of 1.2 times or greater; or
(iii) The applicant's fixed assets in the United States total at least $20 million, and the applicant has a ratio of total
liabilities to net worth of 2.5 times or less, and a ratio of current assets to current liabilities of 1.2 times or greater.
(4) The applicant submits;
(i) Financial statements for the most recently completed fiscal year accompanied by a report prepared by an
independent certified public accountant in conformity with generally accepted accounting principles and containing
the accountant's audit opinion or review opinion of the financial statements with no adverse opinion;
(ii) Unaudited financial statements for completed quarters in the current fiscal year; and
(iii) Additional unaudited information as requested by the regulatory authority.
( c)(1) The regulatory authority may accept a written guarantee for an applicant's self-bond from a parent
corporation guarantor, if the guarantor meets the conditions of paragraphs (b)(1) through (b)(4) of this section as if it
were the applicant. Such a written guarantee shall be referred to as a "corporate guarantee." The terms of the
corporate guarantee shall provide for the following:
(i) If the applicant fails to complete the reclamation plan, the guarantor shall do so or the guarantor shall be liable
under the indemnity agreement to provide funds to the regulatory authority sufficient to complete the reclamation
plan, but not to exceed the bond amount.
(ii) The corporate guarantee shall remain in force unless the guarantor sends notice of cancellation by certified
mail to the applicant and to the regulatory authority at least 90 days in advance of the cancellation date, and the
regulatory authority accepts the cancellation.
(iii) The cancellation may be accepted by the regulatory authority if the applicant obtains suitable replacement
bond before the cancellation date or if the lands for which the self-bond, or portion thereof, was accepted have not
been disturbed.
(2) The regulatory authority may accept a written guarantee for an applicant's self-bond from any corporate
guarantor, whenever the applicant meets the conditions of paragraphs (b)(1), (b)(2) and (b)(4) of this section, and the
guarantor meets the conditions of paragraphs (b)(1) through (b)(4) of this section. Such a written guarantee shall be
referred to as a "non-parent corporate guarantee." The terms of this guarantee shall provide for compliance with the
conditions of paragraphs ( c)(1)(i) through ( c)(1)(iii) of this section. The regulatory authority may require the
applicant to submit any information specified in paragraph (b)(3) of this section in order to determine the financial
capabilities of the applicant.
(d) For the regulatory authority to accept an applicant's self-bond, the total amount of the outstanding and
proposed self-bonds of the applicant for surface coal mining and reclamation operations shall not exceed 25 percent
of the applicant's tangible net worth in the United States. For the regulatory authority to accept a corporate guarantee,
the total amount of the parent corporation guarantor's present and proposed self-bonds and guaranteed self-bonds for
surface coal mining and reclamation operations shall not exceed 25 percent of the guarantor's tangible net worth in
the United States. For the regulatory authority to accept a non-parent corporate guarantee, the total amount of the
non-parent corporate guarantor's present and proposed self-bonds and guaranteed self-bonds shall not exceed 25
percent of the guarantor's tangible net worth in the United States.
(e) If the regulatory authority accepts an applicant's self-bond, an indemnity agreement shall be submitted subject
to the following requirements:
(1) The indemnity agreement shall be executed by all persons and parties who are to be bound by it, including the
parent corporation guarantor, and shall bind each jointly and severally.
(2) Corporations applying for a self-bond, and parent and non-parent corporations guaranteeing an applicant's self-
bond shall submit an indemnity agreement signed by two corporate officers who are authorized to bind their
corporations. A copy of such authorization shall be provided to the regulatory authority along with an affidavit
certifying that such an agreement is valid under all applicable Federal and State laws. In addition, the guarantor shall
provide a copy of the corporate authorization demonstrating that the corporation may guarantee the self-bond and
execute the indemnity agreement.
(3) If the applicant is a partnership, joint venture or syndicate, the agreement shall bind each partner or party who
has a beneficial interest, directly or indirectly, in the applicant.
(4) Pursuant to Sec. 800.50, the applicant, parent or non-parent corporate guarantor shall be required to complete
the approved reclamation plan for the lands in default or to pay to the regulatory authority an amount necessary to
complete the approved reclamation plan, not to exceed the bond amount. If permitted under State law, the indemnity
agreement when under forfeiture shall operate as a judgment against those parties liable under the indemnity
agreement.
(f) A regulatory authority may require self-bonded applicants, parent and non-parent corporate guarantors to
submit an update of the information required under paragraphs (b)(3) and (b)(4) of this section within 90 days after
the close of each fiscal year following the issuance of the self-bond or corporate guarantee.
