WYOMING REGULATORY PROGRAM

AGENCY 020    DEPARTMENT OF ENVIRONMENTAL QUALITY   
SUB-AGENCY 040   LAND QUALITY
COAL MINING RULES AND REGULATIONS   (2002)

CHAPTER 20   LETTERS OF CREDIT
   Section 1   Conditions on the Letter of Credit.
   Section 2   Agent for Service of Process.

NOTE: Cross references to OSM's federal statute and regulations appear in double braces to the right of the
Wyoming regulation section numbers, e.g.,
"Section 3     APPLICABILITY.           {{ SMCRA 528; 30 CFR 700.11, 707.11 }}".  
The cross references were compiled using the preambles to OSM's approval of amendments to the Wyoming
regulatory program published in the Federal Register, the Wyoming File in the COALEX Library in LexisNexis and
Side-by-Side Forms provided by the Wyoming Regulatory Authority.

Section 1 CONDITIONS ON THE LETTER OF CREDIT.
(a)  Letters of credit as authorized by W.S. Sec. 35-11-418, shall be subject to the following conditions:
     (i)  The letter shall be irrevocable during its term, which shall coincide with the annual bonding period.  The
Administrator may approve the use of letters of credit as security in accordance with a schedule approved with the
permit.  Any bank issuing a letter of credit shall notify the Director in writing at least 90 days prior to the maturity
date of such letter or the expiration of the letter of credit agreement.  Letters of credit utilized as security in areas
requiring continuous bond coverage shall be forfeited and collected by the Director if not replaced by other suitable
evidence of financial responsibility at least 30 days before the expiration date of the letter of credit agreement;
     (ii)  The letter must be payable to the Department in part or in full upon demand and receipt from the
Director of a notice of forfeiture issued in accordance with W.S. Sec. 35-11-421;
     (iii)  The letter shall not be in excess of ten percent of the bank's capital surplus account as shown on a
balance sheet certified by a certified public accountant;
     (iv)  The Administrator shall not accept letters of credit from a bank for any person, on all permits held by
that person, in excess of three times the limitation imposed by W.S. Sec. 13-3-402;
     (v)  The letter of credit shall provide that:
          (A)  The bank will give prompt notice to the permittee and the Director of any notice received or
action filed alleging the insolvency or bankruptcy of the bank, or alleging any violations of regulatory requirements
which could result in suspension or revocation of the bank's charter or license to do business;
          (B)  In the event the bank becomes unable to fulfill its obligations under the letter of credit for any
reason, notice shall be given immediately to the permittee and the Director; and
          (C)  Upon the incapacity of a bank by reason of bankruptcy, insolvency, or suspension or
revocation of its charter or license, the permittee shall be deemed to be without performance bond coverage in
violation of the Act.  The Director shall issue a notice of violation against any operator who is without bond
coverage, specifying a reasonable period to replace bond coverage, not to exceed 90 days.  During this period the
Director or his designated representative shall conduct weekly inspections to ensure continuing compliance with
other permit requirements, the regulations and the Act.  Such notice, if abated within the period allowed, shall not be
counted as a notice of violation for purposes of determining a pattern of violations under W.S. Sec. 35-11-409(c),
and need not be reported as a past violation in permit applications under Chapter 2, Section 2(a)(ii)(B).  If the notice
is not abated in accordance with the schedule, a cessation order shall be issued.

Section 2 AGENT FOR SERVICE OF PROCESS.
(a)  The letter may only be issued by a bank organized to do business in the U.S. which identifies by name, address,
and telephone number an agent upon whom any process, notice or demand required or permitted by law to be served
upon the bank, may be served.
     (i)  If the bank fails to appoint or maintain an agent in this State, or whenever any such agent cannot be
reasonably found, then the Director shall be an agent for such bank upon whom any process, notice or demand may
be served for the purpose of this Chapter.  In the event of any such process, the Director shall immediately cause one
copy of such process, notice or demand to be forwarded by registered mail to the bank at its principal place of
business.  The Director shall keep a record of all processes, notices, or demands served upon him under this
paragraph, and shall record therein the time of such service and his action with reference thereto;
     (ii)  Nothing herein contained shall limit or affect the right to serve any process, notice or demand required
or permitted by law to be served upon the bank in any other manner now or hereafter permitted by law.