§ 800.15 - Adjustment of amount.

§ 800.15 When must the regulatory authority adjust the performance bond amount and when may I request adjustment of the bond amount?Adjustment of amount.

(a) The regulatory authority must adjust the amount of performance the bond or deposit required and , if needed, the terms of the acceptance when -

(1) The

of the applicant's bond shall be adjusted by the regulatory authority from time to time as the area requiring bond coverage

increases or decreases. (2) The unit cost or scope

is increased or decreased or where the cost of future reclamation changes

as a result of technological advances, revisions to the operation or reclamation plans in the permit, or external factors

. The regulatory authority may specify periodic times or set a schedule for reevaluating and adjusting the bond amount to fulfill this requirement.

(b) The permittee may request at any time that the regulatory authority reduce the amount of the performance bond based upon submission of evidence that the permittee's method of operation or other circumstances will reduce the estimated unit costs for the regulatory authority to reclaim the bonded area.

(c) Bond reductions under paragraphs (a) and (b) of this section are not subject to the bond release requirements and procedures of §§ 800.40 through 800.44 of this part.

(d) The regulatory authority may not use the provisions of this section to reduce the amount of the performance bond to reflect changes in the cost of reclamation resulting from completion of activities required under the reclamation plan. Bond reduction for completed reclamation activities must comply with the bond release requirements and procedures of §§ 800.40 through 800.44 of this part.

(e) Before making a bond adjustment, the regulatory authority must

regulatory authority shall -

(1) Notify the permittee, the surety, and any person with a property interest in collateral who has requested notification under § 800.21(f) of

this part of

any proposed adjustment to the bond amount; and

(2) Provide the permittee an opportunity for an informal conference on the adjustment.

(

f)

c) A permittee may request reduction of the amount of the performance bond upon submission of evidence to the regulatory authority proving that the permittee's method of operation or other circumstances reduces the estimated cost for the regulatory authority to reclaim the bonded area. Bond adjustments which involve undisturbed land or revision of the cost estimate of reclamation are not considered bond release subject to procedures of § 800.40.

(d) In the event that an approved permit is revised in accordance with subchapter G of this chapter, the regulatory authority

must

shall review the bond

amount

for adequacy and, if necessary, shall require adjustment of the bond

amount

to conform to the permit as revised.

This provision may not be used to reduce bond amounts on the basis of completion of reclamation activities, in whole or in part.

(g) The regulatory authority must require that the permittee post a financial assurance, collateral bond, or surety bond in accordance with § 800.18 of this part whenever it identifies a discharge that will require long-term treatment.

(h) The regulatory authority may not reduce the bond amount when the permittee does not restore the approximate original contour as required or when the reclamation plan does not reflect the level of reclamation required under the regulatory program.

[48 FR 32959, July 19, 1983, as amended at 81 FR 93381, Dec. 20, 2016; 82 FR 54972, Nov. 17, 2017]