Ohio Administrative Code
Title 1501:13 - Division of Mineral Resources Management - Coal
Chapter 1501:13-7 - Performance Security
Section 1501:13-7-02 - Amount and duration of performance security
Universal Citation: OH Admin Code 1501:13-7-02
Current through all regulations passed and filed through December 16, 2024
(A) Performance security amount for permits for which the applicant or permittee provides performance security together with reliance on the reclamation forfeiture fund in accordance with paragraph (C)(2) of rule 1501:13-7-01 of the Administrative Code.
(1) The amount of
the performance security shall be two thousand five hundred dollars per acre of
land on which the permittee will conduct a coal mining and reclamation
operation under the initial term of the permit as indicated in the application.
(2) A permittee's responsibility
for repairing material damage and replacement of water supplies resulting from
subsidence may be satisfied by liability insurance required under Chapter 1513.
of the Revised Code if the liability insurance policy contains terms and
conditions that specifically provide coverage for repairing material damage and
replacement of water supplies resulting from subsidence.
(B) Performance security amount for permits for which the applicant or permittee provides performance security without reliance on the reclamation forfeiture fund in accordance with paragraph (C)(1) of rule 1501:13-7-01 of the Administrative Code.
(1) The amount of
performance security shall be equal to the estimated cost of reclamation, as
determined by the chief under paragraph (B) of rule
1501:13-7-01
of the Administrative Code, for:
(a) The land
on which the permittee will conduct a coal mining and reclamation operation
under the initial term of the permit; or
(b) The incremental mining units that will be
affected in the first permit year, if the permittee or applicant elects to
provide performance security separately for each incremental mining unit in
accordance with paragraph (A)(6)(b) of rule
1501:13-7-01
of the Administrative Code.
(2) A permittee's responsibility for
repairing material damage and replacement of water supplies resulting from
subsidence shall be satisfied by either
of the following:
(a)
The purchase
prior to mining of a noncancelable premium-prepaid liability insurance
policy in lieu of the permittee's
performance security for subsidence damage.
The insurance policy shall contain
terms and conditions that specifically provide coverage for repairing material
damage and replacement of water supplies resulting from subsidence; or
(b)
The provision of
additional performance security in the amount of the estimated cost to the
division of mineral resources management to repair material damage resulting
from subsidence, if the permittee will be repairing material damage, or to
replace the water supplies resulting from subsidence, if the permittee will be
replacing the water supplies, until the repair or replacement is
completed.
(i)
If repair or replacement is completed, or compensation for structures that have
been damaged by subsidence is provided, by the permittee within ninety days of
the occurrence of the subsidence, additional performance security is not
required.
(ii)
The chief may extend the ninety-day period for a
period not to exceed one year if the chief determines that the permittee has
demonstrated in writing that subsidence is not complete and that probable
subsidence-related damage to lands or protected structures likely will continue
to occur or that reasonably anticipated changes affecting the water supplies
likely will occur and, as a result, the completion of repairs of
subsidence-related material damage to lands or protected structures or the
replacement of water supplies within ninety days of the occurrence of the
subsidence would be unreasonable.
(C) Minimum amount. The amount of the performance security for coal mining and reclamation operations shall be ten thousand dollars at a minimum for the entire area under one permit and the minimum amount shall be maintained on deposit until such time as the permittee is released from all liability in accordance with rule 1501:13-7-05 or rule 1501:13-7-05.1 of the Administrative Code.
(D) Period of liability
(1) Liability under a performance security or
securities applicable to a permit shall continue until all reclamation and
restoration work under the requirements of Chapter 1513. of the Revised Code,
these rules, and the provisions of the mining and reclamation plan has been
completed, the period of extended responsibility for revegetation has expired
in accordance with rule 1501:13-9-15 of the Administrative Code, and the
permittee is released from liability in accordance with rule
1501:13-7-05
or rule 1501:13-7-05.1 of the Administrative Code.
(2) The performance security liability of the
permittee shall include only those actions which the permittee is obligated to
take under the permit, Chapter 1513. of the Revised Code and these rules,
including completion of the reclamation plan, so that the land will be capable
of supporting the postmining land use approved in the permit under rule
1501:13-9-17
of the Administrative Code.
(3)
Implementation of an alternative postmining land use approved under paragraph
(D) of rule
1501:13-9-17
of the Administrative Code which is beyond the control of the permittee, need
not be covered by the performance security.
