BOND SYSTEM WHICH INCLUDES THE USE OF REAL ESTATE AS COLLATERAL. OAC 460:20-800.21(C). THE BOND AMOUNT SHALL BE SUFFICIENT TO ASSURE COMPLETION OF THE APPLICANT'S RECLAMATION PLAN. OAC 460:20-00.14(B). IF RECLAMATION IS NOT ACCOMPLISHED, THE BOND SHALL BE FORFEITED AND THE FUNDS COLLECTED FROM THE FORFEITURE USED TO COMPLETE THE RECLAMATION PLAN. OAC 460:20800.50(B).
AS WITH ANY IMPLEMENTING AUTHORITY, THE LAW REQUIRES THAT THE DEPARTMENT'S RULES BE GIVEN DEFERENCE AND BE CONSIDERED VALID AND REASONABLE. IT IS A CARDINAL RULE OF CONSTRUCTION THAT THE RULES AND REGULATIONS ENACTED BY AN ADMINISTRATIVE AGENCY PURSUANT TO ITS GOVERNING STATUTES ARE PRESUMED TO BE REASONABLE AND VALID. J BROTTON CORP. V. OKLAHOMA ALCOHOLIC BEVERAGE LAWS ENFORCEMENT COMMISSION, 822 P.2D 683 (OKLA.1991). IN FACT, DEFERENCE IS DUE CONSTRUCTION OF A STATUTE OR REGULATION BY THE ADMINISTRATIVE AGENCY CHARGED WITH ITS ADMINISTRATION. JONES V. FEDERAL DEPOSIT INS. CORP., 748 F.2D 1400. (OKLA.APP.1984).
AS OUTLINED ABOVE, THE COMBINED AUTHORITY ESTABLISHED IN THE ACT AND ITS IMPLEMENTING RULES REQUIRE RECLAMATION ASSURANCE THROUGH THE POSTING OF PERFORMANCE BONDS. THE ACT THEN DEFINES PERFORMANCE BONDS IN LANGUAGE BROAD ENOUGH TO INCLUDE INDEMNITY INSTRUMENTS SUPPORTED BY REAL ESTATE AS COLLATERAL. 45 O.S. 742.2(31) (1991). UNDER THESE BROAD STATUTORY MANDATES, IT IS NOT UNREASONABLE FOR THE DEPARTMENT TO DO THE FOLLOWING: (1) INTERPRET THE ACT AS AUTHORIZING THE USE OF REAL ESTATE AS BOND COLLATERAL, (2) ESTABLISH PROCEDURES FOR REAL ESTATE DISPOSITION FOLLOWING BOND FORFEITURE, AND (3) APPLY PROCEEDS FROM THE SALE OF SUCH REAL ESTATE TO SATISFY RECLAMATION REQUIREMENTS.
IN CONCLUSION, THE PROCEDURES SET FORTH IN THE COAL RECLAMATION ACT AND THE IMPLEMENTING REGULATIONS SPECIFY A METHOD OF DISPOSING OF REAL ESTATE ACQUIRED BY THE STATE AND THUS, CONSTITUTE AN EXCEPTION TO THE PROCEDURES SET FORTH IN 74 O.S. 129.4 (1991). AS A RESULT, REAL ESTATE ACQUIRED BY THE DEPARTMENT THROUGH BOND FORFEITURE, WHICH QUALIFIES FOR DISPOSITION PURSUANT TO THE COAL RECLAMATION ACT, NEED NOT COMPLY WITH SECTION 129.4.
(BRITA HAUGLAND CANTRELL)