Mississippi Administrative Code › Title 11 - Mississippi Department of Environmental Quality › Part 8 - Geology Regulations › Chapter 2 - Mississippi Commission on Environmental Quality Regulations Governing Surface Coal Mining › Subchapter 2.4 - Bond and Insurance Requirements for Surface Coal Mining and Reclamation Operations › Rule 11-8-2.4-43 - Form, Conditions and Terms of Performance Bonds and Liability Insurance › Section 11-8-2.4-43-4303 - Terms and Conditions of the Bond

Current through June 25, 2024
(a) The performance
					 bond shall be in an amount determined by the permit board as provided in
					 §§ 4101 and 4103.
(b) The
					 performance bond shall be payable to the Commission.
(c) The performance bond shall be conditioned
					 upon faithful performance of all of the requirements of the act, these
					 regulations and the conditions of the permit, and shall cover the entire permit
					 area or an identified increment of land within the permit area upon which the
					 operator will initiate and conduct surface coal mining and reclamation
					 operations during the initial term of the permit.
(d) The duration of the bond shall be for the
					 time period provided in § 4105.
(e) Surety bonds shall be subject to the
					 following conditions.
(1) The Permit Board
					 shall not approve the bond of a surety company unless the bond shall not be
					 cancelable by the surety at any time for any reason including, but not limited
					 to, nonpayment of premium or bankruptcy of the permittee during the period of
					 liability. Surety bond coverage for permitted lands not disturbed may be
					 canceled with the consent of the Permit Board; provided, the surety gives at
					 least 60 days notice to both the permittee and the Permit Board of the intent
					 to cancel prior to cancellation. Such notice shall be by certified mail and
					 shall not be effective until received by both the permittee and Permit Board.
					 Cancellation shall not be effective for lands subject to bond coverage which
					 are disturbed after receipt of notice, but prior to approval by the Permit
					 Board. The Permit Board may approve such cancellation only if a replacement
					 bond is filed by the permittee prior to the cancellation date, or the permit is
					 amended so that the surface coal mining operations approved under the permit
					 are reduced to the degree necessary to cover all the costs attributable to the
					 completion of reclamation operations on the reduced permit area in accordance
					 with Rule 41 and the remaining performance bond liability.
(2) The Permit Board shall not accept surety
					 bonds in excess of 10 percent of the surety company's capital surplus account
					 as shown on the balance sheet certified by a certified public accountant,
					 unless otherwise provided by law.
(3) The Permit Board shall not accept surety
					 bonds from a surety company for any person, on all permits held by that person,
					 in excess of three times the company's maximum single obligation as provided by
					 state law, or, in the absence of state law, as provided in §
					 4303(e)(2).
(4) The Permit Board
					 may provide in the bond that the amount shall be confessed to judgment upon
					 forfeiture.
(5) The bond shall
					 provide that the surety and the permittee shall be liable jointly and
					 severally.
(6) The bond shall
					 provide that:
(A) the surety will give prompt
					 notice to the permittee and the Permit Board of any notice received or action
					 filed alleging the insolvency or bankruptcy of the surety or the permittee, or
					 alleging any violations of regulatory requirements which could result in
					 suspension or revocation of the surety's license to do business;
(B) in the event the surety becomes unable to
					 fulfill its obligations under the bond for any reason, notice shall be given
					 immediately to the permittee and the Permit Board;
(C) upon the incapacity of a surety company
					 by reason of bankruptcy, insolvency, or suspension or revocation of a charter
					 or license, the permittee shall be deemed to be without bond coverage and shall
					 promptly notify the Permit Board. The Permit Board, upon notification received
					 through the procedures of § 4303(e)(6)(A) or from the permittee, shall, in
					 writing, notify the operator who is without bond coverage and specify a
					 reasonable period, not to exceed 90 days, to replace bond coverage. If an
					 adequate bond is not posted by the end of the period allowed, the operator
					 shall cease coal extraction and shall comply with the provisions of §
					 53107 and shall immediately begin to conduct reclamation operations in
					 accordance with the reclamation plan. Mining operations shall not resume until
					 the Permit Board has determined that an acceptable bond has been
					 posted.
(7) A surety
					 bond shall be executed by the operator and a corporate surety licensed to do
					 business in Mississippi.