Permit No.______________ Page 1 of 6 Self-Bond No.___________

United States Department of the Interior

OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

SELF-BOND INDEMNITY AGREEMENT

Permit No._____________ Self-Bond No. ____________

THIS AGREEMENT OF INDEMNITY, by and between the United States Office of 

Surface Mining Reclamation and Enforcement (hereinafter referred to as OSM), as 

indemnitee, and, ______________, duly authorized to do business in the State of , 

as indemnitor, (hereinafter referred to as “Permittee”) and as Guarantor; 

WHEREAS, Permittee has filed with OSM an application to self-bond in compliance with 

30 USC 1259 et. seq., and the rules and regulations promulgated thereunder, in connection

with Permittee’s Mining Permit No. ;

WHEREAS, Permittee has satisfied the self-bonding requirements and criteria set by 

OSM;

WHEREAS, Permittee desires to indemnify OSM from all loss and costs associated with 

its Self-Bond No. .

WHEREAS, Permittee has the full authority under the laws of the State of ____________, 

under which it is incorporated, its articles of incorporation and bylaws to enter into this 

Indemnity Agreement;

WHEREAS, Permittee has full approval from its Board of Directors to enter into this 

Indemnity Agreement;

WHEREAS, it is in the best interests of Permittee, in the legitimate furtherance of its 

purposes and business, to enter into this Indemnity Agreement;

WHEREAS, OSM has the legal authority to administer the bonding requirements for coal 

mine operations in the State of .

NOW THEREFORE, effective upon the execution of this agreement by all parties, for 

value received, and in consideration of the approval and execution of Self-Bond No. 

__________________, it is agreed by and between the Permittee, OSM, and the 

Guarantor as follows:

I. Permittee and Guarantor, their successors and assigns, jointly and severally do 

hereby covenant and agree to indemnify OSM of, from and against any and all 

demands, liabilities, charges, costs and expenses of whatsoever kind or nature, 

which OSM may sustain or incur in consequence of the failure by the Permittee 

to faithfully perform all the requirements of the Surface Mining Control and 

Reclamation Act (SMCRA) and any amendments thereto, OSM regulations and 

amendments thereto, applicable federal laws and regulations as they apply to 

mining operations under the aforesaid Permit No. and the 

mining and reclamation plans approved therewith. With the exception of 

litigation and administrative costs as referenced in paragraph VI, Permittee’s 
 Permit No.______________ Page 2 of 6 Self-Bond No.___________

liability hereunder shall not exceed the principal amount set forth in Permittee's 

Self-Bond No. ________________ and any modifications thereto.

II. Upon this agreement becoming effective, OSM shall deliver and execute, as 

necessary, to Permittee any and all documents and forms needed to allow 

Permittee to substitute any existing bonds, letters of credit, certificates of 

deposit, cash or government securities or portions thereof that are being 

replaced by this self-bond and self-bonding indemnity agreement.

III. This indemnity agreement is continuing and is to be in full force and effect until 

all of the terms of the Permittee’s self-bond have been satisfactorily performed 

or otherwise discharged to the satisfaction of OSM.

IV. Permittee and Guarantor hereby fully consent and agree that any of the 

following shall not affect nor change or discharge the obligations of this 

indemnity agreement:

1. Any renewals, revisions, modifications or riders to the terms of Self-Bond No.

_____________, including increases or decreases in the dollar amount of the selfbond, or the lands to which it applies, in accordance with the requirements of the 

Surface Mining Control and Reclamation Act (SMCRA) and the rules and 

regulations promulgated thereunder;

2. Any extension of time for performance of the whole or any part of the conditions 

of Self-Bond No. ; 

3. Any changes, revisions, modifications or renewals to the terms of Permit No. 

 , including the mining and reclamation plans contained therein.

V. If in OSM’s opinion Permittee has refused or is unable to conduct reclamation of an

unabated violation, or if the terms of Mining Permit No.___________ are not met or 

if the Permittee defaults on the conditions under which Self-Bond No. 

 is accepted, OSM may institute bond forfeiture proceedings against the 

Permittee and/or Guarantor in accordance with the forfeiture proceedings at 30 CFR 

800.50.

