The Kentucky Bond Pool was created by law in 1986. The heart of the program is a special bond pool fund into which all members of the pool pay membership and tonnage fees.
Participation is strictly voluntary and is only available to coal companies that qualify.
Qualification is based on mining experience, reclamation record, bond release history and financial standing. Preparation plants, tipples and loading facilities are not eligible for coverage under the Kentucky Bond Pool. The bond pool does not cover subsidence . A bond pool member posts a limited, permit-specific bond for each permit that is fully released at the completion of Phase I reclamation. During Phase I, a permit is covered by both the permit-specific bond and the bond pool.