30 CFR 800.50 - When and how will a bond be forfeited?
(a) If a permittee or operator refuses or is unable to conduct reclamation of an unabated violation, if the terms of the permit are not met, or if the permittee or operator defaults on the conditions under which the bond was accepted, the regulatory authority must take the following action to forfeit all or part of a bond or bonds for any permit area or an increment of a permit area:
(i) Send written notification by certified mail, return receipt requested, to the permittee and the surety on the bond, if any, informing them of the determination to forfeit all or part of the bond, including the reasons for the forfeiture and the amount to be forfeited.
(ii) If the amount to be forfeited under paragraph (a)(1)(i) of this section is less than the total amount of bond posted, the amount forfeited must be no less than the estimated total cost of achieving the reclamation plan requirements. For a discharge that requires long-term treatment, the regulatory authority must calculate the estimated total cost of achieving the reclamation plan requirements for that discharge in a manner consistent with § 800.18(c) of this part.
(2) Advise the permittee and surety, if applicable, of the conditions under which forfeiture may be avoided. Those conditions may include, but are not limited to -
(i) Agreement by the permittee or another party to perform reclamation operations in accordance with a compliance schedule that meets the conditions of the permit, the reclamation plan, and the regulatory program and a demonstration that the party has the ability to satisfy the conditions; or
(ii) The regulatory authority may allow a surety to complete the reclamation plan, or the portion of the reclamation plan applicable to the bonded phase or increment if the surety can demonstrate an ability to complete the reclamation in accordance with the approved reclamation plan. Except where the reclamation work performed meets the criteria for partial bond release under § 800.42 of this part, no surety liability may be released until successful completion of all reclamation under the terms of the permit, including applicable liability periods of § 800.13 of this part.
(b) In the event forfeiture of the bond is required by this section, the regulatory authority shall -
(1) Proceed to collect the forfeited amount as provided by applicable laws for the collection of defaulted bonds or other debts if actions to avoid forfeiture have not been taken, or if rights of appeal, if any, have not been exercised within a time established by the regulatory authority, or if such appeal, if taken, is unsuccessful.
(c) Upon default, the regulatory authority may cause the forfeiture of any and all bonds deposited to complete reclamation for which the bonds were posted. Unless specifically limited, as provided in § 800.11(c) of this part, bond liability will extend to the entire permit area under conditions of forfeiture.
(1) In the event the estimated amount forfeited is insufficient to pay for the full cost of reclamation, the permittee or operator is liable for remaining costs. The regulatory authority may complete, or authorize completion of, reclamation of the bonded area and may recover from the permittee or operator all costs of reclamation in excess of the amount forfeited.
(2) In the event the amount of performance bond forfeited is more than the amount necessary to complete reclamation, the regulatory authority must return the unused funds to the party from whom they were collected.
- 30 CFR 800.11 — When and How Must I File a Performance Bond?
- 30 CFR 800.4 — Regulatory Authority Responsibilities.
- 30 CFR 817.121 — What Measures Must I Take to Prevent, Control, or Correct Damage Resulting From Subsidence?
- 30 CFR 800.21 — What Additional Requirements Apply to Collateral Bonds?
- 30 CFR 800.23 — What Additional Requirements Apply to Self-Bonds?
- 30 CFR 701.5 — Definitions.
- 30 CFR 773.20 — What Actions Must the Regulatory Authority Take When a Permit Is Issued on the Basis of Inaccurate Information?
- 30 CFR 800.9 — What Requirements Apply to Alternative Bonding Systems?