16 Tex. Admin. Code § 12.314 - Forfeiture of Bonds

(a) The Commission may forfeit all or part of a bond for any permit area or an increment of a permit area if reclamation operations are not conducted in accordance with the reclamation plan or the operator defaults on the conditions under which the bond was posted.

(b) The Commission may withhold forfeiture if the permittee and surety, if any, agree to a compliance schedule to comply with the violations of the permit or bond conditions.

(c) The Commission may allow the surety to complete the reclamation plan if the surety can demonstrate the ability to complete the reclamation plan, including achievement of the capability to support the alternative post-mining land use approved by the Commission. No bond shall be released, except for partial releases authorized under § 12.313 of this title (relating to Criteria and Schedule for Release of Performance Bond), until successful completion of all reclamation under the terms of the permit, including applicable liability periods of § 12.306 of this title (relating to Period of Liability).

(d) In the event forfeiture of the bond is required by this section, the Commission shall:

(1) send written notification by certified mail, return receipt requested, to the permittee and the surety on the bond, if any, of the Commission's determination to forfeit all or part of the bond and reasons for the forfeiture, including a finding of the amount to be forfeited;

(2) advise the permittee and surety, if applicable, of any rights of appeal that may be available from the determination under state law;

(3) proceed in an action for collection on the bond as provided by applicable laws for the collection of defaulted bonds or other debts, consistent with this section, for the amount forfeited, if an appeal is not filed within a time established by the Commission and a stay of collection issued by the hearing authority or such appeal is unsuccessful; and

(4) if an appeal is filed, defend the action.

(e) The written determination to forfeit all or part of the bond, including the reasons for forfeiture and the amount to be forfeited, shall be a final decision by the Commission.

(f) Upon default, the Commission may forfeit any and all bonds deposited to complete those reclamation operations for which the bonds were posted.

(g) The Commission shall utilize funds collected from bond forfeiture to complete the reclamation plan on the permit area on which bond coverage applies and to cover associated administrative expenses.

Notes

16 Tex. Admin. Code § 12.314

The provisions of this §12.314 adopted to be effective April 7, 1997, 22 TexReg 3093.