(g) If at any time during the period when a self-bond is posted, the financial conditions of the applicant, parent or
non-parent corporate guarantor change so that the criteria of paragraphs (b)(3) and (d) of this section are not
satisfied, the permittee shall notify the regulatory authority immediately and shall within 90 days post an alternate
form of bond in the same amount as the self-bond. Should the permittee fail to post an adequate substitute bond, the
provisions of Sec. 800.16(e) shall apply.
[48 FR 36429, Aug. 10, 1983, as amended at 53 FR 997, Jan. 14, 1988]
30 CFR Sec. 800.30 Replacement of bonds.
(a) The regulatory authority may allow a permittee to replace existing bonds with other bonds that provide
equivalent coverage.
(b) The regulatory authority shall not release existing performance bonds until the permittee has submitted, and
the regulatory authority has approved, acceptable replacement performance bonds. Replacement of a performance
bond pursuant to this section shall not constitute a release of bond under Sec. 800.40.
30 CFR Sec. 800.40 Requirement to release performance bonds.
(a) Bond release application. (1) The permittee may file an application with the regulatory authority for the release
of all or part of a performance bond. Applications may be filed only at times or during seasons authorized by the
regulatory authority in order to properly evaluate the completed reclamation operations. The times or seasons
appropriate for the evaluation of certain types of reclamation shall be established in the regulatory program or
identified in the mining and reclamation plan required in subchapter G of this chapter and approved by the regulatory
authority.
(2) Within 30 days after an application for bond release has been filed with the regulatory authority, the permittee
shall submit a copy of an advertisement placed at least once a week for four successive weeks in a newspaper of
general circulation in the locality of the surface coal mining operation. The advertisement shall be considered part of
any bond release application and shall contain the permittee's name, permit number and approval date, notification of
the precise location of the land affected, the number of acres, the type and amount of the bond filed and the portion
sought to be released, the type and appropriate dates of reclamation work performed, a description of the results
achieved as they relate to the permittee's approved reclamation plan, and the name and address of the regulatory
authority to which written comments, objections, or requests for public hearings and informal conferences on the
specific bond release may be submitted pursuant to Sec. 800.40 (f) and (h). In addition, as part of any bond release
application, the permittee shall submit copies of letters which he or she has sent to adjoining property owners, local
governmental bodies, planning agencies, sewage and water treatment authorities, and water companies in the locality
in which the surface coal mining and reclamation operation took place, notifying them of the intention to seek release
from the bond.
(3) The permittee shall include in the application for bond release a notarized statement which certifies that all
applicable reclamation activities have been accomplished in accordance with the requirements of the Act, the
regulatory program, and the approved reclamation plan. Such certification shall be submitted for each application or
phase of bond release.
(b) Inspection by regulatory authority. (1) Upon receipt of the bond release application, the regulatory authority
shall, within 30 days, or as soon thereafter as weather conditions permit, conduct an inspection and evaluation of the
reclamation work involved. The evaluation shall consider, among other factors, the degree of difficulty to complete
any remaining reclamation, whether pollution of surface and subsurface water is occurring, the probability of future
occurrence of such pollution, and the estimated cost of abating such pollution. The surface owner, agent, or lessee
shall be given notice of such inspection and may participate with the regulatory authority in making the bond release
inspection. The regulatory authority may arrange with the permittee to allow access to the permit area, upon request
by any person with an interest in bond release, for the purpose of gathering information relevant to the proceeding.
(2) Within 60 days from the filing of the bond release application, if no public hearing is held pursuant to
paragraph (f) of this section, or, within 30 days after a public hearing has been held pursuant to paragraph (f) of this
section, the regulatory authority shall notify in writing the permittee, the surety or other persons with an interest in
bond collateral who have requested notification under Sec. 800.21(f), and the persons who either filed objections in
writing or objectors who were a party to the hearing proceedings, if any, of its decision to release or not to release all
or part of the performance bond.
( c) The regulatory authority may release all or part of the bond for the entire permit area or incremental area if the
regulatory authority is satisfied that all the reclamation or a phase of the reclamation covered by the bond or portion
thereof has been accomplished in accordance with the following schedules for reclamation of Phases I, II, and III:
(1) At the completion of Phase I, after the operator completes the backfilling, regrading (which may include the
replacement of topsoil) and drainage control of a bonded area in accordance with the approved reclamation plan, 60
percent of the bond or collateral for the applicable area.