(E) Adjustment of amount.
(1) The chief shall adjust the amount of the
estimated cost of reclamation determined under paragraph (B) of rule
1501:13-7-01
of the Administrative Code if the land that is affected by mining increases or
decreases or if the cost of reclamation increases or decreases.
(2) For permits for which the permittee
provides performance security without reliance on the reclamation forfeiture
fund in accordance with paragraph (C)(1) of rule
1501:13-7-01
of the Administrative Code, the chief shall adjust the amount of a permittee's
performance security provided in accordance with this rule if the land that is
affected by mining increases or if the cost of reclamation increases and shall
allow the permittee the option of reducing the amount of performance security
provided in accordance with this rule if the land that is affected by mining
decreases or if the cost of reclamation decreases.
(3) The chief may review at any time during
the term of the permit the estimated cost of reclamation determined under
paragraph (B) of rule
1501:13-7-01
of the Administrative Code and the amount of a permittee's performance security
provided in accordance with this rule to determine whether an adjustment is
needed, but at a minimum the chief shall review the estimated cost of
reclamation and the amount of a permittee's performance security at the
following times:
(a) When a permittee files
an annual report and annual map with the chief in accordance with paragraphs
(A) and (B) of rule
1501:13-4-07
of the Administrative Code, a letter to the chief in accordance with paragraph
(C) of rule
1501:13-4-07
of the Administrative Code, or a final report to the chief in accordance with
paragraph (D) of rule
1501:13-4-07
of the Administrative Code;
(b)
When a permittee files an application for revision of a permit under rule
1501:13-4-06
of the Administrative Code which contains information that affects the
estimated cost of reclamation;
(c)
When a permittee files an application for renewal of a permit under rule
1501:13-4-06
of the Administrative Code;
(d)
When a permittee files additional performance security in accordance with
paragraphs (A)(6)(c) of rule
1501:13-7-01
of the Administrative Code;
(e)
When a permittee's operation advances into any succeeding incremental area or
incremental mining unit, or begins any new operational stage;
(f) When any event occurs on or results from
a mining and reclamation operation, including subsidence, discharges, or
contamination, diminution or interruption of a water supply, that affects the
estimated cost of reclamation;
(g)
When the chief issues a cessation order for failure to abate a violation for
non-contemporaneous reclamation under paragraph (A)(3) of rule
1501:13-14-02 of the
Administrative Code; and
(h) When
the chief issues a show cause order to a permittee to show cause why the
performance security should not be forfeited under rule
1501:13-7-06
of the Administrative Code.
(4) The chief shall notify, in writing,
persons involved in performance security coverage of any performance security
adjustments. For purposes of this rule a person involved in performance
security coverage shall include the permittee, the surety, and any other person
with a property interest in collateral posted under these rules who has in
writing to the chief requested such notification at the time the collateral is
posted or the interest is acquired, whichever occurs later.
(5) The permittee may request an informal
conference with the chief concerning a performance security adjustment made
under paragraph (E) of this rule, and the chief shall provide such an informal
conference in accordance with rule
1501:13-14-05
of the Administrative Code.
(6)
(a) If the chief increases the amount of
performance security under paragraph (E) of this rule, the permittee shall
provide additional performance security in an amount determined by the chief.
(b) If the chief decreases the
amount of performance security under paragraph (E) of this rule, the chief
shall determine the amount of the reduction of the performance security and
send written notice of the amount of reduction to the permittee. The permittee
may reduce the amount of the performance security in the amount determined by
the chief.
(7) A
permittee may request a reduction in the amount of the performance security by
submitting to the chief documentation proving that the permittee's method of
operation or other circumstances have changed such that the amount of the
performance security provided by the permittee exceeds the estimated cost of
reclamation if the reclamation would have to be performed by the division of
mineral resources management in the event of forfeiture of the performance
security. The chief shall examine the documentation and determine whether the
permittee's performance security exceeds the estimated cost of reclamation. If
the chief determines that the performance security exceeds that estimated cost,
the chief shall determine the amount of the reduction of the performance
security and send written notice of the amount to the permittee. The permittee
may reduce the amount of the performance security in the amount determined by
the chief.
(8) An adjustment in
the amount of performance security under paragraph (E) of this rule shall not
be considered release of performance security and is not subject to division
(F) of section 1513.16 of the Revised Code.
Disclaimer: These regulations may not be the most recent version. Ohio may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
