upon faithful performance of such permit and all other 
requirements of this Act. The financial assurance shall be 
provided in the form of a surety bond, trust fund, letters 
of credits, government securities, certificates of deposit, 
cash or equivalent. 
(2) The financial assurance shall cover all lands with-
in the initial permit area and all affected waters that may 
require restoration, treatment, or other management as a 
result of mineral activities, and shall be extended to cover 
all lands and waters added pursuant to any permit modi-
fication made under section 303(f) (relating to operations 
permits), or affected by mineral activities. 
(b) AMOUNT.—The amount of the financial assur-
ance required under this section shall be sufficient to as-
sure the completion of reclamation and restoration satis-
fying the requirements of this Act if the work were to be 
performed by the Secretary concerned in the event of for-
feiture, including the construction and maintenance costs 
for any treatment facilities necessary to meet Federal and 
State environmental requirements. The calculation of such 
amount shall take into account the maximum level of fi-
nancial exposure which shall arise during the mineral ac-
tivity and administrative costs associated with a govern-
ment agency reclaiming the site. 
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(c) DURATION.—The financial assurance required 
under this section shall be held for the duration of the 
mineral activities and for an additional period to cover the 
operator’s responsibility for reclamation, restoration, and 
long-term 
maintenance 
as 
specified 
under 
section 
306(b)(6)(B), and effluent treatment as specified in sub-
section (g). 
(d) ADJUSTMENTS.—The amount of the financial as-
surance and the terms of the acceptance of the assurance 
may be adjusted by the Secretary concerned from time to 
time as the area requiring coverage is increased or de-
creased, or where the costs of reclamation or treatment 
change, or pursuant to section 303(h) (relating to oper-
ations permits), but the financial assurance shall other-
wise be in compliance with this section. The Secretary con-
cerned shall review the financial guarantee as part of the 
permit review under section 303(h). 
(e) RELEASE.—Upon request, and after notice and 
opportunity for public comment, and after inspection by 
the Secretary, or for National Forest System lands, the 
Secretary of Agriculture, such Secretary may, after con-
sultation with the Administrator of the Environmental 
Protection Agency, release in whole or in part the financial 
assurance required under this section if the Secretary 
makes both of the following determinations: 
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(1) A determination that reclamation or res-
toration covered by the financial assurance has been 
accomplished as required by this Act. 
(2) A determination that the terms and condi-
tions of any other applicable Federal requirements, 
and State requirements applicable pursuant to coop-
erative agreements under section 307, have been ful-
filled. 
(f) RELEASE SCHEDULE.—The release referred to in 
subsection (e) shall be according to the following schedule: 
(1) After the operator has completed any re-
quired backfilling, regrading, and drainage control of 
an area subject to mineral activities and covered by 
the financial assurance, and has commenced revege-
tation on the regraded areas subject to mineral ac-
tivities in accordance with the approved plan, that 
portion of the total financial assurance secured for 
the area subject to mineral activities attributable to 
the completed activities may be released except that 
sufficient assurance must be retained to address 
other required reclamation and restoration needs 
and to assure the long-term success of the revegeta-
tion. 
(2) After the operator has completed success-
fully all remaining mineral activities and reclamation 
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activities and all requirements of the operations plan 
and the reclamation plan (including the provisions of 
section 306(b)(6)(B) relating to revegetation, res-
toration, and effluent treatment required by sub-
section (g)), and all other requirements of this Act 
have been fully met, the remaining portion of the fi-
nancial assurance may be released. 
During the period following release of the financial assur-
ance as specified in paragraph (1), until the remaining 
portion of the financial assurance is released as provided 
in paragraph (2), the operator shall be required to comply 
with the permit issued under this title. 
(g) EFFLUENT.—Notwithstanding section 306(b)(4), 
where any discharge or other water-related condition re-
sulting from the mineral activities requires treatment in 
order to meet the applicable effluent limitations and water 
quality standards, the financial assurance shall include the 
estimated cost of maintaining such treatment for the pro-
jected period that will be needed after the cessation of 
mineral activities. The portion of the financial assurance 
attributable to such estimated cost of treatment shall not 
be released until the discharge has ceased for a period of 
5 years, as determined by ongoing monitoring and testing, 
or, if the discharge continues, until the operator has met 
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all applicable effluent limitations and water quality stand-
ards for 5 full years without treatment. 
(h) ENVIRONMENTAL HAZARDS.—If the Secretary, 
or for National Forest System lands, the Secretary of Ag-
riculture, determines, after final release of financial assur-
ance, that an environmental hazard resulting from the 
mineral activities exists, or the terms and conditions of 
the operations permit of this Act were not fulfilled in fact 
at the time of release, such Secretary shall issue an order 
under section 506 requiring the claim holder or operator 
(or any person who controls the claim holder or operator) 
to correct the condition such that applicable laws and reg-
ulations and any conditions from the plan of operations 
are met. 
SEC. 306. OPERATION AND RECLAMATION. 
(a) GENERAL RULE.—(1) Except as provided under 
paragraphs (5) and (7) of subsection (b), the operator 
shall restore lands subject to mineral activities carried out 
under a permit issued under this title to a condition capa-
ble of supporting— 
(A) the uses which such lands were capable of 
supporting prior to surface disturbance by the oper-
ator, or 
(B) other beneficial uses which conform to ap-
plicable land use plans as determined by the Sec-
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