Section 880-X-9D-.03 - Criteria And Schedule For Release Of Performance Bond (Alabama Administrative Code)

§ 880-X-9D-.03. Criteria And Schedule For Release Of Performance Bond

(1) The State Regulatory Authority may release portions of the liability under performance bonds applicable to the permit area following the completion of reclamation phases as defined in Paragraph (5) of this Rule.

(2) The maximum liability of performance bonds applicable to an increment or permit area which may be released shall be calculated on the following basis --

(a) Release of an amount not to exceed 60 percent of the total bond amount on the increment or permit area upon completion of phase I reclamation.

(b) Release of an additional amount not to exceed 25 percent of the total original bond amount on the permit area or an increment upon completion of phase II reclamation, but in all cases the amount remaining shall be sufficient to reestablish vegetation and reconstruct any drainage structures.

(c) Release of the remaining portion of the total performance bond on the increment or permit area after standards of phase III reclamation have been attained and final inspection and procedures of Rule 880-X-9D-.02 have been satisfied.

(3) The State Regulatory Authority may choose to release all bond coverage for an increment if the phase III reclamation of the increment is complete. The portion of the permit area being released from bond coverage shall be capable of supporting the proposed postmining land use independent of the successful completion of the reclamation of portions of the permit area still under bond or not yet initially disturbed provided, however, that no bond shall be fully released until all reclamation requirements of the Act and the permit are fully met.

(4) The State Regulatory Authority shall require performance bond liability, applicable to the permit area or an increment, in the amount necessary to --

(a) Allow someone other than the operator to complete the approved reclamation plan, achieving compliance with the Act, this Chapter, the regulatory program, and the permit;

(b) Allow someone other than the operator to abate any significant environmental harm to air, water, or land resources, or danger to public health and safety prior to release of the land under the terms of the permit;

(c) Achieve the capability of supporting any alternative postmining land use plan proposed in the permit, consistent with Rules 880-X-10C-.62, 880-X-10C-.66, 880-X-10D-.56, and 880-X-10D-.64 of this Chapter, including such measures as may be necessary in the event the permittee fails to undertake development within the 2 years.

(d) Fulfill the minimum bond amount of $10,000 as required by Rule 880-X-9C-.03.

(5) For the purpose of this Rule --

(a) Reclamation phase I shall be deemed to have been completed when the permittee completes backfilling, regrading, and drainage control of an incrementally bonded area in accordance with the approved reclamation plan; and

(b) Reclamation phase II shall be deemed to have been completed when --

1. Topsoil replacement has been completed and revegetation has been established in accordance with the approved reclamation plan and the standards for the success of revegetation are met;

2. The lands are not contributing suspended solids to stream flow or runoff outside the permit area in excess of the requirements of Section 22(b)(10) of the Act, Chapter 880-X-10 of these regulations or the permit; and

3. With respect to prime farm lands, soil productivity has been returned to the level of yield as required by Rules 880-X-8J-.08 and 880-X-10G when compared with non-mined prime farm land in the surrounding area as determined from the soil survey performed under Section 15(b)(15) of the Act and the plan approved under Rule 880-X-8J-.08; and

4. The provisions of a plan for the sound future maintenance of any permanent impoundment by the permittee or landowner have been made with the State Regulatory Authority.

(c) Phase III reclamation shall be deemed to have been completed when --

1. The permittee has successfully completed all surface coal mining and reclamation operations in accordance with the approved reclamation plan so that the land is capable of supporting any postmining land use approved pursuant to Rule 880-X-10C-.66 or 880-X-10D-.64;

2. The permittee has achieved compliance with the requirements of the Act, this Chapter, the regulatory program, and the permit; and

3. The applicable liability period under Section 21(b) of the Act and Rule 880-X-9B-.04(2) of this Chapter has expired.

Author:

Statutory Authority: Code of Ala. 1975, §§ 9-16-71, 73, 74, 75, 80, 81, 84, 89, 90, 91.

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