Code of Maine Rules › 06 - DEPARTMENT OF ENVIRONMENTAL PROTECTION › 096 - DEPARTMENT OF ENVIRONMENTAL PROTECTION - GENERAL › Chapter 200 - METALLIC MINERAL EXPLORATION, ADVANCED EXPLORATION AND MINING › Subchapter 4 - FINANCIAL ASSURANCE AND INSURANCE › Section 096-200-4-17 - Financial Assurance and Insurance Requirements

Current through 2024-29, July 17, 2024
A.
Requirements.
Financial assurance and insurance is required for
				  all advanced exploration and mining activities and must be posted and fully
				  funded prior to the issuance of a mining permit.
(1) The Permittee shall continuously maintain
				  financial assurance, as a condition of the mining permit, until the Department
				  determines that all reclamation, closure, post-closure maintenance and
				  monitoring, and corrective actions have been completed.
(2) The Permittee shall be required to
				  maintain financial assurance for as long as the Department determines that the
				  mining operation and any associated waste material could create an unreasonable
				  threat to public health and safety or the environment.
(3) Financial assurance must be available and
				  made payable to the Department when requested by the Department.
(4) Financial assurance may not be canceled
				  by the Permittee unless it is replaced by alternative mechanisms in the
				  appropriate amount and with the express written consent of the Commissioner
				  after 30 days public notice in a paper of statewide coverage.
(5) Financial assurance must be fully valid,
				  binding, and enforceable under state and federal law.
(6) All financial assurances obtained under
				  this Chapter must be in a form such that it would not be subject to discharge
				  under any and all provisions of the
Bankruptcy Reform Act of
				  1978
, as amended by the
Bankruptcy Abuse Prevention and
				  Consumer Protection Act of 2005
,
				  Pub. L. No.
				  109-8, 119 Stat. 23,
				  11 U.S.C. §
												101
et seq
. (as may be
				  further amended from time to time) (the "United States Bankruptcy Code") and
				  must be in a form such that it will not be considered property of the
				  bankruptcy estate under any and all provisions of the United States Bankruptcy
				  Code in the event that a bankruptcy petition is filed by or against the
				  Permittee.
(7) All forms of
				  financial assurance and terms and conditions of financial assurances must be
				  approved by the Department and must be analyzed by individuals with documented
				  experience in material handling and construction, mining costs, and financial
				  analysis. If the Department does not have adequate in-house expertise, the
				  Department shall hire third-parties with documented experience in material
				  handling and construction, mining costs, risk analysis, and financial analysis
				  to analyze and evaluate the proposed terms and conditions of financial
				  assurance required for the Applicant or Permittee. The individuals and company
				  hired to perform this function shall have no conflict of interest with the
				  applicant, related persons, applicant's consultants, attorneys or any of their
				  employees. All costs of the third-party evaluation must be paid by the
				  Applicant pursuant to
				  38 M.R.S.
				  §352(4-A).
(8) Failure of financial providers. The
				  financial assurance shall provide a mechanism for a bank or guarantor to give
				  prompt notice by certified mail to the Department and the Permittee of any
				  administrative or judicial action filed or initiated alleging the insolvency or
				  bankruptcy of the bank or the Permittee, or alleging any violations which could
				  result in suspension or revocation of the bank charter or license to do
				  business.
(9) Upon incapacity of a
				  bank or guarantor by reason of bankruptcy, insolvency, suspension or revocation
				  of charter or license for any other reason, the Permittee shall be deemed to be
				  without financial assurance coverage and shall cease mining and immediately
				  begin to conduct reclamation, closure, post-closure maintenance and monitoring,
				  and corrective actions measures in accordance with the mine plan. The
				  Department may, for good cause shown, grant up to two 30-day extensions prior
				  to the initiation of reclamation and closeout measures. Mining operations shall
				  not resume until the Department has determined that an acceptable replacement
				  financial assurance has been provided.
(10) Advance notice
(a) The Permittee shall notify the Department
				  within 30 days thereof if its and/or its parent company's credit rating falls
				  below investment grade as determined by Moody's Investor Services, Standard
				  & Poor, or other comparable ratings service.
(b) If the Permittee's and/or its parent
				  company's credit rating falls below investment grade, within 30 days of such
				  determination the Permittee shall secure an irrevocable standby letter of
				  credit in an amount and form approved by the Commissioner.
(c) The Permittee shall notify the Department
				  of the availability on line of quarterly financial statements (filed by it
				  and/or its parent company) within 30 days of when such statements are filed
				  with the United States Securities and Exchange Commission (SEC). If quarterly
				  financial statements become unavailable on line, the Permittee shall submit
				  these statements in writing to the Department within 30 days of when such
				  statements are filed with the SEC.