Mich. Admin. Code R. 425.15 - Surety or security bond

Rule 15.

(1) The supervisor, if he has reasonable doubts as to an operator's financial ability to comply with the rules as to actions to be taken after completion of mining operations, or any phase thereof, may require an operator to file a surety bond in an amount equal to the expected cost of reclamation for each acre, or fraction thereof, of the area subjected to mining.

(2) In determining the amount of the surety bond or security bond the supervisor shall take into consideration the character and nature of the lands to be reclaimed, the future suitable use of the land involved, and the cost of the reclamation to be required.

(3) A security bond in the amount equal to the required surety bond may be deposited in lieu of a surety bond. A security bond shall consist of cash or negotiable securities and shall be deposited with the department of treasury. The securities shall be registered in the name of the state treasurer, who shall charge a fee sufficient to reimburse him for not less than actual and necessary expenses incurred in connection with the deposits.

(4) The supervisor shall have reasonable doubts as to an operator's financial ability to comply with the rules as to actions to be taken after completion of mining operation or any phase thereof when, upon the request of the supervisor, the operator cannot demonstrate that he has the financial ability to perform the reclamation as required by the act and rules.

Notes

Mich. Admin. Code R. 425.15

1979 AC