SECTION 460:10-29-4. Criteria for forfeiture

(a)   A bond shall be forfeited, if the Department finds that:

(1)   The permittee has violated any of the terms or conditions of the bond and has failed to take corrective action.

(2)   The permittee has failed to conduct the surface mining and reclamation operations in accordance with 45 O.S. (1981), Section 721 et seq., the conditions of this Chapter and the permit within the time required, and the Department has determined that it is necessary, in order to fulfill the requirements of the permit and the reclamation plan, to have someone other than the operator correct or complete reclamation;

(3)   The permit for the area under the bond has been revoked, unless the operator or surety assumes liability for completion of the reclamation and is, in the opinion of the Department, diligently and satisfactorily performing such work; or

(4)   The permittee has failed to comply with a compliance schedule approved pursuant to Section 460:10-29-2(b).

(b)   A bond may be forfeited, if the Department finds that:

(1)   The permittee has become insolvent, failed in business, been adjudicated a bankrupt, filed a petition in bankruptcy or for a receiver, or had a receiver appointed by any court;

(2)   A creditor of the permittee has attached or executed a judgment against the permittee's equipment, materials, facilities at the permit area, or on the collateral pledged to the Department; or

(3)   The permittee cannot demonstrate or prove the ability to continue to operate in compliance with 45 O.S. (1981), Section 721 et seq., this Chapter and the permit.