In the event an order of forfeiture is entered by an authorized representative of OSM 

against Permittee requiring the forfeiture of all or any part of the self-bond, OSM will 

mail to Permittee and/or Guarantor written demand for payment of the amount of the 

self-bond which was so ordered forfeited and Permittee and/or Guarantor shall pay 

such amount in full to the indemnitee making the demand in immediately available 

federal funds, within ten (10) business days after receipt of such demand. Payment 

shall be made to such bank account as OSM shall specify in the demand notice to 

Permittee and/or Guarantor. If such order is vacated, reversed, or otherwise made 

unenforceable by court or administrative agency of competent jurisdiction, any 

amount previously paid to OSM by Permittee or Guarantor hereunder shall be 

refunded to Permittee and/or Guarantor in full within thirty (30) business days after 

receipt of a certified copy of the ruling, order or other action by such court or 

administrative agency. Any refund to Permittee and/or Guarantor by OSM shall be in

immediately available federal funds and shall be made to such bank account as 

Permittee and/or Guarantor may specify in writing to OSM.
 Permit No.______________ Page 3 of 6 Self-Bond No.___________

VI. In the event OSM initiates, pursues or is brought into litigation, as a result of 

attempts to enforce bonding requirements under this indemnity agreement, the 

Permittee agrees to pay all litigation costs incurred by OSM in any successful 

effort to enforce this agreement against the Permittee with respect to the 

operations or activity for which this agreement is made. This agreement pertains 

to all costs reasonably connected to the operation or activity for which this 

agreement is made. This agreement pertains to all costs reasonably connected to 

the litigation costs and all administrative costs reasonably incurred in the course of 

enforcing or in preparation to enforce the rules and regulations for self-bonding 

against the Permittee with respect to the operation or activity for which this 

agreement is made. Liability for payment of litigation costs shall not be limited by

the principal amount of the Permittee’s Self-Bond. Permittee agrees that vouchers 

or other proper evidence showing payment shall be conclusive evident of the fact 

and amount of liability of such costs. 

VII. This agreement shall be deemed terminated in whole or in part; (a) when and as 

OSM certifies in writing to the Permittee that Permittee has successfully 

completed as required by the Surface Mining Control and Reclamation Act and 

any amendments thereto, and applicable federal laws and regulations, the mining 

and reclamation activities pursuant to Permit No. , for which this 

agreement is posted; or (b) when and as OSM certifies in writing to the Permittee 

that the Permittee has provided an acceptable corporate surety bond, letter of 

credit or other security complying with 30 CFR § 800.12 in substitution for this 

agreement; or (c) when OSM otherwise authorizes release of this agreement in 

whole or in part to the Permittee pursuant to the Surface Mining Control and 

Reclamation Act and the rules and regulations promulgated thereunder.

Permittee shall have the right at any time to post a corporate surety bond, letter of 

credit or other securities complying with 30 CFR § 800.12 in substitution for and 

replacement of all or part of this agreement. Permittee shall notify OSM in writing 

of any such substitution, and OSM shall notify the Permittee in writing of the 

acceptability of any such substitution. Said substitution shall not be valid and 

effective until OSM certifies such in writing.

VIII. There are no conditions or limitations to this indemnity agreement except those 

contained herein at the date hereof; and thereafter, no alteration, change or

modification hereof shall be binding or effective unless executed in writing, signed 

by the Permittee and/or Guarantor, and approved by OSM.

IX. Permittee agrees to pay all costs and expenses incurred by OSM which are 

expended in any successful action instituted to enforce the terms of this indemnity 

agreement.

X. This indemnity agreement shall be good and effective notwithstanding any change 

or changes in the business name of the Permittee and/or Guarantor.

XI. No changes, revisions, modifications or renewals to the self-bond of the Permittee or 

the terms of Permit No. shall act as a release of the Permittee and/or

Guarantor from this indemnity agreement.
 Permit No.______________ Page 4 of 6 Self-Bond No.___________

XII. All notices required to, or which may be given shall be effective when received by 

the addressees at the addresses specified below.

1. For the Permittee:

2. For OSM:

Personal delivery shall have the same effect as notice given by mail. Notices 

given by mail shall be sent certified.

