405
KAR 10:015. General bonding provisions.
RELATES
TO: KRS 350.020, 350.060, 350.062, 350.064, 350.093, 350.095, 350.100, 350.151,
350.465
STATUTORY
AUTHORITY: KRS 350.060, 350.062, 350.064, 350.093, 350.095, 350.100, 350.151,
350.465, 350.515, 350.518
NECESSITY,
FUNCTION, AND CONFORMITY: KRS Chapter 350 authorizes the cabinet to promulgate
administrative regulations to establish procedures for determining amounts for
performance bonds for surface coal mining operations. This administrative regulation
establishes criteria for the base determination of bond amounts and requires
certain periods of liability during which the bonds shall remain in effect.
This administrative regulation establishes requirements for filing and
maintaining performance bonds and provides for adjustments in bond amounts and
additional information related to minimum bonds and application of bonds to ensure
performance of the requirements of KRS Chapter 350 in the event work is performed
by the cabinet, taking into consideration such things as topography, geology,
future land use, and the difficulty of reclamation.
Section
1. Bonding Requirements. (1) An applicant shall not disturb surface acreage or
extend an underground shaft, tunnel, or operation prior to receipt of approval
from the cabinet of a performance bond covering an area to be affected by
surface operations and facilities.
(2)
After an application for a new, amended, revised, or renewed permit to conduct
surface coal mining and reclamation operations has been approved pursuant to
405 KAR Chapter 8, but before the permit is issued, the applicant shall file
with the cabinet, on a form prescribed and furnished by the cabinet, a
performance bond payable to the cabinet.
(a)
The applicant shall file the Performance Bond, Form SME-42, for an operation on
land other than federal lands, or the Performance Bond for Surface Coal Mining
and Reclamation on Federal Lands, Form SME-42-F, for an operation on federal
land.
(b)
The performance bond shall be conditioned upon compliance with all the
requirements of KRS Chapter 350, 405 KAR Chapters 7 through 24, and the
provisions of the reclamation plan and permit, and shall cover all surface coal
mining and reclamation operations to be conducted within the permit area or
increment thereof until all reclamation requirements of 405 KAR Chapters 7
through 24 have been met.
(c)
The amount, duration, type, conditions, and terms of the performance bond shall
conform to the requirements of this administrative regulation.
(3)
A permit shall not be revised or amended to include additional area unless the
liability of the current bond is extended to cover the entire permit area or
increment as revised or amended, and the liability of the supplemental bond
covers the entire permit area as revised or amended. Unless these conditions
are met with respect to the bond, the additional area shall be permitted as a
separate increment of the current permit area or pursuant to a new permit.
(4)
A rider to the applicable performance bond, confirming coverage of the
revision, shall be submitted by the applicant if a revision to a permit does
not change the acreage of the permit area or increment but:
(a)
Adds a coal washer, a crush and load facility, a refuse pile, or a coal mine
waste impoundment to the existing permit; or
(b)
Alters the boundary of a permit area or increment.
Section
2. Terms and Conditions of Performance Bond. (1) The performance bond shall be
in an amount determined by the cabinet as established in Sections 6, 7, and 8
of this administrative regulation.
(2)
The performance bond shall be payable to the cabinet.
(3)
The performance bond shall be conditioned upon faithful performance of all of
the requirements of KRS Chapter 350, 405 KAR Chapters 7 through 24, and the
conditions of the permit and shall cover the entire permit area or the
incremental area as the cabinet has approved pursuant to Section 4(2) of this
administrative regulation.
(4)
The duration of the bond shall be for a time period established in Section 9 of
this administrative regulation.
(5)
Surety bonds shall be subject to the following conditions:
(a)
The cabinet shall not accept the bond of a surety company unless the bond shall
not be cancelable by the surety at any time for any reason.
1.
Surety bond coverage for permitted lands not disturbed shall be cancelled only
with the written approval of the cabinet, provided the surety gives written
notice to both the permittee and the cabinet of the intent to cancel prior to
the proposed cancellation.
a.
