Current through Register Vol. 49, No. 13, September 23, 2024
Subpart
1.
Purpose.
The purpose of financial assurance is to ensure that there is
a source of funds to be used by the commissioner if the permittee fails to
perform:
A. reclamation activities
including closure and postclosure maintenance needed if operations cease;
and
B. corrective action as
required by the commissioner if noncompliance with design and operating
criteria in the permit to mine occurs.
Subp. 2.
Contingency reclamation cost
estimates.
Persons intending to conduct a mining operation shall submit,
as part of the application for a permit to mine, a documented estimate of costs
necessary to implement the contingency reclamation plan under part 6132.1300,
subpart 4. This estimate shall include closure and postclosure maintenance
activities required if operations cease within the first calendar year.
A. The permittee shall annually adjust the
contingency reclamation cost estimate under part 6132.1300, subpart
4.
B. Cost estimates shall be based
on the following:
(1) current dollar value at
the time of the estimate; and
(2)
the cost to the commissioner of administering and hiring a third party to
implement the contingency reclamation plan.
C. No salvage value attributed to the sale of
wastes, facility structures, equipment, land, or other assets shall be used for
estimating purposes.
Subp.
3.
Corrective action cost estimates.
When the commissioner determines that a corrective action
plan is required under part 6132.3100, subpart 2, item B, subitem (2), the
permittee shall submit a documented estimate of costs to perform the corrective
action before implementation.
A. The
permittee shall annually adjust cost estimates for corrective action undertaken
according to an approved corrective action plan under part 6132.1300, subpart
5.
B. Cost estimates shall be based
on the following:
(1) current dollar value at
the time of the estimate; and
(2)
the cost to the commissioner of administering and hiring a third party to
conduct corrective action activities.
Subp. 4.
Management of financial
assurance.
Financial assurance shall be managed according to items A to
H.
A. The commissioner shall evaluate
all financial assurance cost estimates and adjustments to cost estimates using
individuals with documented experience in material handling and construction
and mining costs. Costs incurred by the commissioner in hiring third parties to
perform the evaluation must be paid by the applicant.
B. Financial assurance in the amount equal to
the contingency reclamation cost estimate under subpart 2 shall be:
(1) submitted to the commissioner for
approval before issuance of a permit to mine and before granting an amendment
to the permit;
(2) continuously
maintained by the permittee; and
(3) annually adjusted as follows:
(a) if the new cost estimate approved by the
commissioner is greater than the amount of the existing financial assurance,
the permittee shall provide additional financial assurance in an amount equal
to the increase; or
(b) if the new
cost estimate approved by the commissioner is less than the amount of existing
financial assurance, the permittee shall be released from maintaining financial
assurance in an amount equal to the decrease.
C. Financial assurance in the amount equal to
the corrective action cost estimate under subpart 3 shall be:
(1) submitted to the commissioner for
approval as part of the corrective action cost estimate under subpart
3;
(2) continuously maintained by
the permittee until the commissioner determines it is no longer necessary;
and
(3) annually adjusted as
follows:
(a) if the new cost estimate
approved by the commissioner is greater than the amount of the existing
financial assurance, the permittee shall provide additional financial assurance
in an amount equal to the increase; or
(b) if the new cost estimate approved by the
commissioner is less than the amount of existing financial assurance, the
permittee shall be released from maintaining financial assurance in an amount
equal to the decrease.
D. Financial assurances may be canceled by
the permittee, on approval by the commissioner, only after it is replaced by an
alternate mechanism or after the permittee is released from financial assurance
according to item H.
E. The
permittee must ensure that the provider of financial assurance gives the
commissioner 120 days' notice prior to cancellation of the financial assurance
mechanism. Upon receipt of this notice, the commissioner shall initiate a
proceeding to access the financial assurance according to part 6132.1200,
subpart 6.
F. If the permit to mine
is assigned under part 6132.4700, the new permittee must be in compliance with
requirements of this part before the commissioner approves the assignment. On
the assignee's demonstration of compliance with this part, the former permittee
shall be released from the requirements of this part.
G. Financial assurance must meet the criteria
of subpart 5.
H. The commissioner
shall release the permittee from the responsibility to maintain financial
assurance when the commissioner determines, through inspection of the mining
area, that:
(1) all reclamation activities
have been completed according to this part and the permit to mine;
(2) conditions necessitating postclosure
maintenance no longer exist and are not likely to recur; and
(3) corrective actions have been successfully
accomplished.
Subp.
5.
Criteria for financial assurance.
Financial assurance for reclamation and for corrective action
must meet the following criteria:
A.
assurance of funds sufficient to cover the costs estimated under subparts 2 and
3;
B. assurance that the funds will
be available and made payable to the commissioner when needed;
C. assurance that the funds will be fully
valid, binding, and enforceable under state and federal law;
D. assurance that the funds will not be
dischargeable through bankruptcy; and
E. all terms and conditions of the financial
assurance must be approved by the commissioner. The commissioner, in evaluating
financial assurance, shall use individuals with documented experience in the
analysis. The reasonable cost of the evaluation shall be paid by the
applicant.
Subp. 6.
Forfeiture of financial assurance.
Financial assurance must be made available to the
commissioner under items A to C when the operator is not in compliance with
either the contingency reclamation plan or the corrective action plan.
A. A proceeding to access financial assurance
shall be commenced by:
(1) serving an order
to forfeit the financial assurance on the person, institution, or trustee
holding the financial assurance; and
(2) serving a notice of measures required to
correct the situation and the time available for correction on the
permittee.
B. If
conditions that provided grounds for the order are corrected within a period
established by the commissioner and if measures approved by the commissioner
are taken to ensure that the conditions do not recur, the order shall be
canceled.
C. If the conditions that
provided grounds for the order are not corrected, the commissioner shall
proceed with accessing and expending the funds provided by this part to
implement the contingency reclamation or corrective action plans.
Subp. 7.
Failure to
comply.
The commissioner may take one or more of the following
actions if failure to comply with any portion of this part occurs:
A. deny the permit to mine;
B. suspend the permit to mine under part
6132.4500;
C. assess civil
penalties under part 6132.5100;
D.
revoke the permit to mine under part 6132.4600; or
E. modify the permit to mine under part
6132.4300.
Statutory Authority: MS s
93.44 to
93.51;
103G.222
