N.M. Admin. Code § 19.8.14.1406 - GENERAL TERMS AND CONDITIONS OF BOND
A. The performance bond shall be in an amount
determined by the director as provided in
19.8.14.1405 NMAC.
B. The performance bond shall be payable to
the state of New Mexico.
C. The
performance bond shall be conditioned upon faithful performance of all the
requirements of the act, 19.8.14 NMAC, the regulatory program, and the approved
permit, including completion of the reclamation plan.
D. The duration of the bond shall be for the
time period provided in
19.8.14.1403 NMAC.
E. Insolvency or bankruptcy.
(1) The bond shall provide a mechanism for a
bank or surety company to give prompt notice to the director and the permittee
of any action filed alleging the insolvency or bankruptcy of the surety
company, the bank, or the permittee, or alleging any violations which would
result in suspension or revocation of the surety or bank charter or license to
do business.
(2) Upon the
incapacity of a bank or surety company by reason of bankruptcy, insolvency, or
suspension or revocation of a charter or license, the permittee shall be deemed
to be without bond coverage and shall promptly notify the director. The
director, upon notification received through procedures of Paragraph (1) of
Subsection E of
19.8.14.1406 NMAC or from the
permittee, shall, in writing, notify the operator who is without bond coverage
and specify a reasonable period, not to exceed 90 days, to replace bond
coverage. If an adequate bond is not posted by the end of the period allowed,
the operator shall cease coal extraction and shall comply with the provisions
of 19.8.20.2074 NMAC and shall
immediately begin to conduct reclamation operations in accordance with the
reclamation plan. Mining operations shall not resume until the director has
determined that an acceptable bond has been posted.
Notes
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