A cancellation notice shall be by certified mail.
b.
Cancellation shall not be effective for lands subject to bond coverage that are
affected after receipt of notice, but prior to approval by the cabinet.
c.
The cabinet shall approve a cancellation only if a replacement bond has been
filed by the permittee, or if the permit area has been reduced by revision to
the extent that the remaining bond amount, after cancellation, is sufficient to
cover all the costs attributable to the completion of reclamation operations on
the reduced permit area in accordance with Section 10 of this administrative
regulation.
2.
The cabinet shall advise the surety, within thirty (30) days after receipt of a
notice to cancel bond, if the bond may be cancelled on an undisturbed area.
(b)
The bond shall provide that the surety and the permittee shall be jointly and
severally liable.
(c)1.
The surety shall give prompt notice to the permittee and the cabinet of a
notice received or action filed alleging the insolvency or bankruptcy of the
surety, or alleging violations of regulatory requirements that could result in
suspension or revocation of the surety's license to do business.
2.
In the event the surety becomes unable to fulfill its obligations pursuant to
the bond, the surety shall promptly provide written notice to the permittee and
the cabinet.
3.
Upon the incapacity of a surety by reason of bankruptcy, insolvency, or
suspension or revocation of its license or certificate of authority, the
permittee shall be deemed to be without proper bond coverage and shall promptly
notify the cabinet.
a.
Nothing in this paragraph shall relieve the permittee of responsibility
pursuant to the permit or the surety of liability on the permittee’s bond.
b.
The cabinet shall issue a notice to the permittee specifying a reasonable
period to replace bond coverage, not to exceed ninety (90) days.
c.
If an adequate bond is not posted by the end of the period allowed, the
permittee shall cease coal extraction and coal processing operations and shall
comply with the provisions of 405 KAR 16:010, Section 6, or 405 KAR 18:010,
Section 4, and shall immediately begin to conduct reclamation operations in
accordance with the reclamation plan.
d.
Coal extraction and coal processing operations shall not resume until the cabinet
has determined that an acceptable bond has been posted.
e.
If an acceptable bond has not been posted by the end of the period allowed, the
cabinet shall suspend the permit until acceptable bond is posted.
(d)
A surety bond shall be executed by the operator and a corporate surety licensed
to do business in the Commonwealth of Kentucky.
(6)
Collateral bonds may include cash deposits with the cabinet, certificates of
deposit, or letters of credit. Collateral bonds, except for letters of credit,
shall be subject to the following conditions:
(a)
The cabinet or its authorized agent shall obtain possession of and keep in
custody all collateral deposited by the applicant, until authorized for release
or replacement as established in 405 KAR Chapter 10.
(b)
The cabinet shall require that certificates of deposit be assigned to the
cabinet or its authorized agent in writing, through the submittal of Escrow
Agreement Form SME-64, and the assignment evidenced on the books of the bank
issuing such certificates.
(c)
The cabinet shall not accept an individual certificate of deposit unless it is
issued by a FDIC or FSLIC insured financial institution, and the cabinet shall
not in any circumstance accept a denomination in excess of the maximum
insurable amount as determined by FDIC and FSLIC.
(d)
The cabinet shall require the issuer of certificates of deposit to waive all
rights of setoff or liens that it has or might have against those certificates.
(e)
Persons with an interest in collateral posted as a bond, and who desire
notification of actions pursuant to the bond, shall request the notification in
writing to the cabinet upon an offering of collateral.
(f)
The cabinet shall require the applicant to deposit sufficient amounts of
certificates of deposit, so as to assure that the cabinet will be able to
liquidate those certificates prior to maturity, upon forfeiture, for the amount
of the bond required by this chapter.
(7)
A letter of credit shall be subject to the following conditions:
(a)1.
The letter shall only be issued by a bank organized or authorized to do
business in the United States.
2.
