Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart C - Protection of Natural Resources › Article I - Land Resources › Chapter 86 - SURFACE AND UNDERGROUND COAL MINING: GENERAL › Subchapter F - BONDING AND INSURANCE REQUIREMENTS › FORM, TERMS AND CONDITIONS OF BONDS AND INSURANCE › Section 86.159 - Self-bonding

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The Department
						  may accept a self-bond to cover all or part of the permittee's liabilities
						  arising from coal mining activities. The Department will not accept a self-bond
						  covering long-term indeterminate liabilities. These liabilities include, but
						  are not limited to, obligations to treat discharges from mining activities
						  which exist after completion of mining and reclamation activities as required
						  by section 315 of The Clean Streams Law (35 P. S. §
														691.315), §§
													87.102,
						  87.207,
						  88.92,
						  88.187,
						  88.507 and
						  89.52 or restoration of soil
						  productivity of prime farmland as required by §§
													87.177-87.181,
						  88.129,
						  88.217,
						  88.330,
						  88.381,
						  88.493 and
						  90.161-90.165. The applicant for a
						  self-bond shall demonstrate to the satisfaction of the Department a history of
						  continuous efforts to achieve compliance with Federal and State environmental
						  laws, that it meets financial eligibility criteria established in this section
						  and enters into indemnity and security agreements required by this section. An
						  applicant which is a subsidiary corporation may satisfy the requirements for
						  eligibility to self-bond by relying on its parent corporation. In this case,
						  the parent corporation shall meet the eligibility and reporting requirements
						  required by this section.
(b) The
						  Department, in determining an applicant's eligibility to self-bond, will be
						  satisfied by the applicant that it meets the following requirements:
(1) The applicant is incorporated in or
						  authorized to do business in this Commonwealth. If a subsidiary corporation is
						  a permittee or an applicant for a permit, the parent corporation of the
						  subsidiary corporation is not required to be incorporated in or authorized to
						  do business in this Commonwealth.
(2) The applicant has designated suitable
						  agents in this Commonwealth to receive service of suits, claims, demands and
						  other services of process.
(3) The
						  applicant has a history of continuous business operation. This requirement may
						  be deemed to be met if one of the following applies:
(i) The applicant's existence is the result
						  of a reorganization, consolidation or merger involving a company with a history
						  of continuous business operation.
(ii) The applicant is a majority-owned
						  subsidiary of a corporation with a history of continuous business
						  operation.
(4) The
						  applicant, during the last 36 calendar months, has not defaulted in the payment
						  of one or more of the following:
(i) Dividend
						  or sinking fund installment, preferred stock or installment of indebtedness for
						  borrowed money.
(ii) Payment of
						  rentals under long-term leases.
(iii) A reclamation fee payment due under
						  section 402 of the Surface Mining Control and Reclamation Act of 1977
						  (30 U.S.C.A. §
																1232) for coal produced in this
						  Commonwealth.
(5) The
						  applicant, during the last 36 calendar months, has honored its obligations
						  under other self-bonding programs established by another state or the Federal
						  government.
(6) The applicant has
						  not had commercial surety bonds cancelled for nonpayment of premiums or fraud
						  or failure to comply with conditions established by the surety company as
						  conditions of maintaining surety bonds in force and effect.