312 IAC 25-5-5 Filing bonds; requirements

Sec. 5. (a) After a surface coal mining and reclamation permit application has been approved, but before such permit is issued, the applicant shall file with the department, on a form prescribed and furnished by the department, a bond or bonds for performance made payable, as appropriate, to "State of Indiana Department of Natural Resources", and conditioned upon the faithful performance of all the requirements of IC 14-34, this article, and the permit. (b) The bond or bonds shall be filed with the department as follows: (1) The bond or bonds shall be provided for 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. (2) For succeeding increments of surface coal mining and reclamation operations to be initiated and conducted within the permit area, the permittee shall file with the department an additional bond or bonds to cover such increments in accordance with this section. The bond for succeeding increments shall be filed with the department at least thirty (30) days prior to commencing any surface coal mining and reclamation operations on that incremental area. (3) The operator shall identify the initial and successive areas of increments for bonding on the permit application map or aerial photograph submitted for approval under 312 IAC 25-4-36 or 312 IAC 25-4-77 and shall specify the bond amount to be provided for each area or increment. (4) Independent increments shall be of sufficient size and configuration to provide for efficient reclamation operations should reclamation by the regulatory authority become necessary under section 17 of this rule. (c) Performance bonds for surface disturbances of underground operations and other long term operations may be bonded for a period not less than the permit term; however, continuous bond coverage must be maintained during active operations and the applicable liability period, and the bond shall be conditioned to extend, replace, or pay the full amount of the bond one hundred twenty (120) days prior to the expiration of any bond term. (d) An operator shall not disturb any surface areas, succeeding increments, or extend any underground shafts, tunnels, or operations prior to acceptance by the director of the required performance bond. (e) The applicant shall file, with the approval of the director, a bond or bonds under one (1) of the following schemes to cover the bond amounts for the permit area as determined in accordance with section 8 of this rule: (1) A performance bond or bonds for the entire permit area. (2) A cumulative bond schedule and the performance bond required for full reclamation of the initial area to be disturbed. (3) An incremental bond schedule and the performance bond required for the first increment in the schedule.