A letter of credit issued by a non-Kentucky lending institution shall be
confirmed by an approved Kentucky lending institution.
(b)
A letter of credit shall be irrevocable.
(c)
The letter shall be payable to the cabinet upon demand and receipt from the
cabinet of a notice of forfeiture issued in accordance with 405 KAR 10:050, or
in the event the bank wishes to terminate the letter on its expiration date,
the cabinet may draw upon demand. The Irrevocable Standby Letter of Credit,
Form SME-72, and the Confirmation of Irrevocable Letter of Standby Credit, form
SME-72-A, shall be submitted to the cabinet, as necessary.
(d)1.
The issuer shall give prompt notice to the permittee and the cabinet of notice
received or action filed alleging the insolvency or bankruptcy of the issuer,
or alleging violations of regulatory requirements that could result in
suspension or revocation of the issuer's charter or license to do business.
2.
In the event the issuer becomes unable to fulfill its obligations pursuant to
the letter of credit, notice shall be given immediately to the permittee and
the cabinet.
3.
Upon the incapacity of an issuer by reason of bankruptcy, insolvency, or
suspension or revocation of its charter or license, the permittee shall be
deemed to be without proper performance bond coverage and shall promptly notify
the cabinet.
a.
Nothing in this paragraph shall relieve the permittee of responsibility
pursuant to the permit or the issuer of liability on the letter of credit.
b.
The cabinet shall issue a notice to the permittee specifying a reasonable
period to replace bond coverage, not to exceed ninety (90) days.
c.
If an adequate bond is not posted by the end of the period allowed, the
permittee shall cease coal extraction and coal processing operations and shall
comply with the provisions of 405 KAR 16:010, Section 6, or 405 KAR 18:010,
Section 4, and shall immediately begin to conduct reclamation operations in
accordance with the reclamation plan.
d.
Coal extraction and coal processing operations shall not resume until the
cabinet has determined that an acceptable bond has been posted.
e.
If an acceptable bond has not been posted by the end of the period allowed, the
cabinet shall suspend the permit until acceptable bond is posted.
(8)
If a permittee chooses to combine two (2) or more bonds for one (1) permit area
or increment, the bonds may be accompanied by a schedule, acceptable to the
cabinet and agreed to by all parties, which sets forth the agreed distribution
of bond amounts to be released or reduced pursuant to 405 KAR 10:040 and
Section 10 of this administrative regulation, respectively. If no schedule is
submitted, the cabinet may release equal percentages of each bond.
(9)
Permit specific bonds posted by members of the Voluntary Bond Pool on existing
permits prior to the establishment of the Kentucky Reclamation Guaranty Fund
shall be released in their entirety upon successfully achieving reclamation
Phase I bond release in accordance with 405 KAR 10:040, Section 2(4)(a). Permit
specific bonds posted by members of the Voluntary Bond Pool on new permits
after the establishment of the Kentucky Reclamation Guaranty Fund shall be
released in equal percentages at each reclamation phase with the Kentucky
Reclamation Guaranty Bond.
Section
3. Types of Performance Bond. (1) The cabinet shall approve performance bonds
of only those types established in this section.
(2)
The performance bond shall be a:
(a)
Surety bond;
(b)
Collateral bond;
(c)
Bond filed pursuant to the provisions of the Kentucky Reclamation Guaranty
Fund, KRS 350.518;
(d)
Bond filed by the Voluntary Bond Pool; or
(e)
Combination of the bond types listed in paragraphs (a) through (d) of this subsection.
(3)
Bonds filed by the Voluntary Bond Pool prior to its repeal in 2013 Ky. Acts ch.
78, Section 12, shall be deemed valid and convey the same legal right as bonds
issued by the KRGF. The amount, duration, conditions, and terms of bonds issued
by the Voluntary Bond Pool shall be deemed in compliance with the requirements
of this administrative regulation.
