Oregon Administrative Rules › Chapter 632 - DEPARTMENT OF GEOLOGY AND MINERAL INDUSTRIES › Division 37 - CONSOLIDATED PERMITTING OF MINING OPERATIONS › Section 632-037-0135 - Financial Security

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A
			 reclamation bond or alternative security acceptable to the Department shall be
			 posted before the start of any construction, excavation or other ground
			 disturbing activity associated with mining operations, other than baseline data
			 collection. "Alternative security" shall include certificates of deposit or
			 irrevocable letters of credit issued by a federally-insured bank. The purpose
			 of the financial security shall be to allow the Department to meet the
			 requirements of the reclamation and closure plan and to provide protection of
			 surface and subsurface resources. The amount of the financial security shall be
			 calculated on the basis of the estimated actual cost of reclamation and closure
			 and shall not be limited. The calculation shall also consider environmental
			 protection costs based on the credible accident analysis and the factors listed
			 in section (6) of this rule.
(2)
			 The Department shall assess annually the overall cost of reclamation. If
			 changes in the operation or modifications to a permit cause the cost of
			 reclamation to exceed the amount of the financial security currently held by
			 the state, the permittee shall post an additional security for the difference.
			 All reclamation calculations shall be approved by the Department.
(3) The Department shall provide for
			 incremental surety increases, with the level of surety required being
			 consistent with the degree and forms of surface disturbance anticipated within
			 a time period specified by the Department. When the actual surface area to be
			 disturbed approaches the level expected by the Department, the permittee shall
			 notify the Department sufficiently in advance of reaching the acreage limit
			 specified to allow for a review of the surety requirements and posting of
			 additional surety by the permittee prior to exceeding the acreage limit set by
			 the Department.
(4) If reclamation
			 costs will exceed the posted financial security and the operator does not
			 increase the amount of the financial security, the department and other
			 permitting agencies shall suspend all permits until the permittee posts the
			 additional financial security.
(5)
			 The Department may seek a lien against the assets of the permittee to cover the
			 cost of reclamation if the financial security posted is insufficient. The
			 amount of the lien shall be the amount of the costs incurred by the Department
			 to complete reclamation. All current operating permits of the permittee shall
			 be suspended and the Department shall deny immediately all pending applications
			 of the permittee to conduct mining operations.
(6) The factors the Department shall consider
			 in determining the amount of the security may include but are not limited to
			 the following:
(a) The reclamation estimate
			 submitted by the applicant as part of the consolidated application;
(b) The impact analysis, including the
			 credible accident analysis;
(c)
			 Supervision;
(d) Mobilization;
(e) Costs of equipment;
(f) Costs of labor;
(g) Removal or disposition of debris, junk,
			 equipment, structures, foundations and unwanted chemicals;
(h) Reduction or stabilization of hazards
			 such as in-water slopes, highwalls, and landslides or other mass failure;
(i) Disposition of oversize,
			 rejects, scalpings and overburden;
(j) Backfilling, contouring or regrading and
			 topsoil replacement;
(k) Draining,
			 establishment of drainage and erosion control;
(l) Soil tests;
(m) Seedbed preparation, seeding, mulching,
			 fertilizing, netting, tackifiers or other stabilizing agents;
(n) Tree and shrub planting;
(o) Fencing;
(p) Liability insurance;
(q) Long-term stabilization, control,
			 containment or disposition of waste solids and liquids;
(r) Final engineering design;
(s) Costs of remedial measure identified to
			 clean up releases of contaminants associated with mining, processing or
			 beneficiation that are reasonably likely to cause a threat to public health,
			 safety or the environment;
(t) The
			 estimated cost of detoxification or disposal of ore processing solutions and
			 solution contaminated ore so as to meet the standards for reclamation approved
			 for the operation in the operating permit issued by the Department and the
			 standards established in ORS
			 517.952 to
			 517.989 and these rules;
(u) The estimated cost of
			 restoration of contaminated soil, surface and ground water or living resources
			 within the standards established in ORS
			 517.952 to
			 517.989 and these rules should
			 an accident occur at the site;
(v)
			 The estimated cost of removal and/or disposal of chemicals used on site;
(w) The spill prevention plan;
(x) Estimated
			 Department-contracted service expenses including but not limited to
			 supervision, mobilization, labor and equipment needs of the department for
			 decontamination and restoration should the Department be required to perform
			 such restoration.