(2) At the completion of Phase II, after revegetation has been established on the regraded mined lands in
accordance with the approved reclamation plan, an additional amount of bond. When determining the amount of
bond to be released after successful revegetation has been established, the regulatory authority shall retain that
amount of bond for the revegetated area which would be sufficient to cover the cost of reestablishing revegetation if
completed by a third party and for the period specified for operator responsibility in section 515 of the Act for
reestablishing revegetation. No part of the bond or deposit shall be released under this paragraph so long as the lands
to which the release would be applicable are contributing suspended solids to streamflow or runoff outside the permit
area in excess of the requirements set by section 515(b)(10) of the Act and by subchapter K of this chapter or until
soil productivity for prime farmlands has returned to the equivalent levels of yield as nonmined land of the same soil
type in the surrounding area under equivalent management practices as determined from the soil survey performed
pursuant to section 507(b)(16) of the Act and part 823 of this chapter. Where a silt dam is to be retained as a
permanent impoundment pursuant to subchapter K of this chapter, the Phase II portion of the bond may be released
under this paragraph so long as provisions for sound future maintenance by the operator or the landowner have been
made with the regulatory authority.
(3) At the completion of Phase III, after the operator has completed successfully all surface coal mining and
reclamation activities, the release of the remaining portion of the bond, but not before the expiration of the period
specified for operator responsibility in Sec. 816.116 or Sec. 817.116 of this chapter. However, no bond shall be fully
released under provisions of this section until reclamation requirements of the Act and the permit are fully met.
(d) If the regulatory authority disapproves the application for release of the bond or portion thereof, the regulatory
authority shall notify the permittee, the surety, and any person with an interest in collateral as provided for in Sec.
800.21(f), in writing, stating the reasons for disapproval and recommending corrective actions necessary to secure
the release and allowing an opportunity for a public hearing.
(e) When any application for total or partial bond release is filed with the regulatory authority, the regulatory
authority shall notify the municipality in which the surface coal mining operation is located by certified mail at least
30 days prior to the release of all or a portion of the bond.
(f) Any person with a valid legal interest which might be adversely affected by release of the bond, or the
responsible officer or head of any Federal, State, or local governmental agency which has jurisdiction by law or
special expertise with respect to any environmental, social, or economic impact involved in the operation or which is
authorized to develop and enforce environmental standards with respect to such operations, shall have the right to
file written objections to the proposed release from bond with the regulatory authority within 30 days after the last
publication of the notice required by Sec. 800.40(a)(2). If written objections are filed and a hearing is requested, the
regulatory authority shall inform all the interested parties of the time and place of the hearing, and shall hold a public
hearing within 30 days after receipt of the request for the hearing. The date, time, and location of the public hearing
shall be advertised by the regulatory authority in a newspaper of general circulation in the locality for two
consecutive weeks. The public hearing shall be held in the locality of the surface coal mining operation from which
bond release is sought, at the location of the regulatory authority office, or at the State capital, at the option of the
objector.
(g) For the purpose of the hearing under paragraph (f) of this section, the regulatory authority shall have the
authority to administer oaths, subpoena witnesses or written or printed material, compel the attendance of witnesses
or the production of materials, and take evidence including, but not limited to, inspection of the land affected and
other surface coal mining operations carried on by the applicant in the general vicinity. A verbatim record of each
public hearing shall be made, and a transcript shall be made available on the motion of any party or by order of the
regulatory authority.
(h) Without prejudice to the right of an objector or the applicant, the regulatory authority may hold an informal
conference as provided in section 513(b) of the Act to resolve such written objections. The regulatory authority shall
make a record of the informal conference unless waived by all parties, which shall be accessible to all parties. The
regulatory authority shall also furnish all parties of the informal conference with a written finding of the regulatory
authority based on the informal conference, and the reasons for said finding.
[48 FR 32959, July 19, 1983, as amended at 48 FR 44780, Sept. 30, 1983; 53 FR 998, Jan. 14, 1988; 56 FR 59994,
Nov. 26, 1991]
30 CFR Sec. 800.50 Forfeiture of bonds.
(a) If an operator refuses or is unable to conduct reclamation of an unabated violation, if the terms of the permit
are not met, or if the operator defaults on the conditions under which the bond was accepted, the regulatory authority
shall take the following action to forfeit all or part of a bond or bonds for any permit area or an increment of a permit
area:
(1) Send written notification by certified mail, return receipt requested, to the permittee and the surety on the
bond, if any, informing them of the determination to forfeit all or part of the bond, including the reasons for the
forfeiture and the amount to be forfeited. The amount shall be based on the estimated total cost of achieving the
reclamation plan requirements.