Section
4. Bonding Methods. The method of performance bonding for a permit area shall
be selected by the applicant and approved by the cabinet prior to the issuance
of a permit, and shall consist of one (1) of the following methods:
(1)
Method "S" - single area bonding. A single area bond shall be a bond
that covers the entire permit area as a single undivided area, for which the
applicant shall file the entire bond amount required by the cabinet prior to
issuance of the permit.
(a)
Liability pursuant to the bond shall extend to every part of the permit area at
all times.
(b)
Except as provided in Section 9(2) of this administrative regulation regarding
extended bond liability, there shall not be a release of all or part of the
bond amount for completion of a particular phase of reclamation on a part of
the permit area pursuant to 405 KAR 10:040 until that phase of reclamation has
been successfully completed on the entire permit area.
(2)
Method "I" - incremental bonding. Incremental bonding shall be a
method of bonding in which the permit area shall be divided into individual
increments, each of which is bonded separately and independently, and for which
bond shall be filed as operations proceed through the permit area.
(a)
The permit area shall be divided into distinct increments subject to approval
by the cabinet.
1.
Each increment shall be of sufficient size and configuration to provide for
efficient reclamation operations should reclamation operations by the cabinet
become necessary.
2.
If the approved postmining land use is of such nature that successful
implementation of the postmining land use capability depends upon an area being
integrally reclaimed, then that area shall be contained within a single
increment.
3.
These increments shall be clearly identified on maps submitted in the permit
application pursuant to 405 KAR Chapter 8, and the applicant shall describe the
approximate time schedule for beginning operations in each increment.
(b)
Prior to issuance of a permit, the applicant shall file with the cabinet the
full bond amount required by the cabinet for the first increment or increments
of the permit area to be disturbed, which shall be not less than the minimum
bond required for the permit area required pursuant to Section 7 of this
administrative regulation.
(c)
The permittee shall not engage in surface coal mining and reclamation
operations on an increment of the permit area unless the full bond amount
required by the cabinet has been filed with the appropriate regional office of
the department for that increment, the cabinet has verified the validity of the
bond, and written authorization to conduct surface coal mining and reclamation
operations on that increment is issued by the administrator of the regional
office. Credit shall not be given for reclamation on other increments.
(d)
The boundaries of each increment shall be physically marked at the site in a
manner approved by the cabinet pursuant to 405 KAR 16:030.
(e)
The bond amount for an increment shall be released or forfeited independently
of another increment of the permit area, and liability pursuant to the
performance bond shall extend only to the increment expressly covered by the
bond. A single bond amount may be filed to cover more than one (1) increment,
in which case the increments covered shall be treated as a single increment.
(f)
Except as provided in Section 9(2) of this administrative regulation regarding
extended bond liability, there shall not be a release of bond for completion of
a phase of reclamation on part of an increment until that phase of reclamation
has been successfully completed on the entire increment.
(g)
If the bond for an increment is completely released pursuant to 405 KAR 10:040,
the increment shall be deleted from the permit area.
Section
5. Substitution of Bonds. (1) The cabinet may allow permittees to substitute
existing surety or collateral bonds for equivalent surety or collateral bonds,
in which case the liability that has accrued against the permittee on the
permit area or increment is transferred to such substitute bonds.
(2)
The cabinet shall not release existing performance bonds until the permittee
has submitted and the cabinet has approved acceptable substitute performance
bonds. A substitution of performance bonds pursuant to this section shall not
constitute a release of bond pursuant to 405 KAR 10:040.
(3)
The cabinet may refuse to allow substitution of bonds if an action for
revocation or suspension of the permit covered by the bond is pending or if
there is a pending action for forfeiture of the bond.
