§ 77.226. Phased deposits of collateral.
(a) A permittee for a long term mining operation or facility may post a collateral bond for a permit area in compliance with the following requirements:
(1) The permittee shall submit a collateral bond to the Department.
(2) The permittee shall deposit $10,000 or 25%, whichever is greater, of the total amount of bond determined under § § 77.201—77.205 (relating to amount and duration of liability) in approved collateral with the Department.
(3) The permittee shall submit a schedule agreeing to deposit a minimum of 10% of the remaining amount of bond, in approved collateral in each of the next 10 years or in a proportion so that final payment is made by the date required by the Department. The entire bond amount shall be submitted by the operator no later than the actual or expected completion of operations at the mine or the facility. Annual payments become due on the anniversary date of the issuance of the permit, unless otherwise established by the Department. Payments shall be accompanied by appropriate bond documents required by the Department.
(4) The Department may require additional bonding if the Department determines that a higher bond amount is necessary. The increase in the total bond amount required shall proportionately increase the remaining annual payments. The operator shall submit a new schedule within 30 days of notice by the Department of the increase in the total bond amount due.
(5) The operator shall deposit the full amount of the bond required for the facility within 30 days of receipt of a written demand by the Department to accelerate deposit of the bond. The Department may make the demand when the Department determines that the purposes of this section, this chapter or the act have not been met, including, but not limited to, when one of the following occurs:
(i) The operator has failed to make a deposit of bond amount when required according to the schedule for the deposit.
(ii) The operator has violated the requirements of the act, this chapter, the terms or conditions of the permit or orders of the Department.
(iii) The actual or expected completion of operations of the mine or the facility will occur prior to the expiration of the 10-year period determined under this section.
(6) The Department may not accept phased deposit of collateral as bond for a facility when it determines that the purposes of this section, this chapter or the act have not been met, including one of the following circumstances:
(i) The operator has failed to pay the Department when due, permit fees, fines, penalties or other payments; or has failed to deposit bond amounts with the Department when due.
(ii) The operator has indicated a pattern or history of violations of applicable statutes, this chapter, the terms and conditions of the permit, or orders of the Department, even if later corrected, which demonstrate a lack of ability or intention to comply with mining operation requirements.
Source The provisions of this § 77.226 adopted March 16, 1990, effective March 17, 1990, 20 Pa.B. 1643.
Cross References This section cited in 25 Pa. Code § 77.221 (relating to scope); 25 Pa. Code § 77.222 (relating to form of the bond); and 25 Pa. Code § 77.228 (relating to failure to maintain proper bond).
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