Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
350.020,
350.060,
350.064,
350.100,
350.465
NECESSITY, FUNCTION, AND CONFORMITY: KRS Chapter 350 requires
the cabinet to specify types, terms, and conditions for liability insurance for
surface coal mining operations. This administrative regulation specifies the
terms and conditions of liability insurance for surface coal mining
operations.
Section 1. Requirement to
File a Certificate of Liability Insurance. Each applicant for a permit shall
submit to the cabinet, as part of the permit application, a certificate issued
by an insurance company authorized to do business in Kentucky. The amount,
duration, form, conditions, and terms of this insurance shall comply with
Section 2 of this administrative regulation.
Section 2. Terms and Conditions for Liability
Insurance.
(1) The applicant shall submit, as
a part of the permit application upon bond submission, a certificate issued by
an insurance company authorized to do business in Kentucky certifying that the
applicant has a public liability insurance policy in force for the surface coal
mining and reclamation operation for which the permit is sought.
(a) The certification shall be on Certificate
of Liability Insurance, Form SME-29.
(b) The policy shall provide for personal
injury and property damage protection in an amount adequate to compensate for
all personal injury and property damage resulting from surface coal mining and
reclamation operations, including damage caused by the use of explosives and
damage to water wells.
(c) Minimum
insurance coverage for bodily injury and property damage shall be $300,000 for
each occurrence and $500,000 aggregate.
(2) The policy shall be maintained in full
force during the term of the permit or renewal thereof, and during the
liability period necessary to complete all reclamation operations pursuant to
405 KAR Chapters 7 through 24, until full bond release has been
granted.
(3) The policy shall
include a clause requiring that the insurer notify the cabinet if substantive
changes are made in the policy, including termination or failure to renew. This
notice shall be made on the Notice of Cancellation, Nonrenewal or Change of
Liability Insurance.
(4) In the
event the insurer becomes unable to fulfill its obligations pursuant to the
policy, notice shall be given immediately to the permittee and the
cabinet.
(5) Upon the incapacity of
an insurer by reason of bankruptcy, insolvency, or suspension or revocation of
its license or certificate of authority, the permittee shall be deemed to be
without insurance coverage and shall promptly notify the cabinet.
(a) Nothing in this subsection shall relieve
the insurer of liability on its policy.
(b) The cabinet shall issue a notice to the
permittee specifying a reasonable period to replace such coverage, not to
exceed ninety (90) days.
(c) If an
adequate insurance coverage 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 insurance coverage has been posted.
(e) If an acceptable insurance coverage has
not been posted by the end of the period allowed, the cabinet may suspend the
permit until acceptable insurance coverage is posted.
Section 3. Incorporation by
Reference.
(1) The following material is
incorporated by reference:
(a) "Certificate of
Liability Insurance, Form SME-29", March 2018; and
(b) "Notice of Cancellation, Nonrenewal or
Change of Liability Insurance, Form SME-30", March 2018.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Kentucky Department
for Natural Resources, 300 Sower Boulevard, Frankfort, KY 40601, Monday through
Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY:
KRS
350.020,
350.028,
350.060,
350.064,
350.151,
350.465