(A) Requirement to file performance security.
(1) After an application for a permit to
conduct coal mining and reclamation operations has been approved under these
rules, the applicant shall file with the chief performance security in
compliance with these rules.
(a) If the
applicant provides performance security together with reliance on the
reclamation forfeiture fund in accordance with paragraph (C)(2) of this rule,
the applicant shall file performance security for:
(i) The number of acres in the entire area to
be permitted; or
(ii) The estimated
number of acres to be affected in the first permit year in accordance with the
requirements of paragraph (A)(6)(a) of this rule.
(b) If the applicant provides performance
security without reliance on the reclamation forfeiture fund in accordance with
paragraph (C)(1) of this rule, the applicant shall file performance security
for:
(i) The entire area to be permitted;
or
(ii) Each incremental mining
unit to be affected in the first permit year in accordance with the
requirements of paragraph (A)(6)(b) of this rule.
(c) Once coal extraction begins under an
approved permit, a permittee providing performance security without reliance on
the reclamation forfeiture fund in accordance with paragraph (C)(1) of this
rule may not change to providing performance security together with reliance on
the reclamation forfeiture fund in accordance with paragraph (C)(2) of this
rule.
(2) No person shall
disturb surface acreage, either by coal mining and reclamation operations
conducted on the surface of land or as a result of surface impacts incidental
to an underground coal mine, prior to filing with the chief performance
security covering the areas of land to be affected.
(3) Liability on the performance security
shall cover all coal mining and reclamation operations to be conducted within
the permit area until the end of the permittee's period of reclamation
responsibility.
(4) No area
affected by a coal mining and reclamation operation within a permit shall be
identified with a specific performance security.
(5) Performance security shall apply to the
permit area and to all revisions to the permit, including incidental boundary
revisions and adjacent area permits.
(6) Providing incremental performance
security. When an applicant elects to file performance security incrementally:
(a) The applicant that provides performance
security together with reliance on the reclamation forfeiture fund in
accordance with paragraph (C)(2) of this rule shall as part of the permit
application process:
(i) Submit to the chief a
written estimate of the number of acres to be affected in the first permit
year; and
(ii) Before the permit is
issued, file with the chief performance security for the estimated number of
acres to be affected in the first permit year;
(b) The applicant that provides performance
security without reliance on the reclamation forfeiture fund in accordance with
paragraph (C)(1) of this rule shall as part of the permit application process:
(i) Submit to the chief, on the map required
under paragraph (D)(3) of rule
1501:13-4-01
of the Administrative Code, the boundaries for each incremental mining unit
within the proposed permit area; and
(ii) Before the permit is issued, file with
the chief performance security for each incremental mining unit that will be
affected in the first permit year;
(c) Thirty days before affecting more than
the number of acres or incremental mining units for which performance security
has been filed with the chief, the permittee shall file additional performance
security for the number of additional acres to be affected in the permit year
or for the next incremental mining unit or units to be affected by the mining
and reclamation operation;
(d) The
permittee shall within thirty days after the end of every permit year:
(i) Identify on the annual map each
incremental area or incremental mining unit for the first through most recent
permit year in accordance with the requirements of these rules; and
(ii) File performance bond with the chief,
concurrently with the submittal of the annual map, if one of the following
circumstances applies:
(a) For permits for
which performance security has been filed together with reliance on the
reclamation forfeiture fund in accordance with paragraph (C)(2) of this rule,
the number of acres shown as affected and estimated to be affected on the
annual map exceeds the number of acres for which performance secuirty has been
provided; or
(b) For permits for
which performance security has been filed without reliance on the reclamation
forfeiture fund in accordance with paragraph (C)(1) of this rule, the
incremental mining units shown as affected and estimated to be affected on the
annual map exceed the incremental mining units for which performance security
has been provided;
(e) Performance security filed and not yet
released for any incremental area or incremental mining unit can be forfeited,
in whole or part, to perform the requirements of Chapter 1513. of the Revised
Code, rules adopted thereunder, and the conditions of the permit on any area
affected by the permittee pursuant to the permit;
(f) After a permit is issued, a permittee
that has chosen to provide incremental performance security may elect instead
to provide performance security for the entire permit area and file the entire
performance security required during the term of the permit; and
(g) After a permit is issued, a permittee
that provides performance security together with reliance on the reclamation
forfeiture fund in accordance with paragraph (C)(2) of this rule and that has
filed the entire performance security required during the term of the permit
may not change to incremental performance security.
