Section 880-X-9A-.04 - Requirement To File A Bond (Alabama Administrative Code)

§ 880-X-9A-.04. Requirement To File A Bond

(1) After an application for a new, revised or renewed permit to conduct surface coal mining and reclamation operations has been approved under Chapter 880-X-8 of these regulations, but before such permit is issued, the applicant shall file with the State Regulatory Authority a performance bond payable to the State Regulatory Authority. The performance bond will be conditioned upon the faithful performance of all the requirements of the Act, these regulations and the provisions of the reclamation plan and permit. The amount, duration, form, conditions and terms of the performance bond shall conform to Subchapters 880-X-9B and 880-X-9C.

(2) At a minimum, 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 an identified increment during the initial year of the permit. As succeeding annual increments of surface coal mining and reclamation operations are to be initiated and conducted within the permit area, the permittee shall file with the State Regulatory Authority an additional bond or bonds to cover such increments in accordance with this Rule. Independent increments shall be of sufficient size and configuration to provide for efficient reclamation operations should reclamation by the Alabama Surface Mining Commission become necessary pursuant to Subchapter 880-X-9E.

(3) An operator shall not disturb surface acreage prior to receipt of approval from the State Regulatory Authority of a performance bond covering the surface acreage to be disturbed.

(a) Liability on the performance bond shall cover all surface coal mining and reclamation operations to be conducted within the permit area. After the amount of the bond has been determined for the permit area in accordance with Subchapter 880-X-9B, the permittee or applicant may either file --

1. The entire performance bond required during the term of the permit;

2. A cumulative bond schedule listing the area covered by the bond and the sequence for release of acreage as it progresses through varying reclamation phases and the addition of other acreage as it is affected. The amount of bond required to obtain a permit shall include the full reclamation cost of the initial area being affected; or

3. An incremental bond schedule and the new performance bond required for the first increment in the schedule.

(b) When the operator elects to "increment" the amount of the performance bond during the term of the permit, he shall identify the initial and successive incremental areas for bonding on the permit application map submitted for approval as provided in Rule 880-X-8F-.08, and shall specify the proportion of the total bond amount required for operations on each incremental area. The scheduled amount of each performance bond increment shall be filed in the sequence approved in the permit, and shall be filed with the State Regulatory Authority at least 30 days prior to the commencement of surface coal mining operations in the next incremental area.

(4) The amount, duration, form, conditions and terms of the performance bond shall conform to Subchapters 880-X-9B and 880-X-9C.

Author: Randall C. Johnson

(May 20, 1982; Amended: September 18, 1990; effective: August 2, 1991.)

Statutory Authority: Code of Ala. 1975, §§ 9-16-71, 73, 74, 75, 80, 81, 82, 83, 85, 89.

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