Section
6. Determination of Bond Amounts. (1) In determining the bond amount, the
cabinet shall estimate the cost to the cabinet if the cabinet had to perform
the reclamation, restoration, and abatement work required of a person who
conducts surface coal mining and reclamation operations pursuant to KRS Chapter
350, 405 KAR Chapters 7 through 24, and the permit, except as provided in subsection
(4) of this section. This amount shall be based on:
(a)
The estimated costs submitted by the permittee in accordance with 405 KAR
8:030, Section 24(4), and 405 KAR 8:040, Section 24(4);
(b)
The additional estimated costs to the cabinet that may arise from applicable
public contracting requirements or the need to bring personnel and equipment to
the permit area after its abandonment by the permittee to perform reclamation,
restoration, and abatement work;
(c)
All additional estimated costs necessary, expedient, and incident to the
satisfactory completion of the requirements identified in this section;
(d)
An additional amount based on factors of cost changes during the previous five
(5) years for the types of activities associated with the reclamation to be
performed; and
(e)
Other cost information required or available to the cabinet.
(2)
If the reclamation cost calculated submitted in a permit application is higher
than the minimum bond or bond calculated by the cabinet, the higher calculation
shall be used in any issued permit.
(3)
The cabinet shall review the bonding amounts identified in Sections 7 and 8 of
this administrative regulation at a minimum of every two (2) years to determine
if the amounts are adequate due to inflation and increases in reclamation
costs.
(4)
Full cost bonding participants shall provide the cabinet a cost estimate that
reflects the costs of reclamation to the cabinet in accordance with the
requirements of 405 KAR 10:080, Section 3.
Section
7. Minimum Bond Amount. The minimum amount of the bond for surface coal mining
and reclamation operations at the time the permit is issued or amended shall
be:
(1)
$75,000 for the entire surface area under one (1) permit;
(2)
$75,000 per increment for incrementally bonded permits, subject to Section 4(2)
of this administrative regulation;
(3)
$50,000 for a permit or increment operating on previously mined areas, as
defined in of 405 KAR 8:001, Section 1(86), to be evaluated by the cabinet; or
(4)
$10,000 for underground mines that have only underground operations.
Section
8. Bonding Rate of Additional Areas. Areas of a surface coal mine and
reclamation operation shall be bonded at the following rates for a permit
issued by the Division of Mine Permits:
(1)
Coal haul roads, other mine access roads, and mine management areas shall be
bonded at $2,500 per acre and each fraction thereof.
(2)
Refuse disposal areas shall be bonded at a minimum rate of $7,500 per acre and
each fraction thereof.
(3)(a)
An embankment sediment control pond shall be bonded at a rate of $10,000 per
acre and each fraction thereof, with each pond being measured separately, if
the pond is located off-bench and located downstream and outside the proposed
mining or spoil storage area.
(b)
This rate may be applied to partial embankment structures as necessary to meet
the requirements of Section 6(1) of this administrative regulation.
(4)
Coal preparation plants shall be bonded at the base acreage rate, in accordance
with subsection (6) of this section, in addition to the costs associated with
demolition and disposal costs relating to concrete, masonry, steel, timber, and
other materials associated with surface coal mining and reclamation operations.
(5)
Operations on previously mined areas, as defined in 405 KAR 8:001, Section
1(86), shall be bonded at rate of $2,000 per acre and each fraction thereof.
(6)
All areas of surface coal mining and reclamation operations not otherwise
addressed in subsections (1) through (5) of this section shall be bonded at the
rate of $3,500 per acre and each fraction thereof.
(7)(a)
For permits that have been identified as a producer of long-term treatment
drainage, the cabinet shall calculate an additional bond amount based on the
estimated annual treatment cost, provided by the permittee and verified by the
cabinet, multiplied by twenty (20) years.
(b)
The cost estimate shall be subject to verification and acceptance by the
cabinet. The department shall use its own estimate for annual treatment costs
if the department cannot verify the accuracy of the permittee’s estimate.
(c)
In lieu of this calculation, the permittee may submit a remediation plan to be
approved by the cabinet for the areas deemed to be producing substandard
drainage.
1.
The remediation plan shall demonstrate that substandard discharge shall be
permanently abated by land reclamation techniques prior to phase II bond
release.
2.
