CHAPTER 8. BOND POOL
IC 14-34-8
Chapter 8. Bond Pool
IC 14-34-8-1
"Bond pool" defined
Sec. 1. As used in this chapter, "bond pool" refers to the surfacecoal mine reclamation bond pool established by this chapter.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-2
"Committee" defined
Sec. 2. As used in this chapter, "committee" refers to the surfacecoal mine reclamation bond pool committee established by thischapter.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-3
Surface coal mine reclamation bond pool
Sec. 3. The surface coal mine reclamation bond pool isestablished to be used for surface coal mine reclamation under thischapter. The department shall administer the bond pool.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-4
Participation in bond pool
Sec. 4. (a) As used in this section, "mining" includes contractmining.
(b) As used in this section, "operator" includes a predecessor ininterest, subsidiaries, and affiliates as approved by the director.
(c) Participation in the bond pool is open to each operatorapplying for a permit under this article who, after May 3, 1978, hasa five (5) year history of mining within Indiana and who meets thefollowing conditions:
(1) Is not subject to an outstanding cessation order issued under:
(A) IC 13-4.1-11-5 (before its repeal); or
(B) IC 14-34-15-6.
(2) Does not owe a civil penalty under:
(A) IC 13-4.1-12 (before its repeal);
(B) IC 14-34-16; or
(C) the federal Surface Mining Control and Reclamation Actof 1977 (30 U.S.C. 1201 through 1328).
(3) Does not:
(A) owe a fee:
(i) under IC 13-4.1 (before its repeal);
(ii) under this article; or
(iii) collected under the federal Surface Mining Controland Reclamation Act of 1977 (30 U.S.C. 1201 through1328); or
(B) have a history of delinquency in the payment of fees orcivil penalties. (4) Has never been suspended under:
(A) IC 13-4.1-6.5-6 (before its repeal); or
(B) section 6 of this chapter.
(d) Participation in the bond pool is:
(1) optional for each permit application;
(2) subject to approval by the director; and
(3) not effective until the entrance fee has been paid in full.
(e) The director may, based on all available information,disapprove an application that may create an unreasonable risk to thebond pool.
(f) This chapter does not preclude compliance with IC 14-34-6instead of participation in the bond pool before commencement ofparticipation in the bond pool.
(g) Commencement of participation in the bond pool for theapplicable permit constitutes an irrevocable commitment toparticipate in the bond pool for the applicable permit for the durationof the surface coal mining operations covered under the permit,unless the operator has replaced all bond pool liability with bondsacceptable under IC 14-34-6-1.
(h) An operator may apply for participation in the bond pool ona bond increment area under an existing permit. Commencement ofparticipation in the bond pool for the bond increment area, within anexisting permit, constitutes an irrevocable commitment to participatein the bond pool for the duration of that surface coal mining permit,unless the operator has replaced all bond pool liability with bondsacceptable under IC 14-34-6-1.
As added by P.L.1-1995, SEC.27. Amended by P.L.71-2004, SEC.28.
IC 14-34-8-5
Fees for participation in bond pool
Sec. 5. (a) An application for participation in the bond pool mustbe accompanied by an entrance fee of one thousand dollars ($1,000).The fees collected under this section shall be deposited in thepost-1977 abandoned mine reclamation fund under IC 14-34-6-15and dedicated as collateral for the bond pool. The entrance fee is notrequired on subsequent permits or bond increments after an operatorhas been accepted for participation in the bond pool.
(b) In addition to the initial payments to the bond pool undersubsection (a), an operator electing to participate in the bond poolmust furnish a bond in an amount adequate to ensure phase Ireclamation, except as provided in subsection (c).
(c) The director may accept:
(1) the bond of an operator without separate surety under theself-bonding provisions of IC 14-34-7; or
(2) deposits in lieu of bond under IC 14-34-6-5.
(d) Subject to subsection (e), fees and payments under this chapterare:
(1) not refundable; and
(2) in addition to all other fees required under this article.
(e) The entrance fee required under subsection (a) is refundable
if the application is rejected.
(f) Bond pool participants may post incremental bonds underIC 14-34-6-1. The bonds may be posted in increments according toa schedule contained in the approved permit application.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-6
Suspension from bond pool
Sec. 6. (a) Subject to subsection (c), an operator is suspendedfrom the bond pool if the operator:
(1) fails to pay a fee or civil penalty under:
(A) IC 13-4.1 (before its repeal);
(B) this article; or
(C) the federal Surface Mining Control and Reclamation Actof 1977 (30 U.S.C. 1201 through 1328); or
(2) receives a cessation order that is not abated.
(b) If the final release of a bond has not been obtained within ten(10) years after the date of the last required report of the affectedarea for the permit, including new disturbances, the director mayrequire the operator to:
(1) replace the bond pool liability with bonds acceptable underIC 14-34-6-1; and
(2) withdraw that operation from the bond pool.
If the operator fails to comply with the director's order to withdrawa mine area from the bond pool, the director may suspend theoperator from the bond pool.