XIII. In case of the insolvency, bankruptcy or dissolution of the Permittee, all funds 

represented by the self-bond shall immediately become due and payable.

XIV. The failure of any person or persons to sign this indemnity agreement shall not 

release or affect the liability of the Permittee and/or Guarantor.

XV. This indemnity agreement is a binding contract and shall be construed under 

and subject to the laws of the United States of America.

XVI. This agreement, together with the application for self-bonding applicable to 

Permit No. , contains the entire agreement of the parties hereto 

with respect to indemnification.

XVII. If permitted under the laws of the State where Permittee’s mine operation is 

located, this indemnity agreement when under forfeiture shall operate as a 

judgment against those parties liable under this indemnity agreement.

XVIII. If at any time during the period that Self-Bond No. is posted 

and in effect the financial conditions of the Permittee or Guarantor change so 

that the financial criteria at 30 CFR § 800.23 are not satisfied, Permittee shall 

notify OSM immediately and shall within ninety (90) days post an alternate, 

allowable form of bond in the same amount as the self-bond.

XIX. EXECUTION BY THE PERMITTEE:

____________________________________

(Corporate Seal) PERMITTEE (please print or type)

DATE: _________________________

BY: TITLE: _____________________________

BY: TITLE: _____________________________

ATTEST: _____________________________________

STATE OF______________________)

)SS.

COUNTY OF____________________)
 Permit No.______________ Page 5 of 6 Self-Bond No.___________

The foregoing instrument was acknowledged before me by _______________________________, this _____

day of , 20 . (Name of Principal Signatory - please print or type)

Witness my hand and official seal. ______________________________

(Notary Public or other Authorized Officer)

__________________________________

(Title - Name printed or typed)

My Commission Expires:_______________

XX. GUARANTOR ACKNOWLEDGEMENTS: 

Attached and incorporated herein as Exhibit A.

XXI. EXECUTION BY GUARANTOR:

_________________________________

 GUARANTOR (please print or type)

(Corporate Seal)

BY: ___________________________________ TITLE:_____________________________________

BY: ___________________________________ TITLE:_____________________________________

ATTEST:_____________________________ 

STATE OF______________________)

)SS.

COUNTY OF____________________)

The foregoing instrument was acknowledged before me by ______________________________, this_____ 

day of ___________________, 20____. Name of Principal Signatory - please print or type)

Witness my hand and official seal. ___________________________________

 (Notary Public or other Authorized Officer)

_______________________________

(Title – Name printed or typed)

My Commission Expires: ____________________

XXII. CORPORATE GUARANTOR ACKNOWLEDGEMENTS:

Attached and incorporated herein as Exhibit B.
Permit No.______________ Page 6 of 6 Self-Bond No.___________

XXIII. EXECUTION BY OSM

In witness whereof, this Agreement is dated and effective as of this day of , 20 

OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

BY: TITLE: 

The foregoing instrument was acknowledged before me by ___________________________________, this

_______day of ____________________, 20_____. (Name of OSM Signatory - please type or print) 

Witness my hand and official seal. __________________________________

NOTARY PUBLIC

My Commission Expires:_____________________

Paperwork Reduction Act Notice

We use the information required by this form to ensure that the requirements for a self-bond under 30 CFR 800.23 are met. You 

must provide the requested information to obtain a benefit (a self-bond). Under 30 CFR 842.16, the information collected is a 

matter of public record.

The time needed to complete this form and submit the requested information will vary depending on individual circumstances.

We estimate that the average time will be 16 hours per response. This number includes the time spent reviewing instructions,

learning about the regulations, gathering and maintaining information, and completing and reviewing the form. If you have

comments concerning the accuracy of this estimate or suggestions for simplifying the form or instructions, you may write to 

the Information Collection Clearance Officer, Office of Surface Mining Reclamation and Enforcement, 1849 C Street, NW, 

Room 4559, Washington, DC 20240.

Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), you are not required to respond to, nor will you be subject 

to a penalty for a failure to comply with, a collection of information unless it displays a currently valid OMB control number.

OMB Control No. 1029-0043; expires 10/31/2018