Administrative Rules of Montana
Department 17 - ENVIRONMENTAL QUALITY
Chapter 17.24 - RECLAMATION
Subchapter 17.24.1 - Rules and Regulations Governing the Montana Hard Rock Mining Reclamation Act
Rule 17.24.144 - BONDING: SURETY BONDS
Universal Citation: MT Admin Rules 17.24.144
Current through Register Vol. 6, March 22, 2024
(1) In addition to the requirements of 82-4-338, MCA, surety bonds are subject to the following requirements:
(a)
The department may not accept a surety bond in excess of 10% of the surety
company's capital surplus account as shown on a balance sheet certified by a
certified public accountant.
(b)
The department may not accept a surety bond from a surety company for any
person, on all permits held by that person, in excess of three times the
company's maximum single obligation as provided in (a) above.
(c) The department may not accept a surety
bond from a surety company for any person, on all permits held by that person,
unless that surety is registered with the state auditor and is listed in the
United States Department of the Treasury Circular 570 as revised.
(d) A power of attorney must be attached to
the surety bond.
(e) The surety
bond must provide a mechanism for the surety company to give prompt notice to
the department and the operator of:
(i) any
action alleging bankruptcy or insolvency of the surety or violation that would
result in suspension or revocation of the license of the surety;
(ii) cancellation by the operator;
and
(iii) cancellation or pending
cancellation by the surety.
(f) Upon incapacity of a surety by reason of
bankruptcy, insolvency or suspension or revocation of its license, the operator
shall be deemed to be without bond coverage and shall promptly notify the
department in the manner described in the bond. The department, upon
notification, shall, in writing, notify the operator of a reasonable period,
not to exceed 90 days, to replace bond coverage. If an adequate bond is not
posted by the end of the period allowed, the operator shall cease mineral
extraction, comply with the provisions of
82-4-336(1), MCA,
and immediately commence reclamation in accordance with the Act, this
subchapter and the reclamation plan. Mining operations must not resume until
the department has determined that an acceptable bond has been
posted.
(g) Whenever operations are
abandoned concurrent with cancellation of the bond, the department must reclaim
the site and forfeit the bond within two years, consistent with
82-4-341, MCA, for any reclamation
obligation incurred in the reclamation of the site.
82-4-321, MCA; IMP, 82-4-338, 82-4-341, 82-4-360, MCA;
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