Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart C - Protection of Natural Resources › Article I - Land Resources › Chapter 77 - NONCOAL MINING › Subchapter D - BONDING AND INSURANCE REQUIREMENTS › FORMS, TERMS AND CONDITIONS OF BONDS AND INSURANCE › Section 77.226 - Phased deposits of collateral

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
						  permittee for a long term mining operation or facility may post a collateral
						  bond for a permit area in compliance with the following requirements:
(1) The permittee shall submit a collateral
						  bond to the Department.
(2) The
						  permittee shall deposit $10,000 or 25%, whichever is greater, of the total
						  amount of bond determined under §§
														77.201-77.205 (relating to amount and
						  duration of liability) in approved collateral with the Department.
(3) The permittee shall submit a schedule
						  agreeing to deposit a minimum of 10% of the remaining amount of bond, in
						  approved collateral in each of the next 10 years or in a proportion so that
						  final payment is made by the date required by the Department. The entire bond
						  amount shall be submitted by the operator no later than the actual or expected
						  completion of operations at the mine or the facility. Annual payments become
						  due on the anniversary date of the issuance of the permit, unless otherwise
						  established by the Department. Payments shall be accompanied by appropriate
						  bond documents required by the Department.
(4) The Department may require additional
						  bonding if the Department determines that a higher bond amount is necessary.
						  The increase in the total bond amount required shall proportionately increase
						  the remaining annual payments. The operator shall submit a new schedule within
						  30 days of notice by the Department of the increase in the total bond amount
						  due.
(5) The operator shall deposit
						  the full amount of the bond required for the facility within 30 days of receipt
						  of a written demand by the Department to accelerate deposit of the bond. The
						  Department may make the demand when the Department determines that the purposes
						  of this section, this chapter or the act have not been met, including, but not
						  limited to, when one of the following occurs:
(i) The operator has failed to make a deposit
						  of bond amount when required according to the schedule for the
						  deposit.
(ii) The operator has
						  violated the requirements of the act, this chapter, the terms or conditions of
						  the permit or orders of the Department.
(iii) The actual or expected completion of
						  operations of the mine or the facility will occur prior to the expiration of
						  the 10-year period determined under this section.
(6) The Department may not accept phased
						  deposit of collateral as bond for a facility when it determines that the
						  purposes of this section, this chapter or the act have not been met, including
						  one of the following circumstances:
(i) The
						  operator has failed to pay the Department when due, permit fees, fines,
						  penalties or other payments; or has failed to deposit bond amounts with the
						  Department when due.
(ii) The
						  operator has indicated a pattern or history of violations of applicable
						  statutes, this chapter, the terms and conditions of the permit, or orders of
						  the Department, even if later corrected, which demonstrate a lack of ability or
						  intention to comply with mining operation requirements.