(c) An operator is not suspended from the bond pool if thedirector makes a written determination that mitigating circumstancesare present that would not create an unreasonable risk to the bondpool if the operator's participation continues.
(d) An operator who is suspended from the bond pool shall ceaseall surface coal mining operations until the operator furnishes a newperformance bond under IC 14-34-6-1 in an amount calculated underIC 14-34-6-2 for all disturbed areas and proposed additional miningareas under the permit. When the new performance bond has beenexecuted, the bond pool has no additional liability for reclamation onany part of the area covered by the applicable permit.
As added by P.L.1-1995, SEC.27. Amended by P.L.71-2004, SEC.29.
IC 14-34-8-7
Release of bond or other surety
Sec. 7. The bond or other surety furnished by the operator undersection 5 of this chapter shall be released by the director when theoperator completes the backfilling, regrading, and drainage controlof a bonded area in accordance with the operator's approvedreclamation plan.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-8
Fees per acre for bond Sec. 8. (a) When an operator furnishes a bond under section 5 ofthis chapter to participate in the bond pool, the operator shall pay afee of twenty-five dollars ($25) per bonded acre into the bond pool.
(b) After the bond or other surety has been released under section7 of this chapter, the operator shall annually pay ten dollars ($10) peracre on the areas affected to the bond pool until phase II bond releaseis approved.
(c) After revegetation is established, the operator shall pay to thebond pool fund the following:
(1) Five dollars ($5) per acre per year for the first three (3)years.
(2) Ten dollars ($10) per acre per year after the first three (3)years on the areas affected until phase III bond release isapproved.
(d) All fees collected under this section shall be:
(1) deposited in the post-1977 abandoned mine reclamationfund established by IC 14-34-6-15; and
(2) dedicated as collateral for the bond pool.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-9
Use of bond pool money to complete reclamation
Sec. 9. After all available money furnished for a permit undersection 5(b) and 5(c) of this chapter is exhausted under section 10 ofthis chapter, the money in the bond pool is available for thecompletion of reclamation necessary to achieve phase II and phaseIII bond release according to the approved reclamation plan onpermitted areas covered by the bond pool by participating operators.The bond pool may not be used to complete reclamation on any areasnot permitted and bonded under this chapter.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-10
Forfeiture of bonds
Sec. 10. (a) Forfeiture of bonds of an operator participating in thebond pool shall be accomplished under IC 14-34-6-16. In addition toforfeiture, the director may proceed against the permittee of thesurface coal mining operation by filing a civil action for injunctiveor other relief in any court having jurisdiction to compel thepermittee to perform the reclamation work in full compliance withthis article, the rules adopted under this article, and the approvedpermit plans. The director may also file an action in any court havingjurisdiction against the permittee to recover all money expended bythe bond pool to accomplish the reclamation, including constructioncosts, engineering costs, administrative costs, and legal costs. In anaction to recover these costs, the defendant may not do the following:
(1) Relitigate the facts giving rise to the forfeiture.
(2) Defend by claiming the forfeiture was improper.
(b) A:
(1) proceeding under this section does not constitute a waiver
by the director to proceed under other provisions of this article;and
(2) commencement of action under one (1) provision does notconstitute an election to proceed solely under that provision.
(c) Liability of participants in the bond pool for reclamation ofareas disturbed by other operators is limited to fees paid into thebond pool under sections 5 and 8 of this chapter.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-11
Surface coal mine reclamation bond pool committee
Sec. 11. (a) The surface coal mine reclamation bond poolcommittee is established. The committee consists of the following:
(1) Five (5) members appointed by the director as follows:
(A) Three (3) members must represent a cross-section ofcoal operators.
(B) One (1) member must be a member of the commission.
(C) One (1) member must be a representative of the publicwith knowledge of reclamation performance guarantees.
(2) The director or the director's designee, who is a nonvotingmember.
(b) The term of each member is four (4) years beginning July 1.The director may remove an appointed member for cause.
(c) The committee shall do the following:
(1) Annually elect a chairman.
(2) Adopt rules for organization and procedure.
(d) Each member of the committee who is not a state employee isentitled to the minimum salary per diem provided byIC 4-10-11-2.1(b). The member is also entitled to reimbursement fortraveling expenses and other expenses actually incurred inconnection with the member's duties as provided in the state travelpolicies and procedures established by the Indiana department ofadministration and approved by the budget agency.
(e) The committee shall, acting in an advisory capacity to thedirector, do the following:
(1) Meet as necessary to perform duties under this chapter, butnot less than one (1) time each year, for the purpose offormulating recommendations to the director concerningoversight of the general operation of the bond pool.
(2) Review and make recommendations concerning thefollowing:
(A) All proposed expenses from the bond pool.
(B) All applications for admission to the bond pool.
(f) The director shall report annually to the committee and to thegovernor on the status of the bond pool.
As added by P.L.1-1995, SEC.27. Amended by P.L.71-2004, SEC.30.