Section NR 340.055 - Financial assuranceA bond or alternative financial assurance is required for each site and multiple sites of less than one acre by the same operator, except that government units are not required to obtain bonds or alternative financial assurance.
(1) NOTIFICATION. The department shall determine the required financial assurance level for progressive reclamation in staged operations or for reclamation in unstaged operations and shall notify the operator. Following approval of the permit, and as a condition of the permit, the operator shall file a bond as provided in sub. (2) or alternative financial assurance as provided in sub. (3) with the department. The bond or alternative financial assurance amount shall be sufficient to cover the cost to the state of hiring a contractor to complete reclamation or progressive reclamation in staged operations. The operator shall file the required bond or alternative financial assurance with the department prior to commencing the operation. Upon notification by the department of bond or alternative financial assurance approval, the operator may commence operations and reclamation activities.(2) BOND REQUIREMENTS. (a) Bonds shall be issued by a surety company licensed to do business in this state. At the option of the operator, a performance bond or a forfeiture bond may be filed. Surety companies may complete the reclamation plan in lieu of cash payment to the department.(b) Each bond shall provide that the bond may not be cancelled by the surety, except after not less than 90 days notice to the department in writing by registered or certified mail. Not less than 30 days prior to the expiration of the 90 day notice of cancellation, the operator shall deliver to the department a replacement bond in absence of which the existing bond shall remain in effect.(c) The bond shall provide that the operator will faithfully perform all requirements of ch. 30, Stats., and all provisions of this chapter and the permit.(d) The bond shall be payable to the "State of Wisconsin, Department of Natural Resources".(e) The bonding level for reclamation or progressive reclamation in staged operations shall be the larger amount of either $2,000 per acre or $0.25 per cubic yard of material excavated based on 1989 dollars unless the operator justifies a lesser amount to the department's satisfaction.(3) ALTERNATIVE FINANCIAL ASSURANCE. (a) The operator may provide alternative financial assurance in lieu of a bond. Alternative financial assurance may include any of the following: cash; a certificate of deposit; an irrevocable letter of credit; an irrevocable trust, an escrow account, a government security; or any other demonstration of financial responsibility. Certificates of deposit shall be automatically renewable or other assurances shall be provided before the maturity date.(b) Each form of alternative financial assurance shall provide that it may not be cancelled, except after not less than 90 days notice to the department in writing by registered or certified mail. Not less than 30 days prior to the expiration of the 90-day notice of cancellation, the operator shall deliver to the department a replacement form of alternative financial assurance in absence of which the existing alternative financial assurance shall remain in effect.(c) The alternative financial assurance shall provide that the operator will faithfully perform all applicable requirements of ch. 30, Stats., and all provisions of this chapter and the permit.(d) The alternative financial assurance shall be payable to the "State of Wisconsin, Department of Natural Resources".(e) The level of alternative financial assurance for reclamation or progressive reclamation in staged operations shall be the larger amount of either $2,000 per acre or $0.25 per cubic yard of material excavated based on 1989 dollars unless the operator justifies a lesser amount to the department's satisfaction. Note: The base of 1989 dollars requires that the bonding level must be adjusted to reflect inflation or the cost of living increases. For 1992, the inflation of 4.6 % for 1989, 6.1% for 1990 and 3.1% for 1991, or a total of 14% (1.046 x 1.061 x 1.031 = 1.144) must be added to the listed rates resulting in amounts of $ 2280 per acre or $ 0.285 per cubic yard. For permits issued after 1992, remember to correct for cost of living adjustments for all years back to 1989. For more detail please see the Department's: Waterway and Wetland Handbook, Chapter 105, NONMETALLIC MINERAL MINING AND RECLAMATION (2001), http://www.dnr.state.wi.us/org/water/fhp/handbook/PDFs/ch105.pdf
(4) BOND OR ALTERNATIVE FINANCIAL ASSURANCE REEVALUATION. The department may reevaluate and adjust the amount of the progressive reclamation bond or security deposit required for reclamation. Reclaimed areas may be released from the bond or alternative financial assurance coverage. Reevaluation shall be made pursuant to subs. (1) and (2). (5) MULTIPLE PROJECT PERMIT BOND OR ALTERNATIVE FINANCIAL ASSURANCE. Any operator who obtains a permit from the department for 2 or more sites may elect, at the time the second or subsequent site is approved, to post a single bond or alternative financial assurance in lieu of separate bonds or alternative financial assurances on each site. Any single bond or alternative financial assurance so posted shall be in an amount equal to the estimated cost to the state determined under subs. (1) and (2) for all sites. When an operator elects to post a single bond or alternative financial assurance in lieu of separate bonds previously posted on individual sites, a separate bond or alternative financial assurance may not be released until the new bond or alternative financial assurance has been accepted by the department. (5m) INTEREST. Any interest earned by the bond or alternate financial assurance provided under this section shall be paid to the person operating the nonmetallic mining or reclamation project.(6) BOND OR ALTERNATIVE FINANCIAL ASSURANCE RELEASE. The department shall release the operator's bond or alternative financial assurance if it finds, after inspection of the site, that the operator has fully carried out and completed reclamation of the site in accordance with the operation and reclamation plan, and has otherwise complied with ss. 30.19, 30.195 and 30.20, Stats., and this chapter. Final inspection shall be made not less than one year, nor more than 2 years, after the completion of reclamation.(7) ABANDONED SITES. Bonds or alternative financial assurances for any site abandoned at the time a permit expires may not be released unless it is shown that no operations have occurred at that site and no potential for environmental pollution exists as a result of an operator's actions or inactions.Wis. Admin. Code Department of Natural Resources NR 340.055
Cr. Register, August, 1991, No. 428, eff. 9-1-91; CR 06-024: am. (intro.), (1), (4), (5), (6) and (7), r. and recr. (3), cr. (5m) Register November 2006 No. 611, eff. 12-1-06.