The Surface Mining Conservation and Reclamation Act and 25 PA Code Chapter 86 were revised to authorize Remining Incentives to include bonding incentives.   The Remining Financial Assurance Fund was established to fund the bonding incentives programs.   Reclamation Bond Credits and Financial Guarantees are two of the programs established to encourage the remining and reclamation of abandoned mine lands.

A qualified mine operator can obtain bond credit for reclamation work completed under an agreement with the Department.   The bond credit can be used to satisfy the operator's bonding obligation on mining permits issued by the Department.    Each bond credit can be used two times.   Bond credits will be the first bonds released on a mining permit.

Procedures:

1. The first step in obtaining bond credits is to discuss the proposed project with the appropriate District Mining Office Remining Coordinator.   The Remining Coordinator will verify the availability of funds and whether the operator and the site qualifies for the bond credit program.   If the tentative plan is acceptable, funds based on the estimated cost of the project will be reserved for 30 days to allow the operator time to submit a reclamation plan.

2. The operator must submit a reclamation plan for the site.   The plan will include:
• A brief narrative describing how reclamation will be accomplished including a cost estimate and a proposed project completion date.
• A U.S.G.S. topographic map with the proposed reclamation site delineated.
• Right of Entry forms for each property to be affected. (example attached)
• An operation map accurately delineating the property(s) to be affected, the location of support facilities and reclamation details.
• An erosion and sedimentation control plan.
• A revegetation plan which includes a description of the soil/top material to be used, nutrients and soil amendments to be added, seed bed preparation, seed mixtures and application rates and woody plant species to be planted with proposed survival rates.
• Applicable stream and wetland encroachments and N.P.D.E.S. permits.

3. The Department will review the reclamation plan and calculate the Department's cost to reclaim the site.   The amount of the bond credit will be the lessor of the operator's cost and the Department's cost.

4. When the plan is approved and the amount of the bond credit determined, the Department and the operator will enter into a consent order and agreement specifying what work will be completed and the amount of the bond credit to be given for the work.

5. When the work is completed in accordance with the consent order and agreement, the site will be monitored to insure successful revegetation.   Sites revegetated with grasses will be monitored for at least one year from the date of initial planting.   Sites revegetated with trees will be monitored for two growing seasons (Spring and Fall).

6. The Department will issue the bond credit letter once the work has been completed and vegetation successfully established.   The operator can submit the bond credit letter to bond areas on mining permits issued by the Department or they may transfer the bond credit to another qualified operator.   Bond credit can be rolled over on a mining permit.   The roll over will not count as one of the two uses of the bond credit.

A qualified operator can bond the remining areas on a surface mining permit under the Financial Guarantees Program.  An operator should check with the appropriate District Mining Office to ensure that adequate funds are available.   The operator must demonstrate that they qualify for the program by submitting the attached qualification form and supporting documentation.

The operator submits a surface mining permit, or new bonding increment for an existing surface mining permit, and includes the following:

• A cover letter requesting to participate in the Financial Guarantees Program.
• The operator qualification check list.
• An Exhibit 9 operations map delineating the remining area.   This area may include the abandoned mine lands the operator is going to reaffect and up to 300 feet of previously undisturbed land surrounding it, including spoil, topsoil storage areas and erosion and sedimentation controls for the remining area.
• Calculate the amount of the bond for the remining area.

The Department will review the application and verify the extent of the remining area.   The operator will not be required to pay the per acre reclamation fee for the remining area but will be required to pay an annual fee.   The annual fee is 1% of the current bond rate multiplied by the number of remining acres.   The first payment must be submitted prior to permit issuance.   Subsequent payments will be due on the anniversary of the permit issuance date.   The payments are not refundable.

Financial guarantees cannot be used to replace existing surety or collateral bonds.   The regulations established limitations on the amount of financial guarantees allowed on a permit and for each operator.   The limits for each permit are 10% of the amount in the special account for financial guarantees and each operator is limited to 30% of the fund.  The financial guarantees will be the first bonds released on a permit and cannot be rolled over to other areas on a permit.