SECTION 460:20-37-10. Bonding requirements for underground coal mines and long-term coal-related surface facilities and structures

(a)   Responsibilities. The Department shall require bond coverage, in an amount determined under Section 460:20-37-7, for long-term surface facilities and structures, and for areas disturbed by surface impacts incident to underground mines, for which a permit is required. Specific reclamation techniques required for underground mines and long-term facilities shall be considered in determining the amount of bond to complete the reclamation.

(b)   Long-term period of liability.

(1)   The period of liability for every bond covering long-term surface disturbances shall commence with the issuance of a permit, except that to the extent that such disturbances will occur on a succeeding increment to be bonded, such liability will commence upon the posting of the bond for that increment before the initial surface disturbance of that increment. The liability period shall extend until all reclamation, restoration, and abatement work under the permit has been completed and the bond is released under the provisions of Section 460:20-37-15, or until the bond has been replaced or extended in accordance with Section 460:20-37-10(b)(3).

(2)   Long-term surface disturbances shall include long-term coal- related surface facilities and structures, and surface impacts incident to underground coal mining, which disturb an area for a period that exceeds 5 years. Long-term surface disturbances include, but are not limited to: surface features of shafts and slope facilities, coal refuse areas, powerlines, bore-holes, ventilation shafts, preparation plants, machine shops, roads, and loading and treatment facilities.

(3)   To achieve continuous bond coverage for long-term surface disturbances, the bond shall be conditioned upon extension, replacement, or payment in full, 30 days prior to the expiration of the bond term.

(4)   Continuous bond coverage shall apply throughout the period of extended responsibility for successful revegetation and until the provisions of Section 460:20-37-15 have been met.

(c)   Bond forfeiture. The Department shall take action to forfeit a bond pursuant to this Section, if 30 days prior to bond expiration, the operator has not filed:

(1)   A performance bond for a new term as required for continuous coverage, or

(2)   A performance bond providing coverage for the period of liability, including the period of extended responsibility for successful revegetation.