§ 800.16 - General terms and conditions of bond.

§ 800.16 What are the general General terms and conditions of a performance bond?.

(a) The performance bond must shall be in an amount determined by the regulatory authority as provided in § 800.14 of this part.

(b) The performance bond must shall be payable to the regulatory authority.

(c) The performance bond must shall be conditioned upon faithful performance of all the requirements of the Act, this chapter, the regulatory program, and the approved permit, including completion of the reclamation plan.

(d) The duration of the bond must shall be for the time period provided in § 800.13 of this part.

(e)

(1) The bond

must

shall provide a mechanism for a bank

, surety, or other responsible financial entity

or surety company to give prompt notice to the regulatory authority and the permittee of any action filed alleging the insolvency or bankruptcy of the surety company, the bank, or

other responsible financial entity

the permittee, or alleging any violations

that

which would result in suspension or revocation of the

firm's

surety or bank charter or license to do business.

(2) Upon the incapacity of a bank or surety company by reason of bankruptcy, insolvency, or suspension or revocation of a charter or license, the permittee shall be deemed to be without bond coverage and shall promptly notify the regulatory authority. The regulatory authority, upon notification received through procedures of paragraph (e)(1) of this section or from the permittee, shall, in writing, notify the operator who is without bond coverage and specify a reasonable period, not to exceed 90 days, to replace bond coverage. If an adequate bond is not posted by the end of the period allowed, the operator shall cease coal extraction and shall comply with the provisions of § 816.132 or § 817.132 of this chapter and shall immediately begin to conduct reclamation operations in accordance with the reclamation plan. Mining operations shall not resume until the regulatory authority has determined that an acceptable bond has been posted.

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