Performance bond.

Before commencing operations or development upon leased lands, a lessee shall execute and file with the commissioner of public lands a good and sufficient bond or other appropriate surety in an amount to be fixed by the commissioner to: A. guarantee the performance of all covenants and obligations under the coal lease, including the obligation to pay royalties; B. ensure that all aspects of mining operations and reclamation operations are conducted in conformity with the approved mining plan; and C. ensure compensation for damage to the surface or surface improvements in the absence of an agreement between the coal lessee and any surface owner. The commissioner, in his discretion, may allow a bond filed with the mining and minerals division of the energy, minerals and natural resources department pursuant to the Surface Mining Act [Chapter 69, Article 25A NMSA 1978] to satisfy the requirements of this section.