If the department rejects the plan, the permittee shall submit the additional
acid mine drainage bond previously established in this section.
Section
9. Period of Liability. (1) Liability pursuant to performance bond applicable
to an entire permit area or increment thereof shall continue until all
reclamation, restoration, and abatement work required of persons who conduct
surface coal mining and reclamation operations pursuant to requirements of KRS
Chapter 350, 405 KAR Chapters 7 through 24, and the provisions of the permit
have been completed, and the permit or increment terminated by release of the
permittee from further liability in accordance with 405 KAR 10:040.
(2)
In addition to the period necessary to achieve compliance with all requirements
of KRS Chapter 350, 405 KAR Chapters 7 through 24, and the permit, including
the standards for the success of revegetation as required by 405 KAR 16:200 and
405 KAR 18:200, the period of liability pursuant to a performance bond shall
continue for a period of five (5) years beginning with the last year of
augmented seeding, fertilizing, irrigation, or other work.
(a)
The period of liability shall begin again upon augmented seeding, fertilizing,
irrigation, or other work required or conducted on the site prior to bond
release.
(b)
Isolated and clearly defined portions of a bonded area requiring extended
liability because of augmentation may be separated from the original area and
bonded separately upon approval by the cabinet.
(c)
These areas shall be limited in extent, and not constitute a scattered,
intermittent, or checkerboard pattern of failure.
(d)
Access to the separated areas for remedial work may be included in the area
pursuant to extended liability if necessary.
(3)
If the cabinet approves a long-term intensive agricultural postmining land use
in accordance with 405 KAR 16:210, augmented seeding, fertilization,
irrigation, or other husbandry practices normally associated with the approved
postmining land use shall not require restarting the five (5) year period of
liability.
(4)
The bond liability of the permittee shall include only those actions that the
permittee is required to take pursuant to the permit, including completion of
the reclamation plan in a manner that the land will be capable of supporting a
postmining land use approved pursuant to 405 KAR 16:210. Actions of third
parties beyond the control and influence of the permittee and for which the
permittee is not responsible pursuant to the permit shall not be covered by the
bond.
Section
10. Adjustment of Amount. (1) The amount of the performance bond liability
applicable to a permit or increment shall be adjusted by the cabinet if the:
(a)
Acreage in the permit area or increment is either increased or decreased; or
(b)
Cabinet determines that the cost of future reclamation, restoration, or
abatement work has changed. If it is determined that an adjustment pursuant to
this paragraph is necessary, the cabinet shall:
1.
Notify the permittee, the surety, and any person with a property interest in
collateral who has previously requested such a notification in writing; and
2.
Provide the permittee an opportunity for an informal conference on the
adjustment. The requirements of 405 KAR 7:091 and 7:092 shall not apply to the
conduct of the conference.
(2)
The amount of the performance bond liability applicable to a permit or
increment may be adjusted by the cabinet upon application by the permittee
under 405 KAR 8:010, Section 20, to delete acreage from the permit area or
increment thereof if the acreage has not been affected by the surface coal
mining and reclamation operation. The provisions of 405 KAR 10:040, Section
2(3), shall apply. A reduction due to such a deletion of acreage shall not
constitute a bond release and shall not be subject to the procedures of 405 KAR
10:040, Section 1.
(3)
The cabinet may grant reduction of the required performance bond amount if the
permittee's method of operation or other circumstances will reduce the maximum
estimated cost to the cabinet to complete the reclamation responsibilities and
therefore warrant a reduction of the bond amount. The request shall not be considered
as a request for partial bond release subject to the procedures of 405 KAR
10:040, Section 1.
(4)
The cabinet shall refuse to approve a reduction of the performance bond
liability amount if an action for revocation or suspension of the permit covered
by the bond is pending, if there is a pending action for forfeiture of the
bond, or if the permittee is currently in violation of 405 KAR Chapters 7
through 24 on that permit or increment.
