Section 53-9-31 - Surface coal mining and reclamation permit; filing, deposit, and adjustment of bond; requirement of surety; liability under bond(1) The applicant shall file with the department, in the manner and form as required by the commission, a bond for performance payable to the commission and conditional upon faithful performance of the requirements of this chapter and the permit. The bond shall be filed before the issuance of a permit. The bond shall cover that area of land within the permit area upon which the operator will initiate and conduct surface coal mining and reclamation operations within the initial term of the permit. The permit area shall be readily identifiable by appropriate marks on the site. As succeeding increments of surface coal mining and reclamation operations are to be initiated and conducted within the permit area, the permittee shall file with the department an additional bond or bonds to cover those increments in accordance with this section. The amount of the bond required for each bonded area shall depend upon the reclamation requirements of the permit and shall reflect the probable difficulty of reclamation, giving consideration to factors such as topography, geology of the site, hydrology and revegetation potential. The amount of the bond shall be determined by the permit board after consultation with the state geologist. The amount of the bond shall be sufficient to assure the completion of the reclamation plan if the work had to be performed by the department in the event of forfeiture, and in no case shall the bond for the entire area under one (1) permit be less than Ten Thousand Dollars ($10,000.00).(2) Liability under the bond shall be for the duration of the surface coal mining and reclamation operation and for a period which coincides with the operator's responsibility for revegetation requirements in regulations promulgated under Section 53-9-45. The bond shall be executed by the operator and a corporate surety licensed to do business in this state. The operator may elect to deposit the following in lieu of the surety bond: cash, negotiable bonds of the United States government or the state, or negotiable certificates of deposit or a letter of credit of any bank organized or transacting business in the state and insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation or a similar federal banking or savings and loan insurance organization. The cash deposit or market value of the securities shall be equal to or greater than the amount of the bond required for the bonded area.(3) In accordance with any conditions established by the commission in regulations promulgated under this chapter, the permit board may accept the bond of the applicant itself without separate surety if the applicant demonstrates to the satisfaction of the permit board the existence of a suitable agent to receive service of process, a history of financial solvency and continuous operation sufficient for authorization to self-insure or bond that amount.(4) Cash, negotiable bonds, negotiable certificates of deposit, letters of credit or securities deposited as provided in subsection (2) of this section shall be deposited on the same terms upon which surety bonds may be deposited.(5) The amount of the financial assurance required and the terms of each acceptance of the applicant's financial assurance shall be adjusted by the permit board from time to time as affected land acreages are increased or decreased or where the cost of future reclamation changes.Laws, 1979, ch. 477, § 14; Laws, 1997, ch. 306, § 15, eff. 3/10/1997.