Section NR 132.116 - Reclamation bond and other financial assurance securities(1)(a) Upon notification that a mining permit has been issued by the department but prior to commencing mining, the operator shall file with the department a bond conditioned on faithful performance of all of the requirements of this chapter and ch. 293, Stats. In lieu of a bond, the operator may deposit cash, certificates of deposit, or government securities with the department. Interest received on certificates of deposit and government securities shall be paid to the operator. The amount of the bond or other security required shall be equal to the estimated cost to the state of fulfilling the reclamation plan, in relation to that portion of the site that will be disturbed by the end of the following year. The department shall determine the estimated cost of reclamation of each mining site on the basis of relevant factors including expected changes in the price index, topography of the site, methods being employed, depth and composition of overburden, and depth of nonferrous metallic mineral deposit being mined.(b) The department, as provided under s. 293.53(1) (a), Stats., may increase the amount of the bond, cash, certificates of deposit, or government security filed under par. (a), to assure adequate financing for the reclamation plan.(c) A bond filed under par. (a) shall be issued by a surety company licensed to do business in Wisconsin. If the surety company's license to do business is revoked or suspended, the operator, within 30 days after receiving written notice thereof from the department, shall substitute surety underwritten by a surety company licensed to do business in Wisconsin. Upon failure of the operator to make a substitution, the department shall suspend the operator's mining permit until an acceptable substitute surety has been submitted.(d) A bond filed under par. (a) shall provide that the bond shall not be canceled by the surety, except after not less than 90 days' notice to the department in writing by registered or certified mail. Not less than 30 days prior to the expiration of the 90-day notice of cancellation, the operator shall deliver to the department a replacement bond in the absence of which all mining shall cease.(2) Upon notification that a mining permit has been issued by the department but prior to commencing mining, the operator shall file with the department a bond issued by a surety company licensed to do business in this state, cash, certificates of deposit, or government security, to cover unforeseen remedial contingencies not otherwise covered by the bonds or other security required under sub. (1) or (5), including for the provision of a replacement water supply if required under s. 293.65(4) (d), Stats. The amount of the bond or other security required shall be 10 percent of the total amount of the bonds or other security required under subs. (1) and (5). The operator shall increase, and may decrease, the amount of the bond or other security under this subsection according to any increase or decrease in the amount of the bonds or other security required under sub. (1) or (5) until the operator ceases to extract material from the mining site, at which point the amount of the bond or other security under this subsection shall remain the same until released by the department. The bond or other security under this subsection shall be released no later than 40 years after the operator ceases to extract material from the mining site.(3) The applicant shall submit a certificate of insurance certifying that the applicant has in force a liability insurance policy issued by an insurer authorized to do business in this state, or in lieu of a certificate of insurance evidence that the applicant has satisfied state or federal self-insurance requirements, covering all mining operations of the applicant in this state and affording personal injury and property damage protection in a total amount deemed adequate by the department but not less than $50,000.(4) Upon approval of the financial instruments related to cost of reclamation under sub. (1) and unforeseen remedial contingency costs under sub. (2), and the certificate of insurance under sub. (3), the department shall issue written authorization to commence mining at the permitted mining site in accordance with the mining permit and approved mining and reclamation plans.(5) If the department approves a mining waste site as part of a permitted mining project, the owner shall maintain proof of financial responsibility ensuring the availability of funds for compliance with the long-term care requirements specified in the waste site feasibility study and plan of operation in accordance with ss. 293.51(1g) and 289.41, Stats., and ch. NR 182. Proof of financial responsibility for long term care shall be submitted prior to operation of the mining waste facility.(6) The operator shall provide and maintain proof of financial responsibility as required under s. 293.51(1r), Stats., related to replacement of engineered cover systems or water management control systems used at the mining site or mining waste site to avoid adverse environmental consequences following closure of the mining waste site. The department shall determine the amount of the security required under this subsection as provided in s. 293.51(1r), Stats., and shall specify the amount as part of the mining permit and reclamation plan approval. An operator shall submit proof of financial responsibility under this subsection at the time of closure of the mining waste site and in accordance with provisions of ch. NR 182.Wis. Admin. Code Department of Natural Resources NR 132.116
Adopted by, CR 20-043: cr. Register December 2021 No. 792, eff. 1-1-22; correction in (5) made under s. 35.17, Stats., Register December 2021 No. 792, eff. 1/1/2022