MARVIN MANDEL, Governor

2797

(D) THE BOND SHALL BE EXECUTED BY THE OPERATOR AND
CORPORATE SURETY LICENSED TO DO BUSINESS IN THE STATE.
IN LIEU OF A CORPORATE SURETY, EITHER OF THE FOLLOWING
SHALL BE ACCEPTABLE:

(1)    DEPOSITS OF CASH OR NEGOTIABLE BONDS OF
THE UNITED STATES GOVERNMENT. THE CASH DEPOSIT OR MARKET
VALUE OF THE SECURITIES SHALL BE EQUAL AT LEAST TO THE
REQUIRED SUM OF THE BOND. THE DEPARTMENT, ON RECEIPT OF
ANY DEPOSIT OF CASH OR SECURITIES, IMMEDIATELY SHALL
FORWARD IT TO THE STATE TREASURER, WHO SHALL RECEIVE AND
HOLD THE BOND IN THE NAME OF THE STATE, IN TRUST, FOR THE
PURPOSES FOR WHICH THE DEPOSIT IS MADE. THE STATE
TREASURER AT ALL TIMES IS RESPONSIBLE FOR THE CUSTODY AND
SAFEKEEPING OF THESE DEPOSITS. THE OPERATOR MAKING THE
DEPOSIT MAY DEMAND AND RECEIVE FROM THE STATE TREASURER
THE WHOLE OR ANY PORTION OF ANY SECURITIES SO DEPOSITED,
ON DEPOSITING WITH THE STATE TREASURER OTHER NEGOTIABLE
SECURITIES OF THE CLASSES SPECIFIED IN THIS SECTION
HAVING A MARKET VALUE AT LEAST EQUAL TO THE SUM OF THE
BOND; OR

(2)     A CERTIFICATE OF DEPOSIT IF IT IS
EQUIVALENT TO THE REQUIRED BOND, ISSUED BY A BANK WITHIN
THE STATE, AND ACCOMPANIED BY WRITTEN AGREEMENT OF THE
BANK TO PAY ON DEMAND TO THE STATE IN EVENT OF FORFEIT.

[[7-7B21]] 7-6A21. RELEASE OF BOND.

(A)   FULL RELEASE.

ON COMPLETION OF THE MINING OPERATIONS, AND AFTER
THE REQUIREMENTS OF THE PERMIT HAVE BEEN FULLY COMPLIED
WITH, THE DEPARTMENT SHALL RELEASE THE BOND.

(B)   PARTIAL RELEASE.

AN AMOUNT OF THE BOND OR CASH DEPOSIT, PROPORTIONED
TO THE RESTORED PORTION OF THE AFFECTED LAND IN RATIO TO
ALL OF THE AFFECTED LAND COVERED BY THE PERMIT, MAY BE
RELEASED ON APPLICATION BY THE OPERATOR AND INSPECTION
AND APPROVAL BY THE DEPARTMENT.

[[7-7B22]] 7-6A22. FORFEITURE OF BOND.

(A) THE PERFORMANCE BOND OR CASH DEPOSIT IN LIEU OF
A BOND SHALL BE FORFEITED ON FAILURE OF THE OPERATOR TO
PERFORM IN THE MANNER SET FORTH IN THE AUTHORIZED MINING
AND RECLAMATION PLAN AND TO RECLAIM THE LAND AS PROVIDED
FOR IN THE PERMIT OR UPON REVOCATION OF THE PERMIT. THE
DEPARTMENT SHALL NOTIFY THE OPERATOR BY REGISTERED MAIL
OF ITS INTENTION TO INITIATE FORFEITURE PROCEEDINGS. THE
OPERATOR HAS 30 DAYS TO SHOW CAUSE WHY THE BOND OR CASH
DEPOSIT SHOULD NOT BE FORFEITED.