§ 86.161. Phased deposits of collateral.
A permittee for a long-term mining operation or facility may post a collateral bond for a permit area according to 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 § § 86.148—86.152 (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. An annual payment becomes due on the anniversary date of the issuance of the permit, unless otherwise established by the Department. A payment shall be accompanied by appropriate bond documents required by the Department. Interest accumulated by phased deposits of collateral shall become part of the bond, and may be used to reduce the amount of the final phased deposit.
(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 long-term operation or 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 acts, 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 acts, this chapter, other 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 will not accept phased deposit of collateral as bond for long-term operation or facility when the Department determines that the purposes of this section, this chapter or the acts have not been met, including, but not limited to, the following:
(i) The operator has failed to pay the Department, when due, permit or reclamation 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 the requirements applicable to long-term mining operations or facilities.
Source The provisions of this § 86.161 adopted December 19, 1980, 10 Pa.B. 4789, effective July 31, 1982, 12 Pa.B. 2382; amended July 30, 1982, 12 Pa.B. 2473, effective July 31, 1982, 12 Pa.B. 2382; amended June 15, 1990, 20 Pa.B. 3383, effective July 27, 1991, 21 Pa.B. 3316; amended November 14, 1997, effective November 15, 1997, 27 Pa.B. 6041. Immediately preceding text appears at serial pages (219170) and (206705).
Cross References This section cited in 25 Pa. Code § 86.155 (relating to scope); 25 Pa. Code § 86.156 (relating to form of the bond); 25 Pa. Code § 86.162a (relating to Anthracite Deep Mine Operators Emergency Bond Fund); 25 Pa. Code § 86.165 (relating to failure to maintain proper bond); and 25 Pa. Code § 86.166 (relating to replacement of bonds).
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