Section R. 425.301 - Financial assurance; requirementsRule 301.
(1) A mining permit shall not be effective until the permittee establishes financial assurance in an amount in accordance with the mining permit as issued and in compliance with this rule. A permittee shall thereafter maintain financial assurance that is approved by the department during mining operations and during the postclosure monitoring period, until the department releases the permittee from its obligation to maintain financial assurance upon termination of the mining permit or upon transfer of the mining permit to another operator. Failure of a permittee to maintain financial assurance after the effective date of a mining permit as required by this subrule constitutes a violation of the mining permit and is grounds for the department to order immediate suspension of any or all mining activities, including the removal of metallic product from the site, pursuant to section 63221 of the act.(2) The financial assurance shall apply to all mining and reclamation operations subject to the mining permit and shall be sufficient to cover the cost to administer, and to hire a third party to implement the reclamation, remediation, and postclosure monitoring required under part 632 of the act, these rules, a mining permit, or orders of the department under part 632 of the act, including the costs to remediate any contamination of the air, surface water, or groundwater that is in violation of the mining permit. The amount of financial assurance shall be determined as follows: (a) The operator shall provide an itemized list of reclamation, remediation, and postclosure monitoring activities and costs associated with all of the following: (i) Mining activities subject to the mining permit where reclamation has not yet been completed.(ii) Mining activities that are anticipated to occur under the mining permit.(b) The department may require financial assurance in an amount larger than calculated by the operator under subdivision (a) of this subrule based upon an analysis of the projected costs under subdivision (c) of this subrule by the department.(c) The cost estimate required under this subrule shall be based on equipment, materials, and methods normally available to a third party contractor using current handbooks, publications, or other documented costs acceptable to the department. The cost estimate shall include at a minimum the costs for the following:(ii) Remediation of any contamination of the air, surface water, or groundwater that is in violation of the mining permit.(iii) Administrative oversight.(iv) Reasonable contingencies.(v) Other necessary environmental protection measures.(d) The amount of an assurance instrument shall include any possible fees assessed by the issuing institution for accessing the instrument.(3) The financial assurance required under this rule shall consist of an assurance instrument or combination of instruments covering at least 75% of the total required amount. Financial assurance for the balance of the required amount, if any, shall consist of a statement of financial responsibility. When determining the portion of the financial assurance required under this rule that may be satisfied by a statement of financial responsibility, the department shall consider the following:(a) The ability of the operator to pay for potential remediation costs in the case of a violation of this part, as demonstrated by the information in the statement of financial responsibility.(b) Whether the operator carries pollution prevention or environmental liability insurance, and if so, the amount of the insurance.(c) Whether the operator has received a recognized third-party certification of an environmental management system for mining operations.Mich. Admin. Code R. 425.301