Section 69-05.2-12-01 - Performance bond - General requirements1. Permit applicants shall submit an estimate of bond for the entire permit area or that area specified in subsection 5. 2. The commission will review the estimated bond amount, approve or modify the required amount and notify the applicant. 3. Liability on the bond must cover all surface coal mining and reclamation operations to be conducted within the legally described area attached to the bond. 4. The applicant may file either the entire bond for the permit term or an incremental bond schedule and bond required for the first scheduled increment. Increments must be of sufficient size and configuration to provide for efficient reclamation operations should reclamation by the regulatory authority become necessary under section 69-05.2-12-18. 5. When the permittee elects to increment the amount of the bond, the permittee shall: a. Furnish a legal description of each incremental area. b. Furnish a schedule when each increment will require bond. c. Furnish with the application the estimated costs for the commission to complete the reclamation plan for the initial increment. d. Provide the estimated cost to complete the reclamation plan for the next increment at least ninety days prior to the expected starting date of mining. 6. The permittee will be notified of the commission's bond determination within thirty days of receipt of the permittee's reclamation cost estimate for the next bond increment. 7. The permittee shall not disturb the bond area prior to commission approval of the entire bond or incremental bond covering the area to be affected. 8. Once surface coal mining operations have begun within the bond area, adequate bond coverage must be in effect at all times. Except as provided by subsection 3 of section 69-05.2-12-03, operating without a bond is a violation of a permit condition. 9. The indemnity agreement for a collateral bond or self-bond must be executed according to the following: a. If a corporation or rural electric cooperative: (1) By two officers authorized to sign the agreement by a resolution of the board of directors, a copy of which must be provided; and (2) To the extent the history or assets of a parent organization are relied upon to make the required showings for a collateral bond or self-bond, by every parent organization at any tier. b. If a partnership, each general partner and each parent organization or principal investor. "Principal investor" or "parent organization" means anyone with a ten percent or more beneficial ownership interest, directly or indirectly, in the applicant. c. If married, the permit applicant's spouse, if directly involved as part of the business on a regular basis or as an officer of the organization. 10. The name of each person who signs the indemnity agreement must be typed or printed beneath the signature. The agreement is binding jointly and severally on all who execute it. 11. The commission may allow the posting of more than one bond to guarantee specific phases of reclamation within the permit area provided the sum of phase bonds posted equals or exceeds the total amount required under sections 69-05.2-12-07 and 69-05.2-12-08. The scope of work to be guaranteed and the liability assumed under each phase bond must be specified in detail and approved by the commission before posting the bonds. N.D. Admin Code 69-05.2-12-01
Effective August 1, 1980; amended effective June 1, 1983; May 1, 1988; May 1, 1992; January 1, 1993; March 1, 2004.General Authority: NDCC 38-14.1-03
Law Implemented: NDCC 38-14.1-16