Current through Bulletin 2024-18, September 15, 2024
1. After receiving
notification that the notice of intention is approved or complete, but prior to
commencement of operations, the operator must post a reclamation surety with
the Division.
1.11. Failure to furnish and
maintain reclamation surety may, after notice and opportunity for a Board
hearing, result in a withdrawal of the notice of intention as provided for in
Section
40-8-16.
2. The Division will not require a separate
surety where a reclamation surety in a form and amount acceptable to the
Division is held by other governmental entities, provided that the cost
estimate is accurate and the Division is named as co-beneficiary. Cooperative
Agreements may be developed and entered into according to Section
40-8-22.
3. As part of the review of the notice of
intention, the Division shall determine the required surety amount based on:
3.11. Site-specific calculations or estimates
by the Division reflecting the cost the Division or a third party would incur
to reclaim the site;
3.12.
Site-specific calculations or estimates by the operator reflecting the cost the
Division or a third party would incur to reclaim the site, if accurate and
verifiable by the Division; or
3.13. The average dollars per acre costs for
reclamation for similar operations, as determined by the Division, based upon
approved surety amounts for current large mining operations.
3.14. In determining or verifying the amount
of surety under Subsections 3.11 or 3.12, the Division shall use cost data from
current sureties for large mining operations, adjusted as necessary to reflect
the nature and scope of operations and reclamation under the notice of
intention.
3.15. For the average
dollars per acre in Subsection 3.13, the Board will annually approve the figure
after a formal presentation from the Division and an opportunity for public
comment.
4. The operator
shall submit a completed Reclamation Contract (FORM MR-RC) with the required
surety. The form and amount of the reclamation surety must be approved by the
Division. Acceptable forms may include:
4.11.
A corporate surety bond from a surety company that is licensed to do business
in Utah, that is listed in "A.M. Best's Key Rating Guide" at a rating of A- or
better or a Financial Performance Rating (FPR) of 8 or better, according to the
"A.M. Best's Guide". All surety companies also will be continuously listed in
the current issue of the U.S. Department of the Treasury Circular 570.
Operators who do not have a surety bond with a company that meets the standards
of subsection 4.11 will have 120 days from the date of Division notification
after enactment of the changes to subsection 4.11 to achieve compliance or face
enforcement action. When the Division in the course of examining surety bonds,
notifies an operator that a surety company guaranteeing its performance does
not meet the standards of subsection 4.11., the operator has 120 days after
notice from the Division by mail to correct the deficiency, or face enforcement
action;
4.12. Federally-insured
certificate of deposit payable to the State of Utah, Division of Oil, Gas and
Mining;
4.13. Cash;
4.14. An irrevocable letter of credit issued
by a bank organized to do business in the United States;
4.15. Escrow accounts; and
4.16. The Board may accept a written
self-bonding agreement in the case of operators showing sufficient financial
strength.
5. Surety shall
be required until such time as reclamation is deemed complete by the Division.
The Division shall promptly conduct an inspection when notified by the operator
that reclamation is complete. The full release of surety shall be evidence that
the operator has reclaimed as required by the Act.
5.11. A partial release of surety can be made
by the Division if it determines that a substantial phase or segment of
reclamation such as demolition, backfilling or regrading has been successfully
performed and the residual amount of retained surety is determined to be
adequate to insure completion of reclamation.
