30 U.S.C. § 1259 — Performance bonds

Page 281 TITLE 30—MINERAL LANDS AND MINING § 1259 (4) a detailed description of how the pro- posed postmining land use is to be achieved and the necessary support activities which may be needed to achieve the proposed land use; (5) the engineering techniques proposed to be used in mining and reclamation and a descrip- tion of the major equipment; a plan for the control of surface water drainage and of water accumulation; a plan, where appropriate, for backfilling, soil stabilization, and compacting, grading, and appropriate revegetation; a plan for soil reconstruction, replacement, and sta- bilization, pursuant to the performance stand- ards in section 1265(b)(7)(A), (B), (C), and (D) of this title, for those food, forage, and forest lands identified in section 1265(b)(7) of this title; an estimate of the cost per acre of the reclamation, including a statement as to how the permittee plans to comply with each of the requirements set out in section 1265 of this title; (6) the consideration which has been given to maximize the utilization and conservation of the solid fuel resource being recovered so that reaffecting the land in the future can be mini- mized; (7) a detailed estimated timetable for the ac- complishment of each major step in the rec- lamation plan; (8) the consideration which has been given to making the surface mining and reclamation operations consistent with surface owner plans, and applicable State and local land use plans and programs; (9) the steps to be taken to comply with ap- plicable air and water quality laws and regula- tions and any applicable health and safety standards; (10) the consideration which has been given to developing the reclamation plan in a man- ner consistent with local physical environ- mental, and climatological conditions; (11) all lands, interests in lands, or options on such interests held by the applicant or pending bids on interests in lands by the appli- cant, which lands are contiguous to the area to be covered by the permit; (12) the results of test boring which the ap- plicant has made at the area to be covered by the permit, or other equivalent information and data in a form satisfactory to the regu- latory authority, including the location of subsurface water, and an analysis of the chem- ical properties including acid forming prop- erties of the mineral and overburden: Provided, That information which pertains only to the analysis of the chemical and physical prop- erties of the coal (excepting information re- garding such mineral or elemental contents which is potentially toxic in the environment) shall be kept confidential and not made a mat- ter of public record; (13) a detailed description of the measures to be taken during the mining and reclamation process to assure the protection of: (A) the quality of surface and ground water systems, both on- and off-site, from adverse effects of the mining and reclama- tion process; (B) the rights of present users to such water; and (C) the quantity of surface and ground water systems, both on- and off-site, from adverse effects of the mining and reclama- tion process or to provide alternative sources of water where such protection of quantity cannot be assured; (14) such other requirements as the regu- latory authority shall prescribe by regula- tions. (b) Any information required by this section which is not on public file pursuant to State law shall be held in confidence by the regulatory au- thority. (Pub. L. 95–87, title V, § 508, Aug. 3, 1977, 91 Stat. 478.) § 1259. Performance bonds (a) Filing with regulatory authority; scope; num- ber 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 pre- scribed and furnished by the regulatory author- ity, a bond for performance payable, as appro- priate, 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 sur- face coal mining and reclamation operations are to be initiated and conducted within the permit area, the permittee shall file with the regu- latory 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 reclama- tion requirements of the approved permit; shall reflect the probable difficulty of reclamation giving consideration to such factors as topog- raphy, geology of the site, hydrology, and re- vegetation 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 dura- tion of the surface coal mining and reclamation operation and for a period coincident with oper- ator’s responsibility for revegetation require- ments in section 1265 of this title. The bond shall be executed by the operator and a cor- porate surety licensed to do business in the State where such operation is located, except that the operator may elect to deposit cash, ne- gotiable bonds of the United States Government or such State, or negotiable certificates of de- posit of any bank organized or transacting busi- ness 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. Page 282 TITLE 30—MINERAL LANDS AND MINING § 1260 (c) Bond of applicant without separate surety; al- ternate system The regulatory authority may accept the bond of the applicant itself without separate surety when the applicant demonstrates to the satis- faction of the regulatory authority the exist- ence of a suitable agent