(2) Advise the permittee and surety, if applicable, of the conditions under which forfeiture may be avoided. Such
conditions may include, but are not limited to--
(i) Agreement by the permittee or another party to perform reclamation operations in accordance with a
compliance schedule which meets the conditions of the permit, the reclamation plan, and the regulatory program and
a demonstration that such party has the ability to satisfy the conditions; or
(ii) The regulatory authority may allow a surety to complete the reclamation plan, or the portion of the reclamation
plan applicable to the bonded phase or increment, if the surety can demonstrate an ability to complete the
reclamation in accordance with the approved reclamation plan. Except where the regulatory authority may approve
partial release authorized under Sec. 800.40, no surety liability shall be released until successful completion of all
reclamation under the terms of the permit, including applicable liability periods of Sec. 800.13.
(b) In the event forfeiture of the bond is required by this section, the regulatory authority shall--
(1) Proceed to collect the forfeited amount as provided by applicable laws for the collection of defaulted bonds or
other debts if actions to avoid forfeiture have not been taken, or if rights of appeal, if any, have not been exercised
within a time established by the regulatory authority, or if such appeal, if taken, is unsuccessful.
(2) Use funds collected from bond forfeiture to complete the reclamation plan, or portion thereof, on the permit
area or increment, to which bond coverage applies.
( c) Upon default, the regulatory authority may cause the forfeiture of any and all bonds deposited to complete
reclamation for which the bonds were posted. Unless specifically limited, as provided in Sec. 800.11(b), bond
liability shall extend to the entire permit area under conditions of forfeiture.
(d)(1) In the event the estimated amount forfeited is insufficient to pay for the full cost of reclamation, the operator
shall be liable for remaining costs. The regulatory authority may complete, or authorize completion of, reclamation
of the bonded area and may recover from the operator all costs of reclamation in excess of the amount forfeited.
(2) In the event the amount of performance bond forfeited was more than the amount necessary to complete
reclamation, the unused funds shall be returned by the regulatory authority to the party from whom they were
collected.
[48 FR 32959, July 19, 1983, as amended at 48 FR 44780, Sept. 30, 1983]
30 CFR Sec. 800.60 Terms and conditions for liability insurance.
(a) The regulatory authority shall require the applicant to submit as part of its permit application a certificate
issued by an insurance company authorized to do business in the United States certifying that the applicant has a
public liability insurance policy in force for the surface coal mining and reclamation operations for which the permit
is sought. Such policy shall provide for personal injury and property damage protection in an amount adequate to
compensate any persons injured or property damaged as a result of the surface coal mining and reclamation
operations, including the use of explosives, and who are entitled to compensation under the applicable provisions of
State law. Minimum insurance coverage for bodily injury and property damage shall be $300,000 for each
occurrence and $500,000 aggregate.
(b) The policy shall be maintained in full force during the life of the permit or any renewal thereof and the liability
period necessary to complete all reclamation operations under this Chapter.
( c) The policy shall include a rider requiring that the insurer notify the regulatory authority whenever substantive
changes are made in the policy including any termination or failure to renew.
(d) The regulatory authority may accept from the applicant, in lieu of a certificate for a public liability insurance
policy, satisfactory evidence from the applicant that it satisfies applicable State self-insurance requirements approved
as part of the regulatory program and the requirements of this section.
[48 FR 32959, July 19, 1983, as amended at 54 FR 13823, Apr. 5, 1989]
30 CFR Sec. 800.70 Bonding for anthracite operations in Pennsylvania.
(a) All of the provisions of this subchapter shall apply to bonding and insuring anthracite surface coal mining and
reclamation operations in Pennsylvania except that--
(1) Specified bond limits shall be determined by the regulatory authority in accordance with applicable provisions
of Pennsylvania statutes, rules and regulations promulgated thereunder, and implementing policies of the
Pennsylvania Department of Environmental Resources.
(2) The period of liability for responsibility under each bond shall be established for those operations in
accordance with applicable laws of the State of Pennsylvania, rules and regulations promulgated thereunder, and
implementing policies of the Pennsylvania Department of Environmental Resources.
(b) Upon amendment of the Pennsylvania permanent regulatory program with respect to specified bond limits and
period of revegetation responsibility for anthracite surface coal mining and reclamation operations, any person
engaging in or seeking to engage in those operations shall comply with additional regulations the Secretary may issue
as are necessary to meet the purposes of the Act.
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