§ 86.162a. Anthracite Mine Operators Emergency Bond Fund.
(a) For permitted anthracite mine operators required to post a bond under § 86.143 (relating to requirements to file a bond), and who can demonstrate to the Department that they are unable to post a conventional surety or collateral bond as described in § 86.156 (relating to the form of the bond), and do not meet the requirements of § 86.161 (relating to phased deposits of collateral), may apply to the Department for an Anthracite Mine Operator’s Emergency Bond Loan. The purpose of this loan is to guarantee a collateral bond posted by the operator.
(b) Permitted anthracite mine operators who wish to use the anthracite mine emergency bond loan program shall demonstrate one of the following:
(1) The operator has been rejected by three separate bond companies licensed to do business in this Commonwealth and the grounds for rejection.
(2) The operator has had bonds canceled due to the insolvency or bankruptcy of an insurance company or surety company licensed to do business in this Commonwealth.
(c) The Department and the qualified operator shall enter into a written loan agreement, on forms provided by the Department, which shall contain at a minimum, the following provisions:
(1) The operator will be required to make a downpayment of at least $1,000.
(2) The operator shall be responsible for submitting to the Department a payment of 25¢ for each ton of coal sold within 45 days following the sale of that coal.
(3) The operator shall continue to make payments to the Department until the loan has been paid in full or the operator submits to the Department an adequate replacement bond, or the operator has satisfied the reclamation obligation of the permit.
(4) Failure to comply with the applicable statutes, rules and regulations or conditions of the permit may be grounds for the Department to require acceleration of the payments from the operator.
(d) The Department will deposit appropriations and moneys collected under this section into the Anthracite Mine Operators Emergency Bond Fund.
(e) The Department may make loans as money becomes available in the fund.
(f) The fees paid by an operator may be used only to secure the reclamation obligation of that operator.
(g) When the operator has satisfied the reclamation obligation, the Department will release to the operator the fees collected, in whole or in part, according to the bond release schedule provided for by § § 86.170—86.172 (relating to scope; procedures for seeking release of bond; and criteria for release of bond).
(h) The Department may require the operator throughout the life of the permit to demonstrate that the operator has made attempts to obtain a conventional bond.
Authority The provisions of this § 86.162a amended under section 5 of The Clean Streams Law (35 P.S. § 691.5); sections 4(a) and 4.2 of the Surface Mining Conservation and Reclamation Act (52 P.S. § § 1396.4(a) and 1396.4b); section 3.2 of the Coal Refuse Disposal Control Act (52 P.S. § 30.53b); section 7(b) of The Bituminous Mine Subsidence and Land Conservation Act (52 P.S. § 1406.7(b)); and section 1920-A of The Administrative Code of 1929 (71 P.S. § 510-20).
Source The provisions of this § 86.162a adopted June 25, 1993, effective June 26, 1993, 23 Pa.B. 3075; amended March 13, 2020, effective March 14, 2020, 50 Pa.B. 1508. Immediately preceding text appears at serial pages (378176) to (378177).
Cross References This section cited in 25 Pa. Code § 86.155 (relating to scope); and 25 Pa. Code § 86.165 (relating to failure to maintain proper bond).
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