State Codes and Statutes

Statutes > Utah > Title-40 > Chapter-10 > 40-10-15

40-10-15. Performance bond -- Duration of liability under bond -- Cash deposit orsecurities in lieu of bond -- Surety -- Adjustment of amount.
(1) After a surface coal mining and reclamation permit application has been approved butbefore the permit is issued, the applicant shall file with the division on a form prescribed andfurnished by the division, a bond for performance which is payable to the state and the UnitedStates, if appropriate, which is conditioned on faithful performance of all the requirements of thischapter and the permit. The bond shall cover that area of land within the permit area upon whichthe operator will initiate and conduct surface coal mining and reclamation operations within theinitial term of the permit. As succeeding increments of surface coal mining and reclamationoperations are to be initiated and conducted within the permit area, the permittee shall file withthe division an additional bond or bonds to cover these increments in accordance with this section. The amount of the bond required for each bonded area shall depend upon the reclamationrequirements of the approved permit; shall reflect the probable difficulty of reclamation, givingconsideration to such factors as topography, geology of the site, hydrology, and revegetationpotential; and shall be determined by the division. The amount of the bond shall be sufficient toassure the completion of the reclamation plan if the work had to be performed by the division inthe event of forfeiture and in no case shall the bond for the entire area under one permit be lessthan $10,000.
(2) Liability under the bond shall be for the duration of the surface coal mining andreclamation operation and for a period coincident with the operator's responsibility forrevegetation requirements in Section 40-10-17. The bond shall be executed by the operator and acorporate surety licensed to do business in the state, except that the operator may elect to depositcash, negotiable bonds of the United States government, or negotiable certificates of deposit ofany bank organized or transacting business in the United States. The cash deposit or market valueof the securities shall be equal to or greater than the amount of the bond required for the bondedarea.
(3) The division may accept the bond of the applicant itself without separate surety whenthe applicant demonstrates to the satisfaction of the division the existence of a suitable agent toreceive service of process and a history of financial solvency and continuous operation sufficientfor authorization to self-insure or bond the amount.
(4) Cash or securities so deposited shall be deposited upon the same terms as the termsupon which surety bonds may be deposited. The securities shall be security for the repayment ofthe negotiable certificate of deposit.
(5) The amount of the bond, surety, or deposit required and the terms of each acceptanceof the applicant's bond shall be adjusted by the division from time to time as affected landacreages are increased or decreased or where the cost of future reclamation changes.

Amended by Chapter 219, 1994 General Session