§ 1259. — Performance bonds.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 30USC1259]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 25--SURFACE MINING CONTROL AND RECLAMATION
SUBCHAPTER V--CONTROL OF THE ENVIRONMENTAL IMPACTS OF SURFACE COAL
MINING
Sec. 1259. Performance bonds
(a) Filing with regulatory authority; scope; number and amount
After a surface coal mining and reclamation permit application has
been approved but before such a permit is issued, the applicant shall
file with the regulatory authority, on a form prescribed and furnished
by the regulatory authority, a bond for performance payable, as
appropriate, to the United States or to the State, and conditional upon
faithful performance of all the requirements of this chapter and the
permit. The bond shall cover that area of land within the permit area
upon which the operator will initiate and conduct surface coal mining
and reclamation operations within the initial term of the permit. As
succeeding increments of surface coal mining and reclamation operations
are to be 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. The amount of the
bond required for each bonded area shall depend upon the reclamation
requirements of the approved permit; shall reflect the probable
difficulty of reclamation giving consideration to such factors as
topography, geology of the site, hydrology, and revegetation potential,
and shall be determined by the regulatory authority. The amount of the
bond shall be sufficient to assure the completion of the reclamation
plan if the work had to be performed by the regulatory authority in the
event of forfeiture and in no case shall the bond for the entire area
under one permit be less than $10,000.
(b) Liability period; execution
Liability under the bond shall be for the duration of the surface
coal mining and reclamation operation and for a period coincident with
operator's responsibility for revegetation requirements in section 1265
of this title. The bond shall be executed by the operator and a
corporate surety licensed to do business in the State where such
operation is located, except that the operator may elect to deposit
cash, negotiable bonds of the United States Government or such State, or
negotiable certificates of deposit of any bank organized or transacting
business in the United States. The cash deposit or market value of such
securities shall be equal to or greater than the amount of the bond
required for the bonded area.
(c) Bond of applicant without separate surety; alternate system
The regulatory authority may accept the bond of the applicant itself
without separate surety when the applicant demonstrates to the
satisfaction of the regulatory authority the existence of a suitable
agent to receive service of process and a history of financial solvency
and continuous operation sufficient for authorization to self-insure or
bond such amount or in lieu of the establishment of a bonding program,
as set forth in this section, the Secretary may approve as part of a
State or Federal program an alternative system that will achieve the
objectives and purposes of the bonding program pursuant to this section.
(d) Deposit of cash or securities
Cash or securities so deposited shall be deposited upon the same
terms as the terms upon which surety bonds may be deposited. Such
securities shall be security for the repayment of such negotiable
certificate of deposit.
(e) Adjustments
The amount of the bond or deposit required and the terms of each
acceptance of the applicant's bond shall be adjusted by the regulatory
authority from time to time as affected land acreages are increased or
decreased or where the cost of future reclamation changes.
(Pub. L. 95-87, title V, Sec. 509, Aug. 3, 1977, 91 Stat. 479.)
Section Referred to in Other Sections
This section is referred to in sections 1232, 1256, 1265, 1279,
1291, 1300 of this title.