to receive service of process and a history of financial solvency and continuous operation sufficient for authoriza- tion 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 ob- jectives and purposes of the bonding program pursuant to this section. (d) Deposit of cash or securities Cash or securities so deposited shall be depos- ited upon the same terms as the terms upon which surety bonds may be deposited. Such se- curities 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 appli- cant’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, § 509, Aug. 3, 1977, 91 Stat. 479.) § 1260. Permit approval or denial (a) Basis for decision; notification of applicant and local government officials; burden of proof Upon the basis of a complete mining applica- tion and reclamation plan or a revision or re- newal thereof, as required by this chapter and pursuant to an approved State program or Fed- eral program under the provisions of this chap- ter, including public notification and an oppor- tunity for a public hearing as required by sec- tion 1263 of this title, the regulatory authority shall grant, require modification of, or deny the application for a permit in a reasonable time set by the regulatory authority and notify the ap- plicant in writing. The applicant for a permit, or revision of a permit, shall have the burden of es- tablishing that his application is in compliance with all the requirements of the applicable State or Federal program. Within ten days after the granting of a permit, the regulatory author- ity shall notify the local governmental officials in the local political subdivision in which the area of land to be affected is located that a per- mit has been issued and shall describe the loca- tion of the land. (b) Requirements for approval No permit or revision application shall be ap- proved unless the application affirmatively dem- onstrates and the regulatory authority finds in writing on the basis of the information set forth in the application or from information other- wise available which will be documented in the approval, and made available to the applicant, that— (1) the permit application is accurate and complete and that all the requirements of this chapter and the State or Federal program have been complied with; (2) the applicant has demonstrated that rec- lamation as required by this chapter and the State or Federal program can be accomplished under the reclamation plan contained in the permit application; (3) the assessment of the probable cumu- lative impact of all anticipated mining in the area on the hydrologic balance specified in section 1257(b) of this title has been made by the regulatory authority and the proposed op- eration thereof has been designed to prevent material damage to hydrologic balance out- side permit area; (4) the area proposed to be mined is not in- cluded within an area designated unsuitable for surface coal mining pursuant to section 1272 of this title or is not within an area under study for such designation in an administra- tive proceeding commenced pursuant to sec- tion 1272(a)(4)(D) or section 1272(c) of this title (unless in such an area as to which an admin- istrative proceeding has commenced pursuant to section 1272(a)(4)(D) of this title, the oper- ator making the permit application dem- onstrates that, prior to January 1, 1977, he has made substantial legal and financial commit- ments in relation to the operation for which he is applying for a permit); (5) the proposed surface coal mining oper- ation, if located west of the one hundredth me- ridian west longitude, would— (A) not interrupt, discontinue, or preclude farming on alluvial valley floors that are ir- rigated or naturally subirrigated, but, ex- cluding undeveloped range lands which are not significant to farming on said alluvial valley floors and those lands as to which the regulatory authority finds that if the farm- ing that will be interrupted, discontinued, or precluded is of such small acreage as to be of negligible impact on the farm’s agricultural production, or (B) not materially damage the quantity or quality of water in surface or underground water systems that supply these valley floors in (A) of subsection (b)(5): Provided, That this paragraph (5) shall not af- fect those surface coal mining operations which in the year preceding August 3, 1977, (I) produced coal in commercial quantities, and were located within or adjacent to alluvial valley floors or (II) had obtained specific per- mit approval by the State regulatory author- ity to conduct surface coal mining operations within said alluvial valley floors. With respect to such surface mining operations which would have been within the purview of the foregoing proviso but for the fact that no coal was so produced in commercial quantities and no such specific permit approval was so re- ceived, the Secretary, if he determines that sub- stantial financial and legal commitments were made by an operator prior to January 1, 1977, in connection with any such operation, is author- ized, in accordance with such regulations as the Secretary may prescribe, to enter into an agree- ment with that operator pursuant to which the Secretary may, notwithstanding any other pro-