MARVIN MANDEL, Governor                                      989

FOR A PERMIT HAS BEEN APPROVED, BUT PRIOR TO
COMMENCING OPEN-PIT MINING, THE OPERATOR SHALL FILE ON
A FORM FURNISHED BY THE BUREAU, A BOND FOR EACH
OPERATION PAYABLE TO THE STATE AND CONDITIONED THAT
THE OPERATOR WILL PERFORM FAITHFULLY EVERY REQUIREMENT
OF THIS SUBTITLE. THE BOND SHALL BE FOR $400 PER ACRE
BASED ON THE NUMBER OF ACRES OF LAND AFFECTED.
HOWEVER, NO BOND MAY BE FILED FOR LESS THAN $3,000.
THE LIABILITY OF THE OPERATOR UNDER THE BOND SHALL BE
FOR THE DURATION OF OPEN-PIT MINING AT EACH OPERATION,
AND FOR A PERIOD OF FIVE YEARS THEREAFTER, UNLESS HE
IS RELEASED PRIOR TO THAT TIME OR HIS LIABILITY IS
EXTENDED FOR A LONGER PERIOD IN A PORTION RESERVED FOR
HAULAGE WAYS, DEEP MINING, OR AUGER MINING LOCATIONS
AS PROVIDED IN §7-509(B). THE BOND SHALL BE EXECUTED
BY THE OPERATOR AND A CORPORATE SURETY LICENSED TO DO
BUSINESS IN THE STATE. INSTEAD OF A CORPORATE SURETY,
EITHER OF THE FOLLOWING IS ACCEPTABLE:

(1)    A DEPOSIT OF CASH OR NEGOTIABLE BONDS
OF THE UNITED STATES GOVERNMENT. THE CASH DEPOSIT OR
MARKET VALUE OF THE SECURITIES SHALL BE AT LEAST
EQUAL TO THE REQUIRED SUM OF THE BOND. ON RECEIPT OF
A DEPOSIT OF CASH OR SECURITIES, THE DIRECTOR
IMMEDIATELY SHALL PLACE IT WITH THE STATE TREASURER,
WHO SHALL RECEIVE AND HOLD THE DEPOSIT IN TRUST, IN
THE NAME OF THE STATE FOR THE PURPOSES FOR WHICH IT IS
MADE. THE STATE TREASURER IS RESPONSIBLE FOR THE
CUSTODY AND SAFEKEEPING OF THE DEPOSIT. THE OPERATOR,
MAKING THE DEPOSIT, MAY DEMAND AND RECEIVE FROM THE
STATE TREASURER ALL OR ANY PORTION OF ANY DEPOSITED
SECURITIES, IF HE REPLACES THEM WITH OTHER NEGOTIABLE
SECURITIES OF THE CLASS SPECIFIED AS HAVING A MARKET
VALUE AT LEAST EQUAL TO THE SUM OF THE BOND; OR

(2)    A CERTIFICATE OF DEPOSIT IN AN AMOUNT
EQUIVALENT TO THE REQUIRED BOND, ISSUED BY A BANK IN
THE STATE, AND ACCOMPANIED BY WRITTEN AGREEMENT OF THE
BANK TO PAY ON DEMAND TO THE STATE IN THE EVENT OF
FORFEITURE.

REVISOR'S NOTE: This subsection presently appears
as Article 66C, section 663 (a) of the Code.
The only changes made are in style.

(B) ADDITIONAL BOND; AMENDED PERMIT.—THE
OPERATOR SHALL POST AN ADDITIONAL BOND PRIOR TO
COMMENCING OPERATIONS ON ANY ADDITIONAL ACREAGE
EXCEEDING THAT COVERED BY THE ORIGINAL BOND MADE IN
THE APPLICATION FOR A PERMIT. ON RECEIPT OF THE
ADDITIONAL BOND AND MATERIAL WHICH WOULD HAVE BEEN