(7) A permittee that has filed performance
security for the entire permit area instead of filing performance security
incrementally shall identify an incremental area or incremental mining unit at
the end of each permit year in the manner prescribed in paragraph (A)(6)(d)(i)
of this rule and may obtain release of performance security by incremental area
or by incremental mining unit, pursuant to rule
1501:13-7-05
or rule 1501:13-7-05.1 of the Administrative Code, as
applicable.
(B) Estimated
cost of reclamation. The chief shall determine the estimated cost of
reclamation under the initial term of the permit if the reclamation has to be
performed by the division of mineral resources management in the event of
forfeiture of the performance security by the permittee.
(1) The chief shall determine the estimated
cost of reclamation using:
(a) The information
contained in the permit application and in the approved mining and reclamation
plan, as required by the chief and submitted by the applicant under rule
1501:13-4-05
of the Administrative Code, rule
1501:13-4-14
of the Administrative Code or paragraph (I) of rule
1501:13-4-12
of the Administrative Code; and
(b)
After considering the topography, geology, hydrology, and revegetation
potential of the area of the approved application, the probable difficulty of
reclamation.
(2) The
chief shall provide the applicant a copy of the estimated cost of reclamation
along with the unit costs used to support the estimated cost of
reclamation.
(3) The chief shall
send written notice of the amount of the estimated cost of reclamation by
certified mail or other method able to track receipt of
delivery to the applicant.
(C) Method of providing performance security.
The applicant shall send written notice to the chief indicating the method by
which the applicant will provide the performance security. The method of
providing performance security shall apply to the entire permit. The applicant
shall provide the performance security in an amount using one of the following:
(1) If the applicant provides performance
security without reliance on the reclamation forfeiture fund created in section
1513.18
of the Revised Code, the applicant shall provide as performance security the
amount of the estimated cost of reclamation as determined by the chief under
paragraph (B) of this rule and in accordance with paragraphs (B) and (C) of
rule
1501:13-7-02
of the Administrative Code.
(2) If
the applicant provides performance security together with reliance on the
reclamation forfeiture fund created in section
1513.18
of the Revised Code, the applicant shall, in addition to paying the tax on the
severance of coal levied under division (A)(8) of section
5749.02
of the Revised Code, provide performance security in the amount required under
paragraphs (A) and (C) of rule
1501:13-7-02
of the Administrative Code.
(a) To be eligible
to provide performance security in accordance with paragraph (C)(2) of this
rule, the applicant, an owner and controller of the applicant, or an affiliate
of the applicant shall have held a permit issued under this chapter for any
coal mining and reclamation operation for a period of not less than five
years.
(b) In the event of
forfeiture of performance security that was provided in accordance with
paragraph (C)(2) of this rule, the difference between the amount of that
performance security and the estimated cost of reclamation as determined by the
chief under paragraph (B) of this rule shall be obtained from the money in the
reclamation forfeiture fund created in section
1513.18
of the Revised Code as needed to complete the
reclamation.
(D) Release of excess performance security.
(1) For a permittee that provides performance
security together with reliance on the reclamation forfeiture fund in
accordance with paragraph (C)(2) of this rule:
(a) If, upon receipt by the chief of the
annual map and annual report, the number of acres affected is less than the
number of acres for which performance security has been provided, the permittee
may obtain a release of the excess performance security by submitting a request
for release of excess performance security to the chief on a form provided by
the chief; and
(b) If, upon receipt
by the chief of the final map and final report, the number of acres affected is
less than the number of acres for which performance security has been provided,
the chief shall release the excess performance security to the
permittee.
(2) For a
permittee that provides performance security without reliance on the
reclamation forfeiture fund in accordance with paragraph (C)(1) of this rule,
if, upon receipt of the annual map and annual report, the chief determines that
the required performance security for the next year is less than the
performance security that has been provided, the permittee may obtain a release
of the excess performance security by submitting a request for release of
excess performance security to the chief on a form provided by the
chief.
(E)
Responsibilities of the chief.
(1) The chief
shall prescribe and furnish forms for filing performance security.
(2) The chief shall determine the estimated
cost of reclamation in accordance with paragraph (B) of this rule.
(3) The chief shall adjust the amount of the
estimated cost of reclamation and the amount of a permittee's performance
security provided for the permit area in accordance with paragraph (E) of rule
1501:13-7-02
of the Administrative Code.
(4) The
chief shall release the permittee from his performance security obligations in
accordance with rule
1501:13-7-05
or rule 1501:13-7-05.1 of the Administrative Code.
(5) The chief shall cause all or part of a
performance security to be forfeited in accordance with rule
1501:13-7-06
of the Administrative Code.
(6) The
chief shall require as a condition of the permit that adequate performance
security coverage be in effect at all times.