Section
11. Supplemental Assurance. (1) If alternative distance limits or additional
pits are approved pursuant to 405 KAR 16:020, Section 2, the applicant shall
submit to the cabinet supplemental assurance in the amount established in this
section. This supplemental assurance shall be for the purpose of assuring the
reclamation of the additional unreclaimed disturbed area and shall be in addition
to the performance bond required pursuant to 405 KAR Chapter 10. The applicant
shall submit supplemental assurance on the cabinet form, Supplemental
Assurance, SME-42 (SA). This form shall be accompanied by the Escrow Agreement
form (for use with Supplemental Assurance form only), SME-64 (SA).
(a)
The supplemental assurance shall not be subject to the bond release
requirements of 405 KAR 10:040, but shall be returned in accordance with the
requirements of this section.
(b)
The requirements of Sections 2, 3, and 5 of this administrative regulation and
405 KAR 10:035 and 10:050 shall apply to supplemental assurance.
(2)
Single seam contour mining. For single seam contour operations subject to 405
KAR 16:020, Section 2(3), the amount required shall be $150,000 per 1,500 feet,
or any portion thereof, of additional distance approved for the first pit
pursuant to 405 KAR 16:020, Section 2(3). If an additional pit or pits are approved,
the amount shall be $150,000 per 1,500 feet, or any portion thereof, including
the first 1,500 feet of each additional pit.
(3)
Multiple seam contour mining. For multiple seam contour mining operations
subject to of 405 KAR 16:020, Section 2(4), the amount required shall be
$150,000 per 1,500 feet, or any portion thereof, of additional distance
approved for the first multiple seam operation pursuant to of 405 KAR 16:020,
Section 2(4). If additional multiple seam operations are approved, the amount shall
be $150,000 per 1,500 feet, or any portion thereof, including the first 1,500
feet of each additional multiple seam operation.
(4)
Mountaintop removal. If a mountaintop removal operation begins by mining a
contour cut around all or a portion of the mountaintop, that contour portion
shall require the same supplemental assurance established in subsection (2) of
this section.
(5)
Area mining. The amount required shall be $150,000 for any four (4) spoil
ridges, or any portion thereof, of additional distance approved for the first
pit pursuant to 405 KAR 16:020, Section 2(1). If an additional pit or pits are
approved, the amount shall be $150,000 for any four (4) spoil ridges, or any
portion thereof, including the first four (4) spoil ridges of each additional
pit.
(6)
Return of supplemental assurance. Supplemental assurance shall be returned to
the person that submitted it upon:
(a)
Application to the cabinet for the return; and
(b)
Inspection and written documentation (including photographs) by the cabinet
verifying that the area for which the supplemental assurance was submitted has
been backfilled and graded (or in the case of mountaintop removal, the
associated highwall has been eliminated by mining operations).
Section
12. Incorporation by Reference. (1) The following material is incorporated by
reference:
(a)
"Performance Bond, Form SME-42", June 2013;
(b)
"Irrevocable Standby Letter of Credit, Form SME-72", July 1994;
(c)
"Confirmation of Irrevocable Standby Letter of Credit, Form
SME-72-A", July 1994;
(d)
"Supplemental Assurance, SME-42 (SA)", July 1994;
(e)
"Escrow Agreement (for use with Supplemental Assurance form only), SME-64
(SA)", July 1994;
(f)
"Escrow Agreement, Form SME-64", October 2008;
(g)
"Remining Issues and Procedures, Reclamation Advisory Memorandum No.
154", May 2012; and
(h)
"Performance Bond for Surface Coal Mining and Reclamation on Federal
Lands, Form SME-42-F", June 2013.
(2)
This material may be inspected, copied, or obtained, subject to applicable
copyright law, at the Kentucky Department for Natural Resources, 2 Hudson
Hollow, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
(38 Ky.R. 2004; 39 Ky.R. 467; eff. 9-6-2012; 40 Ky.R. 431; 1061; eff.
11-7-2013.)
